Curs Eng2 Ap Id [605653]

UNIVERSITATEA ALEXANDRU IOAN CUZA din IAȘI
FACULTATEA DE ECONOMIE ȘI ADMINISTRAREA AFACERILOR
DEPARTAMENTUL PENTRU ÎNV AȚĂMÂNT LA DISTANȚĂ ȘI
ÎNVĂȚĂMÂNT CU FRECVENȚĂ REDUSĂ

ELENA CIORTESCU

LIMBA ENGLEZĂ 2
Material de studiu pentru învățăm ântul la distanță/ învățământu l cu frecvență
redusă

IASI, 2019

LIMBA ENGLEZĂ 2, ADMINISTRAȚIE PUBLICĂ ID
ANUL I
Competențe:
– Să recepteze mesaje transmise oral sau în scris în situații de comunicare de afaceri
în limba engleză. – Să producă mesaje orale sau scrise adecvate unor contexte de co municare în
afaceri în limba engleză. – Să realizeze interacțiuni în com unicarea orală și scrisă în lim ba engleză în context
profesional, educațional, social. – Să transfere și medieze mesaje orale sau scrise în situații var iate de comunicare în
limba engleză. – Să comunice fluent în limba engleză, atât în scris cât și oral, în context
profesional și nu numai, utilizâ nd vocabular de specialitate
Obiective:
Dobândirea vocabularului specifi c domeniului Administrașie Publ ică (organizații
financiare, recrutare);
Utilizarea vocabularului specific domeniului Administrație Publ ică în contexte noi;
Dobândirea abilităților de exprimare corectă din punct de veder e gramatical, în scris și
oral, în limba engleză în contex tul Administrației Publice;
Dobândirea abilităților necesare pentru o exprimare coerentă și acurată în corespondența
din cadrul afacerilor și instituțiilor europene.
Evaluarea student: [anonimizat]:
Participanții vor susține un test Blackboard cu o pondere de 10 % ș i u n t e s t g r i l ă l a
sfârșitul semestrului ce va cupr inde 40 de întrebări din materi a parcursă. Durata acestuia
va fi de 1h și va avea o pondere de 90% din media finală.

TEMATICA LIMBA ENGLEZA 2 – AP, ID (ANUL I, SEMESTRUL 2):
MARKETING

UNIT 1 : BUYERS, SELLERS AND THE MARKET
UNIT 2 : PRODUCT
UNIT 3 : BRANDS AND BRANDING
UNIT 4 : PLACE
UNIT 5 : PRICE
UNIT 6 : PROMOTION
UNIT 7 : PRODUCT PRESENTATIONS

UNIT 1 : BUYERS, SELLERS AND THE MARKET
MARKETING
Buyers, sellers and the market

Customers and clients

People who buy IBM's products an d services are IBM's customers or clients.
Foster and Partners, a big architectural firm, has clients, rat her than customers.
Client often refers to people and organizations who buy the ser vices of professionals such
as accountants, lawyers, etc.
IBM's customers considered as a group make up its customer base . Foster and
Partners' clients considered as a group form a client base. The s e a r e s l i g h t l y t e c h n i c a l
expressions, used for example in business journalism.
People who buy a company's or a professional's products or serv ices, especially
expensive or exclusive ones, are its clientele.
You can also talk about the users of a product or service who m a y n o t b e t h e
organizations who actually buy it. The expression end-users ref ers especially to people
who use products, particularly c omputer equipmen t and other tec hnology. These
expressions are often used in contrast to the producers and dis tributors (see Unit 24) of a
product. For example, IBM sells p roducts through various channe ls, but the end-users are
the employees of the companies that buy its products.
People who buy products or services for their own use are consu mers, especially
when considered as members of large groups of people buying thi ngs in advanced
economies.
Buyers, sellers and vendors
A person or organization that buys something is a buyer or purc haser. But these
terms are also used to talk about someone in a company or shop responsible for buying
goods that it uses or se lls. These people are also buying manag ers or purchasing
managers. An industrial buyer is an organization that buys thin gs for use in producing its
own goods or services.
A person or organization that sells something is a seller. In s ome contexts, for
example selling property, they are referred to as the vendor. ( Business journalists and
lawyers may also refer to people selling products, rather than services, as vendors.) People
selling things in the street are street vendors. A vending mach ine is a machine from which
you can buy coffee, cigarettes, etc.

The market
The market, the free market and market economy are used to talk about an economic
system where prices, jobs, wages, etc. depend on what people wa nt to buy, how much
they are willing to pay, etc., rather than being controlled by a government. In this sense,
market is often used in these combinations:
Market forces: used to talk about the way that a market economy makes seller s produce
pressures what people want to buy, a t prices they are willing t o pay
Market place: producers and buyers in a particular market economy, the way t hey
behave, etc.
Market prices: prices that people are willing to pay, rather than ones fixed by a
government Market reforms : changes to an economy made by a government so that it becomes more
like a market economy

1. Find appropriate forms of expressions in the texts above tha t refer to the
following.
1 someone who buys food in a supermarket (4 expressions)
2 all the people who buy food from a particular supermarket chain , from the point of
view of die chain
3 someone who buys the services of a private detective agency
4 all the people who buy the servi ces of the agency, seen as a gr oup (2 expressions)
5 someone who sells goods or services
6 someone selling a house (2 expressions)
7 someone buying a house (2 expressions)
8 someone who sells hamburgers to t ourists outside the Tower of L ondon
9 someone whose job is buying tyres for a car company (4 expressi ons)
10 someone who uses a computer, even if they have not bought it themself, but their
company has (2 expressions)

Companies and markets
The market for a particular pr oduct is the people/organizations that buy it, or
might buy it.
Buyers and sellers of goods or services in a particular place f orm a market.
If a company enters penetrates
abandons gets
out of leaves
withdraws from
dominates
corners
monopolizes
drives another
company out it starts selling there for the first time.
it starts sellin g, or sells more and more
it stops selling
it is the most important company selling
it becomes the main compan y sellin g there.
it is the onl y compan y sellin g there.
it makes the other company leave the
market, perhaps because it can no longer

Competitors and competition
Companies or products in the same market are competitors or riv als. Competitors
compete with each other to sell more, be more successful, etc.
The most important companies in a particular market are often r eferred to, especially by
journalists, as key players.
Competition is used to talk about the activity of trying to sel l more, be more successful,
etc. When competition is strong, you can say that it is intense , stiff, fierce or tough. If
competition isn't strong, it may be described as low-key.
The competition refers to all the products, businesses, etc. co mpeting in a particular
situation, seen as a group.

2. Choose the correct verb from the first text above to complet e the sentences and
write its correct grammatical form.
1 Houston, Texas is conveniently located in the southern US and our objective is to make
it the gateway for Latin American technology companies that wan t to…….(abandon
/withdraw from / penetrate) t he US market by opening an office there.
2 Las Vegas has ……………………………… (enter / c orner / get out of) the market on US
tourists looking for a wild escape for adults.
3 Foreign pharmaceutical firms are ………………………. …… (e nter / leave / monopolize) the
market for the first time to target the country's growing and i ncreasingly health-conscious
middle class.
4 Listeners now have numerous stations to choose from, whereas in the past the market
was (monopolize / dominate / wi thdraw) by All-India Radio netwo rk.

5 As Swiss bankers …………………………………….. …………… (penetrate / leave / get out of)
markets abroad, they are facing like-minded competitors from el sewhere in the world.

3. Replace the underlined expressions with expressions from the second text above.
You may need to add a verb in the correct form.
I'm Olinka and I'm marketing mana ger for a soft drink company i n the Czech Republic. In
this market, we (1) sell more drinks than any other company. In fact, we (2) have 55 per
cent of the market. (3) Sales are increasing at seven to eight per cent per year. There are
two main (4) groups of consumers: those who drink them in cafes , bars and restaurants,
and those who buy them to drink at home. Of course, many consum ers belong to both
groups, but this is our (5) wa y of dividing our consumers.

Marketing and market orientation
Marketing

Marketing is the process of
ș planning – identifying f uture needs for
ș designing – developing and making
ș pricing – deciding the price for
ș promoting – informing customers about
ș distributing – making availabl e goods/services in order to s atisfy customer needs
profitably.
The marketing concept should be s hared by everyone in an organi zation – all managers
and employees, not just those in the marketing department, shou ld think in these terms
of profitability through satisfying customer needs.
Companies point out how the speci al features – important charac teristics and qualities –
of their products and services possess particular benefits – ad vantages – in relation to the
needs of the people who buy them.
Non-profit organizations have ot her goals, such as persuading p eople to give money to
help people in poor countries, but these organizations also use the techniques of
marketing. This is social marketing.
In some places, even totally di fferent organizations such as go vernment departments
think about – or at l east talk about – their activities in term s of the marketing concept.
The four Ps
The four Ps are:
product – deciding what to sell
price – deciding what prices to charge
place – deciding how the product will be distributed and where peopl e will buy it

promotion – deciding how the produ ct will be supported
with advertising, special activities, etc.
A fifth P which is sometimes added is packaging – the materials used to protect and
present a product before it is sold.
The four Ps are a useful summary of the marketing mix – the act ivities that you have to
combine successfully in order to sell. The next four units look at these activities in detail.

UNIT 2 : PRODUCT
Product

To market a product is to make a plan based on a particular mar keting mix and put it
into action. The marketing plan for a new product or service sh ows how this can be
realized.
A marketer or marketeer is someone who works in this area.
Marketer can also be used to describe an organization that sells particu lar goods or
services.

4. Read this conversation from a marketing
meeting. Replace the underlined expressions with
expressions from the texts above. The first one has
been done as an example.
Annika: There's a real cu stomer need out there. We
really want a (1) coherent set of ideas on
how we're successfully going to design
and sell the product, marketing plan
Baltazar: Yes, and we've got to decide on the
product's (2) important characteristics and
qualities and (3) advantages.
Annika: We've got to work out (4) what we're going
to sell (5) how we're going to communicate
this. (6) where we're going to sell it and (7)
what people are going to have to pay for it.
Baltazar: That's right, the (8) whole combination. And
we mustn't forget about (9) how we're going
to protect the product and make it look
attractive.

Annika: Yes, we're first-class (10) specialists in this
area (2 possibilities).

5. Match the sentence beginnings (1-7) with the correct endings (a-g). The sentences all contain
expressions from the third text above.
1 There are now more efficient and market-oriented
2 Since the 1990s, China has had a much more market-led
3 Many of today's best market-led gr owth businesses – General Ele ctric, Microsoft, Virgin and Sony –
are
4 Lack of investment and poor market orientation
5 For 50 years, American television has been a market-driven indu stry,
6 Deng decentralized cont rol over th e economy
7 Communities of actors, writers , directors and technicians

a. in several markets at once.
b. and replaced state planning with a market-oriented system.
c. where a common spirit improves the work – are not easy to m ake or keep going in our market-
driven society.
d. approach to economics.
e. left the companies with falling sales and profits.
f. farms with less dependence on government money.
g and the audience has decide d the direction it takes.

UNIT 3 : BRANDS AND BRANDING
Brands and branding
A company gives a brand or brand name to its products so that t hey can be easily recognized.
This may be the name of the company itself: in this case, you c an talk about the make of the product, for
example LG. For many products, you refer to the make and model – the Ford (make) Ka (model), the
Sony Vaio or the Canon Ixus. Some brand names become names for the whole product category – for
example Hoover for vacuum cleaners or Biro for pens.
Brand awareness or brand recognition is the degree to which peo ple know a particular brand.
All the ideas that people have about a particular brand are its brand image. A brand manager is in
charge of the marketing of goods or s ervices with a particular brand.

Branding is creating brands and keeping them in customers' mind s through advertising,
product and package design, and so on. A brand should have a cl ear brand identity so that people think
of it in a particular, hopefully pos itive, way in relation to o ther brands.
Products that are not branded – those that do not have a manufa c t u r e r ' s b r a n d n a m e – a r e
generic products or generics.
A product sold by a retailer with its own name rather than the name of its manufacturer is an
own-brand product (BrE), or own- label product or store brand (A mE).

6. Choose the correct expression from the texts above to comple te each gap.

1 Unlike traditional product ……………………………. . (line / mix / placement), under which companies
provided goods at no cost in exchange for the exposure, TV adve rtisers will pay a lot of money for
their products to get worked i nto the actual storyline.
2 At this food s hop, the pr oduct ………………………… …. (lifecycle / mix / positioning) includes local
produce as well as nuts shipped from California, wine from Fran ce and olive oil from Italy.
3 The new product ……………………………… (lines / range / placement) are Mr Ballmer's answer to the
most difficult questions about Microsoft's future: Where will i t find new growth as the Windows and
Office businesses continue to mature?
4 There needs to be a tough cost-control policy throughout the di fferent stages of the product
(catalogue / lifecycle / mix) i n order to keep costs down.
5 The firm must define its markets, position ranges of brands and identify gaps which offer
opportunities for expansion or new product …. (line / mix / pos itioning).
6 Ford's CEO Alan Mulally wants to streamline the company's produ ct …………………………
(lifecycle / portfolio / positioni ng) so more cars and trucks a re produced in fewer plants.
What is a brand?
Most companies decide to brand their products or services by us ing a name, a symbol or a
design to identify it and differentiate it from the competitive set – that is, rival brands. Consumers can
easily recognize the brand and the brand values – what it stand s for.
A brand name is the name given to a product or a range of produ cts – goods of a similar type
that are marketed together. This may be the same name as the co mpany (for example, Coca-Cola) or it
may be a different name (for example, Apple's iPod). The tradem ark is the legal protection for the
brand, its logo and its brand name.
Adapted from Bill Mascull, Business Vocabulary in Use, Intermediate , Cambridge University Press,
2010

Branding
A brand manager is responsible for branding – creating,
maintaining and building a brand. He or she works on all aspect s of the
brand:

the brand image How the consumers see the brand: the values they associate with
the brand
essenceOne core concept which defines the brand. It is normally
expressed in a short ph rase or just one word.
the brand
promiseThe explicit promise the organization makes to its target
audiences, including employees
the brand vision The brand vision communicates where the brand is and where
the brand can go. It talks about the values the brand has today
and the values it will need in the future, as well as the
communication tools need ed to achieve this.
Word combinations with "brand*

a premium brand a high quality brand, more expensive than its competitors
an economy a brand that is cheaper than its competitors
an own brand a brand that is made exclusively for the retailer that sells it ; also
known as an own-label brand or a private label brand
a brand leader the best-selling brand in a particular market
a no brand a product that doesn't have a brand associated with it; also
known as a generic brand
the flagship
brandthe brand for which a business is best known, and which
represents its image most appropriately
co-branding two brands working together to create a new product – for
example, Intel Corporati on and Apple Computers Inc.
Note: We can also talk about a flagship store or a flagship shop.

7. Read what the brand manager says about the brand and identif y whether she is
talking about the brand image, es sence, promise or vision. Look at the first table
above to help you.
“It is fine contemporary chocolate.
When the consumers buy our chocol ate -they are making a stateme nt about how
much they enjoy the finer things in life. It’s about treating y ourself to a moment of
indulgence. You can share the choc olate with someone close. It’ s about pleasure.
Its luxury, sure, but it’s also really trendy and modern. In a recent survey
consumers said our chocolate w as upmarket, classy and distincti ve.
Chocolate in general is considered to be bad for your health an d body. We aim to
convince our consumers that it can also be good. It’s full of m agnesium and it’s nearly

70% pure cocoa content. It’s a luxury product, so we will work on packaging and maybe
do some artistic colour ads in glo ssy magazines, such as Vogue. ”

Brand Management
Brand management, the application of marketing techniques to a brand, was first
used by Proctor and Gamble in the 1930s. The brand strategy sho ws how the brand will
meet its objectives. It influences the overall business strateg y of a company to ensure
consistent brand behaviour, meaning what the brand does and how it acts in all
advertising media, and consistent brand experience – the exposu re and interaction a
consumer has with the brand. Total branding refers to a consist ent approach to brand
behaviour and brand experiences across all possible touchpoints – wherever the consumer
has a brand experience: TV, out -of-home, at a friend's house, e tc.

Brand strategy

A marketing manager writes an email about brand strategy to his contact in a
communications agency:
“… Last year we launched the brand in a new market; this year we need to establish
the brand and make it stronger. It's too early to rebrand – change the name – but we
could stretch the brand to include holiday reservations as well as holiday insurance.
This brand extension will help us to market the brand to new consumers. Our brand
positioning of reliable holidays allows us to enhance the brand, improving it in this
way. …”
More word combinations with 'brand'
-using brand leverage – using the power of a brand name or part of a brand identity
(colour, similar name, typeface , etc.) to build or launch anoth er brand
-maintaining brand equity – protec ting the value of the brand n ame
– building brand preference – in creasing the number of consumer s who prefer the brand
over another
– building brand loyalty – making sure your consumers want to b uy your brand again
and again (also known as incr easing brand retention)
– building brand awareness – in creasing the number of consumers who know about your
brand
– building brand consideration – increasing the number of consu mers who consider
buying your brand

8. Match the examples (1-4) with the summaries (a-d). Look at t he texts above to
help you.
1 Apple invented the iPod. T hey started to market it.
2 After a successful launch, Google got more and more market shar e.
3 Coca-Cola created new products ( Diet Coke, BlaK, etc.) using th e same brand.
4 Beaner's coffee changed the company name to Biggby Coffee at th e beginning of
2008. The new name appears on signs and marketing material.

a They rebranded.
b The brand became established.
c They launched the brand.
d They stretched the brand.

9. Decide if the sentences below are true or false, and correct the false sentences .

1 An advertising campaign is an example of brand values.
2 The brand strategy is a statem ent of the human characterist ics of a brand.
3 Cinema advertising, packaging a nd website design are all ex amples of touchpoints.
4 You stretch a brand when you sta rt communicating in a new a dvertising channel.
5 A brand that uses the same st yle in all its communications is doing total branding.
6 Brand management, brand visi on and brand personality are al l part of the brand
platform.

Adapted from C. Farrall and M. Lindsley, Professional English in Use, Marketing ,
Cambridge University Press, 2008

UNIT 4: PRICE
Price and Pricing

The owner of Allmart Store s talks about its prices:
'As you know, our goods are low-priced and this permanently low pricing means we
charge low prices all the time. Our competitors say their goods are more expensive
because they provide customer se rvice. But we be lieve that our customers are interested in
cheap goods and don't want to pay extra for service.
It is true that we have loss-leaders – these are cheap items wh ich are there to attract
customers. We have a policy of s elling our goods below the 'off icial' list price or
recommended retail price. This policy of discounting – selling at a discount to the list price
– has been very successful'.
The owner of Luxmart says: 'Allmart's goods are cheap – low-pri ced but not of high
quality. Our top-quality goods are high-priced, I agree, but we have high levels of

customer service. In fact, most of our goods are mid-priced – n ot cheap and not
expensive. But Allmart are undercutting us on some products – s elling the same ones at
lower prices than us.
Upmarket and downmarket

Products exist in different models. Take skis for example. Some a r e b a s i c
and others more sophisticated and exclusive. The cheapest skis are low-end
or bottom-end. The most expensive ones are high-end, top-end or premium
products – designed for very experienced users (or people with a lot of
money!). The cheapest entry-level skis are intended for beginne rs who have
never bought skis before. Those in between are mid-range. When you buy
more sophisticated skis to repl ace basic ones, you trade up and move
upmarket.
If you buy cheaper skis after buying more expensive ones, you t rade down
and move downmarket. To say that something is downmarket often shows
disapproval. For example, if a publisher takes a newspaper down market,
they make it more popular, less cultural, etc. in an attempt to increase the
number of readers.
Mass markets and niches

Mass market is used to talk about goods that sell in large quan tities and the
people who buy them, for example family cars. A niche is a grou p of buyers
with specific requirements that is relatively small but that ma y be profitable
for companies that sell to it, for example, sports cars.
10. Complete the sentences with the appropriate form of words i n the
second text above.

1 A standard tank with enough helium gas to fill 400 average-si ze balloons
cost $ 40 five years ago but $88 today, Kaufman said. Arid ther e will be
another 50 per cent price….before Christmas.
2 Share prices of firms related to the corn industry have closely followed the
recent corn price ………… , whic h has been largely fuelle d by an increase in
ethanol production.
3 The price……have made the televisions, which are manufactured in Asia
and Mexico, affordable to many more families.
4 Government pr ice …………………………….. make Alc on's pharmaceutical
products less profitable.

11. Look at the texts above. Then read an article from 2008 and answer the questions:
1 What sort of image did Starbucks have when it was launched?
2 Was the fact that it was expensive a problem?
3 Did Starbucks grow just by opening new coffee shops?
4 How has McDonald's coffee cha nged in the last few years?
5 Is Starbucks in a good competitive position? Why? / Why not?

STARBUCKS IN TROUBLE
From the beginning, the key
to Starbucks' success was its
upmarket image. That the
coffee itself was rather
expensive only added to its
appeal If you wanted cheap
coffee, then go to a diner. For a long while Starbucks
managed to keep ahead of die
game, expanding very fast,
buying competitors and
launching new products.
Premium coffee remained the
basic product – and one
others could easily copy.
Now McDonalds offers
premium coffee, not only
cheaper than Starbucks' but
of a quality that won first
place in a survey in March by
Consumer Report. As a result, Starbucks finds
itself caught in a new,
unwelcome 'third place',
pressed from below by the
fast-food chains that until
recently had been considered
more downmarket, and from
above by a new generation
of more upmarket, exclusive
and sophisticated coffee
houses.

UNIT 5: Place
Distri bution: wholesalers, retailers and cu stomers
A distribution
network distribution
channel

PRODUC
ERS Wholesa
lers DISTRIBU
TORS Retaile
rs CUSTO
MERS
A wholesaler or retailer selling a particular type of product, for example cars, is a dealer,
or, especially in the case of co mputer equipment or telecommuni cations services, a
reseller.
Wholesalers and retailers are dis tributors. Distributors may be referred to, sometimes
disapprovingly, as middlemen. If someone buys something directl y from a producer,
instead of from a distributor, in order to save money, they mig ht say that they are cutting
out the middleman.

Shops
A shop (BrE) or store (AmE) may be referred to technically, for example by a maker of
goods, as a retail outle t or sales outlet. Here are some types of shop:
ș chain store – a shop that is part of a group of shops, all with the same name
ș convenience store – a shop i n a town that is open long hours
ș discounter – a wholesaler or ret ailer with very low prices
ș department store – a very lar ge shop, usually in a town centre
ș hypermarket – a very large shop with a wide variety of goods, u sually outside a town
ș supermarket – a very large shop, selling mainly food
In Britain, a shopping centre is an area or building with a num ber of shops. There are
malls or shopping malls where it is easy to park, especially on the edge of towns.
Franchises are owned by franchisees – the people that run them – but they only sell the
goods of a particular company. The franchisor – the company – p rovides the goods and

organizes advertising centrally a n d i n r e t u r n t a k e s a p e r c e n t a g e o f t h e p r o f i t s o f e a c h
franchisee. Other types of business, such as restaurants, can a lso be run in this way.

Direct marketing
'Hi, I'm Beatrice and I work in a direct marketing company in B russels. We organize
mailings, sending information by post for everything from magaz ines to vacations. We
call this direct mail, but the pe ople who dislike receiving it sometimes call it junk mail.
Of course, we target our mailing lists very carefully – choose who to send them to.
There's no point in sending mailshot s for garden tools to peopl e who live in apartments!
'We also do telemarketing – selling by telephone from our call centres. The most difficult
thing is making cold calls to people who have had no contact wi th us before.'

12. Use expressions from the first text above to complete this presentation.
Michael Dell started out in the P C business in the 1980s when h e tried to buy a PC. There
was a complicated (1) d…….. c…….. between the manufacturer and the customer: (2)
w……. ,(3) r……and (4) r…….all added to the costs, but at that ti me they didn't add
much value from the point of the (5) c……. So un til recently, Dell manufactured every
PC to order and delivered straight to the buyer. This allowed t hem to reduce costs, and
thanks to this they have become the biggest manufacturer of PCs . Now they are in this
strong position, they have started to sell their computers thro ugh (6) r…..(2 possibilities)
as well.

13. Look at the second text above and say where you go if you w ant to do the
following.
1 park easily and visit a number of different shops without havin g to go to the town
centre
2 visit different shops grouped toge ther in a British town centre
3 buy a packet or sugar if all the supermarkets are closed
4 buy food and some other products extremely cheaply
5 buy clothes in a town centre wit hout going to a specialized clo thes shop
6 buy clothes, a computer and products for doing repairs on your house all in one shop,
outside the town centre
14. Which expression in the thir d text above does 'it' in each sentence refer to?

1 I really hate it, all that stuff comi ng through my letter box.
2 It's a terrible place to work. We have to make 30 calls an hour , and the manager is
always checking up on us.
3 300,000 well-targeted letters to cat-lovers? We can organize it , no problem.

4 I have to do it. I've never spoken to them before, and they may be in the middle of
lunch, but I've got no choice.
5 The two main activities that make it up are mailings and telema rketing.
6 People who come home to ten answer phone messages, all selling things, tend to hate
it.

UNIT 6:
Promotion
Promotion (uncountable) can refer to all the activities designe d to support the sale of a product,
including advertising. A promo tion (countable) can describe:
ș a special offer such as a discount or reduced price (see Unit 2 3)
ș a free sample – a small amount of the product to try or taste
ș a free gift given away with the product
ș a competition with prizes
Supermarkets, chain stores and airlines also offer loyalty card s – the more you spend, the more points
you get, and you can exchange the se points for free goods or fl ights.
A cross-promotion is where you buy one product, and you are rec ommended to buy another product,
for example a washing machine wi th a recommendation for a parti cular brand of washing powder.
Advertisements where famous peopl e recommend the product are pr oduct endorsements.
Product placement is when a company pays for its products to be used or seen in films and TV
programmes.

15. Match the sentences (1-5) wit h the correct expressions (a- e) from the third text above.

a free gift b loyalty card c product pla cement d promotions e special offer
1 Many supermarkets run competiti ons and offers to encourage peop le to buy from them.
2 Yesterday, I bought two kilos of oran ges for half the usual pri ce.
3 I bought some coffee that came with a free mug.
4 Cars in Bond films have ranged from an Aston Martin to a BMW.
5 I sometimes forget to take it when I go shopping, but you can a dd the
points later.
E-commerce
B2C, B2B and B2G
Selling to the public on the Internet is business-to-consumer o r B2C e-commerce. Business-to-business
e – c o m m e r c e o r B 2 B , w i t h f i r m s c o m m u n i c a t i n g w i t h a n d o r d e r i n g f rom their suppliers over the
Internet, is e-procurement.
The Internet is also changing the way that citizens deal with t heir governments. In some places you
can already communicate with government departments, apply for government contracts and pay taxes

using the Internet. Businesses doing this are using the Interne t for business-to-government or B2G
purposes.
Web 2.0
The first phase of selling over the Internet ended with the dot -com bust of 2001, when many internet
sellers went out of business.
We are now in a more stable phase of internet selling, dominate d b y a f e w b i g w e b s i t e s s u c h a s
Amazon and eBay. This second phase is sometimes referred to as Web 2.0.
Web 2.0 is also used to refer to the increasing importance of s ocial-networking site s such as Facebook,
video-sharing sites such as YouT ube, blogs – online diaries – a nd collaborative sites where people work
together on particular projects. The best known is Wikipedia, t he online encyclopaedia entirely written
by users.
Amazon and eBay
Amazon was founded in 1994, and launched online in 1995 by Jeff Bezos. It started by selling books
but now sells everything from jewellery to electronics. It also hosts other sellers on its site – other
sellers can offer their goods – a nd takes a commission – percen tage of money from sales – from them
on products sold through the site.
eBay was founded in 1995 by Pierre Omidyar. It's an auction sit e linking buyers and sellers, a method
of selling where buyers put in bids – increasing offers – for g oods: the highest bidder – person offering
the most – wins, and eBay takes a commission on each sale.

16. Look at the first text above and say whether each of these uses of the Internet is B2B, B2C or
B2G.
1 Private individuals can rent a car without phoning the car rent al company.
2 The city is looking for construction companies to build a new a irport. There are hundreds of pages of
specifications you can obtain from the city authorities.
3 Car companies are getting together to buy components from suppl iers in greater quantities, reducing
prices.
4 Businesses can get information about taxes from a government we bsite.
5 Members of the public can buy legal advice from law firms.

Adapted from Bill Mascull, Business Vocabulary in Use, Intermediate , Cambridge University Press,
2010

UNIT 7: PRESENTATIONS
Presentations

17. Think of successful talks you've been to in the past. What made them so
successful? Complete the following list of elements that make a good
presentation using the words in the boxes.
– appearance contact humour knowledge talk attitude language
preparation visuals voice

To be a good presenter you need …

a a well-structured ……………………..
b thorough subject ……………………..
c smart and professional ………………………
d a good sense of ……………………..
e good eye ………………………
f an enthusiastic ……………………..
g a strong ……………………….
h a creative use of ……………………..
i expressive body …………………….
j careful ………………………..

18. Discuss with a partner. How is speaking to an audience — even a small
one-different from speaking to a group of friends? Think about the
following:
• how clearly you speak
• how quickly you speak
• how often you pause
• how emphatic you are

19. The following expressions help you to give a clear structure to a
presentation. Complete them u sing the correct preposition.

-about back for of off on to up
a To start ………….. , then, …
b To move ………… to my next point, …
c I’d go …………. t o what I was saying, …
d To turn now ……….. a different matter, ..
e To say a bit mo re ………. that, ….
f To give you an example …….. what I mean
g To digress ………… a moment, …
h To sum …………. , then, …

20. Students will be further introduced to positive and negativ e examples of
delivering presentations. They will participate in debates rega rding this
topic in order to enable them to acquire the necessary abilitie s to deliver a
successful presentation.

Adapted from Mark Powell, In Company, Upper-Intermediate , MacMillan, 2009

FINANCE AND FUNDING

UNIT 1
Definition of key terms rel ated to Finance and Funding
The European Investment Fund (EIF)
EIF was set up in 1994 to help small businesses. Its majority s hareholder is the
European Investment Bank., with which it forms the EIB Group. T he EIF
provides venture capital for sma ll firms (SMEs), particularly n e w f i r m s a n d
technology-oriented businesses. I t also provides guarantees to financial
institutions (such as banks) to c over their loans to SMEs. The EIF is not a
lending institution : it does not grant loans or subsidies to b usinesses, nor does it
invest directly in any firms. I nstead, it works through banks a nd other financial
intermediaries. It uses either its own funds or those entrusted to it by the EIB or
the European Union. The Fund is active in the Member States of the European
Union, in Croatia, Turkey and three EFTA countries (Iceland, Li echtenstein and
Norway).

The International Monetary Fund (IMF)
The IMF is an international organization of 185 member countrie s. It was established
to promote international monetary co-operation, exchange stabil ity, and orderly
exchange arrangements ; to foster economic growth and high leve ls of employment
and to provide temporary financial assistance to countries to h elp ease balance of
payments adjustment.

The Monetary Policy
The Monetary Policy is covered by Articles 105 to 111 (former Articles 105 to 109)
of the EC Treaty. It is fundamental to the Economic and Monetar y Union (EMU).
Decision-making procedures vary according to the topics in hand : for the issue of
coins by the Member States – Art. 106 (2) -, the co-operation p rocedure applies,
after consultation of the Europea n Central Bank (ECB); for the formulation of
exchange-rate policy guidelines – Art. Ill (2) -, the Council d ecides by a qualified
majority on a recommendation from the ECB or from the Commissio n after
consulting the ECB ; for the implementing measures referred to in the Statute of the
E u r o p e a n S y s t e m o f C e n t r a l B a n k s ( E S C B ) – A r t . 1 0 7 ( 6 ) – a n d t h e limits and
conditions under which the ECB is entitled to impose fines – Ar t . 1 0 9 ( 3 ) – , t h e
Council decides by a qualified majority on a recommendation fro m the ECB and
after consulting the European Par liament and the Commission; fo r technical
adjustments to the Statute of the ESCB – Art. 107 (5) -, the Co uncil decides by a
qualified majority on a recommendation from the ECB and after c onsulting the

Commission and obtaining the ass ent of the European Parliament ; for the exchange
rate of the Euro against non-Community currencies – Art. Ill (1 ) -, the Council
decides unanimously on a recomm endation from the ECB or the Com mission, after
consulting the European Parliament.
Source: Dicționar Explicativ Trili ngv al Uniunii Europene , Iordan
Gheorghe Bărbulescu, Daniela Răpan, Polirom, 2009

UNIT 2 Personal banking
Current accounts
A current account is an account which allows customers to take out or withdraw
money, with no restrictions. Money in the account does not usua lly earn a high rate
of interest: the bank does not pay much for 'borrowing' your mo ney. However,
many people also have a savings account or deposit account whic h pays more
interest but has restrictions on when you can withdraw your mon ey. Banks usually
send monthly statements listing recent sums of money going out, called debits, and
sums of money coming in, called credits.
Nearly all customers have a debit card allowing them to make wi thdrawals and do
other transactions at cash dispensers. Most customers have a cr edit card which can
be used for buying goods and services as well as for borrowing money. In some
countries, people pay bills with c heques. In other countries, b a n k s d o n ' t i s s u e
chequebooks and people pay bills by bank transfer. These includ e standing orders,
which are used to pay regular f ixed sums of money, and direct d ebits, which are
used when the amount and payment date varies.
BrE: current account; AmE: checking account
BrE: cash dispenser, cash machine; AmE: ATM (Automated Teller Machine)
BrE: cheque; AmE: check

Banking products and services
Commercial banks offer loans – fixed sums of money that are len t for a fixed
period (e.g. two years). They also offer overdrafts, which allo w customers to
overdraw an account -they can have a debt, up to an agreed limi t, on which
interest is calculated daily. Th is is cheaper than a loan if, f or example, you only
need to overdraw for a short peri od. Banks also offer mortgages to people who
want to buy a place to live. These are long-term loans on which the property acts
as collateral or a guarantee fo r the bank. If the borrower does n't repay the
mortgage, the bank can repossess the house or flat – the bank t akes it back from
the buyer, and sells it.
Banks exchange foreign currency for people going abroad, and se ll traveller's
cheques which are protected agai nst loss or theft. They also of fer advice about
investments and private pension plans – saving money for when y ou retire from
work. Increasingly, banks also t ry to sell insurance products t o their customers.

BrE: traveller's cheque; AmE: traveler's check

E-banking
In the 1990s, many commercial banks thought
the future would be in telephone banking and
internet banking or e-banking. But they
discovered that most of their customers
preferred to go to branches – local offices of the
bank – especially ones that had longer opening
hours, and which were conveniently situated in
shopping centres.
BrE: shopping centre; AmE: shopping mall

1. Find words in the texts above with the
following meanings:

1 what you can earn when you leave your
money in the bank
2 an amount of money borrowed from a bank
f o r a c e r t a i n l e n g t h o f t i m e , u s u a l l y f o r a
specific purpose
3 s o m e t h i n g t h a t a c t s a s a s e c u r i t y o r a
guarantee for a debt
4 an arrangement to withdraw more money
from a bank account than you have placed in it
5 a long-term loan to buy somewhere to live
6 an arrangement for saving money to give you
an income when you stop working
7 to take back property that has not been
completely paid for.

2. Are the following statements true or false? Find reasons for your answers in the
texts above.
1 Current accounts pay more inte rest than savings accounts.
2 There is less risk for a bank with a mortgage than with unsecur ed loans without
collateral.
3 Traveller's cheques are safer for tourists than carrying foreig n currency.
4 The majority of customers pref er to do their personal banking a t the bank.
5 Bank branches are now all in shopping centres.

UNIT 3 TYPES OF BANKS
Commercial and retail banks

When people have more money than they need to spend, they may c hoose to save it. They deposit it in a bank
account, at a commercial or ret ail bank, and the bank generally pays interest to the depositors. The bank then
uses the money that has been deposited to grant loans – lend mo ney to borrowers who need more money
than they have available. Banks make a profit by charging a hig her rate of interest to borrowers than they pay
to depositors. Commercial banks can also move or transfer money from one customer's bank account to
another one, at the same or a nother bank, when the customer ask s them to.

Credit
Banks also create credit – make money available for someone to borrow – because the money they lend
from their deposits is usuall y spent and so transferred to anot her bank account.
The capital a bank has and the loans it has made are its assets . The customers' de posits are liabilities
because the money is owed to someone else. Banks have to keep a certain percentage of their assets as
reserves for borrowers who want to withdraw their money. This i s known as the reserve requirement. For
example, if the reserve requirement is 10%, a bank that receive s a €100 deposit can lend €90 of it. If the
borrower spends the money and writes a cheque to someone who de posits the €90, the bank receiving that
deposit can lend €81, As the process continues, the banking sys tem can expand the first deposit of €100
into nearly € 1,000. In this way, it creates credit of almost € 900.

Loans and risks
Before lending money, a bank has to assess or calculate the ris k involved. Generally, the greater the risk for
the bank of not being repaid, the higher the interest rate they charge. Most retail banks have standardized
products for personal customers, such as personal loans. This m e a n s t h a t a l l c u s t o m e r s w h o h a v e b e e n
granted a loan have the same terms and conditions — they have t he same rules for paying back the money.
Banks have more complicated risk assessment methods for corpora te customers – busine ss clients – but large
companies these days prefer to r aise their own finance rather t han borrow from banks.
Banks have to find a balance between liquidity – having cash av ailable when depositors want it – and
different maturities – dates when loans will be repaid. They al so have to balance yield – how much money a
loan pays – and risk.

3. Complete the sentences from banks' websites. Look at the tex ts above to help you.
If you need instant access to a ll your money, this is the……………… ………for you. Our products for include
business overdrafts, loan repayments that reflect your cash flo w, and commercial mortga ges. Our local branch
managers are encouraged to h elp local businesses and are
authorized to and overdrafts. We offer standardized loans: you can be sure you won't get less favourable
terms and conditions than our other………………
4. Match the two parts of the s entences. Look at the texts abov e to help you.
1 Banks lend savers' deposits
2 They also create credit by
3 How much credit banks can create
4 Before lending money,
5 The interest rate on a loan
6 Banks always nee d liquidity,

a banks have to assess the risk involved.
b depends on the reserve requirements.
c depends on how risky it is for t he bank to lend the money.
d so they can't lend all their money in loans with long maturit ies.
e lending the same original deposit several times.
f to people who need to borrow money.

5. Find verbs in the above texts that can be used to make word combinations with the
nouns: money (2), interest (2), risks (2).Then use some of the verbs to complete the sentence:
1 With standardized products , all custom ers ar e …………….. ……. the same interest
rate.
2 Banks generally know from experience how much cash to keep in t heir reserves
for customers who want to it.
3 Banks carefully study the finan cial situation of a company to . ………………… the
risk involved in lending it money.

Investment Banking
Raising capital
Ruth Henly works in an i nvestment bank in New York.
'Unlike commercial banks, investment banks like ours don't lend money. Instead
we act as intermediaries between companies and investors. We he lp companies and
governments raise capital by issuing securities such as stocks and bonds – that is,
we offer them for sale. We ofte n underwrite securities issues: in other words, we
guarantee to buy the s ecurities ourselves i f we can't find othe r purchasers.
As well as initial public offerings (IPOs), when companies offe r stock for sale for
the first time, there are other occasions when they raise funds . For example, they
might want to expand their operations, or to acquire another co mpany, or to
reduce their amount of debt, or to finance a specific project. They don't only raise
capital from the public: they can sell stocks or shares to inst itutional investors like
insurance companies, investment funds – companies that invest t he money of lots
of small investors, and pension funds – companies that invest m oney that will later
be paid to retired workers.
We also have a stockbroking and dealing department. This execut es orders – buys
and sells stocks for clients – which is broking, and trades wit h our own money,
which is dealing. The stockbroki ng department also offers advic e to investors.'
BrE: flotation; AmtE: in itial public offering (IPO)
Mergers and acquisitions
'Investment banks often represent firms in mergers and acquisit ions (see Unit 21),
and divestitures. A divestiture is when a company sells a subsi diary – another
company that it owns. Most of the fee – the money the company p ays us for the
service – will depend on us completing the deal successfully. T his gives the bank
a good reason to make sure that the transaction succeeds.'
Consulting and research
'Large corporations have their own finance and corporate develo pment
departments. But they often use an investment bank like ours be cause, like a
consulting firm, we can offer i ndependent advice, and we have a lot of experience
in financial transactions. We also have a large network of cont acts, and
relationships with investors and companies that could be intere sted in a merger or
acquisition.
If we've worked on a transaction with a company, we know a lot about its
business. This means we can give advice about strategic plannin g – deciding what
do to in the future -or financial restructuring – changing the way the business is
financed. Large investment banks also have extensive research d epartments with
analysts and forecasters who specialize in the valuation of dif ferent markets,
industries, companies, securities and currencies. Analysts try to work out how
much things are worth now, and f orecasters study the prospects for the future.'

6. Complete the list with words from the texts above and rela ted forms – nouns, nouns for people,
adjectives.
-acquire, advise, analytical, institute, invest, value.
7. Complete the sentences from ne wspaper articles with words fr om the list: acquirin g, advised, divesting,
fees, IPOs, merged, underwritten.
1 Deutsche Telekom's IPO was……by Goldman Sachs.
2 During their acquisition of Ma nnesman, Vodafone were …………..by UBS.
3 Big Wall Street Banks earned millions of dollars in consultin g ……from Enron before the company
collapsed.
4 Large multinationals are always ……less successful parts of th eir business as well as……….successful
companies.
5 When Mitsubishi Tokyo Financial Group …………..with UFJ Holdings , they became the world’s
biggest bank.
6 In 2000, the global value of ……..was over $220 billion.
8. Match the words below with their definitions. Look at the te xts above to help you.
– financial restructuring, consulting firm, forecasters, instit utional investor, stra tegic planning, pension
fund, subsidiary, evaluation.
1 a company of experts providing professional advice to businesse s for a fee
2 a financial institution that invests money to provide retiremen t income for employees
3 deciding what a company is going to do in the future
4 people who try to predict wha t will happen in the future
5 a company that is partly or wholly owned by another one
6 a financial institution that purchases securities
7 making changes to how a company is financed
8 establishing how much something is worth

Central Banks
Most countries have a central bank that provides financial serv ices to the
government and to the banking sy stem. If a group of countries h ave a common
currency, for example the euro, they also share a central bank, such as the
European Central Bank in Frankfurt.
Some central banks are responsible for monetary policy – trying to control the rate
of inflation to maintain financ ial stability. This involves cha nging interest rates. The
aim is to protect the value of die currency – what it will purc hase at home and in
other currencies.
In many countries, the central b ank supervises and regulates th e banking system
and the whole financial sector. It also collects financial data and publishes statistics,
and provides financia l information for consumers. In most count ries, the central
bank prints and issues currency – putting banknotes into circul ation. It also
participates in clearing cheques and settling debts among comme rcial banks.
Commercial banks have to keep reserves – a certain amount of th eir deposits – for
customers who want to withdraw their money. These are held by t he central bank,
which can also change the reserve-asset ratio – the minimum per centage of its
deposits a bank has to keep in its reserves. If one bank goes b ankrupt, it can
quickly affect the stability of the whole financial system. And if depositors think a
bank is unsafe they might all try to withdraw their money. If t his happens it's
called a bank run or a run on the bank, and the bank will quick l y u s e u p i t s
reserves. Central banks can act a s lender of last resort, which means lending money
to financial institutions in difficulty, to allow them to make payments. But central
banks don't always bail out or rescue banks in difficulty, beca use this could lead
banks to take risks that are t oo big. Central banks manage a co untry's reserves of
gold and foreign currencies. They can try to have an influence on the exchange
rate – the price at which their currency can be converted into other currencies.
They do this by intervening on the currency markets, and moving the rate up or
down by buying or selling their cu rrency. (See Unit 44) This ch anges the balance
of supply – how much is being sol d – and demand – how much is b eing bought.
9. Match the two parts of the sen tences. Look at the text above to help you.
1 The central bank will sometimes lend money
2 Banks would probably start taking too many risks
3 Central banks are usually responsible for
4 The central bank can alter
5 There will be low and stable inflation

a if they could always be sure of rescue by the central bank.
b if there is a run on a commercial bank.
c if monetary policy is successful.
d printing and distributing banknotes.
e the amount of money commercial banks are able to lend.

10. Complete the text from the website of the Federal Reserve, the central bank of
the United States.
Today the Federal Reserve's dutie s fall into four general areas :
-conducting the nation's (a) ………………………………………………….. pol icy;
– (b) and regulating ba nking institutions a nd protecting the cr edit rights of consumers;
– maintaining the (c) ………………………………….. …………….. of the financial system;
– and providing certain (d) …………………………….. …………. services to the US
government, the
public, financial insti tutions, and foreign o fficial institutio ns.
Interest rates and monetary policy
An interest rate is the cost o f borrowing money: the percentage of the amount of a loan paid by the borrower to
the lender for the use of the lender's money. A country's minim um interest rate (the lowest rate that any lender
can charge) is usually set by the central bank, as part of mone tary policy, designed to keep inflation low. This
can be achieved if demand (for goods and services, and the mone y with which to buy them) is nearly the same
as supply. Demand is how much people consume and businesses inv est in factories, mach inery, creating new
jobs, etc. Supply is the creation of goods and services, using labour – paid work – and capital. When interest
rates fall, people borrow more, and spend rather than save, and companies invest more. Consequently, the
level of demand rises. When interest rates rise, so that borrow ing becomes more expensive, individuals tend to
save more and consume less. Compa nies also invest less, so dema nd is reduced.
If interest rates are set too low, the demand for goods and ser vices grows faster than the market's ability to
supply them. This causes prices to rise so that inflation occur s. If interest rates are set too high, this lowers
borrowing and spending. This brings down inflation, but also re duces output – the amount of goods produced
and services performed, and employment – the number of jobs in the country.
Different interest rates
The discount rate is the rate that the central bank sets to len d short-term funds to commercial banks. When
this rate changes, the commercial banks change their own base r ate, the rate they charge their most reliable
customers like large corporations. This is the rate from which they calculate all their other deposit and lending
rates for savers and borrowers.
Banks make their profits from the difference, known as a margin or spread, between th e interest rates they
charge borrowers and the rates they pay to depositors. The rate that borrowers pay depends on their
creditworthiness, also known as credit standing or credit ratin g. This is the lender's es timation of a borrower's
present and future solvency: the ir ability to pay debts. The hi gher the borrower's solvency, the lower the
interest rate they pay. Borrowers can usually get a lower inter est rate if the loan is guaranteed by securities or
other collateral. For example, mortgages for which a house or a partment is collateral are usually cheaper than
ordinary bank loans or overdrafts – arrangements to borrow by s pending more than is in your bank account.
Long-term loans such as mortgages often have floating or variab le interest rates that change according to the
supply and demand for money.

Leasing or hire purchase (HP) agr eements have higher interest r ates than bank loans and overdrafts. These are
when a consumer makes a series of monthly payments to buy durab le goods (e.g. a car, furniture). Until the
goods are paid for, the buyer is only hiring or renting them, a nd they belong to the lender. The interest rate is
high as there is little securit y for the lender: the goods coul d easily become damaged.
BrE: base rate; AmE: prime rate
11. Match the words below with their definitions.
– creditworthy, spread, floating rate, output, invest, solvency, labour, interest rate

1 the cost of borrowing money, expr essed as a percentage of the l oan
2 having sufficient cash available when debts have to be paid
3 paid work that provid es goods and services
4 a borrowing rate that isn't fixed
5 safe to lend money to
6 the difference between bo rrowing and lending rates
7 the quantity of goods and services produced in an economy
8 to spend money in order to produce income or profits

12. Name the interest rates and loans.
a ……………………..: a loan to buy property (a house, flat, etc.)
b …………………… : borro wing money to buy something like a car, spreading payment over 36 months
c …………………… : commer cial banks' lending rate fo r their most secure customers
d …………………… : occasionally borrowing money by s pending more than you have in the bank
e …………………… : the rate at which central banks m ake secured loans to commercial banks
13. Are the following state ments true or false?
1 All interest rates are set by central banks.
2 When interest rates fail, pe ople tend to spend and borrow mor e.
3 A borrower who is very solvent will pay a very high interest rate.
4 Loans are usually cheaper if they are guaranteed by some form of security or collateral.
5 If banks make loans t o customers with a lower level of solven cy, they can increase their margins.
6 One of the causes of changes in interest rates is the supply and demand for money.
Adapted from Ian MacKenzie, Professional English in Use, Finance , Cambridge University Press, 2007

Practice

14. Match each of these terms (1-12) with its definition (a-l).
1 consumer finance
2 equity
3 credit report
4 collateral
5 annual percentage rate
(APR)
6 unsecured loans
7 term
8 spread
9 principal balance

10 mortgage
11 default
12 debt-to-income ratio a The amount owed on a loan or loans at
any given time
b A calculation commonly used to
determined qualification for a mortgage
c The maturity or length of time until final
repayment on a loan, bond, sale or other
contractual obligation
d Failure to pay loan instalments
e A report detailing a borrower's credit
history and current credit status
f The value of a borrower's property
greater than the to tal debt held on it
g The division of retail banking that deals
with lending money to individuals, not
companies
h Loans which are not secured by
collateral
i The difference between the buying and
selling price of a loan
j Property owned by a borrower that is
pledged to a lender in order to secure a
loan
k The annual cost of obtaining a loan,
including
interest and loan fees
1 A loan secured by real estate, often used
for
the purpose of purchasing the real estate as
a home

15. Identify the odd word out in e ach of these groups and expla in why.
1 cautious haphazard prudent vigilant
2 decline shrink depreciate appreciate
3 recession downturn depression rebound
4 spreads corridors mark-ups margins
5 cushion stimulate bolster protect
6 measures steps adjustments procedures
7 fees tranches charges commissions
8 compensate allocate apportion assign

16. Read the statements below a nd then decide which of the arti cles (A or B) they refer to:
1 Banks have grasped the concept that it is easier to sell to t heir current client base than
acquire new ones.
2 Lehman Brothers was the most sizeable victim of the global cr isis.
3 One of the key questions is whether banks have modified their activities sufficiently to
prevent another crisis.
4 The majority of bankers state that they no longer deal with t he high-risk products that were
responsible for their losses.
5 Banks have to concentrate on t heir core areas of expertise wh ile developing new financial
services to offer their clients.
6 The competition for customers pushes banks to use VPN technol ogy to protect their
communications.
7 Some people believe that the merging of the market's key play ers has made the financial
sector stronger.
8 Banks should exploit the financ ial data they already have abo ut their existing customers.
9 Banks need to have wireless ne tworks sufficiently backed up b y VPN technology.
10 Rules governing banking have been tightened.
11 Branch layout has changed to r eveal the wider scope of produ cts banks provide.
12 Bank personnel need to be more mobile within their branches to enable them to inform
clients about new services.
13 A lot of people claim that the mergers of several banking gi ants have resulted in the
strengthening of the financial sector.
14 The majority of banks are s till very highly leveraged.

A. BANKS UNDER PRESSURE
Realizing that it is easier to expand the scope of services pr ovided to existing customers on
their current databases than it is to win new customers, banks are under pressure to offer an
expanding set of financial services to their customers while at the same time trying to focus on
their core competencies. These services include insurance and i nvestment products and
services, credit and debit cards, bill-payment services and acc ess to financial information from
customers' personal-investing software packages. This trend tow ard 'unbundling the
corporation' and leveraging serv ice providers for non-core func tions drives banks to use the
Internet for its ubiquitous conn ectivity and virtual private ne tworking (VPN) technology to
safeguard communication with t heir integration partners.
According to the Wall Street Journal, a resurgence of high-service branch banking is one of
banking's top-ten trends. Banks are beginning to deploy innovat ive new branch layouts that
reflect the much broader set of products and services that they are offering – often with
brokerage and wealth management areas in addition to the more t raditional banking services.
The new branch format may also include conference rooms that ca n be used for consulting
with clients, video conferencing, meetings with product special ists, multi-client seminars and
employee training. Given the need for branch staff to be able t o move freely around the branch
yet still have all the information assets of the bank at their fingertips, the new branches can
benefit substantially from wireless networking (safeguarded wit h VPN technology).
Additionally, the increasing use of digital media for security systems, e-learning,
merchandising, remote teller syst ems and high-qua lity video con ferencing will drive the need
for higher network bandwidth with more stringent network-delay requirements. (adapted
from.: www.stern.nyu.edu)
B. AFTER THE CRISIS: ARE BANKS SAFER THAN THEY USED TO BE?
In September 2008, banking giant Le hman Brothers became a victi m of the financial crisis
when it shocked the financial world by filing for Chapter 11 Ba nkruptcy. It was, in fact, a
mammoth bankruptcy in the history of US banking; the firm had a ssets of more than $600
billion. Several years later, mem ories of the crisis are fading , but the two big questions still
being posed are whether the banks have actually become safer ha vens for our deposits, and
what they have done to prevent such a crisis occurring again. S ince the crisis, governments
and regulators, central bankers and analysts have thought long and hard to determine what
needs changing in the system to avoid a repetition of the crisi s. Most bankers have assured us
that they have changed their game and taken the necessary steps to leave behind the risky
assets that infected their bal ance sheets and have also strengt hened their capital base. Many
people vow that the consolidation of big players such as Merril l Lynch, HBOS and Bear
Stearns has produced a tougher and sounder financial sector. At the same lime, bankers preach
that the tighter regulatory practice adopted in recent years wi ll safeguard our deposits;
however, sceptics insist that the majority of banks have not ch anged at all. They say banks are
still over-leveraged; fu rthermore, the system continues to prov ide bonuses for risk-taking.

17. You are going to listen to a b ank executive talking about t he role of the central bank of
Chile. Before you listen, circle the odd one out in each of the se groups of synonyms and
explain why.
1 implication evaluation inference suggestion
2 stability deviation steadiness soundness
3 deterioration altera tion downturn decline
4 preserve sustain es tablish safeguard
5 allocation calculation di stribution apportionment
6 regulate downsize control monitor
7 constitute embody empower comprise
8 approve authorize adopt sanction

18. Listen and complete this summary:
Chile's currency
The Central Bank of Chile's basic constitutional law establishe s in its third article that one of
the basic objectives of this institution is to preserve the (1) of the country's national currency.
This implies avoiding a (2) in th e value of the currency as a result of price infl ation. Thus, it is
the Central Bank of Chile's (3) to ensure that (4) rem ains low and stable. The importance
of this objective of ensuring th e stability of the country's cu rrency lies in the (5)
implicit in inflation. On the one hand, higher inflation tends to distort the price (6)
within the economy and, as a re sult, the information that price s provide does not permit the
efficient (7) of resources. On the other ha nd, from a distributive perspective, inflation
tends to hurt those who hold more of their wealth as (8) , that is, the poorest sectors. Thus,
price inflation negatively affects the level of (9) activity an d the population's welfare. For
these purposes, the Central Bank's powers involve (10) the amount of money and credit
in (11) and the approval of rules in the monetary sphere, becau se of the direct relationship
between money and prices in the long term. Thus, the applicatio n of a strict and orderly (12)
over the quantity of money constitutes the sole form of ensuri ng low, stable inflation
over time.
19. Match the words on the left (1-10) with those on the right (a-j) to create collocations
related to cent ral banking.
1 financial a measures
2 banking b distortion
3 anti-inflationary c stability
4 money d easing
5 quantitative e targeting
6 monetary f supervision
7 currency g supply
8 price h expenditure
9 public policy
10 inflation j issuance

20. Before reading the article b elow about monetary policy in Europe, look at each of the
words and phrases in bold in the article and match them with on e of these synonyms.
1 dealt with 2 ammun ition 3 unfold 4 cut 5 decision 6 sustain 7 practical
8 remedy 9 judgement 10 untraditional 11 s purred 12 combating 13 extending
14 remarked 15 complete 16 addition to 17 stimulated 18 models
19 interruptions 20 sound
Monetary policy in Europe—boredom suspended
Mervyn King, the former governor of
the Bank of England, once quipped that
c e n t r a l b a n k e r s a i m t o k e e p m o n e t a r y
policy "boring"—a dull exercise in
maintaining low and stable inflation.
Recent months have seen quite the
opposite. Battling a s h a r p f a l l i n
inflation, central banks around the globe
have slashed interest rates, often too
close to zero. Several have also made
headlines by adopting unconventional
policies, including "quantitative easing"
at the Bank of England (BoE) and
"enhanced credit support" at the
European Central Bank (ECB). But are
these unconventional strategies working?
And what are the associated risks? These
questions have been addressed by two
new IMF studies.
The ECB presents an unusual case. Its
approach, unlike that of some other
major central banks, has not involved
outright purchases of sovereign debt.
Instead, the ECB has used its standard
framework, based on Repurchase
facilities. But within this framework it
has employed non-standard measures,
including lengthening the maturity of
these facilities and providing massive
funds at fixed rates.
In the first study, Martin Cihak, Thomas
Harjes, and Emil Stavrev analyze the
ECB's response to the financial crisis,
using a combination of econometric
applications . They find that the ECB's
measures have been useful in reducing
money-market term spreads. Moreover,
the measures may have had favorable effects on government-bond term
spreads. An important feature of the
ECB's interventions i s t h a t t h e
repurchase facilities will unwind
naturally as they mature. This offers a
relatively straightforward exit path from
the non-standard measures.
In the United Kingdom, the use of
quantitative easing has triggered a
controversial public debate. Andre
Meier's study analyzes the policy from a
theoretical and empirical perspective.
He finds that quantitative easing has had
some positive effects, by raising asset
prices and near-term inflation
expectations. However, the policy
provides only limited direct support to
private credit markets, and its overall
impact is too early to judge. Quantitative
easing is not a panacea . But it is an
important addition to the Bank's policy
arsenal , and its expansion and change in
emphasis on August 6 was appropriate.
Meanwhile, the policy has prompted
fears that the BoE might lose its
operational independence and that
inflation might return with a vengeance.
Reassuringly, the quantitative easing
framework is designed to contain such
risks through a robust set of safeguards,
including full indemnity from the fiscal
authority for possible capital losses
which is unique among major central
banks; continued control over policy
rates through reserve remuneration; and
discretion to re-sell assets or issue
central bank debt. These safeguards
should help the BoE exit from

quantitative easing when appropriate. To
be sure, timing the exit will be a difficult
judgment call , and fiscal policy must
do its part to maintain investor
confidence. But quantitative easing
clearly need not be a curse either.
Most likely, the policy will prove a
useful appendage of the BoE's standard
toolkit in today's extraordinary
circumstances—not all-powerful or
entirely risk-free, but an important
element in a set of policies to stabilize
inflation and economic activity. Longer
term, the objective should be to restore
boredom. Today's unconventional
measures will only be successful if they
enable a return to t he conventional.

21. Read the article again and decide
whether these sentences are true (T) or
false (F):

1 Recently, the task of central bankers
has been rather dull.
2 In order to combat inflation, some
central banks have lowered interest rates
significantly.
3 While the Bank of England (BoE) and
the European Central Bank (ECB)
preferred to follow more conventional
approaches to monetary policy, other
central banks implemented more
unusual strategies to stabilize the level
of inflation.
4 One of the methods the ECB has used
is based on repurchase facilities, but
with variable maturities.
5 The first IMF study indicates that the
ECB's methods have helped bring down
money-market term spreads, enabling
the pass-through from policy to market
rates. 6 The second study finds that the
application of quantitative easing in the
UK has damaged asset prices and
inflation forecasts.

23. Read this introduction to an article and complete the summa ry below using
one or two words in each gap.
The first ten years of euro banknotes
by Jose Manuel Gonzalez-Paramo
Member of the Executive Board of the European Central Bank
I am very pleased to have the opportunity to contribute to this special issue of
Billetaria, which is dedicated to the tenth anniversary of the euro banknot es. Over
the last ten years, I have been i n the interesting position of being able to witness
euro cash developments from the perspective of both a national central bank
(NCB) and, in particular, the European Central Bank (ECB). When t h e e u r o
banknotes and coins were introduced on 1 January 2002, I was a Member of the
Executive Commission of the Banco de Espana. In June 2004, I th en became a
Member of the Executive Board of the ECB and was assigned respo nsibility for
three business areas, including the Directorate Banknotes. In t his article, I would
like to discuss the challenges th at the euro banknotes confront ed us with during
the first decade of their existence, as well as some of the les so n s th at w e h av e
learned along the way.
Jose Manuel Gonzalez-Paramo, a Member of the Executive Board of the
European Central Bank, has (1)……euro cash (2)………….from the
(3)…………..of both a (4) …………..central bank (NCB) and the Europea n
Central Bank (ECB). At the (5)……………of the euro on 1 January 200 2, he was
a Member of the Executive Commission of the Banco de Espana. La ter, in
(6)………….., upon the (7)…………..of euro (8)……..and coins, he
(9)………………the ECB (10)…………..and was (11)…………..responsibility
for (12)………..business areas, including the (13)………….. In this a rticle, he
presents some of the (14)……….he faced and discusses the road to changeover.
24. Read the rest of the article below to find these facts.
1 The date of adoption of the euro
2 The date of changeover to using the euro
3 The reason there was a gap between these two dates
4 Three challenges
5 The initial amount of euro c oins and banknotes produced
6 The success of the c hangeover process
7 The developments mentioned since 2002
8 How changeover was handled in the second round
9 Surprising aspects of the euro programme
10 The impact of the finan cial crisis on the euro

The euro was adopted as a unit of exchange in 1999, but it wasn 't until three years
later, with the introduction of euro cash, that the citizens of Europe had a tangible
symbol of European integration. In order for the euro banknotes to be readily
accepted, a smooth changeover was fundamental, not only within but also outside
the euro area, as many banknotes of the legacy currencies were also used outside
the euro area.From the Eurosyste m's perspective, ensuring a smo oth cash
changeover involved three major challenges: 1) the industrial c hallenge of
producing more than 15 billion euro banknotes and 51 billion eu ro coins; 2) the
logistical challenge of first planning and then implementing th e cash changeover,
together with banks, cash-in-tra nsit companies, retailers and b anknote equipment
manufacturers in a short period of time; and 3) the communicati on challenge of
familiarizing euro-area residents and professional cash handler s with their new
cash and the changeover modalities.
The changeover went very smoothly, with the euro banknotes bein g well received
from the outset. Since 2002, a fu rther five member states of th e European Union
(EU) have adopted the euro and have benefited from the lessons learned during
that changeover. In their case, the euro was brought into circu lation under a 'big
bang' scenario, with a significan tly shorter dual-circulation p eriod.
O v e r t h e f i r s t d e c a d e o f t h e i r e xistence, demand for euro bankn otes has been
much stronger than had been anticipated on the basis of the pas t growth in
demand for the legacy currency banknotes, as low inflation expe ctations have
encouraged the public to adjust their cash holdings. Demand has also been
considerable among non-euro area residents, who are estimated t o hold more than
20% of the euro banknotes in circulation.
During the financial turmoil in 2008, there was a strong increa se in demand for
euro banknotes that originated l argely from outside the euro ar ea and thus
demonstrated the confidence in t h e e u r o a s a p a r a l l e l c u r r e n c y . Although the
relative share of cash as a means of payment has diminished in favour of new
means of payment, the use of cas h as a store of value has incre ased.
(adapted from Banco de Espana)
Adapted from Julie Pratten, Absolute Banking English , Delta Publishing 2013

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Dicționar Explicativ Trilingv al Uniunii Europene , Iordan Gheorghe
Bărbulescu, Daniela Răpan, Polirom, 2009
C. Farrall and M. Lindsley, Professional English in Use, Marketing ,
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Ian MacKenzie, Professional English in Use Finance , Cambridge University
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