close

Вход

Забыли?

вход по аккаунту

?

62.Английский язык в сфере экономической безопасности

код для вставкиСкачать
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Министерство образования и науки Российской Федерации
Федеральное государственное бюджетное образовательное учреждение высшего
профессионального образования
«Оренбургский государственный университет»
К.В. Буркеева, Е.А. Мешкова
АНГЛИЙСКИЙ ЯЗЫК В СФЕРЕ
ЭКОНОМИЧЕСКОЙ БЕЗОПАСНОСТИ
Рекомендовано Ученым советом федерального государственного бюджетного
образовательного
учреждения
высшего
профессионального
образования
«Оренбургский государственный университет» в качестве учебного пособия для
студентов, обучающихся по программам высшего профессионального образования
по специальности 080101.65 Экономическая безопасность, профиль «Финансовый
учет и контроль в правоохранительных органах»
Оренбург
2014
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
УДК 338.22(075.8)
ББК 65-983я73
Б91
Рецензент - доцент, кандидат педагогических наук М.Ю. Крапивина
Б91
Буркеева, К.В.
Английский язык в сфере экономической безопасности:
учебное пособие/ К.В. Буркеева, Е.А. Мешкова;
Оренбургский гос. ун-т. - Оренбург: ОГУ, 2014.- 109 c.
ISBN
Данное учебное пособие предназначено для студентов финансовоэкономического факультета по специальности 080101.65 Экономическая
безопасность,
профиль
«Финансовый
учет
и
контроль
в
правоохранительных органах».
Пособие состоит девяти учебных блоков. Каждому тексту
предшествуют подготовительные упражнения, которые направлены на
снятие языковых трудностей восприятия текста.
Цель пособия - научить студентов читать и понимать оригинальную
литературу по специальности, развивать навыки профессиональной речи,
создать основу для развития навыков говорения по изученной тематике.
УДК 338.22(075.8)
ББК 65-983я73
ISBNддддддддддддддддддддддлллллллллллььььь  Буркеева К.В., Мешкова Е.А.
2014
 ОГУ, 2014
2
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Содержание
Введение…………………………………………………………………………........
4
1 Unit 1 The Economic Environment……………………………………………….....
6
2 Unit 2 Public Finance……………………………………………………………......
32
3 Unit 3 Economic Security……………………………………………………………
54
4 Unit 4 Contract Law…………………………………………………………………
77
5 Unit 5 Mutual Agreement……………………………………………………………
82
6 Unit 6 Kinds of Contracts……………………………………………………………
87
7 Unit 7 White-Collar Crime…………………………………………………………..
91
8 Unit 8 Computer Crimes……………………………………………………………..
98
9 Unit 9 Law Enforcement…………………………………………………………….
103
Список использованных источников……………………………………………….. 108
3
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Введение
Данное учебное пособие по дисциплине «Иностранный язык» предназначено
для
обучения
студентов
финансово-экономического
специализирующихся в области экономической безопасности.
факультета,
Основная
цель
учебного пособия – познакомить студентов с терминологией по данной
специальности, развить у них умения и навыки общения, а также чтения текстов по
специальности.
Учебное пособие состоит из 9 разделов, каждый из которых включает
аутентичные тексты на английском языке, вызывающие профессиональный интерес
студентов к содержанию текстов и дающие возможность высказываться по
проблемам их будущей специальности. Разделы условно разделены на две части.
Разделы с первого по четвертый
направлены на ознакомление студентов с
экономической лексикой, а разделы с пятого по девятый с юридической лексикой.
Каждому тексту предшествуют подготовительные упражнения, которые направлены
на снятие языковых трудностей восприятия текста.
Разнообразие
упражнений позволяет
преподавателю
дифференцировать
задания при обучении студентов с разным уровнем знаний. Частая повторяемость
лексики во всех разделах пособия обеспечивает прочное усвоение специальной
терминологии. Справочный материал по грамматике не предусмотрен. При
необходимости для выполнения упражнений студентам рекомендуется пользоваться
любыми
грамматическими
справочниками.
Дополнительные
тексты,
предложенные в пособии, отражают языковой материал и тематику основных
разделов. Они рекомендуются для внеаудиторного чтения с целью повторения и
закрепления изученной лексики.
Пособие построено в соответствии с требованиями рабочей программы
третьего
поколения
по
иностранному
языку
для
студентов
неязыковых
специальностей высших учебных заведений и предназначено для аудиторной
работы студентов.
4
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Практическая ценность пособия заключается в наличии аутентичного
материала, системы разнообразных упражнений на развитие аналитических,
коммуникативных умений, а также навыков перевода текстов по специальности с
использованием профессиональной терминологии как в аудитории под контролем
преподавателя, так и самостоятельно.
Материалы пособия направлены не только на расширение лингвистических
знаний, но и профессиональных средствами английского языка в процессе
выполнения коммуникативно – ориентированных заданий.
5
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
1 Unit 1 Economic environment
1.1 Before reading learn the following words and phrases which are essential to the
topic:
1) wants – потребности;
2) economic resources – экономические ресурсы;
3) limited – (adj) – ограниченный;
4) scarce (adj) – скудный, дефицитный, редкий;
5) raw materials – сырьевые ресурсы;
6) labour – resources людские ресурсы;
7) labour force – рабочая сила;
8) entrepreneurship – предпринимательство;
9) scarcity – недостаток, нехватка;
10) save (v) – копить, экономить, беречь;
11) utilize (v) – использовать;
12) production of goods and services – производство товаров и услуг;
13) solution (n) – решение;
14) bring about (v) – вызывать, приводить (к чему-л.);
15) economic growth – экономический рост;
16) employment (n) – занятость; занятие, служба, работа;
17) stable prices – стабильные цены;
18) equitable (adj) – справедливый;
19) distribution (n) –распределение;
20) revenue (n) – доход (получаемый от сбора налогов);
21) social security – социальное обеспечение;
22) free enterprise – свободное предпринимательство;
23) market economy – рыночная экономика;
24) compete (with) (v) – конкурировать (с кем-л.);
25) to make contact – устанавливать контакты;
26) to do business – вести дела;
6
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
27) allocation (n) – распределение, выделение (ресурсов);
28) transaction (n) – сделка;
29) factor of production – фактор производства;
30) income (n) – доход;
31) countless (adj) – бесчисленный, бессчетный;
32) consumer (n) – потребитель;
33) producer (n) – производитель;
34) the law of supply and demand – закон спроса и предложения;
35) exceed (v) – превышать;
36) tend (v) – иметь тенденцию;
37) act (v) – действовать;
38) to act on smb's/one's own behalf – действовать по чьему-либо поручению /
от своего имени;
39) rationing device – механизм распределения;
40) price mechanism – ценовой механизм;
41) direct (v) – направлять;
42) input (n) – вводимый ресурс;
43) guide (v) – направлять; определять;
44) composition (n) – состав, структура;
45) output (n) – выпуск, продукция;
46) govern (v) – управлять, регулировать;
47) market mechanism – рыночный механизм;
48) reflect (v) – отражать;
49) consumer preferences – предпочтение потребителей;
50) production costs – издержки производства;
51) determine (v) – определять;
52) interaction (n) – взаимодействие;
53) force of the market – фактор рынка;
54) competition (n) – конкуренция;
55) protect (v) – защищать;
7
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
56) benefit (from) (v) – извлекать (получать) выгоду;
57) economically (adv) – экономно;
58) sophisticated technology – сложная современная технология;
59) to seek profits – стремиться получить прибыль;
60) natural resources – природные ресурсы;
61) freedom of enterprise – свободное предпринимательство;
62) to be subject to – быть подверженным, зависеть от;
63) regulation (n) – правило, предписание;
64) business cycle – экономический цикл, цикл деловой активности;
65) alternate (v) – чередоваться;
66) rapid expansion – быстрое расширение;
67) recession (n) – спад производства;
68) unemployment (n) – безработица;
69) economic policy – экономическая политика;
70) fiscal policy – бюджетно–налоговая политика;
71) monetary policy – кредитно-денежная политика;
72) deal (with) (v) – иметь дело (с чём-л.; с кем-л.);
73) challenge (n) –сложная задача, проблема; вызов.
1.2 Read the text.
Text A. What is Economics all about?
It is characteristic of any society that while wants of people are growing constantly,
the economic resources required to satisfy these wants are limited and scarce. Economic
resources may be classified as material resources (raw materials and capital) and labor
resources (labor force and entrepreneurship). Scarcity of resources makes it necessary to
save them. As a result any economic system is trying to find most effective and efficient
ways of utilizing resources for the production of goods and services. The rational solution
of the problem brings about the maximum economic growth, full employment, stable
prices, equitable distribution of revenues, and social security of the needy.
There are different economic systems in the world today. Many economists argue
that free enterprise, or the market economy is the most effective system, because
8
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
businesses are free to choose whom to buy from and sell to and on what terms, and free to
choose whom to compete with. How can a market economy solve what, how and for
whom to produce?
It is done through a market, which is a set of arrangements through which buyers
and sellers make contact and do business, in which choices concerning the allocation of
resources and transactions among members of society involving factors of production,
incomes, goods and services are left to countless independent decisions of individual
consumers and producers acting on their own behalf.
One of the main laws of the market is the law of supply and demand. It says that if
demand exceeds supply, the price tends to rise and when supply exceeds demand the price
tends to fall.
Given the scarcity of resources, the market functions as a rationing device with the
price mechanism as its principal instrument. In free, markets, prices direct allocations of
inputs of firms that make the most profitable use of them. The price mechanism also
guides the decisions of producers concerning the composition of their output. Finally, the
price mechanism also governs the distribution process.
Thus, the market mechanism brings about an allocation of resources that reflects
two basic factors: consumer preferences and production costs. The prices which play the
coordinating role of the market mechanism are determined through the interaction of
demand and supply.
Another important force of the market is competition. On the one hand, it protects
the customers – they have the right of choice and they benefit from the fact that
competition keeps prices close to costs; on the other hand, it makes producers and
suppliers of scarce resources utilize them economically, using most sophisticated
technologies.
All businesses produce goods and services and seek profits. They all compete with
other businesses for inputs of labor, capital and natural resources, including foreign
partners.
Freedom of enterprise is not total in the market economy. Businesses are subject to
laws and government regulations.
9
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Economic machines do not always run smoothly. They are subject to a business
cycle that alternates between periods of rapid expansion and periods of recession in which
outputs fall and unemployment rises.
Economic environment is determined by the economic policies of the government,
fiscal and monetary policies being the major factors. So, if an economic system is to
perform well it must deal with many economic challenges.
Примечания
1 Некоторые прилагательные могут употребляться в значении существительного. В этих
случаях они употребляются в значении множественного числа, обозначая всех лиц или группу лиц,
обладающих данным признаком. Они не принимают окончание -s и употребляются с
определенным артиклем.
Примеры
1 Тhe needy – нуждающиеся.
2 The blind – слепые.
3 The sick – больные.
4 The poor – бедные.
5 The rich – богатые.
2 Given the scarcity of resources – с учетом (в условиях) недостатка ресурсов. Здесь given –
предлог, имеющий значение “if one takes into account” («с учетом», «в условиях»).
3 Fiscal and monetary policies being the major factors – бюджетно-налоговая и кредитноденежная политика являются основными факторами
Эта конструкция называется «Самостоятельный причастный оборот».
Причастие в этом обороте выражает действие, не относящееся к лицу (предмету),
обозначенному подлежащим предложения. Оно выражает действие, которое относится к лицу
(предмету), обозначенному существительным в общем падеже или (значительно реже)
местоимением в именительном падеже, стоящим непосредственно перед причастием, т.е.
причастие как бы имеет свое собственное подлежащее. В русском языке такие причастные
обороты соответствуют придаточным предложениям, а иногда и самостоятельным предложениям.
Самостоятельный
причастный
оборот
выражает
различные
значения,
которые
определяются контекстом, чаще всего время, причину действия главного предложения или
сопутствующие ему обстоятельства.
10
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
1.3 Study the following words:
1) business climate – деловой климат;
2) represent (v) – представлять, быть представителем;
3) market research – маркетинговое исследование, исследование рынка;
4) poll conducted by ... – опрос, проведенный ...;
5) reveal (v) – раскрывать, выявлять, показывать;
6) refer (to) (v) – ссылаться (на);
7) confirm (v) – подтверждать;
8) ongoing reforms – проводящиеся реформы;
9) owing to (prep) – из-за; по причине;
10) unavoidable (adj) – неизбежный;
11) initial stage – первоначальный этап; начальная стадия;
12) transition to a market economy – переход к рыночной экономике;
13) standard of living – уровень жизни;
14) worsen (v) – ухудшаться;
15) sluggish (adj) – застойный, вялый, медлительный;
16) registered unemployement – официальная безработица;
17) judge (v) – судить;
18) official statistics available – имеющиеся официальные статистические
данные;
19) check (v) – приостановить;
20) drop (n) – падение;
21) tough (adj) – жесткий;
22) to curb the inflation – сдерживать инфляцию;
23) to restructure the external debt – реструктурировать внешний долг;
24) restore (v) – восстанавливать;
25) increase (v) – увеличиваться;
26) hard currency reserves – валютные резервы;
27) adapt (to) (v) – приспосабливаться (к чему-л.);
28) survive (v) – выживать;
11
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
29) ignore (v) – пренебрегать, игнорировать;
30) real incomes – реальные доходы;
31) following (prep) – после, вследствие;
32) liberalization in prices – либерализация, высвобождение цен;
33) interruption of trade links – разрыв торговых связей;
34) questionnaire – анкета, опросный лист;
35) trend (n) – тенденция;
36) to give a boost (to) – стимулировать, дать толчок (чему-л.);
37) ferrous / non-ferrous metals – черные/цветные металлы;
38) structural changes – структурные изменения;
39) graphic example – наглядный пример;
40) service sector – сектор услуг;
41) catering (n) – общественное питание;
42) banking (n) – банковское дело;
43) insurance (n) – страхование;
44) to make progress – делать успехи, продвигаться вперед;
45) implement (v) – осуществлять, проводить;
46) significant (adj) –значительный;
47) unprecedented (adj) – беспрецедентный;
48) structural adjustment policy – политика структурных преобразований;
49) to undergo drastic changes – претерпевать серьезные изменения;
50) large-scale privatization – массовая (масштабная) приватизация;
51) ownership (n) – право собственности;
52) cause (v) – быть причиной, вызывать;
53) private property – частная собственность;
54) privately-owned – находящийся в частном владении;
55) non-state sector (of economy) – негосударственный сектор (экономики);
56) welcome (v) – приветствовать;
57) emerge (v) – возникать, появляться;
58) small businesses – малый бизнес;
12
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
59) different types of ownership – различные формы собственности;
60) provide (for) (v) – предусматривать;
61) tax benefit – налоговая льгота;
62) information support – информационная поддержка;
63) training of personnel – подготовка кадров.
1.4 Read the dialogue.
Text B. Business climate in Russia
Foreigner: You represent the Independent Centre of Market Research, Mr. Pronin,
don't you? What did the recent poll conducted by your centre reveal?
Russian: Yes, I'm head of our industrial research group. The poll you've referred to
confirmed that in spite of the ongoing economic reforms the economic situation in Russia
is still rather difficult.
Foreigner: It is not surprising. You are having difficulties owing to the unavoidable
problems which arose in the initial stages of transition to a market economy.
Russian: That's right. The poll showed that the standard of living is worsening, the
economic activity is sluggish, the industrial production is still falling and the registered
unemployment is rising.
Foreigner: But judging by your official statistics available, you've checked the drop
in industrial production, haven't you?
Russian: Yes, more than that. The tough monetary policy made it possible to curb
the inflation, to stabilize the rouble, and to restructure our external debt.
Foreigner: The most striking thing is that you restored and increased your hard
currency reserves. So your enterprises seem to be adapting to the market conditions.
Russian: That's true. However, those enterprises that wish to survive can't ignore
limited demand owing to the drop in real incomes as a result of the liberalization in prices
and the interruption of traditional trade links.
Foreigner: I see. Did you include into your questionnaire any questions about
export activities of enterprises?
Russian: Yes, we did. Last year saw an increase in exports. The trend is continuing
this year, which has given a boost to whole industries like ferrous and non-ferrous metal
13
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
industries, and the fuel and energy complex.
Foreigner: Has the poll revealed any structural changes in the country?
Russian: Oh yes. A graphic example would be the service sector, including catering,
banking, insurance and transportation businesses, which is developing very fast.
Foreigner: The whole world recognizes the significant, I'd say, unprecedented
progress Russia has made in implementing structural adjustment policies.
Russian: It's nice to hear that. As the reforms continue, our society is undergoing
drastic changes. The large-scale privatization has brought about private ownership which
has caused the appearance of private property, the setting up of privately-owned
businesses and the development of the non-state sector. Businessmen welcome the
changes.
Foreigner: Your emerging business needs support, I think. Are there any
programmes to support business?
Russian: Yes, we have quite a number of federal programmes to support small
businesses and enterprises of different types of ownership which provide for tax benefits,
information support and training of personnel.
Foreigner: It looks like your business is beginning to play the role it plays in a
market economy.
Russian: Let's hope it's so.
1.5 Answer the questions.
1.5.1 Look through the Text A and answer these questions:
1 What is characteristic of any society?
2 How can economic resources be classified?
3 What is the most efficient economic system? Why?
4 How does the market operate?
5 What is the price determined by?
6 What role does the price mechanism play in free-market economy?
7 What does the allocation of resources reflect?
8 Why is competition an important force of the market?
9 What do businesses compete for?
14
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
10 Are businesses totally free in their policies?
11 What is a business cycle?
12 What determines the economic environment?
1.5.2 Look through the Text B and answer these questions:
1 What poll was conducted by the Independent Centre of Market Research?
2 What was the general conclusion of the poll?
3 What did the official statistics available prove?
4 What positive economic developments were confirmed by the poll?
5 What did enterprises that wished to survive have to take into account?
6 Did the poll include any questions about export activities of enterprises?
7 Did the poll reveal any structural changes?
8 Do businessmen welcome the changes in the society?
9 Does business in Russia need federal support?
1.6 Find in the Text A and Text B English equivalents for the following Russian
phrases:
Text A
потребности людей растут; ресурсы, необходимые для удовлетворения
потребностей людей, ограниченны; нехватка ресурсов делает необходимой их
экономию; использовать ресурсы наиболее эффективным образом; производство
товаров и услуг; вызывать максимальный экономический рост; справедливое
распределение
доходов;
предпринимательство
–
социальное
обеспечение
наиболее
эффективная
нуждающихся;
экономическая
свободное
система;
устанавливать контакты; вести дела; закон спроса и предложения; спрос превышает
предложение; цена имеет тенденцию к повышению (понижению); выделение
ресурсов; действовать от своего имени; ценовой механизм является основным
инструментом рынка;
Text B
представлять кого-л. где-л.; что показал опрос; проходящие экономические
реформы; неизбежные проблемы, возникшие ...; переход к рыночной экономике;
уровень жизни ухудшается; экономическая активность вялая; промышленное
15
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
производство падает; зарегистрированная безработица растет; судя по имеющимся
статистическим
данным;
жесткая
кредитно-денежная
политика;
сдерживать
инфляцию; реструктурировать долг; восстановить резервы; выживать; сокращение
реальных доходов; разрыв традиционных связей; тенденция сохраняется; дать
толчок развитию целых отраслей; яркий пример; структурная перестройка;
претерпевать
серьезные
изменения;
широкомасштабный;
деловые
люди
приветствуют эти изменения; федеральные программы, предусматривающие
налоговые льготы.
1.7 Give derivatives of:
economy; supply; expansion; employment; regulation; growth; competition;
production; consumer; scarcity; allocation policy.
1.8 Single out the main points of the text A. Use the following opening phrases:
1 The text looks at (the problem of...)... .
2 The text deals with the issue of... .
3 It is clear from the text that... .
4 Among other things the text raises the issue of... .
5 The problem of... is of great importance.
6 One of the main points to be singled out is... .
7 Great importance is also attached to ... .
8 In this connection, I’d like to say ... .
9 It further says that... .
10 I find the question of... very important because ... .
11 We shouldn't forget that... .
12 I think that... should be mentioned here as a very important mechanism of .... .
1.9 Sum up the content of the Text B. Use the following phrases:
1 The dialogue is about...
2 According to the dialogue ...
3 The experts make it clear that... (stress the point that...; draw the attention of... to
the fact that...; suggest, remind, promise).
4 Finally, the experts come to the conclusion that... (agree about...).
16
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
1.10 Read the dialogue below translating the Russian remarks into English and act it
out.
Foreigner: How do you assess the economic situation in your country?
Russian: Несмотря на проводимые реформы, ситуация в стране сложная:
жизненный уровень населения ухудшается, экономическая активность вялая,
промышленное производство падает, безработица растет.
Foreigner: I think you see the picture darker than it is. Your export is rising, the
service sector is developing fast and your reforms are going on.
Russian: Да, мы продолжаем проводить экономические реформы, и наше
общество уже претерпело значительные изменения. У нас появилась частная
собственность, частные предприятия, негосударственный сектор в экономике. Но мы
еще не можем обеспечить экономический рост, рационально использовать свои
ресурсы.
Foreigner: The rational use of resources is a problem for all countries including
countries with market economies.
Russian: Мы делаем только первые шаги к рынку. Рыночные механизмы еще
плохо работают. С другой стороны, государственное регулирование недостаточно.
Мы должны решить много проблем, если мы хотим, чтобы наша экономика стала
эффективной.
1.11 Work on vocabulary and grammar.
1 Study the key words of the unit:
a) economy; b) enterprise; c) policy; d) allocation; e) price; f) resources.
2 Think of the verbs that are most commonly used with:
a) resources; b) production; c) prices; d) policy; e) function; f) programme.
3 Think of the nouns that are most often used with:
a) to rise; b) to raise; c) to arise; d) to fall; e) to go up; f) to drop; g) to decline; h) to
bring about; i) to result in; j) to lead to; k) to cause.
4 Make up sentences putting the words in the correct order:
a) are, different, today, in, world, there, systems, economic, the;
b) demand, if, price, exceeds, tends, rise, to, the, supply;
17
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
c) wants, constantly, people, are, of, growing;
d) is, competition, force, the, market, of, an, important;
e) producers, must, scarce, economically, and, suppliers, utilize, resources;
f) sluggish, is, activity, economic;
g) figures, dropped, according, production, to, official, oil, of;
h) service, of, consists, the, transport, banking, sector, insurance, and.
5 Scan the dialogue and write out all the irregular verbs used in it.
6 Write out from the text A international words like capital, economic, resources,
instrument, etc. Transcribe and read them aloud
7 Make up your own sentences with any five word combinations from (2) and (3).
1.12 Read the article and supply the articles where necessary.
1.12.1 Has the situation changed since 1995? Prove your point of view.
1.12.2 Read the text and suggest the title.
... oil and gas industries of... former USSR were one of... very few industrial success
stories of the final years of ... Soviet regime. Today, those same industries, now operating
within ... CIS, are in deep crises. Production and exports of... sector's two key products –
oil and gas – fell by almost... half between 1989 and 1994. It's not all bad news, of course:
over ... first eight months of 1995,... rate of decline in fuel and energy production was less
than ... 2 % per cent compared to ... last year. Equally dramatic changes are yet to come as
... Russia and ... CIS countries shift to ... market economy.
Major Western oil companies, however, have been moving away from ... Russia
because of ... risks involved: unfriendly tax regimes, ... uncertain political climate,
financial problems and ... problems of negotiating with local, regional and central
authorities. Last but not least, comes the difficulty of repatriating profits. According to ...
official fuel and energy ministry figures, as of January 1, 1995, Russia had 1,910 oil fields
and 410 gas fields, of which 1,020 are commercially operated, accounting for 72 per cent
of all... reserves. 50.4 per cent of these reserves have already been worked out. ...oil was
first produced commercially in ... Russia in 1864.
Based on: European Businessman
18
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
1.12.4 Words you may need:
1 CIS – Commonwealth of Independent States – Содружество независимых
государств (СНГ);
2 rate of decline – темпы сокращения (производства);
3 equally (adv) – равно, в равной степени;
4 dramatic changes – разительные изменения;
5 shift to a market economy – переход к рыночной экономике;
6 tax regime – налоговый режим;
7 authorities – власти;
8 to repatriate profits – вывозить прибыль;
9 to account for – составлять.
1.13 Read the article and do the following tasks.
1.13.1 Supply the prepositions where necessary.
1.13.2 Write down the questions that might have been asked during the survey by
the sociological service.
1.13.3 Act out the interviews that might have taken place during the survey.
Small Businesses in Russia
Russia now has more than 900,000 enterprises, their number having increased ...
5 % in 1995. According ... the State Committee for Statistics, small businesses accounted,
in the first quarter of 1995, ... around 10 % of the gross domestic product and their profits
amounted ... 20 % of all enterprises. Small businesses employ 12 % of the economy's
work-force, or 8.1 million full-timers.
The Cassandra sociological service carried out a survey about the prospects of small
businesses in Russia. ... the opinion of 70 % of businessmen questioned ... the Cassandra
sociological service, Russia's small business will develop ... moderate rates ... this year;
only 13 % hope ... faster development. This skepticism is due above all ... the negative
assessment of the country's financial condition given ... 71 % of the respondents ... regard
... the development of small business. Only 1 % of the respondents said these conditions
were favorable, while 28 % said they were satisfactory. In the opinion of 70 % of the
respondents, budgetary allocations to promote small business are not used effectively.
19
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
There's no use hoping for any significant improvement... financial backing for small
business ... this year, 59 % of the respondents believe.
The businessmen also pointed ... the inadequate role of banks. Forty-five per cent of
the respondents believe credit institutions will participate financially in small business
projects in 1996, while 31 % believe their participation will not be active enough.
Based on: European Businessman.
1.13.4 Words you may need:
1) gross domestic product (GDP) – валовой внутренний продукт;
2) moderate (adj) – умеренный;
3) respondent (n) – респондент, участник опроса;
4) inadequate role – недостаточная роль.
1.14 Open the brackets, putting the verbs in the correct active or passive forms.
Economic Structure
In market economies economic systems are typically subdivided into three sectors.
This subdivision (to be based) in part on economic activities pursued and in part on the
type of wants satisfied. The primary sector comprises basic activities, the extraction of
economic goods from nature: agriculture, forestry, hunting and fishing, though the
extraction of minerals frequently (to be assigned) to the secondary sector which comprises
handicrafts and industrial manufacturing of goods and certain material services such as
fuel and power and the provision of water. Lastly, the tertiary sector (to consist of) all final
services: trade, transport, banking and insurance, public services, etc.
In this context it is worth analysing the development of British economy since the
British were Europe's first industrial nation.
Anyone who (to study) economics knows that in every country the first resource is
land. Densely-populated Britain has not much of it, but until the 18th century England's
economy (to be based) on agriculture and the manufacture of woollen cloth. In the late
18th century, the Industrial Revolution (to allow) Britain to become the first industrialized
trading nation.
For 200 years manufacturing has been more important, but by the 1970s it (to be)
clear the Britain's old manufacturing industries were less progressive than the same
20
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
industries in other Western European countries. Newer industries, such as car manufacture,
were no better than the older ones like textiles. In general, the value of goods produced by
a hundred workers had for many years increased much less than in West Germany. In some
factories there (to be) not enough new equipment; in others, new equipment was not being
used efficiently. Many of the old industries (to be owned) by the state.
After 1979, when Mrs. Thatcher's government (to come) to power the
nationalization process (to be reversed), many enterprises (to be sold) off to the private
sector. Many plants (to be closed) and in a few years those which survived were no longer
needing subsidies. New “high-tech” industries developed. Although manufacturing
continues to play an important role, the number of people employed in manufacturing (to
fall) by a quarter in 1979-84.
Contrary to the secondary sector, the service industries expanded. More than half of
all working people, whether employees or self-employed, are now providing services,
working for schools, hospitals, social services, in public administration, in finance,
banking, insurance, advertising, catering and entertainment.
Another recent change has been in the growth of self-employment. During the
1980s, the number of people working for themselves, and not as employees, (to rise) by
half, from two million to almost three million, or more than one-tenth of the whole
working population. This development (to be encouraged) by the government through
training courses and tax incentives.
1.14.1 Words you may need:
1 handicraft (n) – ремесло;
2 tertiary sector – третичный сектор экономики (сектор услуг).
1.15 Read the article and do the following tasks.
1.15.1 Fill each gap with a suitable word from the box:
1) minimum;
5) rational profit (2);
9) scarcity;
13) interests;
2) compromises;
6) classified;
10) agents;
14) purchased;
3) hand;
7) represent;
11) factors;
15) resources;
4) utilization;
8) interaction;
12) wants;
16) efficient.
1.15.2 Sum up the text in 5-7 sentences. Present your summary in class.
21
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
The Market System
The modern market economy is populated by three types of economic agents, whose
_______ constitutes economic activity: consumers, producers, and the government. The
main social purpose of the economy is to produce goods and services for the satisfaction
of the needs and______ of consumers.
Consumers, typically, represent households that provide labour, and other______ to
produce against an income which they use to purchase consumer goods or to save.
Producers, typically, _______ enterprises or firms that acquire _______of
production, or inputs – labour, land, and capital – from households and combine them to
produce outputs, or commodities which can be _______ into goods – tangible
commodities – and services. The activities of firms move around the sale of their output at
a______.
The third basic element, the government, is involved with the economy, on the one
hand, as a producer and consumer and, on the other______, as a regulator, supervisor and
promoter of economic activities.
The economic ______ are engaged in a complex web of transactions involving
factors of production and outputs. However, the volume of the commodities that can be
produced and_______ is limited by the______ of resources. This fact has two important
consequences as regards economic decision-making:
1) the utilization of resources has to be______. In terms of the welfare of economic
agents, the______ of resources is efficient when every opportunity has been exhausted to
make some individuals better off without hurting the______ of others;
2) individual economic agents and society as a whole cannot simply use more, they
have to make_____ between alternative uses.
Given these constraints, consumers, producers, and the government have to
make______ decisions over available resources. Rational decisions reflect choices that
draw maximum______ from given resources or obtain desired results with the______
efforts or cost.
1.16. Words you may need:
1) constitute (v) – составлять;
22
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
2) household (n) – семья, семейная единица;
3) acquire (v) – приобретать;
4) tangible (adj) – осязаемый, материальный, реальный;
5) supervisor (n) – контролер;
6) promoter (n) – лицо, содействующее какому-л. мероприятию;
7) complex web – сложное сплетение;
8) welfare (n) – благосостояние;
9) to be exhausted – быть использованным;
10) to make smb better off – поставить кого-л. в более выгодное положение;
11) constraint (n) – ограничение.
1.17 Read and discuss the text. Single out the main facts and present them in a short
review.
Economic System
The functions of an economic system may be defined as follows:
1) to match supply to the effective demand for goods and services in an efficient
manner;
2) to determine what goods and services are to be produced, and in what quantities;
3) to distribute scarce resources among the industries producing goods and services;
4) to distribute the products of industry among members of the community;
5) to provide for maintenance and expansion of fixed capital investment;
6) to fully utilize the resources of society.
Depending on how decisions are made and how the above functions are fulfilled
different economic systems can be singled out. Many countries like Britain, Sweden, and
France operate a mixed system (mixed economy) splitting the economy into public and
private sectors.
In Britain, for example, about two-thirds of the economy and about five-sixths of
commerce is conducted by private firms. The remainder of the activities of the economy
are conducted by socially-owned enterprises. Some, like the Army, Navy, and Air Force,
are clearly the sort of institutions that the state itself should control. Others have tended to
be performed by the state because they are non-profitmaking, and as such are unlikely to
23
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
be attractive to businessmen. Such activities as education and medical care are best
operated as socially provided amenities for the benefit of all citizens.
In the commercial field certain goods and services are by their nature monopolies.
Among these natural monopolies are gas, electricity, and water supply. The capital costs of
such enterprises are too great for competition to be possible.
Transport is another natural monopoly. It would be uneconomic to run two railway
lines from one place to another, or two different sets of half-empty buses along a country
road.
These natural monopolies have, for economic, political, or social reasons, come to
be run in the United Kingdom by nationalized institutions, or the municipal authorities,
who provide the services required at reasonable prices.
1.17.1 Words you may need:
1) match (v) – приводить в соответствие, выравнивать;
2) effective demand – действительный (фактический) спрос;
3) maintenance (n) – поддержание;
4) fixed capital investment – вложения в основной капитал;
5) depending on (prep) – в зависимости от;
6) to single out – выделять, выбирать;
7) mixed (adj) – смешанный;
8) to split (into) (v) – делить, дробить;
9) non-profitnmking – некоммерческий;
10) amenities – удобства; обслуживание;
11) natural monopoly – естественная монополия;
12) capital costs – капитальные затраты.
1.18 Read the dialogue below, sum up its content and act it out.
Foreigner: Western businessmen used to complain that they couldn't work widely
in the Russian market first of all because the forms of business organization were not
developed. How do things stand these days?
Russian: The situation is different now. The ongoing reforms have drastically
altered the environment in which Russia's enterprises are operating now.
24
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Foreigner: True. The massive shift you are making now from a command to a
market economy is really unprecedented.
Russian: You are right. Liberalization of economy, restructuring of production
sectors, an extensive privatization programme have brought about real changes and led to
the creation of types of business unit accepted throughout the world.
Foreigner: You mean that now your businesses operate as partnerships, cooperative
societies, and joint-stock companies.
Russian: Yes, let me give you just one example. Like in the West, we have now two
types of partnership. General partnerships with partners bearing joint and several liability
for debts and wrongdoing and limited partnerships that include one or more general
partners who bear full liability and run the business, plus one or more limited partners,
who bear limited liability. They do not have a voice in the firm's day-to-day management,
they are in much the same position as shareholders in a corporation.
Foreigner: Now that you've mentioned corporations, do they play an important role
in your economy?
Russian: Yes. Like in the West, they exist as independent legal entities with the
capital divided into shares. The liability of shareholders is limited.
Foreigner: Your practice here fully coincides with Western principles. Creditors or
people bringing lawsuits against corporations can make claims against the assets of the
corporation only.
Russian: Yes, limited liability is the biggest advantage of this form of business
organisation.
Foreigner: Our businessmen when floating a company, sign a memorandum of
association, then they draw up articles of association and submit them to the registrar of
companies issuing a certificate of incorporation. Is the procedure of registration
complicated here?
Russian: No, the procedure is similar to what you've said, and after the registration
our companies can also do all the legal things like own property, employ people, sue and
be sued in the courts and so on.
Foreigner: All businesses seek profits. But in any market economy there is a certain
25
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
number of business units which are non-profitmaking and are formed to confer certain
benefits upon their members.
Russian: You mean cooperative societies, don't you? Yes, we have such voluntary
associations based on membership.
Foreigner: Well, another point ... In market economies such activities as supplying
gas, electricity, and water are conducted by state-owned enterprises. How about Russia?
Russian: Natural monopolies including transport are controlled by the state in
Russia, too. Besides, many other activities are conducted by socially-owned enterprises.
For example, we have introduced a new form of unitary state enterprises.
Foreigner: What's the idea?
Russian: Such enterprises have no right of ownership of the assets. Assets are
assigned to such enterprises to be used for economic activity.
Foreigner: It's an interesting form. And how can foreign firms participate in
Russian business?
Russian: Oh, now it can be done in many ways which are stipulated by our
legislation.
Foreigner: If I'm not mistaken, in spite of all your reforms your legislation is still
rather complicated.
Russian: Yes, that's true, foreigners wishing to enter our market often have to take
advice on legal matters.
1.18.1 Words you may need:
1) complain (v) – жаловаться;
2) forms of business organization – формы организации бизнеса;
3) alter (v) – изменять, переделывать;
4) command economy – командная экономика;
5) partnership (n) – товарищество;
6) cooperative society – кооператив;
7) joint-stock company – акционерная компания;
8) general partnership – полное товарищество;
9) liability (n) – ответственность, обязательство;
26
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
10) to bear joint and several liability – нести солидарную ответственность;
11) wrongdoing (n) – незаконные действия;
12) limited partnership – коммандитное товарищество (товарищество с
ограниченной ответственностью);
13) general partner – главный партнер (с неограниченной ответственностью);
14) limited partner – коммандитный (пассивный) партнер (с ограниченной
ответственностью);
15) shareholder (n) – акционер;
16) share (n) – акция;
17) legal entity – экономический субъект;
18) coincide (v) – совпадать;
19) to bring a lawsuit against smb – возбудить судебный процесс против кого-л.;
20) to make a claim – предъявить претензию;
21) assets (n) – активы;
22) to float a company – образовывать акционерную компанию;
23) memorandum of association – учредительский договор;
24) registrar (n) – регистратор;
25) certificate of incorporation – разрешение на создание корпорации;
26) to sue and be sued in the courts – искать и отвечать в суде;
27) confer (v) – присуждать, передавать.
1.19 Give extensive answers to these discussion questions.
1 Name the most important economic resources and explain the problems any
economic system has to solve with regard to them.
2 Describe the economic systems existing in the world today. Which is the most
effective system from your point of view (mention the economic agents and their
relationships)?
3 What is a market? How does the market mechanism function?
4 Do you agree that competition is an important force of the market?
5 What is entrepreneurial activity?
6 What are natural monopolies?
27
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
7 What characterizes the transition to market economy in Russia?
8 Is Russia attractive to foreign businessmen and investors? Why?
9 What are the most typical forms of business organization in market economies in
the West and in Russia?
10 What liability is borne by different forms of business unit (joint-stock companies,
partnerships)?
11 Does the state regulate business and economy?
1.19.1 In order to get prepared for participation in the class discussion of the above
questions, write several paragraphs on the following:
1) The market mechanism.
Use: to make contact; to do business; to choose; to solve; to buy; to sell; to compete;
to produce; price; allocation of resources.
2) Competition.
Use: to benefit from; to keep to cost; to utilize; economically; consumer
preferences; prices; to protect; production costs.
3) Favourable/unfavourable economic situation in a country.
Use: debt; prices; export; import.
4) An enterprise.
5) A branch of industry.
6) Forms of business organization: sole traders, partnerships (general, limited),
private limited companies, public limited companies, cooperative societies.
1.19.2 Prepare a short talk on the following.
1 Have you ever applied for or been offered a job? If so, describe the recruitment
and selection process used by your employer.
2 If you have worked, what jobs have you held? For each job describe your boss's
attitude to employees and your attitude to the people you have worked with.
3 The variety of jobs and careers among which to choose is enormous. Are you
going to work in private business, in government agencies or in the not-for-profit sector?
4 Russia is moving towards market economy, but not everyone is happy about it.
Say why you think some people are opposed to market economy.
28
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
1.21 Try to find the latest figures for the rate of inflation, the unemployment rate,
interest rates, and the industrial output in Russia. Compare the figures with the information
you got from the exercises in Unit 1.
1.22 Read the article and do the following tasks.
1.22.1 Read the article below quickly to find out what economic indicators are
mentioned in the text.
1.22.2 Reread the article more carefully and complete the sentences given below,
using information from the article.
1 In 1992 ... situation ... difficult.
2 Large macroeconomic imbalances ... in the initial stages of ... economy.
3 ... progress was achieved in ... policies.
4 Real GDP ... by 19 percent in 1992.
5 ... fell by 8 percent.
6 The fall in output... factors.
7 The decline in demand followed ....
8 Monthly ... rates ... in January 1992.
9 ... consumer prices ... 2,300 percent.
10 The acceleration of inflation ... policies.
11 Real wages ... of prices.
12 Registered... low.
1.22.3 Compare the situation in 1992 with the present-day situation.
In 1992 the economic situation in the Russian Federation continued to be very
difficult, owing to large macroeconomic imbalances and to the unavoidable difficulties
arising in the initial stages of the transition to a market economy. Nevertheless, significant
progress was achieved in implementing structural adjustment policies in some areas.
Real GDP and industrial production are estimated to have dropped by 19 percent in
1992. Oil extraction fell by 15 percent, while the output of natural gas remained
unchanged; agricultural output fell by 8 percent. The fall in output reflected a number of
factors, including the decline in demand associated with the drop in real incomes
following the liberalization of prices in January 1992; the short-run effects of the
29
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
economic transformation; the interruption of traditional trade links with the countries of
the former Council for Mutual Economic Assistance (CMEA) and the states of the former
Soviet Union; and cutbacks in investment and military spending.
Monthly inflation rates began to decline after the jump in prices associated with
price liberalization in January 1992. However, this trend was reversed around midyear and
between October 1992 and March 1993, monthly inflation rates were between 20 percent
and 30 percent. Between the end of 1991 and end of 1992, consumer prices increased by
over 2,300 percent. The acceleration of inflation after midyear reflected a substantial
loosening of financial policies. Real wages dropped sharply in connection with the
liberalization of prices, but recovered somewhat in the course of the year and at year-end
stood at 90 percent of their 1987 level. Registered unemployment remained low.
1.22.4 Words you may need:
1) macroeconomic imbalances – макроэкономические диспропорции;
2) are estimated to have dropped – по предварительным подсчетам, сократились;
3) oil extraction – добыча нефти;
4) short-run (adj) – краткосрочный;
5) cutback (n) – снижение, уменьшение, сокращение;
6) spending (n) – расходы;
7) reverse (v) – поворачиваться в противоположном направлении;
8) acceleration (n) – ускорение;
9) loosen (v) – ослаблять;
10) recover (v) – восстанавливаться.
1.23 Read the article and do the following tasks.
1.23.1 Read the article below quickly to pick out the main economic indicators.
1.23.2 Say how they characterize the UK economy.
The UK Economy
The UK economy has recently experienced economic growth combined with low
inflation and falling unemployment. In 1997 it achieved the first surplus on the current
account of the balance of payments since 1985. Nevertheless, the economy continues to
face problems, such as low levels of investment and productivity, and income per head is
30
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
below that of many other major industrialised nations. The Government's economic
policies are directed towards the achievement of high and stable levels of growth and
employment, enabling everyone to share in higher living standards and greater job
opportunities. Extra resources are being allocated to priority concerns, notably health,
education, public transport, and the regeneration of urban areas and housing.
The value of all goods and services produced in the economy is measured by gross
domestic product (GDP). In 1997, GDP at current market prices totalled £801,972 million.
Between 1987 and 1997, GDP at constant prices increased by 24 %. In 1997, GDP grew
by 3,5 %. Growth slowed during 1998, with a slower rise in domestic demand – under the
influence of tighter monetary and fiscal policy.
Recent decades have generally seen the fastest growth in the services sector which
now accounts for around two-thirds of GDP, compared with about a half in 1950. Oil and
gas production has had a major impact on the UK economy since substantial production of
gas started in the late 1960s and oil began to be produced in significant quantities in 1976.
Manufacturing now contributes less than a quarter of GDP, compared with over a third in
1950. The level of productivity in the UK has been lower than in many other industrialised
countries. Households' final consumption expenditure in 1997 amounted to £500,616
million at current market prices.
Over the longer term, as incomes rise, people tend to spend increasing proportions
of their disposable income on durable goods and certain services. Spending on leisure
pursuits and tourism, communications, health and financial services have all shown
significant growth in recent years. Declining proportions are being spent on food,
alcoholic drink, and tobacco.
Unemployment in the UK has fallen in recent years and is below that in many other
European countries. In the three months to August 1998, unemployment, according to the
International Labour Organisation measure, was 1.8 million, some 226,000 fewer than a
year earlier, and this represented 6,3 % of the workforce. Employment in this period rose
by around 307,000 to 27.2 million and has now recovered to the level at the beginning of
the 1990s.
Based on: Britain, 1998. An Official Handbook.
31
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
2 Unit 2 Public Finance
2.1 Before reading learn the following words and phrases which are essential to the
topic:
1) public finance(s) – государственные финансы;
2) provision (n) – снабжение, обеспечение;
3) monetary relations – денежные отношения;
4) formation (n) – образование, формирование;
5) distribution (n) – распределение;
6) turnover (n) (of money/capital) – оборот, оборачиваемость (денег/капитала);
7) economic entity – экономический субъект;
8) network of institutions – сеть учреждений (организаций);
9) household (n) – семейное хозяйство;
10) unit of government – государственная организация;
11) funds (n) – фонды, средства, деньги, капитал;
12) surplus (n) – излишек, избыток;
13) saver – вкладчик;
14) borrower (n) – заемщик;
15) intermediary (n) –посредник;
16) thrift institution – сберегательное учреждение;
17) insurance company –страховая компания;
18) pension fund – пенсионный фонд;
19) mutual fund – взаимный фонд;
20) finance company – финансовая компания;
21) comprise (v) – включать, охватывать, содержать, вмещать;
22) community (n) – сообщество, группа лиц, объединенных какими-л.
признаками;
23) tax (n) – налог;
24) government authorities – правительство, органы государственной власти;
25) benefit (n) – выгода, польза, благо;
32
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
26) financial flows – финансовые потоки;
27) encouragement (n) – поддержка, стимулирование, поощрение;
28) particular (adj) – особый, специфический, особенный;
29) implementation (n) – выполнение, осуществление;
30) social policy – социальная политика;
31) budget (n) – бюджет;
32) goal (n) – цель, задача;
33) maintenance of a stable macroeconomic environment – поддержание
стабильной макроэкономической ситуации;
34) estimate (n) – оценка, смета;
35) revenue (s) (n) – государственные доходы;
36) ensuing (adj) – последующий;
37) fiscal year – финансовый год;
38) expenditure (n) – расходы, затраты;
39) deficit (n) – дефицит, недостаток, нехватка;
40) forecasting (n) – прогнозирование;
41) fundamental step – основной шаг;
42) budget preparation – подготовка бюджета;
43) adequate planning – разумное планирование;
44) planning of recurrent and capital expenditure – планирование текущих и
капитальных расходов;
45) critically (adv) – решающим образом;
46) accurate forecast – точный прогноз;
47) availability (n) – наличие;
48) determination of the overall deficit – определение, расчет общего дефицита;
49) macroeconomic impact – макроэкономическое воздействие;
50) tax collection – сбор, взимание, собираемость налогов ;
51) subjects of Federation – субъекты Федерации;
52) extrabudgetary and reserve funds – внебюджетные и резервные фонды;
53) subnational governments – органы власти субъектов Федерации;
33
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
54) increasingly (adv) – все более, все в большей степени;
55) autonomous budget – автономный бюджет;
56) to compile and present the budget – составить и представить бюджет.
2.2 Read the text.
Text A. Finance and Financial system
Finance is the provision of money at the time when it is needed. It is a system of
monetary relations leading to formation, distribution and use of money in the process of its
turnover between economic entities.
The financial system is the network of institutions through which firms, households
and units of government get the funds they need and put surplus funds to work.
Savers and borrowers are connected by financial intermediaries including banks,
thrift institutions, insurance companies, pension funds, mutual funds, and finance
companies.
Finance in an economic system comprises two parts: public finance and finance of
economic entities.
Public finance is the provision of money (by the community through taxes) to be
spent by national and local government authorities on projects of national and local
benefit. It is a collective term for the financial flows and also the financial institutions of
the public sector.
Public finance has the following four functions:
1) the provision of essential services;
2) the encouragement or control of particular sectors of the economy;
3) the implementation of social policy in respect of social services;
4) the encouragement of the growth of economy as a whole.
The major instrument of any financial system is the budget. In a market-oriented
economy, the budget is the most important tool for achieving national priorities and goals
through the allocation and distribution of resources, and the maintenance of a stable
macroeconomic environment.
The budget is an estimate of national revenue and expenditure for the ensuing fiscal
year. When expenditure exceeds the revenue the budget has a deficit.
34
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Revenue and expenditure forecasting is the most fundamental step in the process of
budget preparation. Adequate planning of recurrent and capital expenditure depends
critically on an accurate forecast of revenue availability. The determination of the
expected overall deficit in the public sector and therefore the macroeconomic impact of
fiscal policy requires accurate forecast of tax collection and expenditures.
In Russia, public finance is a sum of budgets of all levels of subjects of the
Federation, extra budgetary and reserve funds.
An accurate revenue forecast is most critical at the federal level of government but it
is also important for all subnational governments because over the last several years they
have worked with increasingly autonomous budgets.
Budget preparation at the federal level involves a number of institutions. The
Ministry of Finance is the central coordinating institution in charge of compiling and
presenting the budget. It has major inputs from ministries in various sectors of the
economy and the state tax bodies.
Примечания
1 … money to be spent on... – средства., которые пойдут на ...
В данном случае инфинитив употребляется в функции определения. В русском языке
инфинитив,
определяющий
существительное,
во
многих
случаях
равен
по
значению
определительному придаточному предложению. Сказуемое такого предложения выражает
действие, которое должно произойти в будущем.
2 ... in the past you used to have a single budget – в прежние годы у вас был единый бюджет.
Конструкция
used
to
do
используется
для
выражения
регулярных
действий,
происходивших в прошлом.
2.3. Study the following words:
1) budget organization – бюджетное устройство;
2) budget process – бюджетный процесс;
3) system of governance – система управления;
4) autonomy (n) – автономия, самостоятельность;
5) expenditure responsibilities – обязанности по расходам;
6) to hand down from ... to – передавать от ... к;
7) consolidated budget – консолидированный бюджет;
35
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
8) subject (to) (adj) – подлежащий, подверженный (чему-л.);
9) approval (n) – одобрение;
10) calculation (n) – расчет, подсчет, калькуляция;
11)
unified
budget
system/classification
–
единая
бюджетная
система/классификация;
12) principles of integrality independence and balance of all budgets – принципы
единства, независимости и сбалансированности всех бюджетов;
13) contradictory (adj) – противоречивый;
14) contradict (v) – противоречить;
15) legal base – юридическая база;
16) submission of data – представление данных;
17) manifest (v) – обнаруживать(ся), проявлять(ся);
18) grant (v) – предоставлять;
19) revenue-raising sources – источники получения доходов;
20) at smb's discretion / at the discretion of – по чьему-л. усмотрению;
21) formulation (n) – формирование;
22) consideration (n) – рассмотрение;
23) execution (n) – исполнение;
24) to be involved – участвовать; быть вовлеченным;
25) elsewhere (adv) – в других местах; везде;
26) executive branch – исполнительная ветвь (власти);
27) execution of the budget – исполнение бюджета;
28) legislative branch – законодательная ветвь (власти);
29) Accounts Chamber – Счетная палата;
30) Federal Assembly – Федеральное собрание;
31) Federal Treasury System – система федерального казначейства;
32) elaborate (v) – разрабатывать;
33) revenue-sharing – arrangements порядок распределения государственных
доходов;
34) in accordance with, according to (prep) – в соответствии с, согласно;
36
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
35) non-tax revenues – неналоговые доходы;
36) fixed, or assigned, regulating and additional revenue sources – источники
закрепленных, регулирующих и дополнительных доходов;
37) proportion (n) – пропорция, количественное соотношение;
38) transfer (v) – переводить (деньги);
39) appropriate (adj) – соответствующий, подходящий;
40) VAT (Value-Added Tax) – налог на добавленную стоимость;
41) ensure (v) – обеспечивать, гарантировать;
42) balance – баланс, сбалансированность;
43) to levy taxes – облагать налогом;
44) additional (adj) – дополнительный;
45) sufficient (adj) – достаточный;
46) at the expense of – за счет;
47) subsidy (n) – субсидия;
48) subvention (n) – субвенция;
49) financial assistance – финансовая помощь (поддержка);
50) to grant assistance – предоставлять помощь;
51) due to (prep) – вследствие, из-за, по причине;
52) demographic situation – демографическая ситуация;
53) geographical position – географическое положение;
54) equalization (n) – выравнивание;
55) interbudgetary relations – межбюджетные отношения;
56) per capita budget revenues – доходы бюджета в расчете на душу населения;
57) average (n) – средняя величина, средний показатель;
58) budget federalism – бюджетный федерализм.
2.4 Read the dialogue.
Text B. Budget organization and budget process
Part 1.
Foreigner: Could you give me a general idea of budget organization and budget
process in the Russian Federation?
37
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Russian: Certainly. First of all, by the budget organization we mean the structure of
our budget system and its major components.
Foreigner: I suppose there is a close link between the budget organization and your
state system, isn't there?
Russian: Yes, there is. Being a federal state we have the federal budget, regional
budgets, or budgets of the subjects of the Federation, and local budgets.
Foreigner: I see. I know that in the past you used to have a single budget including
the federal and local budgets, didn't you?
Russian: Yes, that's true. But now the situation has changed. Our system of
governance is moving from a centralized one to a more decentralized. Our regional and
local authorities have been given considerable budget autonomy now.
Foreigner: Do you mean to say that some of expenditure responsibilities have been
handed down from the federal government to the subnational governments?
Russian: Exactly. I would also like to stress that our consolidated budget is not
subject to approval any longer. It is used only for analysis and calculation.
Foreigner: If I got you right, now the budget system of the Russian Federation
represents a sort of a compendium of the federal, regional and local budgets.
Russian: Correct, but it is a unified budget system based on the principles of
integrality, independence and balance of all budgets.
Foreigner: How do these contradictory principles work in practice? For instance,
independence and integrality?
Russian: Well, these principles do not contradict each other because each has its
own sphere of influence on the budget system.
Foreigner: Could you be more specific, please?
Russian: Yes, the principle of integrality means the integrality of the legal base, use
of the unified budget classification and budget documentation, submission of statistical
data from one level to another for the preparation of the consolidated budget.
Foreigner: In what way does budget independence manifest itself?
38
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Russian: Over the transition years a number of laws have been passed that grant
local governments more autonomy in budgetary matters. Thus governments at different
levels have their own revenue-raising sources now and use them at their discretion.
Foreigner: I'm clear now. And how is the budget process arranged?
Russian: The budget process includes all activities of government bodies on
formulation, consideration, approval and execution of the budget.
Foreigner: What governing bodies are involved in this process?
Russian: As elsewhere, different governing bodies are involved in the process. The
executive branch is responsible for the preparation and execution of the budget; budget
consideration and approval is the responsibility of the legislative branch.
Foreigner: Are there any bodies controlling the execution of the budget?
Russian: Of course. First of all, it's the Accounts Chamber, established by the
Federal Assembly, then the Federal Treasury System.
Foreigner: It seems the Federal Government has done a lot to create a new budget
system and to elaborate a new budget policy and methods of budget planning.
Russian: You are absolutely right.
Part 2.
Foreigner: I'm also interested in how budget revenues are formed and distributed at
different levels. What revenue-sharing arrangements are practiced?
Russian: It is done in accordance with the tax law. Budget revenues include tax and
non-tax revenues. To distribute revenue sources between budgets of different levels we
divide revenues into fixed, or assigned regulating and additional.
Foreigner: Still, I'm not quite clear about this classification and the role of different
kinds of revenue.
Russian: Let's start with fixed revenues. They are fully, or according to fixed
proportion, transferred to the appropriate budget. For example, let's take VAT. 75 % of
VAT is transferred to the federal budget and 25 % goes to the budget of a subject of the
Federation.
Foreigner: Thus, the regulating revenues ensure the budgets' balance.
39
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Russian: Yes. In addition, local authorities have the right to levy local taxes
independently. They are called "additional taxes".
Foreigner: As far as I know, there are 89 subjects in the Russian Federation. Public
authorities at all levels need revenue to meet the cost of social and municipal services.
What if the revenue is not sufficient?
Russian: Deficits, if they arise, are covered at the expense of budget funds
transferred from the budget of a higher level of authority (see Б.5). Besides, subsidies,
subventions and other forms of financial assistance can be granted.
Foreigner: I see. It's obvious that different regions of Russia have unequal
possibilities for raising revenue and different requirements for financial resources due to
natural and climatic conditions, demographic situation, geographical position, social and
economic development. How do you solve this problem?
Russian: The "equalization" is done through transfers which are the key element of
the new mechanism of the interbudgetary relations. Federal assistance is granted to regions
where the per capita budget revenues are lower than the average for the Russian
Federation.
Foreigner: Now I understand that you are really engaged in improving your budget
process and developing budget federalism.
2.5 Answer these questions.
2.5.1 Look through the Text A and answer these questions:
1 What is finance and financial system?
2 What parts does finance comprise?
3 What functions does public finance perform?
4 What is a country's budget?
5 What does the process of budget preparation include?
2.5.2 Look through the Text В (dialogue) and answer these questions:
1. What is the budget organization of the Russian Federation?
2 How is the system of governance in the Russian Federation changing?
3 What principles underlie the unified budget system of the Russian Federation?
4 How are revenues classified?
40
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
5 What taxes are mentioned in the dialogue?
6 What measures can be taken if subjects of the Federation have deficit budgets?
7 Why do different regions of Russia have unequal possibilities for raising revenue?
8 What mechanism of budget revenue “equalization” is used in Russia?
9 What bodies control the execution of the budget?
2.6 Find in the Text A and Text B (dialogue) English equivalents for the following
Russian phrases:
Text A
предоставление финансовых средств; система денежных отношений; создание,
распределение и использование денежных средств; оборот денежных средств между
экономическими субъектами; сеть организаций; заставить излишние денежные
средства работать; быть связанными финансовыми посредниками; включать две
составные части; осуществление социальной политики; основной инструмент
финансовой
системы;
расчет
доходов
и
расходов;
подготовка
бюджета;
планирование текущих и капитальных расходов; макроэкономическое воздействие
на бюджетно-налоговую политику; работать в условиях все увеличивающейся
автономии бюджетов; в подготовку бюджета вовлечен целый ряд организаций;
отвечать за составление и представление бюджета;
Text B
бюджетное устройство; бюджетный процесс; существует тесная связь; у вас
раньше был единый бюджет; ваша система государственного управления отходит от
централизованной
системы
и
становится
все
более
децентрализованной;
обязанности по расходам; ... передаются государственным органам на уровне
субъектов федерации; консолидированный бюджет не подлежит одобрению;
основываться на принципах ...; эти принципы не противоречат друг другу; единство
законодательной базы; единая бюджетная классификация; использовать источники
поступления доходов по своему усмотрению; формирование, рассмотрение,
принятие и исполнение бюджета; исполнительная/законодательная ветвь власти;
разрабатывать бюджетную политику; порядок распределения государственных
41
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
доходов; распределять источники доходов; закрепленные, регулирующие и
дополнительные доходы; ... переводятся в соответствующий бюджет; обеспечивать
бюджетную сбалансированность; «выравнивание» осуществляется с помощью
трансфертов; новый механизм межбюджетных отношений.
2.7 Give derivatives of the following nouns:
1 provision, distribution, finance, benefit;
2 encouragement, growth, budget, determination, funds, spending, governance;
3 practice, classification, independence, transfer.
2.8 Say in a few words what the text A is about.
2.9 Sum up the content of the dialogue text B.
2.10 Read the dialogue, translate the Russian remarks into English and act it out.
Foreigner: It's impossible to overestimate the importance of a good, balanced
budget for a country.
Russian: Полностью с вами согласен. Бюджет – это главный финансовый
инструмент страны. Это план, прогноз, оценка доходов и расходов, как правило, на
один год. Правительство должно очень тщательно распределять свои ресурсы и
точно прогнозировать свои доходы.
Foreigner: I know that your Parliament, the legislative body of your country, is
considering the draft budget now. Deputies have submitted a lot of amendments to the
draft budget about restructuring debts and paying off pensions and children benefits.
Russian: Да, это так. Депутаты хотят, чтобы были увеличены ассигнования на
развитие промышленности, на социальную сферу и региональные программы.
Foreigner: Now that you have mentioned regional programmes, I'd like to say that,
as far as I know, the majority of your regions are constantly begging the Federal center for
cash.
Russian: Да, вы правы. Наши регионы находятся в различных климатических,
демографических и экономических условиях, имеют различные природные
богатства. В результате этого они имеют различный доход на душу населения.
Федеральный центр помогает многим регионам. Однако регионы должны более
тщательно планировать свои расходы и принимать меры по увеличению доходов.
42
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Foreigner: Recently you've reached a new agreement on how to distribute tax
revenues among the Federation members.
Russian: Да, мы также недавно одобрили новый механизм осуществления
трансфертов в регионы.
Foreigner: You've settled one of the basic budget issues. I'm sure your federal
budget will soon be approved.
2.11 Work on vocabulary and grammar.
1 Study the key words for the unit:
a) provision; b) to provide; c) benefit; d) to benefit; e) expenditure; f) revenue; g)
budget; h) deficit.
2 Think of the verbs that are most commonly used with:
a) money; b) policy; c) services; d) goals; e) priorities; f) resources; g) expenditure;
h) revenue; i) budget; j) tax; k) autonomy; l) responsibilities; m) principle; n) data; o) law;
p) deficit; q) funds; r) assistance.
3 Think of the nouns that are most often used with:
a) to comprise; b) to provide; c) to distribute; d) to encourage; e) to implement; f) to
achieve; g) to allocate; h) to maintain; i) to forecast; j) to plan; k) to determine; l) to
prepare; m) to share; n) to hand down; o) to contradict; p) to influence; q) to pass; to grant;
r) to execute; s) to benefit.
4 Make up your own sentences with any five word combinations from (2) and (3).
5 Write out from the main text international words like finance, system, etc.
Transcribe and read them aloud.
2.12 Read the article and do the following tasks.
2.12.1 Supply the articles where necessary.
2.12.2 Write down 3-5 questions about the text.
The World's Major Financial Centre
The financial heart of England is the City. It is ... square mile in London on the bank
of ... Thames. In the centre there is the Bank of England, and the head offices and foreign
departments of other English banks.
43
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
It is ... home of commodity, financial, and insurance markets that are all
concentrated in the narrow streets, which form the financial core of ... City.
The position that the City holds is due in no small measure to the integrity of its
members. The City is jealous of its honour, punctilious in fulfilling its obligations and,
where deals of thousands of pounds are made merely by a word, is proud to make its word
its bond.
The population of the City is almost entirely ... daytime one. Each morning about
half a million people come in from north, south, east and west, and then as evening comes
and business finishes they hurry home by ... train, bus, car or ... underground. Prior to
1914 this population was almost completely ... male one, with top hat, black tail coat,
black and white striped trousers, stiff-fronted shirt and stiff white collar. Two wars have
changed all that. There are probably as many women employed in the City as there are
men these days.
From ... earliest times the City has been ruled by its own elected Lord Mayor and
Aldermen, and to this day ... king or queen of England may not pass the bounds of the City
until he or she has had permission of ... Lord Mayor, and then he or she comes only as ...
guest.
Generally speaking, the City performs four financial functions:
1 the City gathers in ... country's savings and provides channels and machinery for
their investment;
2 it provides ... safe, speedy and convenient means of payment without the actual
use of banknotes or coins;
3 through the medium of... Foreign Exchange Market it makes it possible to
exchange one currency for another;
4 it provides the organization to finance, transport and insure foodstuffs,
manufactures and raw materials on their way from producer to consumer.
2.12.3 Words you may need:
1) square mile – квадратная миля;
2) core (n) – сердцевина;
3) jealous of its honour – тщательно оберегающий свою честь;
44
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
4) punctilious (adj) – пунктуальный;
5) bond (n) – обязательство;
6) stiff (adj) – жесткий, накрахмаленный;
7) striped (adj) – полосатый;
8) bound (n) – граница;
9) medium (n) – средство.
2.13 Read the article and do the following tasks.
2.13.1 Supply the prepositions where necessary.
2.13.2 Write down six questions about the text.
2.13.3 Give the main idea of this text.
Budgetary Policy
The transformation of the economic and political systems in Russia has been
accompanied ... substantial reforms in the budget process, including budget preparation
and classification, a new treasury system for budget execution and expenditure control,
considerable autonomy of subnational governments in the formulation of their budgets.
On the whole, the budgetary policy in Russia is aimed ... attaining the efficient
allocation of national resources, the desirable redistribution of income ... the poorer groups
in society, and the maintenance of a macroeconomic environment with stable prices, full
employment and equilibrium in the balance of payments.
Accurate budget evaluation is more necessary now than ever before. The economic
transition has led ... drastic retrenching in public resources so there is a need to increase
the efficiency with which public resources are used. Proper budget evaluation will provide
critical information and feedback to policy makers ... how well budget objectives are being
attained ... the implementation of the budget.
The transition ... the market economy has significantly increased the complexity of
interactions of the government with the private sector thus increasing the opportunities ...
misuses of funds and ... corruption. For these reasons it is important that an effective and
independent ex-post audit be carried ... by the Accounts Chamber at all levels of
government.
45
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
2.13.4 Words you may need:
1) accompany (v) – сопровождать;
2) treasury system – система казначейства;
3) formulation of the budget – подготовка бюджета;
4) attain (v) – достигать, добиваться;
5) equilibrium (n) – равновесие;
6) retrench (v) – сокращать, урезывать (расходы);
7) feedback (n) – обратная связь;
8) objective (n) – цель;
9) misuses of funds – нарушения в использовании средств;
10) ex-post audit – аудит (ревизия) использования средств.
2.14 Open the brackets putting the verbs in the correct active or passive form.
History of Russian Money
The first Russian coins (to mint) when Russia was converted to Christianity. The
gold and silver coins of Kievan Rus were first made under Grand Duke Vladimir
Sviatoslavich in the late 10th – early 11th century. After a long “coinless” period, minting
(to resume) in the 1380s, under Grand Duke Dmitry Donskoy of Muskovy.
The Russian monetary system, which laid the foundations of national accounting
and even the present-day rouble, (to take) shape in the early 16th century. Then, the chief
currency unit was the silver kopeck with a depiction of a horseman with a lance (kopye in
Russian), which was Russia's emblem and the symbol of grand-ducal power. The kopeck's
emergence (to connect) with the 1535-1538 reform of Yelena Glinskaya, who managed to
create a single monetary system for the centralized Russian state, with the rouble
containing 100 kopecks.
But by the 17th century, the Russian monetary system, based on just one type of
coin, the one-kopeck piece, (to become) something of an anachronizm, lagging behind the
more convenient European arrangement. Peter the Great (to bring) into circulation coins of
various denominations: one-rouble, fifty-kopeck, ten-kopeck, and other coins. The drastic
change also (to involve) the minting metal, with gold and copper coins being produced in
46
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
addition to the traditional silver pieces, and machine-minted coins taking the places of the
hand-made ones.
The reform of finance minister Count Kankrin (1839-1843) was the first step
towards turning paper banknotes into money backed by precious metal reserves. The silver
rouble (to recognize) as the principal monetary unit.
During finance minister Sergei Witte's tenure in office, paper banknotes (to back) by
gold reserves worth 1.5 billion roubles, and a new monetary economy was set up on the
basis of scientifically computed paper money emission rates. Thanks to Witte's reform,
Russia finally (to manage) to close the age-old gap between itself and Europe and to
integrate into the global financial system. The rouble (to become) convertible.
In the post-1917 period the first paper banknotes of Soviet Russia (to issue). The
monstrous hyperinflation of the first years of Soviet power went down once the New
Economic Policy was in place and the gold reserves in the country rebuilt. The chervonets,
as the new unit equivalent to 10 pre-revolutionary roubles was known, (to help) revive the
Russian monetary system founded by Witte. It stayed in circulation until 1928. With the
first 5-year plan in operation, when the Government resumed its practice of high emission
rates, inflation (to return) and the Soviet rouble became an exclusively domestic legal
tender. Now the Russian rouble (to become) an international currency.
2.14.1 Words you may need:
mint (v) – чеканить;
to convert to Christianity – обращать в христианство;
grand duke – великий князь;
depiction (n) – изображение;
to lag (behind) (v) – отставать;
tenure in office – пребывание в должности;
convertible (adj) – конвертируемый;
revive (v) – возрождать;
legal tender законное – платежное средство.
2.15 Read the article and do the following tasks.
2.15.1 Fill each gap with a suitable word.
47
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
1) Coin;
5) known;
9) invented;
13) using;
2) Forms;
6) big;
10) small;
14) instruments.
3) used;
7) objects;
11) money;
4) called;
8) assets;
12) handle;
What Is Money?
Money is an asset that serves as a means of payment, a store of value, and a unit of
account. Money was_______ a long time ago.
Gold and silver coins are the best_______ form of money. They have the longest
history and have been more widely accepted as payment than any other form of
commodity money.
The popularity and universal acceptability of_______ money is easy to understand.
Coins are solid, attractive, hard-wearing and easy to______. In addition to the qualities
mentioned above, coins can be produced in_______ and_______ denominations.
Societies________ gold and silver have used other_______ as money, including
shells, beads and pelts. Anything can serve as______ that is easily recognized, widely
accepted, and not easily copied. Gold, shells, and pelts are no longer used as money in the
majority of countries.
Today two kinds of financial_______ serve as money: currency (coins and bills) and
checking deposits at banks and thrift institutions.
Currency plus checking deposits at banks and thrifts is often _______ M1. The
money that includes balances in money market funds, savings deposits in banks and thrifts
and certain other liquid ______is called M2.
Along with coins, paper currency, and checking deposits, “plastic money” is widely
_______ today. “Plastic money” comes in two _______ – credit cards and debit cards.
2.15.2 Sum up the text in 5-7 sentences and present your summary in class.
2.15.3 Words you may need:
1) asset (n) – инструмент;
2) means of payment (n) – средство платежа;
48
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
3) store of value – средство сбережения;
4) unit of account – расчетная единица;
5) commodity money – товар-посредник в роли денег (например, соль, мех);
6) solid (adj) – прочный;
7) hard-wearing (adj) – неизнашивающийся;
8) denomination (n) – достоинство (денег);
9) shell (n) – раковина;
10) bead (n) – бусина;
11) pelt (n) – шкура;
12) checking deposit – вклад на текущем счете;
13) M1 – денежный агрегат M1;
14) М2 – денежный агрегат М2;
15) “plastic money” – «пластиковые деньги».
2.16 Do you agree with the following statements:
1 Money is power.
2 Money open all doors.
3 Money is the root of all evil.
4 Money doesn't grow on trees.
5 Money is a good servant, but a bad master.
6 Money isn't everything.
7 Money makes money.
2.17 Match sayings and their explanations (Use ex. 2.16).
1 It's not easy to get money. We have to work hard to make money. We can't just
walk around and pick it like fruit from the trees.
2 If you have money, it will serve you and work for you well. But if you owe money
to other people, that money will control you in an unpleasant way.
3 If you have money, you can use it to get more money through investment.
4 According to this saying, all immorality and wickedness is caused by money. This
saying is a misquotation, and the original version (“the love of money is the root of all
evil”) implies that all immorality and wickedness is caused by people loving money, not
49
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
by money itself.
5 There are other important things in this world, not just money.
2.18 Read the text and name the facts from the text which are new to you.
Treasury
Despite the many changes and reforms in Russia over the past few years, budget
execution still presents significant problems. There is a lack of efficient control of
expenditure, of information on extra-budgetary funds, of a well-defined procedure for the
allocation of funds between different levels of government. In addition, there are problems
with the budget classification, the obsolete system of public accounts, weak debt and cash
management practices.
In 1993, Russia began its work on setting up the Federal Treasury. It consists of the
Main Department of the Federal Treasury of the Ministry of Finance of the Russian
Federation and its territorial bodies in republics, areas, and regions. The tasks of the
Treasury are the following: to organize and exercise control over the execution of the
federal budget; to regulate relations between the federal budget and federal off-budget
funds; to exercise control over the receipt and use of the funds; to regulate relations
between the federal budget and budgets of subjects of the Federation; to make short-term
projections of financial resources and to manage them; to collect and compile information
about the position of federal finances, to manage, and service the state internal and
external debt jointly with the Central Bank.
The new Treasury is expected to require that all spending units should report their
operations at the commitment, verification and payment stages. The plan is that after
verification of budget allocation and compliance with existing authorization the Treasury
will issue the actual payment orders against a unified Treasury account with the Central
Bank. This will imply a far-reaching change of budgeting practices in Russia. The new
mechanism will allow the government to exercise effective spending controls in order to
have updated information on government expenditure and for debt and cash management
purposes. The new Treasury is also expected to help remedy other deficiencies in the
process of budget execution. Effective implementation of the new Treasury system will
50
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
lead to changes outside the budget execution, such as budget classification and accounting
standards.
2.18.1 Words you may need:
1) despite (prep) – несмотря на;
2) lack (n) – недостаток;
3) obsolete (adj) – устаревший;
4) public account – счет государственного учреждения;
5) debt and cash management – управление долгом и наличными средствами;
6) to exercise control – осуществлять контроль;
7) receipt (n) – получение, поступление;
8) internal and external debt – внутренний и внешний долг;
9) jointly (with) – совместно (с);
10) spending unit – бюджетная единица;
11) commitment (n) – поручение;
12) verification (n) – проверка, контроль;
13) authorization (n) – разрешение;
14) to issue payment orders – выдавать платежные поручения;
15) updated (adj) – обновленный, скорректированный;
16) to remedy deficiencies – исправлять недостатки;
17) accounting standards – стандарты бухучета.
2.19 Read the article and do the following tasks.
2.19.1 Read the article below quickly to find out the main facts about the reform of
the financial system in Indonesia.
2.19.2 Compare the reform of the financial system in Indonesia with any other
country in the world.
Reform of the Financial System: Indonesia
A key element of Indonesia's comprehensive adjustment effort in 1983, following a
sharp decline in oil revenues and a weakening of the economy's finances, was a reform of
the financial system. Before the reform, the major instruments for conducting monetary
51
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
policy available to the central bank, Bank Indonesia (BI), were credit ceilings for
individual banks, and interest rate controls for state banks.
Before the financial reform, the expansion of liquidity credits and net foreign assets
had led to a rapid growth of reserve money, which left the banking system with a large
volume of surplus funds. This excess liquidity together with interest rate controls produced
distortions in the pattern of domestic financial intermediation. Moreover, since an
increasing proportion of deposits was being placed in nonbank financial intermediaries
which were not subject to either interest rate controls or credit ceilings, during this period,
the effectiveness of monetary controls was weakened.
The financial reform included replacing the system of restrictions on financial
institutions with a more indirect system of monetary control. Interest rate controls were
eliminated, a wide range of loan categories were made ineligible for liquidity credits,
credit ceilings on individual banks were eliminated, and a new mechanism of monetary
control that relied principally on open market operations was introduced.
Since there were no domestic public debt instruments available for open market
operations, BI began issuing its own debt instruments which could be readily marketed
under the prevailing circumstances of excess liquidity. The sale and repurchase of these
instruments allowed the central bank to absorb or inject bank reserves at its own initiative
and to influence domestic money market conditions.
The most important success of the reform was the rapid growth of domestic
currency deposits after June 1983 and the marked slowdown in the accumulation of
foreign currency deposits, reflecting the increased confidence in the domestic banking
system and its greater competitiveness. Moreover, the move to open-market operations as
the principal instrument of monetary control greatly improved the authorities' technical
ability to manage monetary and reserve aggregates. Indonesia was able to successfully put
in place an indirect system of monetary and interest rate management despite the lack of a
sophisticated money market at the outset of the liberalization process.
2.19.3 Words you may need:
1) credit ceiling – кредитный потолок;
52
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
2) interest rate – процентная ставка;
3) liquidity credit – ликвидный кредит;
4) net foreign assets – чистые иностранные активы;
5) monetary control – кредитно-денежный контроль;
6) eliminate (v) – уничтожать; упразднять;
7) ineligible (adj) – не имеющий права;
8) open-market operations – операции на открытом рынке;
9) debt instrument – долговое обязательство;
10) excess liquidity – избыточная ликвидность;
11) currency deposits – валютные вклады;
12) marked slowdown – заметное снижение;
13) monetary and reserve aggregates – денежные и резервные агрегаты;
14) at the outset – в начале.
2.19.4 Reread the article more carefully and complete the sentences given below
using information from the article.
1 A key element of Indonesia's adjustment effort in 1983 was______.
2 Credit ceilings and interest rate controls were_______.
3 Before the financial reform rapid growth of reserve money was caused by______.
4 The effectiveness of monetary controls was weakened because of______.
5 In the course of the financial reform_______ were eliminated.
6 BI began issuing its own debt instruments as_______.
7 The Central Bank influenced the domestic money market conditions by_______.
8 Domestic currency deposits______ after June 1983.
9 Despite the lack of a sophisticated money market _______.
53
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
3 Unit 3 Economic Security
3.1 Before reading learn the following words and phrases which are essential to the
topic:
1) security (n) – безопасность, обеспечение безопасности; меры безопасности;
защита, охрана;
2) access (n) – доступ;
3) dwelling (n) – местожительство; проживание, жилье;
4) dimension (n) – измерение, величина, объем;
5) essential (adj) – важнейший; необходимый, основной;
6) income (n) – доход, приход, прибыль, заработок;
7) impact (n) – удар, толчок, сотрясение, импульс;
8) opportunity (n) – возможность, удобный случай, стечение обстоятельств,
благоприятная возможность;
9) to pursue (v) – преследовать (кого-л.), гнаться, бежать (за кем-л.);
10) benefit (n) – выгода, польза, прибыль, преимущество;
11) comprehensive (adj) – всесторонний, полный, всеобъемлющий;
12) ample (adj) – достаточный ,богатый, изобильный, обильный;
13) dismissal (n) – увольнение; отставка, сокращение;
14) protection (n) – защита, охрана;
15) hiring – наем;
16) firing – увольнение (по решению работодателя);
17) to adhere (v) – твёрдо держаться, придерживаться чего-л.; оставаться
верным (чему-л.);
18) career (n) – карьера, успех;
19) dilution – ослабление, спад;
20) craft (n) – 1) профессиональные способности; сноровка в работе 2)
персонал (предприятия);
21) scourge (n) – беда, бедствие;
22) harassment – беспокойство, агрессия, оскорбление, притеснение;
54
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
23) insurance (n) – защита, гарантия, страхование;
24) apprenticeships (n) – обучение, срок учения, период обучения.
3.2 Read the text.
Text A. What is Economic Security?
Economic security is composed of basic social security, defined by access to basic
needs infrastructure pertaining to health, education, dwelling, information, and social
protection, as well as work-related security.
Economic security is a state entity, characterized by the presence of a stable
income and other resources that can support the standard of living for today and for the
foreseeable future. It includes:
1) Maintaining solvency;
2) planning for the future cash flows of the entity;
3) security of employement.
There are seven components of work-related security. While all seven dimensions
are important, two are essential for basic security: income security and voice
representation security.
Basic security means limiting the impact of uncertainties and risks people face
daily while providing a social environment in which people can belong to a range of
communities, have a fair opportunity to pursue a chosen occupation and develop their
capacities via what the ILO calls decent work.
Income security denotes adequate actual, perceived and expected income, either
earned or in the form of social security and other benefits. It encompasses the level of
income (absolute and relative to needs), assurance of receipt, expectation of:
1) current and future income, both during working life and in old age or disability
retirement. Classic income security protection mechanisms include a minimum;
2) wage machinery, wage indexation, comprehensive social security, and
progressive taxation.
Representation security refers to both individual representation and collective
55
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
representation. Individual representation is about individual rights enshrined in laws
as well as the individuals’ access to institutions. Collective representation means the right
of any individual or group to be represented by a body that can bargain on their behalf and
which is sufficiently large, sufficiently independent and sufficiently competent to do so.
Independent trade unions with the right to collectively bargain over wages, benefits, and
working conditions as well as to monitor working practices and strike have been typical
forms of granting representation security.
Labour market security arises when there are ample opportunities for adequate
income-earning activities. It has a structural component, in that it represents the types and
quantity of opportunities. Furthermore, it has a cognitive side, as it also features
expectations that opportunities are or will become adequate. Policies aimed at
enhancing this form of security have included full-employment oriented macro-economic
policies, the creation of employment agencies, and other placing services.
Employment security is protection against loss of income-earning work. For wage
and salary workers, employment security exists in organizations and countries, in which
there is strong protection against unfair or arbitrary dismissal and where workers can
redress unfair dismissal. For the selfemployed, it means protection against sudden loss of
independent work, and/or business failure. Typical forms of enhancing employment
security have been protection against arbitrary dismissal, regulations on hiring and firing,
and imposition of costs on employers for failing to adhere to rules.
Job security signifies the presence of niches in organizations and across labour
markets allowing the workers some control over the content of a job and the opportunity to
build a career. Whereas employment security refers to the opportunity of a worker to
continue working in an enterprise, job security refers to the worker’s ability to pursue a
line of work in conjunction with his or her interests, training and skills. Protection
mechanisms have consisted of barriers to skill dilution such as craft boundaries, job
qualifications, restrictive practices, craft unions, etc.
Work security denotes working conditions in organizations that are safe and
promote workers’ well being. Classic “occupational health and safety” provisions
shielding workers from occupational hazards, diseases, and injuries are an integral part.
56
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Work security goes beyond this, though, in addressing the modern scourges of
stress, overwork, absenteeism, and harassment. Protection devices for work security
include provisions and insurance against accidents and illness at work, and limits on
working time.
Skill reproduction security denotes workers’ access to basic education as well as
vocational training to develop capacities and acquire the qualifications needed for socially
and economically valuable occupations. Ways to further skill reproduction security
include policies to generate widespread opportunities to gain and retain skills
through education, apprenticeships, and employment training.
Примечания
1 ILO – International Labour Organization – МОТ, Международная организация труда
(специализированный орган ООН).
2 Absenteeism – абсентеизм (намеренное игнорирование каких-л. мероприятий; уклонение
от использования каких-л. прав, в том числе права собственности, права участвовать в выборах
органов власти и пр.).
3.3 Study the following words:
1) complain (v) – жаловаться;
2) forms of business organization – формы организации бизнеса;
3) alter (v) – изменять, переделывать;
4) command economy – командная экономика;
5) partnership (n) – товарищество;
6) cooperative society – кооператив;
7) joint-stock company – акционерная компания;
8) general partnership – полное товарищество;
9) liability (n) – ответственность, обязательство;
10) to bear joint and several liability – нести солидарную ответственность;
11) wrongdoing (n) – незаконные действия;
12) limited partnership – коммандитное товарищество (товарищество с
ограниченной ответственностью);
13) general partner – главный партнер (с неограниченной ответственностью);
14) limited partner – коммандитный (пассивный) партнер (с ограниченной
57
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
ответственностью);
15) shareholder (n) – акционер;
16) share (n) – акция;
17) legal entity – экономический субъект;
18) coincide (v) – совпадать;
19) to bring a lawsuit against smb – возбудить судебный процесс против кого-л.;
20) to make a claim – предъявить претензию;
21) assets (n) – активы;
22) to float a company – образовывать акционерную компанию;
23) memorandum of association – учредительский договор;
24) registrar (n) – регистратор;
25) certificate of incorporation – разрешение на создание корпорации;
26) to sue and be sued in the courts – искать и отвечать в суде;
27) confer (v) – присуждать, передавать;
28) complain (v) – жаловаться;
29) forms of business organization – формы организации бизнеса;
30) alter (v) – изменять, переделывать;
31) command economy – командная экономика;
32) partnership (n) – товарищество;
33) cooperative society – кооператив;
34) joint-stock company – акционерная компания;
35) general partnership – полное товарищество;
36) liability (n) – ответственность, обязательство;
37) to bear joint and several liability – нести солидарную ответственность;
38) wrongdoing (n) – незаконные действия;
39) limited partnership – коммандитное товарищество (товарищество с
ограниченной ответственностью);
40) general partner – главный партнер (с неограниченной ответственностью);
41) limited partner – коммандитный (пассивный) партнер (с ограниченной
ответственностью);
58
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
42) shareholder (n) – акционер;
43) share (n) – акция;
44) legal entity – экономический субъект;
45) coincide (v) – совпадать;
46) to bring a lawsuit against smb – возбудить судебный процесс против кого-л.;
47) to make a claim – предъявить претензию;
48) assets (n) – активы;
49) to float a company – образовывать акционерную компанию;
50) memorandum of association – учредительский договор;
51) registrar (n) – регистратор;
52) certificate of incorporation – разрешение на создание корпорации;
53) to sue and be sued in the courts – искать и отвечать в суде;
54) confer (v) – присуждать, передавать.
3.4 Read the dialogue below, sum up its content and act it out.
Text B.
Foreigner: Western businessmen used to complain that they couldn't work widely
in the Russian market first of all because the forms of business organization were not
developed. How do things stand these days?
Russian: The situation is different now. The ongoing reforms have drastically
altered the environment in which Russia's enterprises are operating now.
Foreigner: True. The massive shift you are making now from a command to a
market economy is really unprecedented.
Russian: You are right. Liberalization of economy, restructuring of production
sectors, an extensive privatization programme have brought about real changes and led to
the creation of types of business unit accepted throughout the world.
Foreigner: You mean that now your businesses operate as partnerships, cooperative
societies, and joint-stock companies.
Russian: Yes, let me give you just one example. Like in the West, we have now two
types of partnership. General partnerships with partners bearing joint and several liability
for debts and wrongdoing and limited partnerships that include one or more general
59
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
partners who bear full liability and run the business, plus one or more limited partners,
who bear limited liability. They do not have a voice in the firm's day-to-day management,
they are in much the same position as shareholders in a corporation.
Foreigner: Now that you've mentioned corporations, do they play an important role
in your economy?
Russian: Yes. Like in the West, they exist as independent legal entities with the
capital divided into shares. The liability of shareholders is limited.
Foreigner: Your practice here fully coincides with Western principles. Creditors or
people bringing lawsuits against corporations can make claims against the assets of the
corporation only.
Russian: Yes, limited liability is the biggest advantage of this form of business
organisation.
Foreigner: Our businessmen when floating a company, sign a memorandum of
association, then they draw up articles of association and submit them to the registrar of
companies issuing a certificate of incorporation. Is the procedure of registration
complicated here?
Russian: No, the procedure is similar to what you've said, and after the registration
our companies can also do all the legal things like own property, employ people, sue and
be sued in the courts and so on.
Foreigner: All businesses seek profits. But in any market economy there is a certain
number of business units which are non-profitmaking and are formed to confer certain
benefits upon their members.
Russian: You mean cooperative societies, don't you? Yes, we have such voluntary
associations based on membership.
Foreigner: Well, another point ... In market economies such activities as supplying
gas, electricity, and water are conducted by state-owned enterprises. How about Russia?
Russian: Natural monopolies including transport are controlled by the state in
Russia, too. Besides, many other activities are conducted by socially-owned enterprises.
For example, we have introduced a new form of unitary state enterprises.
Foreigner: What's the idea?
60
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Russian: Such enterprises have no right of ownership of the assets. Assets are
assigned to such enterprises to be used for economic activity.
Foreigner: It's an interesting form. And how can foreign firms participate in
Russian business?
Russian: Oh, now it can be done in many ways which are stipulated by our
legislation.
Foreigner: If I'm not mistaken, in spite of all your reforms your legislation is still
rather complicated.
Russian: Yes, that's true, foreigners wishing to enter our market often have to take
advice on legal matters.
3.5 Answer the questions.
3.5.1 Look through the Text A and answer these questions:
1 What comes to mind when you hear the word “security”?
2 Do you have all the security you need?
3 What would life be like with little security?
4 What do you do to make sure your Internet security is strong?
5 Does your country provide good social security if you have no job or home?
6 Douglas MacArthur said: “There is no security on this earth. Only opportunity”
Do you agree with this?
7 Franklin Delano Roosevelt said: “True individual freedom cannot exist without
economic security and independence.” Do you agree?
8 How important is financial security to you?
9 Do you worry about job security?
10 Britain's Lord Acton said: “The most certain test by which we judge whether a
country is really free is the amount of security enjoyed by minorities”. Do you agree with
this?
3.5.2 Look through the Text B and answer these questions:
1 What do you think of airline security?
2 Do you get nervous going through airport security?
3 Someone once said: “Security is an illusion. Life is either a daring adventure or it
61
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
is nothing at all”. Do you agree?
3.6 Give derivatives of:
security; growth; dilution; hiring; economy; insurance; protection.
3.7 Find in the Text A and Text B (dialogue) English equivalents for the following
Russian phrases:
Text A
Безопасность, уровень дохода, развивать чьи – либо способности, достаточные
возможности, сокращение, придерживаться чего – либо, преследовать что – либо,
карьера, бедствие, беспокойство, период обучения, доступ, защитные механизмы,
состоять из, полная занятость, когнитивная сторона (аспект), типичные формы,
структурный компонент, условия труда, основное образование, правила, агентства
по трудоустройству, экономическая безопасность.
Text B
Формы организации бизнеса, прежде всего, командная и рыночная экономика,
акционерная
товарищество
компания,
с
товарищество,
ограниченной
полное
товарищество,
ответственностью,
главный
обязательство,
партнер
(с
неограниченной ответственностью), акционер, акция, экономический субъект,
возбудить судебный процесс против кого – либо, предъявить претензию, активы,
образовать акционерную компанию, учредительный фонд.
3.8 Single out the main points of the Text A. Use the following opening phrases:
1 The text looks at (the problem of...)...;
2 The text deals with the issue of...;
3 It is clear from the text that...;
4 Among other things the text raises the issue of...;
5 The problem of... is of great importance.
6 One of the main points to be singled out is...;
7 Great importance is also attached to ...;
8 In this connection, I’d like to say ...;
9 I find the question of... very important because ...;
10 I think that... should be mentioned here as a very important mechanism of ... .
62
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
3.9 Sum up the content of the Text B (dialogue). Use the following phrases:
The dialogue is about...;
According to the dialogue ... .
3.10 Read the article and do the following tasks.
3.10.1 Supply the articles where necessary.
3.10.2 Has the situation changed since 1995? Prove your point of view.
3.10.3 Read the text and suggest the title.
... oil and gas industries of... former USSR were one of... very few industrial success
stories of the final years of ... Soviet regime. Today, those same industries, now operating
within ... CIS, are in deep crises. Production and exports of... sector's two key products –
oil and gas – fell by almost... half between 1989 and 1994. It's not all bad news, of course:
over ... first eight months of 1995,... rate of decline in fuel and energy production was less
than ... 2 % per cent compared to ... last year. Equally dramatic changes are yet to come as
... Russia and ... CIS countries shift to ... market economy.
Major Western oil companies, however, have been moving away from ... Russia
because of ... risks involved: unfriendly tax regimes, ... uncertain political climate,
financial problems and ... problems of negotiating with local, regional and central
authorities. Last but not least, comes the difficulty of repatriating profits. According to ...
official fuel and energy ministry figures, as of January 1, 1995, Russia had 1,910 oil fields
and 410 gas fields, of which 1,020 are commercially operated, accounting for 72 per cent
of all... reserves. 50.4 per cent of these reserves have already been worked out. ...oil was
first produced commercially in ... Russia in 1864.
Based on: European Businessman
3.10.4 Words you may need:
1) CIS – Commonwealth of Independent States – Содружество независимых
государств (СНГ)
2) rate of decline – темпы сокращения (производства);
3) equally (adv) – равно, в равной степени;
4) dramatic changes – разительные изменения;
5) shift to a market economy – переход к рыночной экономике;
63
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
6) tax regime – налоговый режим;
7) authorities – власти;
8) to repatriate profits – вывозить прибыль;
9) to account for – составлять.
3.11 Read the article and do the following tasks.
3.11.1 Supply the prepositions where necessary.
3.11.2 Write down the questions that might have been asked during the survey by
the sociological service.
3.11.3 Act out the interviews that might have taken place during the survey.
Small Businesses in Russia
Russia now has more than 900,000 enterprises, their number having increased ...
5 % in 1995. According ... the State Committee for Statistics, small businesses accounted,
in the first quarter of 1995, ... around 10 % of the gross domestic product and their profits
amounted ... 20 % of all enterprises. Small businesses employ 12% of the economy's
work-force, or 8,1 million full-timers.
The Cassandra sociological service carried out a survey about the prospects of small
businesses in Russia. ... the opinion of 70 % of businessmen questioned ... the Cassandra
sociological service, Russia's small business will develop ... moderate rates ... this year;
only 13 % hope ... faster development. This skepticism is due above all ... the negative
assessment of the country's financial condition given ... 71 % of the respondents ... regard
... the development of small business. Only 1 % of the respondents said these conditions
were favorable, while 28 % said they were satisfactory. In the opinion of 70 % of the
respondents, budgetary allocations to promote small business are not used effectively.
There's no use hoping for any significant improvement... financial backing for small
business ... this year, 59 % of the respondents believe.
The businessmen also pointed ... the inadequate role of banks. Forty-five per cent of
the respondents believe credit institutions will participate financially in small business
projects in 1996, while 31 % believe their participation will not be active enough.
Based on: European Businessman.
64
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
3.11.4 Words you may need:
1) gross domestic product (GDP) – валовой внутренний продукт;
2) moderate (adj) – умеренный;
3) respondent (n) – респондент, участник опроса;
4) inadequate role – недостаточная роль.
3.12 Read the text.
Economic security and economic growth are mutually reinforcing. The more
security that people achieve in their personal finances — through personal savings and
social insurance — the more confidence they place in the future. Economically secure
people are more likely to seize opportunities, bounce back from adverse events, and take
risks such as starting a business or trying a new career that can pay off for the individual
and the economy as a whole. The Hamilton Project explores innovative proposals to
increase individuals' economic security.
Traditional Sources of Economic Security
All peoples throughout all of human history have faced the uncertainties brought on
by unemployment, illness, disability, death and old age. In the realm of economics, these
inevitable facets of life are said to be threats to one's economic security.
For the ancient Greeks economic security took the form of amphorae of olive oil.
Olive oil was very nutritious and could be stored for relatively long periods. To provide
for themselves in times of need the Greeks stockpiled olive oil and this was their form of
economic security.
In medieval Europe, the feudal system was the basis of economic security, with the
feudal lord responsible for the economic survival of the serfs working on the estate. The
feudal lord had economic security as long as there was a steady supply of serfs to work the
estate, and the serfs had economic security only so long as they were fit enough to provide
their labor. During the Middle Ages the idea of charity as a formal economic arrangement
also appeared for the first time.
As societies grew in economic and social complexity, and as isolated farms gave
way to cities and villages, Europe witnessed the development of formal organizations of
various types that sought to protect the economic security of their members. Probably the
65
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
earliest of these organizations were guilds formed during the Middle Ages by merchants or
craftsmen. Individuals who had a common trade or business banded together into mutual
aid societies, or guilds. These guilds regulated production and employment and they also
provided a range of benefits to their members including financial help in times of poverty
or illness and contributions to help defray the expenses when a member died.
Out of the tradition of the guilds emerged the friendly societies. These organizations
began appearing in England in the 16th century. Again organized around a common trade
or business, the friendly societies would evolve into what we now call fraternal
organizations and were the forerunners of modern trade unions.
In addition to the types of economic security provided by the guilds, the fraternal
organizations and some trade unions would begin the practice of providing actuariallybased life insurance to their members. The friendly societies and the fraternal
organizations would grow dramatically following the Industrial Revolution. By the
beginning of the 19th century one of out every nine Englishmen belonged to one of these
organizations.
Among early U.S. fraternal organizations that we are familiar with even into the
present day were: the Freemasons (which came to America in 1730); the Odd Fellows
(1819); Benevolent and Protective Order of Elks (1868); Loyal Order of Moose (1888);
and the Fraternal Order of Eagles (1898).
3.12.1 Words you may need:
1) serfs – крепостные;
2) charity – благотворительность;
3) merchant – купец, торговец; лицо, занимающееся оптовыми продажами;
4) craftsmen – мастер, ремесленник;
5) defray – оплачивать, платить;
6) fraternal – братский;
7) pay off – расплачиваться сполна; рассчитываться с кем-л.; покрывать (долг);
8) realm – королевство; государство; страна , сфера, область;
9) facets of life – стороны жизни;
10) amphorae – амфора;
66
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
11) nutritious – питательный;
12) stockpiled – запас, резер.
3.13 Read the text.
Economic Security in America
When the English-speaking colonists arrived in the New World they brought with
them the ideas and customs they knew in England, including the “Poor Laws”. The first
colonial poor laws were fashioned after those of the Poor Law of 1601. They featured
local taxation to support the destitute; they discriminated between the “worthy” and the
“unworthy” poor; and all relief was a local responsibility. No public institutions for the
poor or standardized eligibility criteria would exist for nearly a century. It was up to local
town elders to decide who was worthy of support and how that support would be provided.
The English “Poor Laws”
As the state began to assume responsibility for economic security, the English began
the development of a series of “Poor Laws” adopted to provide help to the poor, as the
problem of economic security was seen primarily as a problem afflicting the poor.
The English Poor Law of 1601 was the first systematic codification of English ideas
about the responsibility of the state to provide for the welfare of its citizens. It provided for
taxation to fund relief activities; it distinguished between the “deserving” and the
“undeserving” poor; relief was local and community controlled; and almshouses were
eventually established to house those on relief. The law was at once both generous and
harsh. Generous in that it acknowledged the government's duty to provide for the welfare
of the poor, but harsh in that it viewed the poor as highly undesirable characters and
treated them accordingly.
There were a series of changes and “reforms” of the “Poor Laws” over the years, but
this essential structure was the tradition the pilgrims brought with them when they
journeyed to the New World.
As colonial America grew more complex, diverse and mobile, the localized systems
of poor relief were strained. The result was some limited movement to state financing and
the creation of almshouses and poorhouses to “contain” the problem. For much of the 18th
and 19th centuries most poverty relief was provided in the almshouses and poorhouses.
67
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Relief was made as unpleasant as possible in order to “discourage” dependency. Those
receiving relief could lose their personal property, the right to vote, the right to move, and
in some cases were required to wear a large “P” on their clothing to announce their status.
Support outside the institutions was called “outdoor relief” and was looked upon
with distrust by most citizens. It was felt that “outdoor relief” made things too easy on the
poor who should be discouraged from the habit of poverty in every way possible.
Nevertheless, since it was expensive to build and operate the poorhouses, and since it was
relatively easy to dispense cash or in-kind support, some outdoor relief did emerge. Even
so, prevailing American attitudes toward poverty relief were always skeptical and the role
of government was kept to the minimum. So much so that by as late as 1915 at most only
25 % of the money spent on outdoor relief was from public funds.
3.13.1 Words you may need:
1) distrust – недоверие; сомнение; подозрение;
2) discourage – не одобрять; мешать осуществлению, препятствовать,
отговаривать;
3) nevertheless – тем не менее, однако, несмотря на, всё-таки;
4) to dispense – раздавать, делить, распределять;
5) support – поддержка;
6) harsh – жёсткий, твёрдый, грубый, неприятный;
7) welfare – благополучие; благосостояние, достаток.
3.14 Read the text.
Old Age in Colonial America
Although the need for economic security affects all ages and classes of society, one
particularly acute aspect of this need is the problem of old age and the possibility of
retirement after a long life of labor. Retirement, a feature of life we now take so much for
granted, was not always readily available, and it was a struggle to develop adequate
systems of retirement.
68
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
One of the first people to propose a scheme for retirement security that is
recognizable as a forerunner of modern social insurance was Revolutionary War figure
Thomas Paine. His last great pamphlet, published in the winter of 1795, was a
controversial call for the establishment of a public system of economic security for the
new nation. Entitled, Agrarian Justice, it called for the creation of a system whereby those
inheriting property would pay a 10 % inheritance tax to create a special fund out of which
a one-time stipend of 15 pounds sterling would be paid to each citizen upon attaining age
21, to give them a start in life, and annual benefits of 10 pounds sterling to be paid to
every person age 50 and older, to guard against poverty in old-age.
3.14.1 Words you may need:
1) acute – сильный, резкий; крайний, критический;
2) retirement – выход в отставку; уход на пенсию; отход от дел;
3) struggle – борьба;
4) controversial – спорный, сомнительный; дискуссионный.
3.15 Read and discuss the text.
3.15.1 Name the facts from the text which are new to you.
3.15.2 Single out the main facts and present them in a short review.
The Stock Market Crash and the Great Depression
When the New York Stock Exchange opened on the morning of October 24, 1929,
nervous traders sensed something ominous in the trading patterns. By 11:00 a.m. the
market had started to plunge. Shortly after noon a group of powerful bankers met secretly
at J.P. Morgan and Co. next door to the Exchange and pledged to spend 240 million
dollars USA of their own funds to stabilize the market. This strategy worked for a few
days, but the panic broke out again the following Tuesday, when the market crashed again,
and nothing could be done to stop it.
Before three months had passed, the Stock Market lost 40 % of its value; 26 billion
dollars USA of wealth disappeared. Great American corporations suffered huge financial
losses. ATandT lost one-third of its value, General Electric lost half of its, and RCA's
stock fell by three-fourths within a matter of months. (It would take 25 years for the stock
market to return to its pre-crash level following the 1929 crash.)
69
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
As America slipped into economic depression following the Crash of 1929,
unemployment exceeded 25 %; about 10,000 banks failed; the Gross National Product
declined from 105 billion dollars USA in 1929 to only 55 billion dollars USA in 1932.
Compared to pre-Depression levels, net new business investment was a minus 5.8 billion
dollars USA in 1932. Wages paid to workers declined from 50 billion dollars USA in 1929
to only 30 billion dollars USA in 1932.
3.16 Read the text and name the facts from the text which are new to you.
Economic policy
A Well-educated Workforce: Vital Component of National and Economic Security
The world is awash in change. It is the truism of our times. President Barack Obama
introduced his National Security Strategy with the following statement:
Time and again in our Nation’s history Americans have risen to meet—and to
shape—moments of transition. This must be one of those moments. We live in times of
sweeping change.... Our strategy starts by recognizing that our strength and influence
abroad begin with steps at home. We must grow our economy and reduce our deficit. We
must educate our children to compete in an age where knowledge is capital, and the
market place is global.
In May 2010, in a speech before the Council on Foreign Relations, Education
Secretary Arne Duncan spoke of the importance of a well-educated citizenry: “America’s
success depends on the success of its individual citizens, just as the progress of humanity
ultimately depends on the shared progress of nations. I believe that education has
immeasurable power to promote growth and stability in the 21st century.”
The history of the United States is replete with examples of the contribution of
education to economic and national security. In 1635, less than 30 years after the first
settlers landed on North American soil, the Boston Latin School was founded, and the first
free school was established in Virginia. In 1636, Harvard College was established in
Cambridge, Massachusetts, and in 1693, William and Mary College was founded in what
is now Williamsburg, Virginia. In 1862, Congress passed the Morrill Act, which
established “land grant” colleges: endowment, support, and maintenance of at least one
70
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
college where the leading object shall be, without excluding other scientific and classical
studies and including military tactics, to teach such branches of learning as are related to
agriculture and the mechanic arts, in order to promote the liberal and practical education of
the industrial classes in the several pursuits and professions in life.
By the last third of the 20th century, the citizenry of the United States was among
the best educated in the world. In 2010, America was “ranked 12th in the number of 24- to
35-year-olds with college degrees . . . among 36 developed nations.”3 Discussing this
issue before Congress last year, Gaston Caperton, president of the College Board, stated,
“The growing educational deficit is no less a threat to our nation’s long-term well being
than the current fiscal crisis. . . . To improve our college completion rates, we must think
‘P–16’ and improve education from preschool through higher education.”
The College Board advocates achieving a 55 percent graduation rate by 2025 if
America is to remain competitive with the rest of the world. This goal is in contrast to the
2008 graduation rate of just under 42 percent. To achieve the 55 percent goal, the United
States must find a solution that supports college educations for low-income and minority
populations within the country. Achieving this goal also assumes that progress can and
will be made in getting children enrolled in preschool and elementary school and that they
will stay in school through at least an associate’s degree:
According to OECD [Organization for Economic Co-operation and Development]
in 2007 our nation ranked sixth in post-secondary educational attainment in the world
among 25- to 60-year-olds. The United States ranked fourth for post secondary attainment
for citizens age 55–64. The United States trails the Russian Federation, Israel, and Canada
in this age group. As America’s aging and highly educated workforce moves into
retirement, the nation will rely on young Americans to increase our standing in the world.
However . . . among citizens between 25–34 in developed countries, the United States
ranks 12th. In recognition of the inextricable link between national security and economic
security, the National Defense University’s August 2010 symposium entitled Economic
Security: Neglected Dimension of National Security? examined various aspects of
economic security, including the need for a well-educated workforce to drive the engines
71
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
of creativity and economic growth. The human capital discussion panel took its text from
President Obama’s National Security Strategy:
In a global economy of vastly increased mobility and interdependence, our own
prosperity and leadership depends increasingly on our ability to provide our citizens with
the education that they need to succeed, while attracting the premier human capital for our
workforce. We must ensure that the most innovative ideas take root in America, while
providing our people with the skills that they need to compete.
The panel provided a variety of perspectives—from the importance of
understanding the contribution of strategy, to an examination of the challenges currently
facing the “P–16” educational system, to graduate education, and finally to the role and
relationship between colleges and universities and the national security world of work and
economic growth.
3.17 Render the text: Why Economic Security is Critical to Victim Safety and How
Law Enforcement, the Courts, Prosecutors and Victim Services Can Help?
Economic security has long been equated with safety and survival. Those who are
economically secure are better able to insulate themselves from harm. The safety of
survivors is inextricably linked to their economic security. However, while this link is
understood, it has not always been incorporated into the practices of the criminal justice
system. Historically, the criminal justice system has focused on perpetrator accountability
and victim safety, with the focus on victim safety usually meaning the immediate
protection of that victim and her children from further physical violence. The economic
security of the survivor has often been seen as separate from immediate safety needs.
Economic issues, for instance, were seen as keeping a victim in a violent relationship or
perhaps as a long-term goal for the survivor to work on with the help of an advocate from
the local victim services program. This interpretation of the impact of economic factors for
survivors ignores the reality that a victim’s economic security is vitally linked to her
immediate physical safety needs.
Economic insecurity makes a victim more vulnerable to physical harm and so the
criminal justice system—which aims to preempt or avoid future incidents of violence –
72
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
must look at these economic realities as direct threats to a victim’s safety. Law
enforcement, prosecutors, the courts as well as victim services, must put the same
emphasis on a survivor’s economic well-being as they do on the physical safety of a
woman and her dependents because these two realities are inextricably bound for that
victim. What players in the system do to assist a victim or what the system does when it
prosecutes a perpetrator has a range of benefits and consequences. Ultimately, the benefits
inure to both the system and to the survivor. For instance, prosecutors report that a
survivor who is economically secure is a better witness, contributing to a higher success
rate in court cases. In these same instances, the domestic violence victim is able to see
beyond her life of economic dependence solely on an abuser. Similarly, a rape survivor
may heal more quickly if she is able to keep her job, housing, personal property or
educational scholarship.
The WOW Economic Security and Safety Guide for the STOP Grant Program offers
concrete, practical ideas and suggestions for how economic security can become a part of
the work that state and territories do as part of the STOP Grant Program. This guide
provides a menu of options concerning both programs and processes that STOP
administrators may use to integrate economic security into their work as well as resources
STOP administrators may share with subgrantees. Incorporating economic security into
the STOP Grant Program will vary and may include training and programming for all
STOP-funded sectors: law enforcement, prosecution, courts, victim services and any
others receiving funds under STOP. Recognizing the challenges that may come with
incorporating economic security into the work of the STOP Grant program, the STOP
Guide provides STOP administrators and subgrantees with information demonstrating the
importance of this work and suggestions on implementing economic security and safety
strategies in a manner that is mindful of the limitations in both time and funding of service
providers, law enforcement, prosecutors, courts, and STOP program staff.
3.18 Read and discuss the text. Single out the main facts and present them in a short
review.
Civil War Pensions: America's First “Social Security” Program
73
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Although Social Security did not really arrive in America until 1935, there was one
important precursor that offered something we could recognize as a social security
program, to one special segment of the American population. Following the Civil War,
there were hundreds of thousands of widows and orphans, and hundreds of thousands of
disabled veterans. In fact, immediately following the Civil War a much higher proportion
of the population was disabled or survivors of deceased breadwinners than at any time in
America's history.
This led to the development of a generous pension program, with interesting
similarities to later developments in Social Security. The first national pension program
for soldiers was actually passed in early 1776, prior even to the signing of the Declaration
of Independence. Throughout America's ante-bellum period pensions of limited types were
paid to veterans of America's various wars. But it was with the creation of Civil War
pensions that a full-fledged pension system developed in America for the first time.)
The Civil War Pension program began shortly after the start of the War, with the
first legislation in 1862 providing for benefits linked to disabilities “incurred as a direct
consequence of military duty”. Widows and orphans could receive pensions equal in
amount to that which would have been payable to their deceased solider if he had been
disabled. In 1890 the link with service-connected disability was broken, and any disabled
Civil War veteran qualified for benefits. In 1906, old-age was made a sufficient
qualification for benefits. So that by 1910, Civil War veterans and their survivors enjoyed
a program of disability, survivors and old-age benefits similar in some ways to the later
Social Security programs. By 1910, over 90 % of the remaining Civil War veterans were
receiving benefits under this program, although they constituted barely .6 % of the total
U.S. population of that era. Civil War pensions were also an asset that attracted young
wives to elderly veterans whose pensions they could inherit as the widow of a war veteran.
Indeed, there were still surviving widows of Civil War veterans receiving Civil War
pensions as late as 1999!
In the aggregate, military pensions were an important source of economic security in
the early years of the nation. In 1893, for example, the 165 million dollars USA spent on
military pensions was the largest single expenditure ever made by the federal government.
74
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
In 1894 military pensions accounted for 37 % of the entire federal budget. (The Civil War
pension system was not without its critics.)
But these figures based on the federal budget exaggerate the role of military
pensions in providing overall economic security since the federal government's share of
the economy was much smaller in earlier times. Also, there were features of the system
which meant that many veterans did not receive any benefits. For example, former
Confederate soldiers and their families were barred from receiving Civil War pensions. So
in 1910 the per capita average military pension expenditure for residents of Ohio was 3,36
dollars USA and for Indiana it was 3,90 dollars USA. By contrast, the per capita average
for the Southern states was less than 50 cents (it was 17 cents in South Carolina).
Despite the fact that America had a “social security” program in the form of Civil
War pensions since 1862, this precedent did not extend itself to the general society. The
expansion of these types of benefit programs to the general population, under Social
Security, would have to await additional social and historical developments.
3.19 Read the text and translate it using the dictionary. Explain the meaning of the
words printed in bold in English.
The Company Pension
Prior to the rise of company pension plans, paternalistic companies sometimes
“graduated” older workers to take jobs at reduced pay. A few paid some form of
retirement stipend—but only if the company was so inclined, since there were no rights to
any kind of retirement benefit. Most of the older workers were simply dismissed when
their productive years were behind them.
One of the first formal company pension plans for industrial workers was introduced
in 1882 by the Alfred Dolge Company, a builder of pianos and organs. Dolge withheld
1 % of each workers’ pay and placed it into a pension fund, to which the company added
6 % interest each year. Dolge viewed providing for older workers as being a business cost
like any other, arguing that just as his company had to provide for the depreciation of its
machinery, he should also “provide for the depreciation of his employees”. Despite Mr.
Dolge’s progressive ideas and his best intentions, the plan proved largely unsuccessful
75
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
since it required a worker to spend many years in continuous employment with the
company, and labor mobility, then as now, meant that relatively few workers spend their
whole working career with one company. Not only was the Dolge Plan one of the first
formal company pension systems in industrial America, it was also one of the first to
disappear when the company went out of business a few years later.
The biggest problem with company-provided pensions was that the percentage of
workers anticipating an employment-related pension from their company or their union
was tiny. Indeed, in 1900 there were a total of five companies in the United States
(including Dolge) offering their industrial workers company-sponsored pensions. As late
as 1932, only about 15 % of the labor force had any kind of potential employment-related
pension. And because the pensions were often granted or withheld at the option of the
employer, most of these workers would never see a retirement pension. Indeed, only about
5 % of the elderly were in fact receiving retirement pensions in 1932.
So the company pension was an option not available to most Americans during the
time prior to the advent of Social Security.
3.19.1 Say whether the following statements are true or false:
1 Less of the older workers were simply dismissed when their productive years were
behind them.
2 One of the first formal company pension plans for industrial workers was
introduced in 1982.
3 In 1900 there were a total of seven companies in the United States (including
Dolge) offering their industrial workers company-sponsored pensions.
4 The company pension was an option not available to most Americans.
3.20 Translate the following text into Russian in written form (time limit – 45 min.)
State Old-Age Pensions
Following the outbreak of the Great Depression, poverty among the elderly grew
dramatically. The best estimates are that in 1934 over half of the elderly in America lacked
sufficient income to be self-supporting. Despite this, state welfare pensions for the elderly
were practically non-existent before 1930. A spurt of pension legislation was passed in the
76
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
years immediately prior to passage of the Social Security Act, so that 30 states had some
form of old-age pension program by 1935. However, these programs were generally
inadequate and ineffective. Only about 3 % of the elderly were actually receiving benefits
under these states plans, and the average benefit amount was about 65 cents a day.
There were many reasons for the low participation in state-run pension systems.
Many elderly were reluctant to “go on welfare”. Restrictive eligibility criteria kept many
poor seniors from qualifying. Some jurisdictions, while having state programs on the
books, failed to actually implement them. Many of the state-passed pension laws provided
for counties within the state to opt to participate in the pension program. As a result, in
1929 of the six states with operating pension laws on the books only 53 of the 264
counties eligible to adopt a pension plan actually did so. After 1929, the States began
enacting laws without county options. By 1932 seventeen states had old age pension laws,
although none were in the south, and 87 % of the money available under these laws were
expended in only three states (California, Massachusetts and New York).
4 Unit 4 Contract law
4.1 Before reading the text learn the following words and phrases which are
essential to the topic:
1) acceptance – принятие (запроса); акцептование (стадия торгового договора:
ответ лица, которому адресована оферта о ее принятии; согласие принять
предлагаемые условия);
2) breach of contract – нарушение договора, невыполнение условий контракта;
3) capacity of the parties – правоспособность сторон договора;
4) consideration – встречное удовлетворение, компенсация, вознаграждение,
возмещение, оплата (нечто ценное, предлагаемое одной стороной в обмен на
определенное обещание или действие другой стороны);
5) contracting party – договаривающаяся сторона, контрагент, участник
договора;
6) contractual relationship – договорные отношения, контрактные отношения;
77
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
7) counteroffer – встречное предложение, контроферта;
8) express agreement – точно сформулированное соглашение, положительно
выраженное соглашение;
9) implied agreement – подразумеваемое соглашение; соглашение, выводимое
из направленных на заключение договора действий; квазидоговор;
10) legally enforceable agreement – соглашение, имеющее исковую силу;
договор, могущий быть принудительно осуществленным в судебном порядке;
соглашение, обеспеченное правовой санкцией;
11) mutual promises – взаимные обязательства, обоюдные обещания;
12) offer – оферта (предложение одного лица другому, сообщающее о желании
заключить с ним договор);
13) party to contract – договаривающаяся сторона, контрагент;
14) specific performance – реальное исполнение;
15) subject matter – содержание, предмет, существо, предмет договора;
16) terms of contract – условия контракта, договорные условия, срок
исполнения договора;
17) valid contract – юридически действительный, имеющий силу; правомерный
контракт; договор, достаточный с правовой точки зрения; неоспоримый контракт;
надлежаще оформленный, надлежаще совершённый контракт;
18) void – ничтожный; не имеющий юридической силы;
19) voidable – оспоримый; могущий быть аннулированным, не обязательный к
исполнению.
4.2 Read the text.
Nature of Contracts
Contract law is a foundation upon which many other areas of business law are built,
such as activity of corporations and partnerships, employment, agency, commercial
papers, and secured transactions. The law of contracts is a framework to ensure that lawful
expectations are met or that remedies are provided.
78
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
A contract is a legally enforceable agreement, express or implied, which gives rise
to certain rights and obligations. Thus in case of a breach of contract the injured party may
go to court to sue for money damages, or for rescission, or for specific performance if
money damages would not compensate for the breach. But these rights and obligations
cannot arise except between the parties to the contract.
Most people make a number of contracts during each day. Every cab ride, purchase
of a grocery item, use of a soft drink machine, or appointment with a doctor involves a
contractual relationship. It does not matter that these contracts are oral, or are based on
gestures or even on a course of conduct. Mere informality does not render a contract less
binding. Though certain contracts shall not be enforceable unless they are in writing and
are signed by the party to be charged; for example, contracts concerning real property.
There are four essential elements of a valid contract:
1) capacity of the parties;
2) legality of subject matter;
3) consideration (something of value given in exchange for a promise);
4) mutual agreement (assent), meeting of the minds (a valid offer and acceptance)
and intention of the parties to create legal relations.
Each of the four essential requirements must be met in the formation of a valid
contract.
Capacity of the Parties
Under the law, only a person who is legally competent has the power to make a
binding contract and can be held to any promises contained therein. Persons who may be
considered to be legally incompetent include minors, insane persons, and, sometimes
under specified circumstances, intoxicated persons.
Legality of Subject Matter
If the subject matter of an agreement is not legal, the agreement is not enforceable in
a court of law. In this respect, we do not use the expression “void” or “voidable”; the
illegal agreement simply has no existence in contemplation of law. Generally, neither
party has access to a court for the assistance of law with respect to any aspect of the
agreement.
79
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
There are two reasons why the subject matter of a contract may be illegal: statute
and public policy. Statutes are legislative acts; public policy is a judicial determination of
prevailing morality.
Consideration
Consideration is something of value that is given in exchange for a promise. It is
based on the idea of quid pro quo (“something for something”). In almost all contracts,
consideration is required for enforceability.
Mutual agreement
Contracts usually consist of mutual promises given by parties with intent to bind
themselves. A promise creates for the promisor (the person making the promise) a future
obligation. For the promisee (the person to whom the promise is made) it creates an
expectation that the promise will be fulfilled. Furthermore, the promisee will often rely on
the promise.
It is not necessary that the thing promised be affirmative; it may be refraining from
acting or promising not to act. A promise made to give 1,000 dollars USA to a friend if
she does not smoke (a negative unilateral contract) is mutual and binding.
4.3 Agree or disagree with the following statements:
1 A contract is legally enforceable only if it is based on an express agreement of the
parties.
2 For a contract to be enforceable it is not necessary to be in writing.
3 A contract is treated as valid even in the absence of any one of its four essential
elements.
4 Intoxicated persons by no means are considered legally incompetent.
5 If the subject matter of a contract is against law they say that it is a negative
contract.
6 In contractual relations consideration is an equivalent to promise.
4.4 Match the words with definitions:
1) valid
1) a moral or legal requirement, duty
2) breach
2) the act of obtaining and paying for an item or
service
80
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
3) counteroffer
3) a settlement, esp. one that is legally
enforceable; covenant; treaty
4) obligation
4) a response to a bid in which a seller amends his
original offer, making it more favourable to the
buyer
5) transaction
5) having legal power
6) agreement
6) violation of smth. (rule, law,etc.)
4.5 Fill in the proper words:
1 The law of ______ is a framework to ensure that lawful ______ are met or that
______ are provided.
2 A contract is a legally enforceable _______, express or implied, which gives ____
to certain _____ and_______.
3 Under the ____, only a person who is legally _____ has the power to make a
_____ contract and can be held to any ______ contained therein.
4 There are two reasons why the subject ____ of a contract may be illegal:
_____and ______ _______.
5 ______ are legislative acts; _____ policy is a _____ determination of prevailing
________.
4.6 Answer the questions.
1 What branches of law are associated with Contract Law?
2 Give a definition of a contract.
3 What is the meaning of the phrase “a legally competent person” if we speak about
contractual obligations?
4 Who is usually considered to be legally incompetent?
5 Is a contract void or voidable if its subject matter occurs to be illegal?
6 If they say that the subject matter of a contract is against public policy what do
they mean?
7 What is the role of consideration in contractual relations?
8 How do they call a person to whom the promise is made? What does the promise
create for him?
81
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
9 What is a difference between affirmative and negative promises?
4.7 Make up the plan of the text.
4.8 Retell the text according to your plan.
5 Unit 5 Mutual Agreement
5.1 Before reading the text learn the following words and phrases which are
essential to the topic:
1) mind reader – тот, кто читает чужие мысли;
2) mental condition – психическое состояние, осознаваемое условие;
3) expire – закончиться, истечь (о сроках), потерять силу (о требовании);
4) customs of the trade – торговый обычай;
5) expiration date – дата истечения срока; срок действия;
6) rejection – отказ; непринятие, отклонение (предложения);
7) counter-offer – встречное предложение, встречная оферта;
8) terms – условия;
9) request for information – запрос о предоставлении информации;
10) revocation – аннулирование, отмена;
11) revoke – отменять, аннулировать; отзывать, объявлять недействительным;
12) incompetency – недееспособность, неправоспособность;
13) close a transaction – заключать, завершать сделку;
14) unqualified – абсолютный, безоговорочный, безусловный, неограниченный;
15) in the hands – в распоряжении, в интересах (кого-либо);
16) reality – действительность, истинность; неподдельность;
17) lacking – недостающий, отсутствующий, недостаточный;
18) fraud – мошенничество;
19) misrepresentation – введение в заблуждение;
20) undue influence – злоупотребление влиянием, неподобающее влияние;
21) duress – физическое принуждение;
82
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
22) discharge of contract – исполнение договора, прекращение обязательств по
договору;
23) free – освобождать (от каких-л. обязательств и т.п.);
24) bring the contract to an end – прекратить действие договора;
25) performance – исполнение, выполнение; свершение;
26) frustration – прекращение обязательства из-за невозможности его
выполнения;
27) breach – нарушение.
5.2 Read the text
Mutual Agreement: Offer and Acceptance
As defined in the previous text, a contract is a legally enforceable agreement; an
agreement is a meeting of the minds. Since courts and juries are not mind readers, the
existence of this mental condition must be manifest in words, oral or written, or in actions.
The mutual assent of the parties to a contract is manifested in two legal concepts, the offer
and the acceptance.
The offer
The simplest way to form an express contract begins with a formal offer. There are
two requirements of an offer: a) it must indicate a clear, definite intent to make a contract
and b) it must be communicated to the other party.
If an offer does not specify a period of time during which it is to remain open, it
expires after the passage of a reasonable time. What constitutes a reasonable time depends
on the implied intention of the offerer and the property or goods offered, customs of the
trade or business, and the like. When the time during which the offer is to remain open is
specified, that time then becomes the expiration date. An offer may expire at an earlier
time than stated, however, because of:
1) rejection: if a person to whom an offer has been made rejects it, then they cannot
subsequently accept the original offer;
2) a counter-offer: where the offeree tries to change the terms of the original offer; a
counter-offer should not be confused with a request for information, which does not end
the offer;
83
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
3) revocation of offer: the offeror may revoke a simple offer at any time before it is
accepted;
4) the death or incompetency of either offerer or offeree.
The acceptance. Acceptance of the offer closes a transaction. However, the
acceptance must meet certain standards:
1) first, the acceptance must be clear and unqualified; an acceptance that modifies
the original offer is treated in the law as a counteroffer, that is, a rejection of the original
offer and the making of a new offer;
2) second, the offeree must accept in any manner required by the offer. If the offer
states, “I must have your answer by 1 P.M. on December 1,” then failure to have the
answer in the hands of the offerer by that time is fatal to the contract.
Reality of contract. As explained earlier, a meeting of the minds – mutual assent or
agreement – is a necessary element of a contract. Without it, the contract may be void or
voidable. There are several reasons why mutual assent may be lacking: mistake, fraud,
misrepresentation, undue influence, and duress.
Discharge of contract means that the parties to an agreement are freed from their
contractual obligations. A contract is discharged in one of four ways:
1) agreement of the parties to bring the contract to an end;
2) performance of obligations;
3) frustration;
4) breach of contract conditions by another party.
An offer is a proposal made on certain terms by offeror with a promise to be bound
by that proposal if the offeree accepts the stated terms. An offer may be made to a specific
person; in this case this offer can be accepted by that person. If an offer is made to a group
of people it may be accepted by any member of the group.
A genuine offer must be distinguished from an “invitation to treat’, which occurs in
the following instances:
1 the display of goods with a price ticket attached in a shop window or on a
supermarket shelf;
84
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
2 advertisements, catalogues, brochures;
3 company prospectus;
4 statements of price in negotiations for the sale of land;
5 auctions;
6 tenders.
An offer can end in a number of ways:
1 by acceptance of the offer;
2 by rejection of the offer:
a) by a counter offer;
b) by notifying the offeror of not accepting the offer.
3 by revocation before acceptance;
4 if the offer lapses;
5 if the offeror dies;
6 if failure of a condition attached to the offer happens.
5.3 Agree or disagree with the following statements:
1 A contract is based on an oral agreement of two or more parties.
2 Any offer expires after the passage of a reasonable time.
3 Rejection in contractual relations is synonymous to counteroffer.
4 An offerer can revoke his or her offer only in cases stipulated by law.
5 Even without mutual assent of the parties the contract is treated as valid.
5.4 Match the words with definitions:
1) fraud
1) compulsion by use of force or threat;
constraint
2) lack
2) to break a rule of play by failing to
follow suit when able to do so; renege
3) revoke
3) violation of smth. (rule,law,etc.)
4) duress
4)
deliberate
deception,
trickery,
or
cheating intended to gain an advantage
85
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
5) breach
5) to finish or run out
6) expire (v)
6) an insufficiency, shortage, or absence of
something required or desired
5.5 Fill in the proper words:
1 The _____ assent of the parties to a contract is manifested in two legal ____, the
____ and the ______.
2 If an offer does not specify a _____ of time during which it is to remain ____, it
expires after the _____ of a reasonable time.
3 When the ____ during which the offer is to remain open is _____, that time then
becomes the ________ _____.
4 There are several _____ why mutual assent may be lacking: mistake, _____,
misrepresentation, _____ influence, and _______.
5 An offer is a _____ made on certain terms by _____ with a ______ to be bound by
that proposal if the offeree accepts the _____ terms.
5.6 Answer the questions:
1 How may a mutual agreement of contracting parties be manifested?
2 What are the requirements of an offer?
3 What does an expiration date signify in connection with the offer?
4 May an offer expire at an earlier time than its expiration date?
5 Under what conditions can an offerer revoke his or her offer?
6 What is treated as an acceptance in contractual relations?
7 What are legal consequences of mistake, fraud, misrepresentation, duress and
undue influence from the point of view of enforceability of a contract?
8 How may contracts be discharged?
9 Which of the following agreements will be enforced by the courts:
1) John agrees to sell his car to Peter for 500 dollars USA.
2) John agrees, as favour, to take Peter on holiday with him.
86
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
3) John agrees to give Peter, as favour, a valuable painting and signs a deed to this
effect which is sealed and delivered to Peter.
5.7 Make up the plan of the text
5.8 Retell the text according to your plan.
6 Unit 6 Kinds of Contracts
6.1 Before reading the text learn the following words and phrases which are
essential to the topic:
1) enforceability – обладание исковой силой; возможность принудительного
осуществления в судебном порядке; обеспеченность правовой санкцией;
2) contract under seal – договор за печатью (скрепленный печатью);
3) specialty contract – контракт в виде договора, скрепленного печатью;
4) covenant – договор или акт за печатью; обязательство (из договора за
печатью);
5) deed – документ с подписями и печатью;
6) implied-in-fact contract – подразумеваемый договор (договор, условия
которого по умолчанию вытекают из поведения сторон);
7) infer – заключать; делать (логический) вывод; выводить (заключение,
следствие; из чего-л.);
8) implied-in-law – следующий из предписаний закона, подразумеваемый в
силу закона;
9)
unjust
enrichment
–
неосновательное
обогащение,
неправомерное
обогащение;
10) at the expense – за счёт;
11) render a benefit – оказывать содействие, создавать выгоду;
12) bilateral contract – двусторонний договор;
13) unilateral contract – односторонний контракт; контракт, перед заключением
которого одна из сторон уже выполнила почти все свои обязательства;
14) executed contract – контракт, условия которого выполнены обеими
сторонами; договор с исполнением в момент заключения;
87
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
15) executory contract – контракт, подлежащий исполнению в будущем;
16) unenforceable contract – контракт, претензии по которому не могут быть
заявлены в суде;
17) jest – шутка, проказа, розыгрыш;
18) past breach – нарушение договора, срок действия которого уже истёк;
19) withdraw from the contract – денонсировать договор, выйти из договора.
6.2 Read the text.
Kinds of Contracts
Contracts may be classified in three ways: by type of formation (express or
implied), by performance (unilateral or bilateral, executed or executory), or by
enforceability (valid, unenforceable, void or voidable).
1 By type of formation:
1) An express contract is one in which the terms of the contract are stated by the
parties, either orally or in writing. The example of a written one is a contract under seal
which is generally called a specialty contract, a covenant or a deed. Three things are
essential to a deed – writing, sealing and delivery.
2) An implied contract is one in which the terms of the contract are not stated by
the parties. There are two types of implied contracts: those implied in fact and those
implied in law.
The existence and the terms of an implied-in-fact contract are manifested in
conduct, rather than words. The proof of the contract lies in the conduct of the parties; it
means that a reasonable person, being aware of this conduct, would infer that a contract
exists.
An implied-in-law or quasi contract is created by operation of law (i.e., a court
implies a contract) in order to avoid unjust enrichment of one party at the expense of
another. There is no agreement, no meeting of the minds, one party has rendered a benefit
to another under such circumstances that fairness and equity require compensation.
2 By type of performance:
1) Bilateral versus unilateral.
88
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
A bilateral contract is based on an exchange of promises – a promise for a promise.
Thus there is a mutual engagement.
A unilateral contract involves a promise by one party and an act by the other. If,
however, the person receiving the offer promises to act before doing so, the contract may
become bilateral.
2) Executed versus executory.
An executed contract is one that has been fully performed by both parties; all
promises have been fulfilled.
In an executory contract something remains to be done by one or both parties at
some future date.
3 By enforceability:
A valid contract meets all legal requirements and can be enforced by either party.
An unenforceable contract is one that is valid in itself but not capable of being
proved in a court of law because this contract does not meet one or more legal
requirements and cannot be enforced by either party. Examples are promises to make a gift
(no consideration), promises made in jest (no contractual intent), and past breaches of
contract now beyond the statute of limitations.
A voidable contract is binding on only one of the parties. The other party has the
option to withdraw from the contract or enforce it. Examples are contracts made by minors
and contracts made under mental duress.
A void contract is a contract that has no legal effect and cannot be enforced by
either party. Examples are illegal agreements made under threat of physical force.
6.3 Agree or disagree with the following statements:
1) There are three general kinds of contracts: a deed, a specialty contract and an
implied-in-law contract.
2) Gifts and jests are the examples of voidable contracts.
3) Sometimes it is difficult to define whether there is an executed or executory
contract.
4) A quasi contract is created directly by the conduct of the parties rather than
words.
89
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
6.4 Match the words with definitions:
1) covenant
1) something done or said for amusement;
joke
2) deed
2) (of a law, agreement, etc.) coming into
operation at a future date; not yet effective
3) jest
3) an agreement in writing under seal, as to
pay a stated annual sum to a charity
4) just
4) (of contracts, obligations, etc.) made by,
affecting, or binding one party only and not
involving the other party in reciprocal
obligations
5) executory
5) fair or impartial in action or judgment
6) unilateral
6) a
formal
witnessed,
and
legal
document
delivered
to
signed,
effect
a
conveyance or transfer of property or to
create a legal obligation or contract
6.5 Fill in the proper words.
1) Contracts may be classified in three ways: by type of ____, by _____, or by
______.
2) An ______ or quasi contract is created by operation of law (i.e., a court implies a
contract) in order to avoid ______ ______ of one party _______ of another.
3) Examples are ______ made by _____ and contracts made under ______ ______.
4) Examples are ______ to make a gift (no consideration), ______ made in jest (no
contractual intent), and ______ of contract now beyond the statute of limitations.
5) A ____ contract is a contract that has no _____ effect and cannot be _____ by
either party.
90
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
6.6 Answer the questions.
1) What are possible grounds for the classification of contracts?
2) What is a difference between express and implied contracts?
3) What are the two types of implied contracts? Define them.
4) What kind of contracts does not require the existence of mutual promises?
5) Is an unenforceable contract valid or void? Explain your choice.
6) Give the examples of unenforceable contracts.
7) What is a difference between voidable and void contracts? Give examples.
6.7 Make up the plan of the text
6.8 Retell the text according to your plan.
7 Unit 7 White-Collar Crime
7.1 Before reading the text learn the following words and phrases which are
essential to the topic:
1) actor (syn. con-man, con artist, swindler, trickster, fraudster, rogue) – жулик,
мошенник, аферист, плут;
2) corrupter – лицо, пытающееся подкупить или склонить другого к
совершению преступления либо проступка;
3) corruption – 1) продажность, коррупция 2) получение взятки 3) склонение к
получению взятки или к совершению другого должностного преступления 4)
казнокрадство, взяточничество;
4)
defraud
–
мошенничать,
обманывать,
обманом
лишать
чего-л.
(собственности, прибыли или недвижимости); надувать, морочить, вводить в
заблуждение;
5) fraud – 1) мошенничество, обман, жульничество 2) подделка (подписей,
документов и т. д.) 3) фальшивка, что-либо поддельное, ненастоящее 4) обманщик,
мошенник 5) афера 6) сомнительная сделка;
91
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
6) white-collar crime – “беловоротничковая преступность”; преступления в
экономической сфере (впервые выражение было употреблено криминалистом Э.
Сазерлендом в 1939);
7)
advanced
fee
–
авансированное
вознаграждение,
предоплата,
предварительная оплата услуг;
8) approach – обращаться (с просьбой, предложением);
9) newspaper stand – газетный киоск;
10) bill – банкнота, купюра;
11) antitrust – антитрестовский, антимонопольный;
12) price-fixing – искусственное вздувание цен, ценовой сговор;
13) stifle – подавлять, сдерживать, душить;
14) clone – делать точные копии, имитировать;
15) proprietary – вещно-правовой, защищенный какими-л. правами;
16) собственности, частный;
17) pass off – сбывать, подсовывать; выдавать (за кого-л.);
18) counterfeiting – контрафакция (незаконное использование фирменных
обозначений), подделка (товаров), подделка денег, фальшивомонетничество;
19) forgery – подлог, подделка документа (в том числе денежных документов:
чеков, банкнот, ценных бумаг, кредитных карточек); подделка товаров; фабрикации
улик и свидетельств;
20) instrument – (финансовый) инструмент (ценные бумаги и т.п.);
21) security – ценная бумага;
22) guise – вид, видимость; личина, маска;
23) insider trading – инсайдерные (т.е. незаконные) операции с ценными
бумагами на основе внутренней информации о деятельности компании-эмитента;
24) share – акция; доля, пай;
25)
kickback
–
возвращение
денег,
уплата;
взятка;
откат;
выплата
“благодарности”, выплата “под столом”;
26) collusive agreement – соглашение, в основе которого лежит тайный сговор;
27) racketeering – шантажирование, вымогательство; бандитизм;
92
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
28) allegedly – будто бы, якобы; по утверждению, как утверждают;
29) distributorship – оптовое распределение;
30) franchise – франшиза, торговая привилегия (лицензия, подтверждающая
право пользования торговой маркой (а также технологией и т д.);
31) investor – инвестор, вкладчик (капитала);
32)
investment
–
вложение
денег,
инвестирование,
инвестиция,
капиталовложение, размещение денег;
33) initiator – организатор;
34) stocks – акции и облигации, акционерный капитал, оборотные средства,
фонды;
35) shell game – игра “наперсток”, мошенничество, обман;
36) walnut shells – скорлупа грецких орехов;
37) encouragement – содействие;
38) bet – ставка (в пари);
39) take – добыча, материальная выгода, барыши, выручка;
40) boiler room – “котельная” (название комнаты, в которой работают дилеры,
непрерывно обзванивающие потенциальных клиентов и использующие методы
психологического давления, чтобы любой ценой уговорить последних);
41) tax evasion – уклонение от уплаты налога;
42) residence – дом, квартира; офис;
43) up front – авансом, вперёд, предварительно;
44) bid – выставлять на торги, предлагать цену (на аукционе); принимать
участие в торгах.
7.2 Read the text
White-Collar Crime
The term “white-collar crime” refers to illegal acts committed through the use of
non-physical, nonviolent means by individuals, groups, or corporations for financial gain.
White-collar crimes include but are not limited to the following types and schemes:
93
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
1 Advanced fee schemes: Actor induces victim to give him some type of advanced
fee in return for a future benefit. The future benefit never occurs and victim never receives
the advanced fee back.
2 Airport/railway-station scam: Actor approaches victim stating that the newspaper
stand cannot change his one hundred dollar bill and asks the victim for change. Victim
provides actor with the change, actor returns to the store to get the one hundred dollar bill
back, however, never returns to victim.
3 Antitrust fraud includes the use of practices such as pricefixing and monopolies to
stifle competition.
4 Bankruptcy fraud is committed by businesses or individuals who conceal assets,
mislead creditors, falsely claim bankruptcy, file multiple bankruptcy claims.
5 Bribery: When money, goods, services, information or anything else of value is
promised to, given to, or taken from an individual or corporation with intent to influence
the actions, opinions, or decisions of the taker (passive corrupter). A person may be
charged with bribery whether he offers the bribe or accepts it.
6 Cellular phone fraud: The unauthorized use, tampering, or manipulation of a
cellular phone or service. This can be accomplished by either use of a stolen phone, or
where an actor signs up for service under false identification or where the actor clones a
valid electronic serial number (ESN) by using an ESN reader and reprograms another
cellular phone with a valid ESN number.
7 Computer fraud: Where computer hackers steal information sources contained on
computers such as: bank information, credit cards, and proprietary information.
8 Counterfeiting: Occurs when someone copies or imitates an item without having
been authorized to do so and passes the copy off for the genuine or original item.
Counterfeiting is most often associated with money however can also be associated with
designer clothing, handbags and watches.
9 Credit card fraud: The unauthorized use of a credit card to obtain goods of value.
10 Embezz1ement: When a person who has been entrusted with money or property
appropriates it for his or her own use and benefit.
94
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
11 Forgery: When a person passes a false or worthless instrument such as a check or
counterfeit security with the intent to defraud or injure the recipient.
12 Government fraud is any fraud committed against the Government or one of its
contractors, including public housing, educational programs, and agricultural programs.
13 Health care fraud: Where an unlicensed health care provider provides services
under the guise of being licensed and obtains monetary benefit for the service.
14 Identity fraud refers to the theft of one’s personal information so as to use it for
opening credit card accounts, applying for loans, purchasing cellular phones, or
committing serious crimes.
15 Insider trading: When a person uses inside, confidential, or advance information
to trade in shares of publicly held corporations.
16 Insurance fraud is the filing of artificial or exaggerated claims to an insurance
company.
17 Internet services: charges for services that were supposedly free, payment made
online and Internet services that were never provided or were falsely represented.
18 Kickbacks are the return of money from a buyer to a seller as part of a collusive
agreement.
19 Mail fraud involves the use of the Postal Service or another registered mail
service to commit a crime.
20 Money laundering: The investment or transfer of money from racketeering, drug
transactions or other embezzlement schemes so that it appears that its original source
either cannot be traced or is legitimate.
21 Police impersonation: Actor tells victim that his bank is being operated by
fraudulent bank officers. Actor instructs victim to take money out of bank and place it into
a good bank. After the money is withdrawn, the actor allegedly takes the money to the
police station for safe keeping. The victim never sees the money again.
22 Pyramid: An investment fraud in which an individual is offered a distributorship
or franchise to market a particular product. The attraction of the pyramid scheme is that it
offers an unusually high rate of return on the initial investment. Investors are typically
advised that they can get a full return on their money by getting two more “new” investors
95
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
to make an investment. The new investors must then get two or more new investors and so
it goes, on and on. Promoters fail to tell or deliberately conceal that profit from system
becomes mathematically impossible for other than the initiators of the scheme.
23 Securities fraud: The act of artificially inflating the price of stocks by brokers so
that buyers can purchase a stock on the rise.
24 Shell game: Actor 1 manipulates a pea beneath three walnut shells or bottle caps.
Actor 1 moves the caps around and shows victim the cap with the pea under it. With the
encouragement of another player, also Actor 2, victim places larger and larger bets as to
which cap contains the pea. The game is ended by Actor 1 when the take is large enough.
25 Tax evasion: When a person commits fraud in filing or paying taxes.
26 Telemarketing fraud: Actors operate out of boiler rooms and place telephone
calls to residences and corporations where the actor requests a donation to an alleged
charitable organization or where the actor requests money up front or a credit card number
up front, and does not use the donation for the stated purpose.
27 Trade secret fraud is the theft of a confidential plan, formula, idea or collection
of information that could benefit a business.
28 Web auctions: items bid but never delivered by the sellers.
7.3 Agree or disagree with the following statements:
1 Antitrust fraud includes the use of practices designed to create reasonable
restraints on competition.
2 Bankruptcy fraud may be committed only by businesses.
3 A person may be charged with bribery only if he is one who accepts the bribe.
4 Counterfeiting is possible only with coins or banknotes.
7.4 Match the words with definitions.
1) stocks
1) a payment asked by professional people or public
servants for their services
2) fee
2) any of the equal parts, usually of low par value,
into which the capital stock of a company is
divided: ownership of shares carries the right to
receive a proportion of the company's profits
96
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
3) forgery
3) privately owned and controlled
4) security
4) the capital raised by a company through the issue
and subscription of shares entitling their holders to
dividends, partial ownership, and usually voting
rights
5) share
5) a certificate of creditorship or property carrying
the right to receive interest or dividend, such as
shares or bonds
6) proprietary
6) the act of reproducing something for a deceitful
or fraudulent purpose
7.5 Fill in the proper words.
1 _____ induces victim to give him some type of _____ ___ in return for a future
_______.
2 ______ provides actor with the change, _____ returns to the store to get the one
hundred dollar _____ back, however, never returns to ____.
3 _____ fraud is committed by ________ or _______ who conceal assets, mislead
creditors, falsely claim ________, file multiple bankruptcy claims.
4 ______ are typically advised that they can get a _____ ______ on their money by
getting two more “new” investors to make an _______.
5 _____ secret fraud is the _____ of a confidential plan, formula, idea or collection
of information that could ______ a business.
7.6 Answer the questions.
1 What does the term “white-collar crime” refer to?
2 What types and schemes of white-collar crimes does the text describe?
Characterize them.
3 Can you describe any other acts of deceiving people not mentioned in the text?
4 What is counterfeiting?
5 What is tax evasion?
6 What does antitrust fraud include?
7 What is the principle of shell game?
97
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
7.7 Make up the plan of the text
7.8 Retell the text according to your plan.
8 Unit 8 Computer Crimes
8.1 Before reading the text learn the following words and phrases which are
essential to the topic:
1) explosive growth – взрывной, внезапный рост;
2)
unauthorized
access
–
несанкционированный
доступ,
получение
нарушителем доступа к ресурсу в нарушение установленных в соответствии с
политикой безопасности правил разграничения доступа;
3) accomplice – сообщник, соучастник (преступления);
4) adverse – неблагоприятный; вредный; негативный;
5) insert – вносить, вписывать, вставить, вставлять;
6) credit file – кредитное досье, данные по кредитам; картотека кредитной
информации;
7) disgruntled – раздраженный, рассерженный;
8) reliable – заслуживающий доверия, достоверный; правдоподобный;
9) publicity – гласность, публичность, огласка;
10) inadequacy – несостоятельность, неполноценность, неадекватность,
недостаточность, несоответствие (требованиям), дефект, недостаток;
11) depositor – вкладчик; вкладчица,депозитор, депонент, инвестор;
12) withdraw – брать назад, забирать;
13) favor – польза, благосклонность, одолжение, привилегия;
14) of value – ценный;
15) in exchange for – в обмен на;
16) corrupter – взяткодатель, пытающийся подкупить или склонить другого к
совершению преступления либо проступка;
17) corruptee – лицо, которое пытаются подкупить или склонить к совершению
98
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
преступления либо проступка;
18) passive actor – взяткополучатель, взяточник;
19) perfection – совершать, завершить;
20) advantage – преимущество; выгода, польза;
21) public official – государственное должностное лицо;
22) orchestrate – организовывать, урегулировать;
23) solicitation – подстрекательство (к преступлению), обольщение, соблазн;
24) in exchange for business – в обмен на выгодную сделку;
25) acceptance – получение, принятие, согласие;
26) accommodations – услуги по проживанию (в гостинице и т.д.);
27) salary – жалованье, заработная плата служащего; оклад;
28) wages – заработная плата рабочих;
29) fix – “договориться” , фальсифицировать;
30) beneficiary – лицо, оказавшееся в выигрыше, к выгоде которого что-л.
происходит; выгодоприобретатель, бенефициар, бенефициарий;
31) pecuniary – денежный, финансовый, монетарный; облагаемый штрафом;
32) incarceration – тюремное заключение, взятие под стражу, водворение в
карцер;
33) envisage – предусматривать;
34) illicit proceeds – незаконные доходы.
8.2 Read the text.
Computer Crimes
The explosive growth in the use of computers in the business world in the past few
years has brought with it a corresponding increase in computer misuse. Computer crimes
fall mainly into three broad categories: simple unauthorized access, theft of information,
and theft of funds. Among schemes that have been subjects of litigations are (1) stealing a
competitor's computer program; (2) paying an accomplice to delete adverse information
and insert favorable false information into the defendant's credit file; (3) a disgruntled exemployee's inserting a “virus” into his former employer's computer to destroy its records.
99
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Some estimate that losses in the USA due to computer misuse may be as high as 35
dollars USA to 40 billion dollars USA per year (including thefts of funds, losses of
computer programs and data, losses of trade secrets, and damage done to computer
hardware). These estimates may not be reliable, but it is clear that a substantial amount of
computer crime is never discovered and a high percentage of that which is discovered is
never reported because:
1) companies do not want publicity about the inadequacy of their computer controls
and
2) financial institutions, such as banks, fear that reports of large losses of funds,
even when insured, are likely to cause depositors to withdraw their funds in the interest of
safety.
Bribery
Bribery or corruption is a white collar crime in which money, a favor or something
else of value is promised to, given to, or taken from an individual or corporation in an
attempt to sway his or its views, opinions, or decisions. For example, if an electoral
candidate offered bottles of liquor in exchange for votes, it would be considered a bribe,
and therefore, a crime.
The commission of this crime involves participation of two wrongdoers: a corrupter
(active perpetrator) and a corruptee (passive actor), where the former offers an advantage
and the later accepts it.
As far as the actual moment of the commission of the corruption crime is concerned,
what matters is the collusive agreement, in the sense that the corruption is perfectioned
when the passive actor does not expressly refuse the advantage offered to him by the
corrupter. The fact that the promise is really maintained is not relevant for the purposes of
the commitment of the offence. The legal authority has only to prove the abstract
relationship between the illegitimate advantage and the performance or violation of the
public function. Passive corruption involves the commission or omission of an act on the
part of the passive actor.
Types of corruption include the following:
100
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
Bribery of a public official or a witness: when anyone acting on behalf of state (such
as a Member of Parliament, witness, or juror) demands, receives, or accepts a bribe in
exchange for orchestrating an illegal change in his duties.
Bank bribery: the solicitation of an employee, director, etc. in any capacity in
exchange for business and the acceptance of anything (including meals, entertainment, and
accommodations during travel) but a legitimate salary, wages and fees from anyone in
connection with the bank’s business are prohibited.
Bribery in Sporting Contests: when a sporting official accepts a bribe in exchange
for a promise to “fix” a sporting event.
With respect to an analysis of the sanctions, it can be noted that there are more
severe sanctions for passive corruption since the beneficiary of the bribe holds a public
office and therefore represents the state institutions. The penalties that are traditionally
applied are pecuniary sanctions and incarceration, the minimum and maximum duration of
which vary noticeably from one country to the other. The public official may also be
prohibited from holding any political or government office. In addition to the traditional
sanctions, several countries envisage confiscation of illicit proceeds.
8.3 Agree or disagree with the following statements:
1 In the USA losses due to computer misuse may be as high as 35 dollars USA to 40
million dollars USA per month.
2 A substantial amount of computer crime in America is never discovered.
3 Companies in the USA are interested in reporting computer crimes.
4 Bribery or corruption is “a blue collar crime”.
5 What is really important for corruption to be considered perfectioned is the fact
that the promise to give or take money or a favour is really maintained.
6 To prosecute for bribery the legal authority needn’t prove the abstract relationship
between the illegitimate advantage and the performance or violation of the public function.
7 For passive and active corruption the sanctions are usually the same.
8.4 Match the words with definitions:
1) accomplice
1) able to be trusted; predictable or dependable
2) depositor
2) a fixed regular payment made by an
101
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
employer, often monthly, for professional or
office work as opposed to manual work
3) reliable
3) a person who helps another in committing a
crime
4) salary
4) not allowed or approved by common custom,
rule, or standard
5) wage
5) a person who places or has money on deposit
in a bank or similar organization
6) illicit
6) payment in return for work or services, esp
that made to workmen on a daily, hourly,
weekly, or piece-work basis
8.5 Fill in the proper words.
1 The _____ growth in the use of ______ in the business world in the past few years
has brought with it a _______ increase in computer _____.
2 The fact that the promise is really _____ is not _____ for the purposes of the
______ of the offence.
3 _______ crimes fall mainly into three broad categories: simple ______access,
_____ of information, and _____ of funds.
4 The _______ that are traditionally applied are _____ sanctions and _______, the
minimum and maximum duration of which _____ noticeably from one country to the
other.
5 In addition to the traditional ______, several countries ______ confiscation of
______ _________.
8.6 Answer the questions.
1 What categories do computer crimes fall into?
2 What computer schemes are known to have been subjects of litigations?
3 What losses can result from computer misuse?
4 Why do American companies and banks try hard to avoid publicity about their
losses because of computer crime?
102
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
5 What has the explosive growth in the use of computers in the business brought
with it?
6 How is “bribery” defined?
7 What is meant by the “collusive agreement”?
8 What does passive corruption involve?
9 What types of corruption do you know? Can you characterize them?
10 Which penalties are traditionally applied to those convicted of corruption? Do
they vary noticeably in different countries?
8.7 Make up the plan of the text.
8.8 Retell the text according to your plan.
9 Unit 9 Law enforcement
9.1 Before reading the text learn the following words and phrases which are
essential to the topic:
1) apprehend – задерживать; арестовывать, схватывать;
2) carry firearms (syn. carry guns, be armed) – носить при себе огнестрельное
оружие;
3) combat – сражаться, бороться; вести бой, противодействовать;
4) crime detection – 1) расследование или раскрытие преступления; розыск или
обнаружение, идентификация преступника; 2) раскрываемость преступлений; 3)
уголовный розыск; сыскная полиция;
5)
detect
–
раскрыть
(преступление);
разыскать,
найти,
обнаружить
(преступника);
6) emergency service – служба ликвидации последствий случайных событий,
работа в аварийных условиях;
7) forensic service – судебная экспертиза, криминалистическая экспертиза;
8) identification – распознавание, определение, установление, идентификация,
установление личности (напр., с помощью персонального номера, подписи, кода,
отпечатков пальцев, почерка и т. д.), удостоверение личности (документ);
103
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
9) internal affairs – внутренние дела (страны);
10) internal security – внутренняя безопасность;
11) law and order – законность и правопорядок;
12) law enforcement agency – правоохранительное ведомство;
13) maintain public order – обеспечивать общественный порядок;
14) police force – полицейские силы, полиция; полицейское подразделение;
15) search – поиски; поиск, розыск, обыск, искать; вести поиски, разыскивать,
обыскивать; производить обыск (личных вещей, в доме и т. п.);
16) suspected person (syn. suspect, alleged criminal, supposed criminal) –
заподозренный, подозреваемый (в совершении преступления).
9.2 Read the text.
The Police Service
Police are the agency of a community or government that is responsible for
maintaining public order and preventing and detecting crime. Their basic goals are to
apprehend offenders, control traffic, maintain order, and deal with emergencies and
disasters. Most European countries have police forces that are organized on a national
basis and are controlled by central Government. Policing in France, for example, is
primarily the responsibility of two national law enforcement bodies: the Gendarmerie
Nationale and the Police Nationale.
Militia or Departments of Internal Affairs in Russia are mostly police agencies.
Their functions and organization differ significantly from similarly named departments in
Western countries, which are usually civil executive bodies headed by politicians and
responsible for many other tasks as well as the supervision of law enforcement. The head
of DIA is a member of the country's cabinet, but he does not report to the prime minister
and parliament, but only to the president. Local militia departments are subordinated to
their regional departments, having little accountability before local authorities.
The Russian militia currently performs the following functions:
1 Criminal Militia Service – the Criminal Investigations Department (Criminal
Investigation, Combating Financial Crimes, Combating Organized Crime, Operational
Investigation Information);
104
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
2 Public Security Service – The Uniformed Militia (Public Order Maintenance,
State Road Safety Inspection – the Highway patrol or GAI);
3 Federal Migration Service (Office for Passports and Visas, Migration Control
Office);
4 Independent Divisions (Internal Security, Internal Troops, National Central
Bureau for Interpol, Forensic Expertise Center; Special Technical Actions – OMON,
SOBR).
Militia personnel ranks are fully the same as in the Russian Army – from private to
colonel general – with only these exceptions: there are no ranks of Army General and
Marshal. Militiamen carry firearms when they are on duty. However, their usage is strictly
limited so shooting cases are relatively rare in comparison to countries such as the United
States.
Britain has no national police force, although police policy is governed by the
central Government's Home Office. Instead, there is a separate police force for each of 52
areas into which the country is divided. Each has a police authority – a committee of local
county councillors and magistrates.
In most countries the police carry guns. The British police generally do not carry
firearms, except in Northern Ireland. Only a few police officers are regularly armed – for
instance, those who guard politicians and diplomats or who patrol airports. In certain
circumstances specially trained police officers can be armed, but only with the signed
permission of a magistrate.
All members of the police must have gained a certain level of academic
qualifications at school and undergone a period of intensive training. Like the army, there
are a number of ranks: after the Chief Constable comes the Assistant Chief Constable,
Chief Inspector, Inspector, Sergeant and Constable. Women make up about 10 per cent of
the police force. The police are helped by a number of Special Constables – members of
the public who work for the police voluntarily for a few hours a week.
The US has a fragmented system of police administration comprising some 19,000
separate municipal and county law enforcement agencies and 21,000 additional federal,
105
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
state, and local agencies with specialized jurisdictions of responsibility. Approximately
half the local law enforcement agencies consist of fewer than 10 police officers.
The principal law enforcement agency of the federal government in America is the
Department of Justice. Its agencies include the Federal Bureau of Investigation, which
deals with bank robberies, kidnappings, and violation of other federal laws and provides
training, identification, and laboratory services to local police; the Drug Enforcement
Administration, which investigates cases involving illicit narcotics and drugs; and the US
Marshals Service with responsibilities for safeguarding and transporting federal prisoners
and acting as marshals for US courts.
There are thousands of private and industrial security forces in the US. These
organizations employ a substantial percentage of all persons engaged in police work, and
the use of private security by both businesses and individuals is increasing rapidly. Large
corporations often maintain security forces to curb internal thefts, shoplifting, robberies,
and trespassing.
9.3 Agree or disagree with the following statements.
1 Police are the agency of a community or government that is responsible for
organize public disorder and committing a crime.
2 Most European countries have police forces that are organized on a national basis
and are controlled by central Government.
3 Militia or Departments of Internal Affairs in Russia are mostly governmental
agencies.
4 The head of FBI is a member of the country's cabinet, but he does not report to the
prime minister and parliament, but only to the president.
5 Local militia departments are subordinated to their regional departments, having
little accountability before local authorities.
6 Britain has no local police force, although police policy is governed by the central
Government's Home Office.
7 Militiamen in Russia carry firearms when they are on duty and their usage is not
limited.
8 In Britain members of the police needn’t gain any academic qualifications.
106
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
9.4 Match the words with definitions:
1) combat
1) to arrest and escort into custody
2) internal
2) to go or intrude (on the property, privacy, or
preserves
of another) with no right
or
permission
3) detect
3) of, situated on, or suitable for the inside;
inner
4) suspect
4) to believe guilty of a specified offence
without proof
5) trespass
5) an action fought between two military forces
6) apprehend
6) to extract information from
9.5 Fill in the proper words.
1 Police are the agency of a _____ or _____ that is responsible for _____ public
order and preventing and detecting _____.
2 Most _______ countries have police forces that are organized on a ____ basis and
are _____ by central _______.
3 All members of the _____ must have gained a certain _____ of academic _____ at
school and _____ a period of intensive training.
4 The ______ law enforcement agency of the _____ government in America is the
Department of _______.
5 Large _______ often maintain ______ forces to curb internal thefts, _____,
robberies, and ______.
9.6 Answer the questions.
1 What are the basic goals of the police?
2 What police forces do most European countries have?
3 How do the functions of Militia or Departments of Internal Affairs differ?
4 What are the functions and structure of The Russian militia?
5 What can you say about militia personnel ranks?
6 What can you say about carrying guns in Britain?
107
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
7 What are the ranks in British police?
8 What can you say about the American police administration?
9 What does the Department of Justice include?
10 What does the private and industrial security forces in the US do?
9.7 Make up the plan of the text.
9.8 Retell the text according to your plan.
Список использованных источников
1 The Economist – world news, politics, economics, business and finance : [сайт]. –
Режим доступа: http://www.economist.com.
2 The Times – UK news, world news and opinion : [сайт]. – Режим доступа:
http://www.thetimes.co.uk/tto/news.
3 World business, finance and political news from the Financial Times : [сайт]. –
Режим доступа: http://www.ft.com/home.
4 Latest news, sport and comment from the Guardian : [сайт]. – Режим доступа:
http://www.guardian.co.uk.
5 Powell, M. In Company Intermediate / Mark Powell. – Oxford: Macmillan
Publishing Limited, 2009. – 159 с. – ISBN 978-0-230-71712-1.
6 Богацкий, И.С. Бизнес-курс английского языка / под общей ред. И.С.
Богацкого. – Киев: ООО ИП Логос, 2003. – 352 с.
7 Мурадян, А.Ю. Business vocabulary. Teacher support file: практикум по
деловому английскому языку / А.Ю. Мурадян. – СПб.: Изд-во СПбГУЭФ, 2012. – 57
с.
8 Allison, J. In Company: Case Studies / John Allison, Mark Powell. – Oxford:
Macmillan Publishing Limited, 2009. – 128 с. – ISBN 978-1-4050-7091-1.
9 Mascul, B. Business Vocabulary in Use / Bill Mascul. – Cambridge: Cambridge
University Press, 2002. – 160 с. – ISBN 0521775299.
10 Gore, S. English for Socializing / Sylee Gore, David Gordon Smith. – Oxford:
Oxford University Press, 2007. – 79 с. – ISBN 978 -0-194-57940-7.
108
Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
11 Pledger, P. English for Human Resources / Pat Pledger. – Oxford: Oxford
University Press, 2007. – 79 с. – ISBN 978-0-194-57904-9.
12 Richards, J.C. Interchange; English for international communication / Jack C.
Richards, Jonathan Hull. – Cambridge: Cambridge University Press, 2001. – 134 с. –
ISBN 0-521-37684-3.
13 Flinders, S. Test Your Professional English: Business: Intermediate / Steve
Flinders. – Harlow: Longman Penguin English, 2002. – 106 с. – ISBN 0-582-45149-3.
14 Агабекян, И.П. English For Managers. Английский язык для менеджеров :
учеб. пособие / И.П. Агабекян. – М.: ТК Велби, Изд-во Проспект, 2010. – 352 с.
109
Документ
Категория
Без категории
Просмотров
20
Размер файла
639 Кб
Теги
сферы, экономическая, язык, безопасности, английский
1/--страниц
Пожаловаться на содержимое документа