bankrupt current debt inevitable   lay off

pay off put up   reasonable   secure

shrink   stages   turnover

1. Each month I put 100 euros into the bank to … my loan.

2. If you feel … about your job, you don't think there is a danger of losing it.

3. In Britain if it's sunny in the morning, rain is … later!

4. A company's … is how much money it spends and earns each year.

5. The … price of oil is unbelievable.

6. Painting the body is one of the final … of manufacturing a car.

7. … prices are prices you think are fair.

8. If you wash some clothes in very hot water, they … .

9. The opposite of taking on staff is to … staff.

10. If a company goes … it cannot pay back the money it owes and it must close down.

11. I have a large … and I have to pay back a lot of money every month.

12. Farmers have … their prices so the cost of hint and vegetables has increased.

Now read the text again and answer these questions in your own words in the space provided below.

1. What is economic growth like in the long run?

2. What is economic growth like in the short run?

3. Why are businesses and consumers confident during a boom?

4. Why are mortgage repayments often higher during a slump?

5. How do companies try to save money during a recession?

6. What can help an economy recover

The open economy

All through history, people from one society have been trading with people from another. Three thousand years ago, for example, the Phoenicians of the Mediterranean built an economy almost completely on foreign trade. In the jargon of economics, the Phoenicians had an open economy, and almost every economy since theirs has been open too.

When an economy is open, this basically means that it imports and exports goods and services. What are the benefits of doing this? First of all, if you trade with other economies, you can import goods that do not exist in your economy. These may be products that your economy cannot manufacture, but they may also be raw materials. With a wider range of raw materials, an economy is able to use its capital and labour to produce a wider range of products. In this way, importing can actually help an economy grow. What's more, if you allow imports from other countries, then you will have trading partnerships. This means that you can export to countries. If you have customers all over the world, your economy will grow faster.

Open economies are good for consumers, too. If the economy allows imports from abroad, there will be a greater variety of goods available locally. When products are available locally, imports of the same products should help to keep prices down and quality high. This is because local companies will have to compete with foreign companies, and more competition will mean better quality and greater value for money.

Economists describe imports and exports of material products as visible - because you can really see and touch them. Examples of visible exports and imports are food stuffs, furniture and electronic equipment. However, there are also invisible imports and exports. These are mainly services, but can include all sorts of things. Examples of invisible exports and imports include banking services, insurance products, educational courses and tourism.

Opening up economies, however, does bring problems. One of the main difficulties is keeping a good balance of trade. Every time a country manages to sell a product or service abroad, this means money will flow into the economy. On the other hand, every time someone buys from abroad, money flows out of the country. Over time, if the flow of money out of the economy is greater than the flow of money into the economy, then there is a trade deficit. This is not a good situation to be in. The challenge for governments is to keep the flow of trade equal in both directions, or to achieve a trade surplus. This is when total exports are greater than total imports.

Переведите на английский язык:

1.    В течение всей мировой истории люди и страны торговали друг с другом. В современном мире экономика считается открытой, когда страна импортирует и экспортирует товары и услуги.

2.    Экспорт и импорт товаров определяется как «видимый» в отличие от «невидимого» экспорта и импорта услуг.

3.    Торговый баланс является составной частью платёжного баланса. Если объём импорта превышает объём экспорта, страна имеет торговый дефицит. Если ситуация противоположная, страна имеет положительное сальдо торгового баланса.

4.    Почти каждая страна в мире имеет свою национальную валюту Некоторые страны используют общую валюту, например, страны-члены Европейского Союза. Все 13 стран используют евро.

5.    Обменный курс — это цена валюты. Как и любая цена, она определяется спросом и предложением на рынке.

6.    Валютный курс — это равновесие между спросом на валюту и её предложением.

7.    Изменение обменного курса валюты всегда имеет воздействие на экономику страны. Например, если курс валюты растёт, товары этой страны становятся дорогими, спрос на них за рубежом падает. В результате может уменьшиться объём экспорта страны.

1. Match the words and phrases with the definitions.

1. balance of trade

2. imports

3. wide range

4. trading partnerships

5. value for money

6. deficit

7. insurance

8. flow

A the movement of something, like water in a river

B big variety

C financial protection

D when you receive less money than you pay out

E when something is worth the amount you pay for it

F the difference between the total amount of exports and imports for a country in one year

G people, companies or countries that do business together

H goods and services a country buys from abroad