ENGLISH FOR FINANCE - CAO XUÂN THIỀU

WWW.DAYKEMQUYNHON.UCOZ.COM

WWW.FACEBOOK.COM/DAYKEM.QUYNHON

lllllIImilIIlilll!nil

VVM

12.336

HỌC VIỆN TÀI CHÍNH

TP .Q UY

Chủ biên: Cao Xuân Thiều

NH ƠN

lull illlllllllll!IIl i

TR Ầ

N

HƯ

NG

ĐẠ O

GIÁO TRÌNH

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

(ENGLISH FOR FINANCE)

NHÀ X y ấ T BÂN TÀI CHÍNK Đóng góp PDF bởi Nguyễn Thanh Tú

WWW.FACEBOOK.COM/BOIDUONGHOAHOCQUYNHON



NG

ĐẠ O

TP .Q UY

NH ƠN

HỌC VIỆN TẰI CHÍNH

HƯ

GIÁO TRÌNH k

\

B

TR Ầ

N

ứ

10

00

ENGLISH FOR FINANCE

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

Chủ biên: Cao Xuân Thiều

Đóng góp PDF bởi Nguyễn Thanh Tú

NHÀ XUẤT BẢN TÀI CHÍNH Hà nội - 2008 WWW.FACEBOOK.COM/BOIDUONGHOAHOCQUYNHON


NH ƠN


00

B

TR Ầ

N

HƯ

NG

ĐẠ O

Giáo trình “English for Finance” được tổ chức biên soạn lại, có sửa chữa và bổ sung nhiều bài mối từ cuốn giáo trình “English for Finance and Accounting” nhằm đáp ứng yêu cầu đổi mới nội dung chương trình đào tạo tại Học viện Tài chính trong giai đoạn đổi mối và phát triển của đất nước bưốc sang th ế kỷ 21. Giáo trình đã tập hợp được nhiều bài viết, nhiều kiến thức từ nhiều sách báo, tài liệu và giáo trình gốc của các tác giả ở các nước Anh, Mỹ, Australia... Việc hoàn thành giáo trình này sẽ đáp ứng được nhu cầu về tài liệu học tập của sinh viên, giúp sinh viên đọc hiểu, dịch thuật và rèn luyện được các kỹ năng ngôn ngữ về các lĩnh vực kinh tế, tài chính, ngân hàng, kế toán, marketing và quản trị kinh doanh... Đồng thòi, đây cũng là nguồn tài liệu tham khảo bổ ích đô'i với các nhà nghiên cứu, nhà quản lý kinh tế tài chính và những ai có nhu cầu nâng cao trình độ tiếng Anh về tài chính. *

TP .Q UY

LỜI NÓI ĐẨU

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

Giáo trình “English for Finance” gồm 42 bài vối thòi lượng 240 tiết được dùng cho các chuyên ngành khác nhau ỏ Học viện Tài chính (chương trình chính khoá là 120 tiết). Có những bài dùng chung, có những bài dùng cho chuyên ngành này là chủ yếu lại không dùng cho chuyên ngành khác và ngược lại. Giáo trình không chia rõ thành các chương riêng biệt, nhưng được sắp xếp theo các chủ đề: kinh tế học (economics), tiền tệ - ngân hàng (money and banking), tài chính (finance), kế toán - kiểm toán (accounting and auditing), phân tích tài chính (financial analysis), marketing và kinh doanh quốc tế (international business).

DI Ễ

N

Giáo trình do tập thể giảng viên khoa Ngoại ngữ của Học viện biên soạn gồm: Cao Xuân Thiều (chủ biên), Nguyễn Thị Định, Nguyễn Thị Hà, Trương Minh Hạnh, Mã Kim Khánh, Phạm Bích Loan, Bùi Bá Luy, Nguyễn Thị Mai, Đặng Phương Mai, Tạ Thị Phương, Hoàng Minh Phương và Nguyễn Hiền Từ.




NH ƠN


NG

ĐẠ O

TP .Q UY

Giáo trình được hoàn thành là kết quả của quá trình lao động nghiêm túc, các tác giả đã cố gắng xây dựng cuốh giáo trình có nội dung thiết thực, kết cấu hợp lý với nguồn kiến thức đơn giản nhưng hiện đại phù hợp với qui trình đào tạo các chuyên ngành ở Học viện Tài chính. Tuy nhiên, do thời gian biên soạn còn hạn chế và nguồn tài liệu chưa th ật dồi dào nên giáo trình không tránh khỏi còn nhiều thiếu sót. Tập thể tác giả mong nhận được nhiều ý kiến chân thành của các thầy cô giáo cùng bạn đọc trong và ngoài Học viện để giáo trình được hoàn thiện hơn ỏ lần tái bản sau.

Hà nội, tháng 9 năm 2008 B an Q uản lý K hoa học H Ọ C VIỆN TÀI C H ĨN H

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

Học viện Tài chính cảm ơn các nhà khoa học: GS. TS. Ngô Thế Chi; ThS. Nguyễn Phương Sửu; ThS. Hoàng Văn Hoạt; TS. Đỗ Phi Hoài; ThS. Trần Văn Phùng; TS. Lê Văn Liên; TS. Hoàng Thị Thúy Nguyệt, trong Hội đồng nghiệm thu đã có những ý kiến đóng £óp giá trị góp phần nâng cao chất lượng của giáo trình này.




NH ƠN


TP .Q UY

CONTENTS

Foreword

Page

Unit 2

Economic systems

Unit 3

Microeconomics

Unit 4

Macroeconomics

Unit 5

Demand and supply

Unit 6

Setting the price

Unit 7

Pricing strategies

Unit 8

Money and its functions

67

Unit 9

Money and banking

75

Unit 10

Banks and interest rates

84

Unit 11

Banking business

Unit 12

Fiscal policy

100

Unit 13

Finance and corporate finance

109

Unit 14

Funding the business

116

Unit 15

Management of working capital

125

Unit 16

Raising money for investments

135

Unit 17

What is The foreign exchange market?

147

Unit 18

The foreign exchange market

157

Unit 19

Functions of the stock exchange

166

Unit 20

Taxation

175

HƯ

NG

ĐẠ O

Economics

B

5

Unit 1

13 21 30

N

39

TR Ầ

52

HÓ

A

10

00

59

Í-

93

TO ÁN

ĐÀ N N DI Ễ

3

-L

Lồi nói đầu

5 Đóng góp PDF bởi Nguyễn Thanh Tú



Introduction to corporate taxation

185

Unit 22

Customs and excise charges

196

Unit 23

Australian customs service

205

Unit 24

Insurance

215

Unit 25

What is accounting?

Unit 26

Financial statem ents

Unit 27

The balance sheet

Unit 28

The profit and loss account

Unit 29

Auditing

Unit 30

The role of auditors

Unit 31

Distinction between auditing and accounting

Unit 32

Financial analysis

Unit 33

Financial evaluation

Unit 34

Marketing

Unit 35

Marketing planning

314

Unit 36

The promotion mix in the marketing

322

Unit 37

Analysis of market opportunities

332

Unit 38

Ways of entering a foreign market

342

Unit 39

Project planning

351

Unit 40

International business

363

Unit 41

Trade surpluses and deficits

374

Unit 42

What is the balance of payments?

TP .Q UY

223

N

HƯ

NG

ĐẠ O

233 251 259 267 279

TR Ầ

288 296

10

B

304

A

HÓ

Í-

-L

TO ÁN

242

• 383

DI Ễ

N

ĐÀ N

NH ƠN

Unit 21

00





NH ƠN


Unit 1

TP .Q UY

ECONOMICS I. Reading

TR Ầ

N

HƯ

NG

ĐẠ O

Most people want more than they can afford to buy. If a family buys one thing, they may not be able to afford something they would like. The same is true of nations. Whether a nation is rich or poor, most of its people want more than they can afford. They seek better schools, more houses and stronger armed forces. The field of economics studies the way the thing people need and want is made and brought to them. It also studies the way people and nations choose the things they actually buy from among the many things they want.

Í-

HÓ

A

10

00

B

Economists (specialists in economics) define economics as the study of how goods and services get produced and how they are distributed. By goods and services, economists mean everything that can be bought and sold. By produced, they mean the processing and making of goods and services. By distributed, they mean the way goods and services are divided among the people.

TO ÁN

-L

In all countries, the resources used to produce goods and services are scarce. That is, no nation has enough farms, factories, or workers to produce everything th at everyone would like.

ĐÀ N

Money is also scarce. Few people have enough money to buy everything they want when they want it. Therefore, people everywhere most choose the best possible way to use their resources and money.

DI Ễ

N

Children may have to choose whether to spend their allowances on a motion picture or a hamburger. Storekeepers may have to choose whether to take a summer vacation or to use their





TP .Q UY

NH ƠN

savings to buy more merchandise. A nation may have to choose whether to use tax money to build more submarines. In economic items, the children, the storekeepers, and the nation all must economize in order to satisfy their most important needs and wants. This means they must try to use the resources they have to produce the things they most want.

NG

ĐẠ O

Economics is a study of mankind. It tells us how man subsists, grows and develops in relation to the wealth available on Earth. Relations made by persons in the society which are in connection with material circumstances are economic.

TR Ầ

N

HƯ

On a microeconomic scale, economics analyses the relations a person establishes with others while satisfying wants for his material life.Wants refer to both needs for a self to subsist and desires for the self to develop.

A

10

00

B

Qn a macroeconomic scale, economics analyses the regulations that govern the ways of establishing relations between persons so as to assure the well-being of man’s world in the whole.

HÓ

II. Comprehension / interpretation

Í-

1. Can people in most countries buy all the things they want?

DI Ễ

N

ĐÀ N

TO ÁN

-L

2. What do nations in the world want to do for their countries? 3. What does the field of economics study? 4. How do economists define economics?

5. Are the resources in the world used to produce goods and services abundant? 6. What do people and nations do with their limited resources and money?


7. Why it is said that: Economics, is a study of mankind?




NH ƠN

8. Which relations are called economic? 9. What does economics analyze on a microeconomic scale?

III.

Language focus: If clause (Type I)

TP .Q UY

10. What does economics analyze on a macroeconomic scale?

ĐẠ O

When we talk about future events th at are reasonably likely and their results, we can use an if-sentence. The lf-clause states the condition, and the other clause states the result.

HƯ

NG

“Unless” means the same as if...not. It always refers to the conditional part of the sentence and not the result part of the sentence.

TR Ầ

N

Example: - If the government raises taxes, consumer spending will fall.

B

(If- clause can come in the first part of the sentence or the second)

00

- Consumer spending will fall if the government raises taxes.

HÓ

A

10

- They won’t sign the contract unless we give them an additional discount. E x ercise 1: Put the verb in brackets into the correct tense.

-L

Í-

1. If sales (go)..... well this year, we will increase our products.

TO ÁN

2. We (sign).... the deal tomorrow unless something goes wrong.

ĐÀ N

3. We will try to reduce our costs if sales (not / go)....... well this year.

DI Ễ

N

4. If the goods get damaged in transit, we (make)....... a claim. 5. We (go)..... to have a bad year unless demand increases

soon.





NH ƠN

Exercise 2: Match the sentences (1-6) with the sentences (a-f) a. Unless we give her the salary she wants.

1. She will accept the job 2. She won’t accept the job

TP .Q UY

3. Unless sales improve dramatically b. We will not make a loss this year. c. Tthey will not take legal action. 4. If sales improve dramatically

ĐẠ O

5. Unless we pay them immediately d. We will make a loss this year. e. They will take legal action. 6. If we pay them immediately

Words study

HƯ

IV.

NG

f. If we give her salary she wants

N

E xercise 1: Complete the sentences, using the words in italic.

TR Ầ

Available, activity, abundant, demand, government, safety, income,revenue,consumers, was

organized

on

the

10

00

B

1. Economic............................. assumption at cheap and........ oil.

producers,

HÓ

A

2. When the price of some commodities increases,..........will try to use less of it but...... will want to send more of it.

-L

Í-

3. A scarce resource is one for which the........ a zero price would exceed the.... supply.

TO ÁN

4. National..................... is the money received by the...........

ĐÀ N

5. Governments spend part of their..... particular goods and services such as tanks, schools, and public......

DI Ễ

N

E xercise 2: Match the words with the definitions below. a- product

b- economic output

c- inflation

d- economics e- growth

f- gross domestic product (GDP)





h- goods

1. the study of how money works and is used. 2. is rising prices

TP .Q UY

3. the value of goods and services produced in a country or

NH ƠN

g- demand

area

ĐẠ O

4. the value of all goods and services produced in a particular country 5. output in the economy increases

NG

6. something made to be sold

HƯ

7. the materials and components used to make products, or the products th at are made

TR Ầ

N

8. the amount of goods and services th at people want in a particular period

B

V. Vocabulary

HÓ

Can we afford a new car?

A

10

00

- afford(v): to have enough money or time to be able to buy or to do something: có đủ khả năng về tiền bạc, thòi gian... để làm điều gì đó

-L

Í-

- allowance(n): an amount o f money that is given to sb regularly or for a particular purpose: tiền trợ cấp, tiền cấp phát

TO ÁN

Do you get an allowance for clothing? - seek(v): to look for sth / sb: tìm kiếm

N

ĐÀ N

- resources(n): a supply or sth that a country, an organization or a person has and can use, especially to increase their wealth (in plural): tài nguyên, nguồn lực

DI Ễ

- armed forces: lực lượng quân sự - scarce(adj): in short supply, khan hiếm, thiếu thốn 11





- motion picture(n): phim, điện ảnh

- summer vacation(n): kỳ nghỉ hè

TP .Q UY

- storekeeper(n): thủ kho, chủ cửa hàng

NH ƠN

It was wartime and food was scarce.

ĐẠ O

- merchandise(n): goods that are bought or sold; goods that are for sale in a shop / store: hàng hóa - submarine(n): a ship that can travel under water: tàu ngầm

HƯ

NG

- economize(v): to use less money, time, etc, than you normally use', tiết kiệm

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

Our electricity bills are higher than we can afford-we must start to economize.




NH ƠN


Unit 2

TP .Q UY

ECONOMIC SYSTEMS I. Reading

N

HƯ

NG

ĐẠ O

F re e m a rk e t econom y: An economic system in which the market - that is the relation between producers and consumers, buyers and sellers, investors and workers, management and labour - is supposed to be regulated by the law of supply and demand. Business firms are supposed to compete freely, and any attem pt at hindering free competition ("restrictive practices") is punishable by law.

00

B

TR Ầ

Direct government intervention is theoretically ruled out although the government will influence the economic situation through its fiscal and budgetary policies.

TO ÁN

-L

Í-

HÓ

A

10

P la n n e d econom y: A system whereby the structure of the .market is deliberately planned by the state, in which production and consumption quotas are fixed beforehand, and where there is no real competition between industrial or commercial organizations. In the soviet model, for instance, all the means of production and the channels of distribution are state controlled. Private ownership does not exist in this field.

DI Ễ

N

ĐÀ N

In practice, there is wide gap between the theoretical model and economic realities: the so - called market economies relv more and more on Government planning and intervention, whereas in planned economies, such capitalistic notions as profit tend to be reintroduced. M ixed econom y: An economic system in which some goods and services are produced by the government and some by private enterprise. It lies between a command economy and a complete


13




NH ƠN

laissez-faire economy. In practice, most economies are mixed; the significant feature is whether an economy is moving towards or away from a more laissez-faire situation.

TP .Q UY


Using the inform ation in the text, answ er the questions ielow.

ĐẠ O

1. What is a m arket economy? 2. What is a planned economy?

HƯ

NG

3. What are differences between a m arket economy and a lanned economy? 4. What is a mixed economy?

The pa ssive

TR Ầ

N

III. Language focus

10

00

B

The passive is formed by using the verb be and the past articiple. For example, the present tense passive is formed with m / is / are + past participle

HÓ

A

• We often use the passive to focus on something that appens to someone, when we do not want to focus on the person ho does the action:

Í-

About 85% o f the world’s rubber is p ro d u ce d in the Far

-L

ast.

TO ÁN

• The passive is often used to talk about systems and ■ocesses:

DI Ễ

N

ĐÀ N

On most rubber plantations, the latex is collected from the bber trees every day. It is m ixed with water and then formic id is added. This process creates crude rubber, which is then lied into sheets. a The passive infinitive is be + p a s t p a rtic ip le. We can use e passive with a modal verb (or an expression like have to).




Stamps can be bought at any office. Meals have to be p re p a re d every day.

ĐẠ O

Changes to the taxation system are expected to be proposed.

TP .Q UY

• Notice th a t in some contexts it is possible to make both verbs passive.

NH ƠN


E xercise 1: P u t the follow ing into the p a ssive voice.

NG

P u t the follow in g into the p a ssiv e voice.

HƯ

1. We can solve this problem.

2. People should send their complaints to the head office.

TR Ầ

N

3. They have changed the date of the meeting.

10

00

B

4. The government will influence the economic situation through its fiscal and budgetary policies. * 5. In planned economies governments fix production and consumption quotas beforehand.

HÓ

A

6. Our supplier is shipping the goods next week. 7. The government raised interest rates by 1%.

-L

Í-

8. He was asking me some difficult questions.

TO ÁN

9. ABB gave a large order to us last year. 10. David Gill from Marketing lent me this book.

N

ĐÀ N

E xercise 2: Complete the sentences using a p a ir of verbs. Use the p a s t sim ple for the fir st verb a n d a p a ssive form w ith being + past participle or to be + past participle for the second.

DI Ễ

deny / pay appear / crack

resent / ask


tend / forget

avoid / run down




NH ƠN

1. He ............................. any money for giving his advice to the company.

TP .Q UY

2. She ................................ to make tea for everyone at the meeting. 3. Many reliable methods of .............................when computers arrived.

storing

information

ĐẠ O

4. I narrow ly..........................by the bus as it came round the corner.

Word study

HƯ

IV.

NG

5. The window............................... in a number of places.

TR Ầ

N

Fill each of the numbered blanks in the following passage. Use only one word from the box in each space.

10

00

B

principles the at anything what for issues both training how

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

Economics is ................. (1) study of how individuals and nations make choices about how to use scarce resources to fill their needs and wants.A resource i s ................. (2) th at people can use to make or o b tain ....................(3) they need or want. You may be asking yourself................... (4) this point how economics will help you, a student. Also, you may be wondering how scarce resources is a problem ................ (5) a nation like the United States that has such abundant resources. It may surprise you to know that many of the decisions you will face as a citizen deal with ............... (6) the United States should use its resources. Learning economic...............(7) can help you make decisions about candidates for political office, political and social................ (8), and the goals the United States should set for itself, such as how to spend government revenues. Many people are familiar with the benefits of government programs





TP .Q UY

NH ƠN

such as job............... (9) and Medicare, but how many people are aware of the costs of these programs? Economics can help you to un derstand..................(10) costs and benefits and, therefore, help you to make better decisions.

V. Read the following passage and translate into Vietnamese

ĐẠ O

WHAT IS ECONOMICS ABOUT?

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

Economics is about the everyday things of life, how we get our living and why sometimes we get more and sometimes less. Nowadays, everybody realizes the important part played in their lives by economic factors, because nothing seems to stay put for more than a few weeks on end. Prices are continually changing, generally upwards, and no sooner do we congratulate ourselves on being a bit better off than we seem to lose all we have gained because of having to pay more for everything we want. Industries, such as coal mines and railways, which we have taken for granted as natural part of the scene, decline in size, and other quite new ones, electronics and plastics and so on, take their place as big fields of employment; and these changes in size directly affect the lives of hundreds of thousands of families.

ĐÀ N

TO ÁN

-L

Those of us who are now middle-aged can recall the shock we had during the war when the scarcity of so many of the goods we needed for our day-to-day living brought vividly home to us how much we depend on the four corners of the world for all the things we normally use without generally giving a moment's thought to their origin.

DI Ễ

N

There was a time when each family actually produced for itself most of the things it needed for its everyday life. In the modern world the relationship between work and wants is much less direct than it used to be, for most of us spend our time making things for sale and not for our own use. This





TP .Q UY

NH ƠN

specialization, which is the characteristic of the modern economy, enables us to enjoy things of which our grandfathers never dreamed, motor-cars bicycles and planes, vacuum cleaners and refrigerators, rayon and plastic clothing, more varied foods, and all sorts of other goods, but it also makes the world very much more complex. VI. Vocabulary

ĐẠ O

- attem pt (n) a thing produced by sb trying to do or make sth cố gắng

NG

- be supposed to do sth to be allowed to do sth cần phải được ...

HƯ

- hinder (v) to prevent or delay the progress of sb / sth càn trở, ngăn cản

TR Ầ

N

- punishable (adj) ... that can be punished, esp. by law có thể bị trừng phạt

00

B

- intervention (n) becoming involved in a situation, esp. so as preventing sth happening or trying to help sb can thiệp vào

10

- rule out exclude sth / sb loại trừ, không chấp nhận

Í-

HÓ

A

- fiscal policy the policy of a government in relation to taxation and government expenditure as a means of affecting aggregate economic activity chính sách tài khoá

TO ÁN

-L

- budgetary (adj) connected with the way money is spent in a budget (thuộc về) ngân sách - deliberately (adv) not freely có chủ ý sẵn

ĐÀ N

- quotas (n) a fixed amount of sth that must be done, given or received chỉ tiêu

DI Ễ

N

- exist (v) to happen or be present in a particular situation or I place tổn tại - laissez-faire (n) policy of nori-interference chính sách không I can thiệp / hoàn toàn tự do




NH ƠN


U n it 3

TP .Q UY

MICROECONOMICS I. Reading

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

1. Many economists specialize in a particular branch of the subject. For example, there are labour economists, energy economists, monetary economists, and international economists. What - distinguishes these economists is the segment of economic life in which they are interested. Labour economics deals with problems of the labour market as viewed by firms, workers, and society as a whole. Urban economics deals with city problems: land use, transport, congestion, and housing. However, we need not to classify branches of economics according to the area of economic life in which we ask the standard questions what, how, and for whom. We can also classify branches of economics according to the approach or methodology th at is used. Thè very broad division of approaches into microeconomic and macroeconomic cuts across the large number of subject groupings cited above.

-L

Í-

Microeconomic analysis offers a detailed treatm ent of individual decisions about particular commodities.

DI Ễ

N

ĐÀ N

TO ÁN

For example, we might study why individual households prefer cars to bicycles and how producers decide whether to produce cars or bicycles. We can then aggregate the behaviout of all households and all firms to discuss total car purchases and total car production. Within a market economy we can discuss the market for cars. Comparing this with the market for bicycles, we may be able to explain the relative price of cars and bicycles and the relative output of these two goods. The sophisticated branch of microeconomics known as general equilibrium theory extends this 1o Đóng góp PDF bởi Nguyễn Thanh Tú




TP .Q UY

NH ƠN

approach to its logical conclusion. It sudy simultaneously every market for every commodity. From this it is hoped th at we can understand the complete pattern of consumption, production, and exchange in the whole economy at a point in time.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

2. If you think this sounds very complicated you are corr It is for many purposes, the analysis becomes so complicated that we tend to lose track of the phenomena in which we were interested. The interesting task for economics, a task th at retains an element of art in economic sienee, is to devise judicious simplifications which keep the analysis manageable without distorting reality too much. It is here that microeconomists and macroeconomists proceed down different avenues. Microeconomists tend to offer a detailed treatm ent of one aspect of economic behaviour but ignore interactions with the rest of the economy in order to preserve the simplicity of the analysis. A microeconomic analysis of miners’ wages would emphasize the charateristics of miners and the ability of mine owners to pay. It wouild largely neglect the chain of indirect effects to which a rise in miners’ wages might give rise. For example, car workers might use the precedent of the miners pay increase to secure higher wages in the car industry, thus being able to afford large houses which burned more coal in heating systems. When microeconomic analysis ignores such indirectly induced effects it is said to be partial analysis. II. Comprehension questions

Read the text carefully and then answer the following questions:

1. What distinguishes an energy economist from an urban economist? 2. Are the same questions asked in each area of economic life? 20





5. What can be understood from such a study?

TP .Q UY

4. What does the general equilibrium theory examine?

NH ƠN

3. What is needed before total car purchases and productioi can be discussed?

6. What happens when an analysis becomes too complicated'

ĐẠ O

7. What can keep an analysis manageable?

8. What do most microeconomists leave out of their analysis:

NG

9. What does partial analysis ignore?

N

Language focus

TR Ầ

III.

HƯ

10. Why would most not make a breakdown of connsume goods?

Study the following sentence from the text:

00

B

the analysis becomes so complicated that we tend to ỈOSÍ track of the phenomena in which we were interested”.

10

G ram m ar issues: result clauses with so... th a t and such...

HÓ

A

that

-L

Í-

So and such with that express result. So is used with adjectives and adverbs:

TO ÁN

The manual was so com plicated th a t I couldn't understand it. The manual was written so badly th a t I couldn’t understand it.

ĐÀ N

Such (a) is used with an adjective + noun: They were such noisy machines that we couldn’t hear her voice.

DI Ễ

N

It was such a bad manual that I couldn't understand it. Exercise for practice:

Match the sentences in column A with the results in column B. Then rewrite them as one senetence, using so and such. 21





NH ƠN

The meeting went on for such a Ions time that I missed the train home. B

A

TP .Q UY

1. The meeting went on for a A. The factory couldn’t meet the demand for it. long time.

TR Ầ

N

HƯ

NG

ĐẠ O

2. The company was in a very B. Nobody ever wants to leave, bad financial state. c. We decided to interview him. 3. Frankfurt was very busy D. They called in the receivers. during the book fair. E. I missed the train home. 4. They treat their employees F. We couldn’t get a hotel room. very well. 5. My portable computer is very G. I don’t like to use it. unreliable.

10

00

B

6. The new drug was very successful.

Word study

Í-

IV.

HÓ

A

7. He had a very good cv.

TO ÁN

-L

In this section you should use a dictionary to help you answer the questions about the text.

ĐÀ N

1. Look at the first paragraph again. W hat words correspond to these definitions? * way of studying a subject

DI Ễ

N

* give particular attention to

* way of looking at a subject v * quoted




2. Look at the first paragraph again and say what words have the opposite meaning to: * beginning

TP .Q UY

* at different times

NH ƠN


* simple and uncomplicated

ĐẠ O

3. Look at the first paragraph again. Can you explain the words: * consumption

NG

* exchange

N

HƯ

4. Look at paragraph 2 and say which words have the same meaning as:

TR Ầ

* pulling out of shape

B

* pay not enough attention to

00

* pay no attention to

10

* think out

HÓ

A

* keep safe Vocabulary

Í-

V.

’

TO ÁN

-L

- Economist (n): a person who studies or writes about economics', nhà kinh, tế học - Energy (n): a source of power: năng lượng

ĐÀ N

Solar energy, nuclear energy. - Monetary (adj): connected with money.

N

- Urban (n): connected with a town or a city, thuộc về đô thị

DI Ễ

- Segment (n): a part of sth that is separate from the other parts.





NH ƠN

- Classify (v): to arrange sth in groups according to features that they have in common: phân loại The books in the library are classified according to subject.

TP .Q UY

- Approach (n): a way of doing or thinking about sth, such as a problem or a task: cách tiếp cận, phương pháp. - Approach (v): to start dealing with sth / sb: tiếp cận.

ĐẠ O

- Methodology (n): a set of methods or principles used to perform a particular activity: phương pháp

HƯ

NG

- Commodity (n): a product or a raw material that can be bought and sold:

N

- Behaviour (n): the way that sb behaves: hành vi

TR Ầ

- Aggregate (vj: ~ (sth) (with sth): to combine different items, amounts, etc.

00

B

into a single group or total: tổng hợp, tính gộp.

10

The television audience aggregated 30 millions.

HÓ

A

- Aggregate (n + adj): tổng số, sô' lượng tính gộp; toàn bộ Aggregate demand / supply: tổng cầu Ị cung

-L

Í-

- Relative price (n): giá tương đối

TO ÁN

- Equilibrium (n): a State o f balance: sự cân bằng

- General equilibrium theory (n): thuyết cân bằng tổng thể

- Devise (v): to invent sth new or a new way o f doing sth: phát minh, tạo ra

DI Ễ

N

ĐÀ N

Equilibrium for a particular goods means that the demand of that goods equals the supply.


A new system has been devised to control trafic in the city. - Interaction (n): tác động qua lại,, ảnh hưởng lẫn nhau.




NH ƠN

- Simple (adj): đơn giản - Simplify (v): to make sth easier to do or understand,', làm đơn giản hóa

TP .Q UY

- Simplification (n): the process of making sth easier to do or understand: sự làm đơn giản hóa

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

- Simplicity (n): the quality o f being easy to understand or use: sự đơn giản.




NH ƠN


U n it 4

TP .Q UY

MACROECONOMICS I. Heading

HƯ

NG

ĐẠ O

Macroeconomics provides us with a bird’s eye view of country’s economic landscape. Instead of looking at behavior of individual businesses and consumer - called microeconomics - the goal of macroeconomics is to look at overall econom ic trends such as em ploym ent levels, econom ic growth, balance of paym ents, and in flatio n . The study of the world economy, for example, is essentially a macroeconomics survey.

HÓ

A

10

00

B

TR Ầ

N

Just as the speed of an engine is regulated by its supply of fuel, macroeconomics is influenced mainly by m o n e ta ry policy, which controls a nation’s m oney supply, and fiscal policy, which controls a governm ent’s revenue and spending. Control over an economy is essentially is the hands of each country’s cen tra! b a n k s and government, because they control the money that provides the fuel to keep the economy running.

ĐÀ N

TO ÁN

-L

Í-

Monetary policy, the control of a nation’s money supply is managed by each country’s central banks. Germany’s Bundesbank, Britain’s Bank of England, and the Bank of Japan all reg u la te their money supplies with basically the same goals as the US Federal Reserve to p rom o te economic growth and keep inflation under control.

DI Ễ

N

Just as a driver uses the accelerator to speed up or slow down a vehicle, central banks control the economy by decreasing the money supply. By carefully regulating the supply money to fuel economic growth, a central bari'k works to keep economy from o v erh eatin g or slow ing dow n too quickly. 26




TP .Q UY

Monetary policy is essentially a guessing game. There is no one statistic to tell us how fast a economy is growing, and there is nothing th at tell us how quickly the economy will respond to changes that may take months or years to implement. Central banks try to keep one eye to unemployment, resulting from economic slow downs.

NH ƠN


TR Ầ

N

HƯ

NG

ĐẠ O

The economy at large can also be controlled by regulating fiscal policy, government revenue and spending. Although a country’s money supply is controlled by central banks, government spending also greatly influences by a country’ economic growth. Ju st as a family’s economic health is influenced by a parent’s earning and spending habits, a nation’s economic health is influenced by governmental fiscal policies, such as taxation, spending and governm ent borrowing.

00

B

For better or for worse, the major economic influences in our daily lives, such as inflation and unemployment, are primarily the result of macroeconomic decisions.

10

II. Com prehension / Interpretation

HÓ

A

1. Macroeconomics does not study:

a. the behavior of individual businesses and consumers.

-L

Í-

b. overall economic trends such as employment levels, economic growth,

TO ÁN

balance of payments and inflation. c. the world economy.

ĐÀ N

d. interactions among economic factors in the whole economy.

N

2. Macroeconomics is influenced mainly by

DI Ễ

a. monetary policy. b. fiscal policy. 77 Đóng góp PDF bởi Nguyễn Thanh Tú



c. open door policy d. answers a & b

TP .Q UY

3. Which one is not an economic policy?

NH ƠN


a. monetary policy. b. insurance policy

ĐẠ O

c. fiscal policy.

I

d. open door policy

Ị

I I !

HƯ

NG

4. The purpose of regulating the money supply by the central I bank is to: i I

N

a. keep inflation under control.

I

TR Ầ

b. promote economic growth.

00

B

c. keep the economy from overheating or slowing down too quickly. j

10

d. all the answers above. 5. Fiscal policy deals with

A

j

I

b. taxation.

I

c. government’s borrowing.

'

d. all the answers above.

I

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

a. government’s revenue and spending.

III.

Language focus

Study the following sentence from the text:

1. ... macroeconomics is influenced mainly by monetary I policy, which controls a nation’s money supply I 2. ... and fiscal policy, which controls a government’s revenue j and spending.





NH ƠN

G r a m m a r is s u e s : R e la tiv e c la u s e s

* People and things

TP .Q UY

We can use a relative clause beginning with who, th a t or which to describe and define a person or thing. To refer to people, we use w ho and th a t. To refer to thing, we use which or th at:

ĐẠ O

PEOPLE: The accountants who / that advised me wei'e very good.

NG

(The clause who a d vised m e helps to identify the accountants).

HƯ

THINGS: The computers which / that they bought were expensive.

TR Ầ

N

(The clause w hich they bought identifies the computers). * Subject and object relative clauses

10

00

B

Sometimes it is necessary to keep the relative pronoun in the sentence, and sometimes it is possible to leave it out.

HÓ

A

If the relative who, w hich, or th a t is followed by a verb, we must keep it

-L

Í-

We’ve got a machine th a t p r in ts in colour. (Not: a machine prints in colour)

TO ÁN

(In this sentence, th a t p r in ts in colour is a subject relative clause.)

ĐÀ N

If the relative w ho, w hich, or th a t is followed by a noun or pronoun + verb, we can leave it out. So we can say: OR The

N

The computers th a t you ordered have arrived computers you ordered have arrived.

DI Ễ

(In this sentence, th a t you ordered is an object relative clause.) 29





Correct the m istakes in the follow ing sentences.

NH ƠN

Exercise for practice:

TP .Q UY

1. Yesterday I spoke to your director, th at seemed to be very pleasant.

2. The room where we held the meeting in was a little too smaỉỉ.

ĐẠ O

3. Brazil which is the world’s largest exporter of coffee has high inflation.

HƯ

NG

4. The negotiators finally reached a formula on what everyone could agree.

TR Ầ

N

5. I found it difficult to hear th at the speaker was talking about.

B

6. Tim Lang only joined the company six months ago is going to be promoted.

10

00

7. The Rover group its name has been changed several times is now part of IBM.

Word study

-L

IV.

Í-

HÓ

A

8. I suggest we have a meeting in Romsey Street, which we rent a few offices.

TO ÁN

Complete the following sentences by using appropriate words or phrases in bold from the reading text. (Not all words are used).

ĐÀ N

1. A rapid rise in prices is called.............

DI Ễ

N

2. Japan has a .................. surplus because it exports more than it imports

3................. rests on the relationship between the rates of interest in an economy. r\





NH ƠN

4. Does inflation cause...............? 5. Macroeconomics is the study of overall.............. 6. Increases in in real GNP are called...................

TP .Q UY

7. Monetary policy should be contrasted with .................. . which refers to government borrowing, spending and taxation 8. Fiscal policy consists of................and taxation.

ĐẠ O

9. The central bank has the ability to alter the.............. and thus influence the interest rate Vocabulary

NG

V.

N

HƯ

- Trends: a general direction in which a situation is changing or developing: xu hướng

TR Ầ

- Economic trends: xu hướng kinh tế.

00

B

- Employment: work, especially when it is done to earn money; the state o f being employed: công việc

HÓ

A

10

- Unemployment: the state o f not having a job; the fact o f a number o f people not having a job: tình trạng không có việc làm, thất nghiệp

young

-L

of

people

are

facing

long-term

TO ÁN

Thousands unemployment.

Í-

This is an area o f high unemployment.

ĐÀ N

- Balance of payments (n): the difference between the amount a country pays for imports and the amount it receives for exports in a particular period o f time: cán cân thanh toán.

DI Ễ

N

- Inflation (n): a general rise in the prices o f goods and services an a particular country, resulting in a fall in the value of money: lạm phát Inflation is currently running at 3%. 71 Đóng góp PDF bởi Nguyễn Thanh Tú



NH ƠN


- Monetary (adj): connected with money, especially all the money in a country: thuộc về tiền tệ.

TP .Q UY

- Monetary policy (n): chính sách tiền tệ

- Money supply (n): the total amount o f money that exists in the economy of a country at a particular time: cung tiền

ĐẠ O

In times o f high iflation, we should reduce the money supply.

HƯ

NG

- Fiscal policy (n): one o f the main government policies that attempts to influence the direction of the economy through changes in government taxes, or through some spending: chính sách tài chính / chính sách tài khóa

B

TR Ầ

N

- Revenue (n): the money that a government receives from taxes, or that an organization, etc, receives from its business: thu nhập ■ i - Expenditure (n): an amount of money spent: chi tiêu

10

00

- Respond to (v): to react quickly or in the correct way to sth / sb: phản ứng

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

khóa

HÓ

A

- Taxation (n): the system of collecting money by taxes: thuế

I




NH ƠN


-Unit 5

TP .Q UY

DEMAND AND SUPPLY I. Reading

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

DEMAND

-L

Í-

HÓ

A

Demand describes how price influences buyer behavior. I the price of a specific good or service increases, the quantity £ buyer will purchase will decrease. If the price decreases, the quantity a buyer will purchase will increase.

N

ĐÀ N

TO ÁN

However, more than just price influences how much a buyei wishes to purchase. In order to focus on the influence of price on a buyer, we must hold all the other possible influences constant. Economists call factors other than the price of the specific good that influences how much a buyer purchases the shift factors oi demand, or society’s income, prices of other goods, expectations, and tastes.

DI Ễ

Demand curve shows the price influence on buyers. In the terminology of economics, a price change causes a movement along a given demand curve. An increase in price will decrease 33





NG

ĐẠ O

TP .Q UY

NH ƠN

the quantity demanded. We must be able to illustrate on our model how influences other than price, called shift factors, affect decisions to buy. On our demand model, we illustrate a change in one of these factors by a shift of the entire demand curve to the right or to the left. In the language of economics, if higher incomes cause the buyers of a specific good to be willing and able to buy more at various prices, this event is expressed as an increase in demand and is modeled as a shift of the demand curve to the right. If buyers are willing and able to buy less at all of the various prices, there is a decrease in demand, and the demand curve shifts to the left.

HƯ

SUPPLY

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

The seller, just like the p $ buyer, will be influenced by prices I c when deciding how much to Éa provide or produce. But for the seller, as the price of a good or 12 service rises, the quantity " supplied will increase. As price decreases, the seller will produce less and the quantity supplied will decrease.

ĐÀ N

TO ÁN

Other forces besides price affect sellers’ willingness and ability to sell at various prices. These forces are called shift factors and include changes in prices of inputs, technology, taxes, and suppliers’ expectations. These factors are held constant as we discuss how price influences the seller.

DI Ễ

N

In the language of economics, any change in price will cause a change in quantity supplied. On the graph this is shown as a movement along a given supply curve. However, our model must also illustrate how the shift factors influence seller decision34

T Đóng góp PDF bởi Nguyễn Thanh Tú



TP .Q UY

Supply

ĐẠ O

making. A change in one of these p$ cn Cl R S it * ' factors is said to cause a change I <- t > in supply and is modeled as a EMl--------------------- r , shift of the entire curve.An increase in the costs of producing a good would result in a decrease in supply. We would model it by shifting the supply curve to the left. 24 2729

NH ƠN


Q u a n ti ty

B


TR Ầ

N

HƯ

NG

You need to be clear on the difference between an increase in supply and an increase in quantity supplied. An improvement in production technology would cause an increase in supply. An increase in price results in an increase in quantity supplied.

10

00

1. Which of the following statem ents about the law of demand is false?

HÓ

A

a. Price and quantity demanded are inversely related.

Í-

b. An increase in price results in a decrease in quantity demanded.

-L

c. A decrease in price results in a decrease in demand.

TO ÁN

d. The shift factors of demand are held constant.

ĐÀ N

2. Which of the following is not an example of a change in demand?

N

a. Reduced national income causes fewer sports cars to be purchased.

DI Ễ

b. The demand curve for steak shift to the right as the barbecue season heats up.





NH ƠN

c. Higher prices for beer cause a decrease in quantity of beer demanded.

TP .Q UY

d. A successful advertising campaign by the pizza institute results in buyers being willing and able to purchase more pizza at each possible price. 3. The law of supply states that as price increases,

b. supply increases

NG

c. quantity supplied increases

ĐẠ O

a. sellers are motivated to produce more.

HƯ

d. supply decrease

N

e. a and c

TR Ầ

4. Which of the following is a shift factor of supply?

B

a. Ạ change in price

00

b. A reduction in production costs

10

c. Higher family incomes

HÓ

A

d. Government-imposed price ceilings

Í-

5. Which of the following indicates a change in supply?

-L

a. Technological improvement in the production process

DI Ễ

N

ĐÀ N

TO ÁN

b. Movement along a particular supply curve c. Higher prices, causing an increase in quantity supplied d. Quantity supplied decreases as price increases e. b and c

6. If the demand for tennis rackets increases, which of the following is not likely to happen? a. The price of rackets will increase. b. The price of rackets will decrease. 36





NH ƠN

c. The racket demand curve will shift to the right. d. The quantity of rackets sold will increase 7. An increase in supply occurs if

TP .Q UY

a. demand increases b. price increases

ĐẠ O

c. production costs decrease d. a and b

NG

8. If the supply of wheat increases

HƯ

a. the supply curve will shift to the right

N

b. the market price of wheat will decrease

TR Ầ

c. the market quantity of wheat will increase

B

d. a, b, and c

00

9. If labor costs in the auto industry rise,

A

10

a. the demand for cars will decrease.

HÓ

b. the price of cars will increase.

-L

d. b and c

Í-

c. fewer cars will be bought and sold

TO ÁN

10. An increase in taxes on hard liquor will cause a. an increase in the market price of hard liquor

ĐÀ N

b. a decrease in the market price of hard liquor

DI Ễ

N

c. a decrease in demand for hard liquor d. an increase in the supply of hard liquor

III.

Language focus

Study the sentences from the text:





NH ƠN

1. I f the price decreases, the quantity a buyer will purchase will increase.

TP .Q UY

2. I f buyers are willing and able to buy less at all o f the various prices, there is a decrease in demand, and the demand curve shifts to the left.

ĐẠ O

Both sentences above are conditional (type 1) or first conditional

(result)

N

(condition)

future

HƯ

If + present,

NG

* When we want to talk about future events that will happen, or are likely to happen, we use:

TR Ầ

I f the government raises taxes, consumer spending w ill fall.

B

The if-clause can also come in the second part of the sentence

10

00

Consumer spending w ill fa ll i f the government raises taxex.

A

* Unless means the same as if... not.

Í-

HÓ

I f he doesn’t get here soon, we will have to start the meeting without him.

TO ÁN

-L

Unless he gets here soon, we will have to start the meeting without him.

ĐÀ N

We often use not + unless, which means only... if, when we want to emphasize a condition:

DI Ễ

N

They w ill only sign the contract if we give them an additional discount.

They won’t sign the contract unless we give them an additional discount.




Exercises for practice: E xercise 1:

TP .Q UY

You have been asked to speak on these topics at a meeting. Write short paragraphs about what you think will happen during the next two or three yearrs, and what you or your company will do.

NH ƠN


ĐẠ O

1. interest rates

NG

I think that interest rates will rise again during the next two or three years.

N

HƯ

I f they do, we will have to try to reduce our costs and the amount we

TR Ầ

borrow as much as possible, and we will not be able to expand.

HÓ

A

10

00

B

2. your market share

ĐÀ N

TO ÁN

-L

Í-

3. new competitors

DI Ễ

N

4. the political situation





NH ƠN

Exercise 2: Rewrite the following sentences using unless: 1. If nothing goes wrong, we will sign the deal tomorrow. We will sign the deal tomorrow unless something goes wrong.

TP .Q UY

2. We’re not going to get that contract if we don’t improve our offer. We’re not going to get that contract.................

ĐẠ O

3. Only phone me if it is an emergency.

Please don’t phone me..................................

HƯ

NG

4. If demand doesn’t increase soon, we are going to have a bad year.

N

We are going to have a bad year.................................

TR Ầ

This project will only be viable if you can cut your overheads.

B

This project will not be viable........................

W ord study: Use the following terms to fill in th

HÓ

A

10

00

IV. blanks

-L

Í-

different prices, vertical axis, demand curve, horizontal axis, market, increase, decrease, line, shift factors, possible prices, line, individual supply curve, market, demand table,

DI Ễ

N

ĐÀ N

TO ÁN

A1 ...................................... shows the quantity a buyer plans to purchase of a specific good, at 2 ............ in a specific time period, while holding other things (3 .................. ) constant. To model this table, a graph is used to illustrate what the table shows. Price is measured on the 4 .................... of the graph and quantity per time period is measured on the 5............................ of the graph. Values from the table are plotted on the graph. This is an individual 6.................................. If we knew what the buyers were willing and able to purchase at the various prices on a 40





NH ƠN

demand table, then we could model a 7 .....................demand curve for specific good or services.

NG

ĐẠ O

TP .Q UY

Ju st as with demand, a table can be made to show how price influences a seller’s decision to sell. The table expresses a range of 8 ............................... and shows the quantity the seller is willing and able to sell at each of those prices, holding other factors constant. The table will indicate that quantity supplied will increase with an 9 ......................... in price for the specific good or service. On the other hand, quantity supplied will decrease with a 10........................in price.

TR Ầ

N

HƯ

The vertical 11 ........................... on a graph represents price and the horizontal 12 ........................ shows quantity per time period. Plotting the price / quantity combinations from the table onto the graph creates a model of an 13.................................

A

10

00

B

If we knew how much all sellers of the specific good or service were willing to make available at the various possible prices, we could create a model of the 1 4 ........................ supply curve. Vocabulary

HÓ

V.

-L

Í-

- Demand (n): quantities o f a good that will be bought at various prices; it is represented by the entire demand curve: cầu.

TO ÁN

- Demand curve (n): graphical representation of how m uch of a good will be bought at various prices', đường cau.

ĐÀ N

- Quantity demanded: quantity of a good that buyers want to buy; it can be represented by a point on a demand curve: lượng cầu.

DI Ễ

N

- Shift factors of demand: something other than price that affects how much of a good is demanded: các yếu tô" ngoài giá tác động tói cầu. - Movement along a demand curve: a change in the quantity demanded due to a change in price: di chuyển dọc đường cầu. 41





NH ƠN

- Shift in demand: a shift o f the entire demand curve', dịch chuyển đường cầu

TP .Q UY

- Supply (n): quantities that will be brought to market at various prices-, cung.

- Quantity supplied: quantity o f a good suppliers want to sell; it can be represented by a point on a supply curve: lượng cung.

ĐẠ O

- Shift factors of supply: other forces besides price affect sellers’ willingness and ability to sell at various prices: các yếu tô" ngoài giá tác động tới cung.

HƯ

NG

- Shift in supply: a shift o f the entire supply curve: dịch ĩhuyển đường cung.

TR Ầ

N

- Price ceiling: Government-imposed limit on how high a trice may be set: giá trần

00

B

- Price floor: Government-imposed, lim it on how low a price nay be set: giá sàn

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

- Factors of production: inputs or resources, necessary to troduce goods: các yếu tô' sản xuất




NH ƠN


U n it 6

TP .Q UY

SETTING THE PRICE I. Reading

NG

ĐẠ O

How are prices set? Through most of history, prices were set by buyers and sellers negotiating with each other. Sellers would ask for a higher price than they expected to receive, and buyers would offer less than they expected to pay. Through bargaining, they would arrive at ail acceptable price.

N

HƯ

Setting one price for all buyers is a relatively modern idea. It was given impetus by the development of large-scale retailing at the end of the nineteenth century.

HÓ

A

10

00

B

TR Ầ

Through most of history, price has operated as the major determinant of buyer choice. This is still true in poorer nations, among poorer groups, and with commodity-type-products. However, non-price factors have become relatively more important in buyer-choice behavior in recent decades. Yes price still remains one of the most important elements determining company market share and profitability.

ĐÀ N

TO ÁN

-L

Í-

Price is the only element in the marketing mix th at produces revenue, the other elements represent costs. Yet many companies do not handle pricing well. The most common mistake are: pricing is too cost oriented, price is not revised often enough to capitalize on m arket changes, price is set independently of the rest of the marketing mix rather than as an intrinsic element of marketpositioning strategy, and price is not varied enough for different product items and market segments.

DI Ễ

N

Companies handle pricing in a variety of ways. In small companies, prices are often set by top management rather than by the marketing or sales department. AT.





ĐẠ O

TP .Q UY

NH ƠN

In large companies, pricing is typically handled by divisional and product-line managers. Even here, top management sets the general pricing objectives and policies and often approves the prices proposed by lower levels of management. In industries where pricing is a key factor (aerospace, railroads, oil companies will often establish a pricing department to set prices or assist others in determining appropriate prices. This department reports either to the marketing department, or top management. Others who exert an influence on pricing include sales managers, production managers, finance managers, and accountants.

NG


N

HƯ

According to the text, decide w hether the following sentences are true (T) or false (F).

TR Ầ

1. Through most of history, sellers and buyers made bargaining to reach suitable prices. □

00

B

2. One price set for all buyers is a traditional trend.□

10

3. Price has played an important role in buyer choice.□

HÓ

A

4. Companies with sound pricing strategies can gain market share and profitability. □

Í-

5. All elements in. the marketing mix represent costs.□

TO ÁN

-L

6. Prices should be various for different products and different market segments.□

8. Pricing departments in some companies such as aerospace, railroads, and oil companies set the price independently.□

DI Ễ

N

ĐÀ N

7. Prices are mostly set by pricing departments in any companies.□

III. Language focus Study the expressions from the text: 44





TP .Q UY

These expressions are called com pound nouns.

NH ƠN

“commodity-type products; buyer-choice behavior; productline managers; sales managers; production managers; finance managers”

ĐẠ O

• A compound noun is two nouns together. Compound nouns are common in English, and are particularly common in business language.

NG

• When we use two nouns together, the first noun is like an adjective and discribes the second noun.

B

TR Ầ

N

HƯ

‘I can also report that manufacturing - despite the... exchange rate - grew last year by 1.6 percent; m a n u fa c tu rin g p ro d u ctivity grew by 4.4 percent and m a n u fa c tu rin g exports by 11.8 percent.’ - Chancellor Gordon Brown’s budget speech. (The Times website)

10

00

• We can use more than two nouns. To understand the meaning start at the end.

HÓ

A

an executive search com pany (a company th at search for executives)

TO ÁN

-L

Í-

a governm ent tra in in g course (a course of training provided by the government) E x ercises for p ractic e.

DI Ễ

N

ĐÀ N

Choose the one word in each group that does not m ake a com m on com pound n o u n w ith th e firs t w ord in bold. 1. sales

forecast / figures / trade / target.

2. market

forces / sector / check / share.

3. price

offer / list / range / rise




image / leader / loyalty / process

5. tax

relief / benefits / output / allowance

6. product

manager / range / features / share

7. advertising

slogan / campaign / line / agency

8. production

market / line / capacity / target

9. working

conditions / trend / hours / lunch

10. stock

option / decision / market / exchange

ĐẠ O

IV.

TP .Q UY

4. brand

NH ƠN


W ord stu d y

NG

I. Complete the summary below by writing one word in each

HƯ

2P

TR Ầ

N

strategy buyer goods price bargaining cost differs costs 'aise fixed

TO ÁN

-L

Í-

HÓ

A

10

00

B

Nowadays (1)...........is just one of the factors which influence would-be (2).......... While it will always be a consideration, uality, service, reliability, etc may be equally or even more nportant considerations. Most (3)......... are sold at a (4)........ rice, although, particularly with large or repeat orders, some i)........ may be feasible. When bargaining a seller expects to wer the asking price and the buyer experts to (6)......... the riginal offer.

DI Ễ

N

ĐÀ N

Pricing (7)......... from the other 3 Ps because it results in ỉvenue while the others all lead to (8).......... To price well you lust continually review your price, you must relate it to your larket (9)........ and be prepared to charge different prices in ifferent market segments. In deciding on a price a company lould not look only at (10)......... 2. F in d w o rd s in th e te x t witK th e op p o site m e a n in g to lose listed below




line number

buyers

________

________

ancient

________

________

small-scale

________

________

revenue

____ ___

________

extrinsic

________

________

fixed

________

________

ĐẠ O

V.

TP .Q UY

opposite

NH ƠN


Vocabulary

HƯ

NG

- negotiate (v) to have formal discussions with someone in order to reach an agreement with them thương lượng

TR Ầ

N

- bargain (v) an agreement between two people or groups in which each promises to do something in exchange for something else mặc cả

00

B

- orient (v) to discover your position in relation to your surroundings định hướng

A

10

- revise (v) to look at or consider again an idea, piece of writing, etc. in order to correct or improve it điều chỉnh

HÓ

- market-positioning strategy chiến lược định vị thị trường

Í-

- product-line managers nhà quản lý theo loại sản phẩm

-L

- capitalize (v) to supply money to a business so that it can develop or operate as it should cung ứng

TO ÁN

- intrinsic (a) being an extremely important and basic characteristic o f a person or thing bản chất, thực chất

ĐÀ N

- assist (v) to help hỗ trợ

N

- propose (v) to suggest someone for a position or for membership o f an organization đề đạt, đề xuất

DI Ễ

- appropriate (a) suitable or right for a particular situation or occasion phù hợp, thích đáng. 47




U n it 7

TP .Q UY

PRICING STRATEGIES

NH ƠN


I. Reading

ĐẠ O

Read the extract about a price war in the construction equipment market. As you read it, complete Chart 7.1 using the labels listed at the end. PRICE WARS

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

Caterpillar, Inc..., the world's leading maker of heavy construction and mining equipment, has been locked in a long price war with Japanese challenger Komatsu Ltd. In this bloody battle, both companies are using price to buy long -run market share, even if it means lower profits or even losses in the short run.t For over fifty years, Caterpillar has dominated the world market for giant construction equipment. It built its 40% market share by emphasising high product quality, dependable after sales service and a strong dealer body. It used a premium pricing strategy - making high profit margins by convincing buyers that Cat's higher quality and trouble - free operation provided greater value and justified a higher price.

DI Ễ

N

ĐÀ N

TO ÁN

-L

But all this began to change when Komatsu entered the market. The Japanese firm started cautiously in the United States with only a few products. It realised the importance of non - price factors in buyer's purchase decision. Like Caterpillar, Komatsu stressed high quality and it expanded slowly to allow its parts and service capacity to keep up with sales. But Komatsu's major weapon for taking share from Caterpillar was price. A strong dollar and lower manufacturing costs allowed Komatsu to cut prices ruthlessly - its initial prices were as much as 40% lower than Caterpillar's. On a giant dump truck sold by Cat for $500,000 that could mean a saving of up to $200,000. Riding its





NH ƠN

strong price advantage, Komatsu grabbed a 17% market share by 1986.

N

HƯ

NG

ĐẠ O

TP .Q UY

Caterpillar fought back to protect its number one market position and the price war was on. To support lower prices, Cat reduced its workforce by a third and slashed costs by 22%. It vowed to meet Komatsu's prices and in some cases every initiated price cutting. With heavy discounting by both companies, manufacturer's list prices became meaningless. For example, a bulldozer that listed for $140,000 regularly sold for $110,000. In the battle for market share, all competitors lost out on profits, lesser companies were driven to the brink of ruin. Caterpillar lost $1 billion in less than five years and Komatsu, even with its cost advantages, saw its profit decline by 30%.

-L

Í-

HÓ

A

10

00

B

TR Ầ

By 1988, thanks to a falling dollar and its cost - cutting programmes, Caterpillar had managed to regain a quarter of Komatsu's u s market share. With a weaker dollar eating into Komatsu's price advantage, the challenger recently raised its prices 5 to 10%. Though fierce price competition continues, Komatsu may be signalling that it wants an end to the fighting and a return to peaceful coexistence and better profits for both companies. It hopes that Caterpillar will respond by raising its prices too.

DI Ễ

N

ĐÀ N

TO ÁN

Chart 7.1





NH ƠN

Insert the following actions and responses into the right order in Chart 7.1 a. Competitor enters market c. Market leader charges premium prices d. Smaller competitors drop out of market

ĐẠ O

e. Market leader regains market share

TP .Q UY

b. Profit drastically reduced

f. M arker leader loses market share

NG

g. M arket leader holds dominant position

HƯ

h. Competitor undercuts prices dramatically

TR Ầ

j. Competitor raises prices

N

i. Market leader responds by raising prices k. M arket leader responds by cutting costs and prices

Com prehension / interpretation

10

II.

00

B

I.Profit margins restored

HÓ

A

1. What was Komatsu's marketing objective? 2. Why was Komatsu able to charge lower prices?

-L

Í-

3. Did Caterpillar regain its full market share by 1988?

TO ÁN

4. Why did Komatsu recently,have to raise its prices? III. Language focus

3.1.

P a st sim p le (irreg u la r verbs)

DI Ễ

N

ĐÀ N

Look at the following sentences taken from the reading passage: "It built its 40% market share by emphasising..."

"All this began to change when Komatsu entered the market"





NH ƠN

Now p ut the following sentences into the past: 1. We are fighting off the challenger from our competitors.

TP .Q UY

2. We have to cut prices dramatically. 3. They are outselling us in all sectors of the market. 4. We may lose our dominant position.

6. Komatsu is eating into our share of the market. 7. We are bringing forward our monthly meeting.

ĐẠ O

5. We have seen a gradual erosion of our position.

HƯ

NG

8. They are buying into the company by acquiring ordinary shares.

N

9. We will take market share from our competitors.

3.2.

TR Ầ

10. The whole market has swollen significantly. Su bordin ate clauses

00

B

Look at the following sentences from the reading passagf:

A

10

"Komatsu, even with its cost advantages, saw its profits decline by 30%"

Í-

HÓ

"By 1988, thanks to a falling dollar and its cost - cutting programmes,

TO ÁN

-L

Caterpillar had managed to regain a quarter of Komatsu's US market shares". Now make information:

sentences

which

combine

the

following

ĐÀ N

1. Caterpillar / reduced prices dramatically / regained market share

N

2. Komatsu / a low - price strategy / entered the market

DI Ễ

3. Construction equipment m arket / Caterpillar for many years / now fragmented.


dominated

by




NH ƠN

4. Prices fell / heavy discounting in the sector / profit margins narrowed

TP .Q UY

5. Smaller competitors / margins squeezed / forced out of the market 6. Price / a major factor in some markets / ignored in this market

ĐẠ O

IV. Word study 4.1. Raise an d rise:

HƯ

NG

These two verbs are often confused. Study this example of how they are used: a. Komatsu raised its prices (transitive - with object)

TR Ầ

N

b. Prices rose, (intransitive - no object)

B

In (a) there is an agent (Komatsu) actively doing something, and th*ere is an object the verb (prices)

10

00

In (b) There is no agent, and there can be no object.

A

Decide which verb to use in the following sentences:

HÓ

1. The sun............ every morning.

Í-

2. He............ the question of salary.

-L

3. Profits............ last year by 25 percent. 5. Inflation................by 9 percent this year.

4.2. The R ead in g extract above uses m any words and expressions associated w ith "war". For exam ple, locked in a war. Go through the extract p ick in g out these words and expressions. You should find a fu rth er eight.

DI Ễ

N

ĐÀ N

TO ÁN

4. The company was forced to............ prices.

V. Vocabulary - price (n): money paid for a product: giá tính cho 1 sản phẩm 52





NH ƠN

- strategy (n): future action to achieve objectives', chiến lược - challenger (n): company which enters a market where others are already established: ngưòi / công ty thách đố

TP .Q UY

- battle (v): fight: trận chiến, trận đấu - share (n): cổ phần

ĐẠ O

- dominate (v): have control o f or a very strong influence on sb / sth: điều khiển, kiểm soát, không chế, lãnh đạo - dependable (adj): có thể tin cậy

HƯ

NG

- deal (n): business agreement or arrrangement: thoả thuận kinh doanh

TR Ầ

N

- premium (n): 1. amount added to price for a prestige product: tiền bổ sung 2.

amount paid for insurance: tiền đóng bảo hiểm

00

B

- grab (v): chộp được, giành được

10

- slash (v): cut sharply: giảm đáng kể

HÓ

A

- vow (v): make a vow about sth, swear,promise or declare solemnly: thề, hứa, tuyên bô' nghiêm túc.

-L

Í-

- a dump truck (n): xe rác

TO ÁN

- a bulldoser (n): xe ủi đất - the brink of ruin (n): bờ vực thẳm (đến bờ của sựphá sản). - eat into (v): reduce-, làm giảm

DI Ễ

N

ĐÀ N

- signal (v): báo hiệu (cho thấy rằng)




NH ƠN


U n it 8

TP .Q UY

MONEY AND ITS FUNCTIONS I. Heading

NG

ĐẠ O

The concept o f money: Money is a commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed. It circulates from person to person and country to country, then facilitating trade, and it is the principal measure of wealth.

00

B

TR Ầ

N

HƯ

The functions o f money. All modern societies use money. With money people can easily trade goods and services with one another. That is money promotes trade. Money serves a medium of exchange, a measure of or a unit of account, a sotore of value and a standard of deferred payments. We discuss each of these functions of money in turn.

Í-

HÓ

A

10

a. M oney as a M edium o f Exchange: Workers exchange labour services for money. People buy or sell goods in exchange for money. Money is a medium through which people exchange goods and services.

TO ÁN

-L

What is a medium of exchange? A medium o f exchange is anything that is widely accepted in payment for goods and services and in settlement o f debts. Money is the most common medium of exchange.

DI Ễ

N

ĐÀ N

h. M oney as a M easure o f Value: The second function of money is as a measure of value. Ju st as we need measurements for distances, weights, and energy, so we need measurements for the value of things offered at the market. Money measures value in its units of accounts. The unit o f account is the unit in which prices are quoted and account are kept. In Britain prices are




quoted in pound sterling. In the United States dollar, and in Vietnam VND. The use of such units helps simplify the exchange of goods.

HƯ

NG

ĐẠ O

TP .Q UY

c. Money as a Store o f value: Money also functions as a store of value. Money is a store of value because it can be used to make purchases in the future. This means that if we choose not to buy with our money today, we can save it to buy in the future. If money were a perfect store of value, we could buy the same items next year as we could today with the same amount of money. But money does function poorly as a store of value when there is inflation in the economy.

NH ƠN


10

00

B

TR Ầ

N

d. M oney as a S ta n d a rd o f D eferred Paym ents: The last function of money is as a standard of deferred payments or unit of account over time. When you buy something but do not pay for it immediately, your payment is expressed in terms of money to be paid in the future. With the wide use of installm ent buying, this function of money has become increasingly important. f

HÓ

A

D ifferent kin ds of money: The most important types of money are commodity money, and token money.

TO ÁN

-L

Í-

C om m odity Money: Commodity Money is a useful good that serves as a medium o f exchange. As a result, the value of commodity money is about equal to the value of the material contained in it. The principal materials used for this type of money have been gold, silver and copper.

DI Ễ

N

ĐÀ N

In ancient times various articles made of these metals, as well as of iron and bronze, were used as money, while among primitive people such commodities as shells, beads, elephant tusks, furs, skins, and livestock served as medium of exchange. The gold coins in circulation in the u s before 1933 were examples of commodity money. ss





TP .Q UY

NH ƠN

Token Money: Token money is a means of payment whose value or purchasing power as money greatly exceeds its cost of production or value in uses other than asmoney. A $10 note is worth far more as money than as a 3x6 inch pieceof high quality paper. Similarly, the monetary value of the most coins exceeds the amount you would get by melting them down and selling off the metal they contain.

ĐẠ O

II. Comprehension / interpretation 1. What is money?

NG

2. What are the functions of money?

HƯ

3. What is a medium of exchange?

N

4. What is a unit of account?

TR Ầ

5. Why it is said that money as a store of value?

00

B

6. ‘ Explain the 4th function of money: money as a standard of deferred payment?

10

7. What are the important types of money?

HÓ

A

8. What is commodity money? 9. What is a token money?

-L

Í-

III. Language focus

DI Ễ

1. R elative clauses

Clauses beginning with question words (e.g. who, which, where) are often used to modify nouns and some pronouns - to identify people and things, or to give more information about them. Clauses used like this are called “relative clause".

N

ĐÀ N

TO ÁN

Relative Clause and relative Pronouns

Have you ever spoken to the people who live next door? Countries that (which) grow rapidly and without major imbalances are admired. 56





NH ƠN

He’s got a job in a new firm, where they don’t work such long hours. Here’s the book that you were looking for.

TP .Q UY

2. R elative pronouns

ĐẠ O

When who, whom etc. are used to introduce relative clauses, they are called “relative pronouns’ Who, which and that can be the subjects of verbs in relative clauses. Who refers to people and which to things; that can refer to both people and things.

NG

What’s the name of the tall man who has just come in?

HƯ

It’s a book which will interest children of all ages.

N

The people that live next door keep having all-night parties.

TR Ầ

They are the keys that open the front and back doors.

B

Make one sentence from two. Use who, what, that, which.

00

1. A girl was injured in the accident. She is now in hospital.

HÓ

A

10

2. A waitress served us. She was very impolite and impatient.

-L

Í-

3. A building was destroyed in the fire. It has now been rebuilt.

TO ÁN

4. Tom works for a company. It makes washing- machines. 5. This is a profitable company. My father works for it. 6. A man answered the phone. He told me you were away.

ĐÀ N

7. We stayed at the Grand Hotel. Ann recommended it to us.

DI Ễ

N

8. My office is very small. It is on the second floor of the building. IV.

Word study

Fill the gaps with words from the box 57 Đóng góp PDF bởi Nguyễn Thanh Tú



corporate, launch, commerce, circular, involve

1. Hong Kong has always been a center of....................

NH ƠN


TP .Q UY

2. How many people are...................... in making the new product?

ĐẠ O

3. The latest model of our electric car will be.................... on 1 January 2005.

NG

4. When a firm begins to do badly on the stock market, plans are often made to change its.........................structure. in a

HƯ

5. A letter th at is sent to many different people company is called a......................... letter.

TR Ầ

N

Vo Vocabulary

- consent (n): agreement• sự ưng thuận, sự chấp nhận

00

B

- medium: - means: phương tiện

10

- medium of exchange/means o f exchange: phương tiện trao

A

đổi

Í-

HÓ

Money is the medium through which people exchange goods and services.

-L

- circulate: be in circulation: luân chuyển, lưu hành

TO ÁN

Money circulates from person to person and country to country. - standard: bản vị

DI Ễ

N

ĐÀ N

Money serves as unit of account and a standard o f deferred payment. - money standard: bản vị tiền tệ

- commodity Standard: bản vị hàng hóa

- barter: sự đối lưu hàng hóa, hàng đổi hàng.





NH ƠN

trade in goods or services without using money.

A barter economy has no medium o f exchange. Goods are traded directly or swapped for other goods. - token: thing equivalent to something else, esp money

ĐẠ O

- token money: đồng tiền quy ước

TP .Q UY

- barter economic system: hệ thông kinh tế hàng đổi hàng

NG

A token money is a means o f payment whose value or purchasing power as money greatly exceeds its cost o f production or value in uses other than as money.

TR Ầ

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

You can buy a motorbike on instalment.

N

HƯ

- instalm ent buying: buying on hire purchase, buying on credit: mua trả góp




U nit 9

TP .Q UY

MONEY AND BANKING

NH ƠN


I. Reading

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

All values in the economic system are measured in terms of money. Our goods and services are sold for money, and that money is in turn exchanged for other goods and services. Coins are adequate for small transactions. While paper notes are used for general business. There is additionally a wider sense of the word “money’, covering anything which is used as a means of exchange, whatever form it may take. Originally, a valuable metal (gold, silver or copper) served as a constant store of value, and even today the American dollar is technically “backed” by the store of gold which the u s government maintains. Because gold has been universally regarded as a valuable metal, national currencies were for many years judged in terms of the so-called “gold standard”. Nowadays, however, national currencies are considered to be as strong as the national economies which support them.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

Valuable metal has generally been replaced by paper notes. These notes are issued by governments and authorized banks, and are known as “legal tender”. Other arrangements such as cheques and money orders are not legal tender. They perform the function of substitute money and are known as “instruments of credit”. Credit is offered only when creditors believe th at they have a good chance of obtaining legal tender when they present such instruments at a bank or other authorized institution. If a man’s assets are known to be considerable, then his credit will be good. If his assets are in doubt, then it may be difficult for him to obtain large sums of credit or even to pay back for goods with a cheque. 60





N

HƯ

NG

ĐẠ O

TP .Q UY

NH ƠN

The value of money is basically its value as a medium 0 exchange or, as economists put it, its “purchasing power”. Thi; purchasing power is dependent on supply and demand. Th( demand for money is reckonable as the quantity needed to affec business transactions. An increase in business requires ai increase in the amount of money coming into general circulatior But the demand for money is related not only to the quantity c business but also the rapidity with which the business is done The supply of money, on the other hand, is the actual amount i: notes and coins available for business purposes. If too muc money is available, its value decreases, and it does not buy a much as it did, say, five years earlier. This condition is known a “inflation”.

Í-

HÓ

A

10

00

B

TR Ầ

Banks are closely concerned with the flow of money int and out of the economy. They often co-operate with government in effort to stabilize economies and to prevent inflation. They ar specialists in the business of providing capital, and in allocatin funds on credit. Banks originated as places to which people too. their valuables for safe-keeping, but today the great banks of th world have many functions in addition to acting as guardians c valuable private possessions.

N

ĐÀ N

TO ÁN

-L

Banks normally receive money from their customers in tW' distinct forms: on current account and on deposit account. With I current account, a customer can issue personal cheques. N' interest is paid by the bank in this type of account. With a deposi account, however, the customer undertakes to leave his money ii the bank for a minimum specified period of time. Interest is paii on this money.

DI Ễ

The bank in turn lends the deposited money to customer; who need capital. This activity earns interest for the bank, am this interest is almost always at a higher rate than any interes 61





NH ƠN

which the bank pays to its depositors. In this way the bank makes its main profits.

NG

ĐẠ O

TP .Q UY

We can say th a t the primary function of a bank today is to act as an intermediary between depositors who wish to make interest on their savings, and borrowers who wish to obtain capital. The bank is a reservoir of loanable money, with streams of money flowing in and out. For this reason, economists and financiers often talk of money being “liquid”, or of the “liquidity” of money. Many small sums which might not otherwise be used as capital are rendered useful simply because the bank acts as a reservoir.

10

00

B

TR Ầ

N

HƯ

The system of banking rests upon a basis of trust. Innumerable acts of trust build up the system of which bankers, depositors and borrowers are part. They all agree to behave in certain predictable ways in relation to others, and in relation to the rapid fluctuations of credit and debit. Consequently, business can be done and cheques can be written without any legal tender visibly changing hands.

HÓ

A

IL C om preh ensio n / In te rp r e ta tio n 2.Ĩ. Answer these questions, basing y o u r answ ers on the

Í-

text:

-L

1. How are all values in the economic system measured?

TO ÁN

2. What is the wider sense of the word “money”? Give examples of some kinds of money.

ĐÀ N

3. How are national currencies judged nowadays?

N

4. What is “legal tender”? Are other arrangements like cheques legal tender?

DI Ễ

5. How do we reckon the demand for the supply of money? 6. In what way do banks cooperate with governments?

52 Đóng góp PDF bởi Nguyễn Thanh Tú T



NH ƠN


8. How do banks earn profits? 9. What is the primary function of a bank today? Can you list its other functions?

ĐẠ O

10. Whose trust for each other m aintains the banking system? What does this trust permit?

TP .Q UY

7. In w hat two ways do banks receive money from their customers? What is their difference?

The

us -ỳ us dollars

HƯ

Example:

NG

2.2. Below is the list o f countries. W hat nam es do we give to the currencies used in the countries?

TR Ầ

N

The UK -ỳ pounds sterling

6. Indonesia

2. Mexico

7. Portugal

3. Japan

8. Iran

4. India

9. Brazil

A

10

00

B

1. Switzerland

5. Spain

Í-

HÓ

10. Australia

-L

N am e the countries an d th eir currencies you know.

TO ÁN

III. Language focus

3.2. Change these con dition al sentences. The form changes but the m eaning rem ains the same.

ĐÀ N

Example: A man can obtain money i f he issues a personal cheque.

DI Ễ

N

-ỳ A man can obtain money by issuing a personal cheque.

1. You can improve the factory if you install new machinery.





NH ƠN

2. You can learn something about economics if you study the basic textbooks. 3. They could improve conditions if they changed the laws.

TP .Q UY

4. You can make more money if you provide services which the public really need.

ĐẠ O

5. A person can obtain some additional money if he deposits his savings with a bank for certain length of time.

Make these sentences passive:

HƯ

3.2.

NG

6. Business can be done without banknotes if you use instruments of credit.

TR Ầ

N

Example: We measure all values in the economic systems in term o f money.

B

-> All values in the economic system are measured in terms of moneý.

10

00

1. In the planned economy the government fixes prices. 2. They have obtained various valuable minerals in that

HÓ

A

area.

Í-

3. The committee prepared a special scheme.

-L

4. I am sure that the government will change this policy.

DI Ễ

N

ĐÀ N

TO ÁN

5. They must deliver the goods as soon as possible.

IV.

W ord stu d y

Each of the adjectives listed below is derived from a noun. Example: nation (n)

national (adj)

Find the nouns from which these adjectives are derived, and then use them in the appropriate blanks in the sentences.


subjective

productive

scientific

successful




geographical

industrial

NH ƠN

capitalistic

- prestigious natural

TP .Q UY

monopolistic

1. Economics is a....................

ĐẠ O

2. Most new businesses need.................. in order to obtain accommodation, machinery and materials. 3. Coal-mining is a major.....................

HƯ

NG

4. The government has a................... of the sale of sugar, because no one else is permitted to sell it.

N

5. The new.....................is a special kind of soap powder.

TR Ầ

6. The factory has been a great................................. And its productivity is among the highest in the area.

10

00

B

7. National airlines usually have considerable ................... and people are often proud to be associated with them.

HÓ

A

8. The.................. of the area suggests that building a new airport would be a difficult undertaking.

-L

Í-

9. The......................... of the commodity make it difficult to prevent the formation of monopolies.

TO ÁN

10. The...................of the discussion was the number of new employees to be engaged during the next year.

ĐÀ N

V. Vocabulary - gold standard (n): kim bản vị

DI Ễ

N

- means of exchange (n): phương tiện trao đổi - legal tender (n): đồng tiền pháp định

- purchasing power (n): the amount of goods and services that money can buy at a given time: sức mua




NH ƠN


' circulation (n): the movement of such things as goods, money,...: sự lưu thông

TP .Q UY

- money circulation: lưu thông tiền tệ - to possess (v): to own: sở hữu - account (n): tài khoản

NG

- deposit account: tài khoản tiền gửi

ĐẠ O

- current account (n): on this account customers cash and draw cheques-, tài khoản séc

cash

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

liquidity (n): tính thanh khoản

HƯ

- liquid (adj): existing in the form of cash or easily turned into




NH ƠN


TP .Q UY

U nit 10 BANKS AND INTEREST RATES I. R e a d in g

ĐẠ O

Banks

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

Banks are institutions that accept various types of deposits and use the funds attracted primarily to grant loans. We use the term “banks” generically here to encompass not only the commercial banks where most people maintain checking accounts but other depository institutions such as saving and loan associations, mutual saving banks, and credit unions as well. Formerly, commercial banks were distinct from other depository institutions in their activities and functions, and differences still persist. However, as a result of deregulatory financial legislation in the 1980s, the distinctions have diminished- the depository institutions are today more homogeneous in nature. For example, all these institutions are authorized to issue checking accounts and make loans. We will therefore consider all of them to be “banks”.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Banks are key financial intermediaries- institutions that serve as “middlemen” in the transfer of funds from savers to those who invest in real assets such as houses, equipment, and factories. Financial intermediaries promote economic efficiency by gathering the surplus funds of millions of individual savers and making them available to investors in these real assets. In performing this function, financial intermediaries improve the well- being of both savers and investors. By improving economic efficiency, they raise living standards. Interest Rates





NG

ĐẠ O

TP .Q UY

NH ƠN

An interest rate is the cost of borrowing (or the return from lending), expressed as an annual percentage. It is a key variable in the economy, playing an important role in household’s decisions to purchase durable goods such as cars and houses, and in influencing the construction of new business plants and commercial buildings. Especially significant is the real interest rate, the interest rate after adjusting for expected inflation. In addition to influencing consumption and investment expenditures, the real interest rate has major implications for the well- being of both borrowers and lenders, as it influences the way in which real wealth is redistributed among them.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

The real interest rate also influences the exchange rate in the international market- for example, the value of the us dollar expressed in units of foreign currency. By causing changes in the exchange rate, changes in real interest rates help to determine the cost of imports. Given other factors, an increase in real interest at home attracts foreign funds, thereby raising the value of the dollar (the number of yen or deusche marks per dollar). This increase in the value of the dollar raises the prices of domestic goods to foreigners and makes foreign goods cheaper in the United States. Because an increase the value of the dollar makes competing in foreign markets more difficult for us firms, it tends to increase the nation’s trade deficit- the amount by which imports exceed exports. II. Comprehension / interpretation 1. What are banks? 2. What are the major functions of banks?

3. Were commercial banks different from other depository institutions in their activities and functions? 4. Are all banks and other depository institutions authorized to issue checking accounts and make loans? 68





NH ƠN

5. What is an interest rate? 6. What is the real interest rate?

III.

TP .Q UY

7. What does the real interest rate influence in the international market? Language focus

To be or not to be... Or be-ing?

ĐẠ O

Most learners of English have difficulty with the - ing from (the gerund) and to - (to+ infinitive)

NG

Study the following examples

HƯ

- ing AS THE SUBJECT OF SENTENCE:

TR Ầ

N

Traveling abroad can be exhausting. Visiting a new city can be exciting.

00

B

- ing AFTER PREPOSITIONS:

10

Is anyone interested in. playing tennis this evening?

dislike avoid give up don’t mind practice

-L

Í-

enjoy finish delay

HÓ

VERBS + -ing:

A

I’m looking forward to visiting the USA next summer.

TO ÁN

I’ve finished reading that report. I’m trying to give up smoking.

ĐÀ N

I avoid traveling by car on business.

VERBS + to-:

DI Ễ

N

Learn manage mean choose forget can’t afford help pretend need didn’t mean expect hope offer refuse want agree promise Td like recommend encourage train teach allow 69





-

NH ƠN

They promised to phone me back. He didn’t mean to be rude to you. I can’t afford to stay at the Ritz.

start

continue

intend

hate

She began to make / making enquiries.

prefer

NG

I love to eat / eating Chinese food.

like love

ĐẠ O

Begin propose

TP .Q UY

VERBS + -ing or + to - WITH NO DIFFERENCE IN MEANING:

HƯ

She hates to stay / staying alone in restaurants. VERBS + -ing or to- WITH A DIFFERENCE IN MEANING:

TR Ầ

N

stop to <"> stop- ing

B

Please stop making that noise, it’s driving me mad! (= don’t continue...)

A

10

00

We stop to get some petrol and have some lunch (= stop in order to...)

HÓ

Fill these gaps w ith suitable words, using -ing or to-:

Í-

1. Which hotel would you recommend me..................... ?

-L

2. It’s essential.................. a visa if you intend................the

TO ÁN

USA.

3. He was talking to me about. spring.

ĐÀ N

4

Japan next

is not allowed in public buildings in this

DI Ễ

N

country. 5. I tried. water. 6. We agree

have a shower, but there was no hot in the hotel lobby at 8 o’clock.





NH ƠN

7. It’s been a lovely evening! Will you allow me.................. the wine? car? 9. I don’t mind.......................when I’m aboard. 10. I usually enjoy......................when I’m away from home. Word study

ĐẠ O

IV.

TP .Q UY

8. Would you like me..................... a lift to the airport in my

NG

a. F ill in the ga p s w ith words from the box

if

the

N

fortunate

TR Ầ

1. Some developing countries are banks.................their long outstanding debts.

HƯ

funds, lack, order, subsidies, write off, manpower

2. Cheap..............alone is no guarantee of high productivity.

10

00

B

3. In the last fiscal year many American companies suffered from a...............of cash and had to borrow heavily.

HÓ

A

4. Many people became insolvent because they didn’t have sufficient liquid............ to pay back loans they have taken up.

-L

Í-

5. Many governments are offering companies favorable.............................. to open factories in underdeveloped regions.

TO ÁN

b. Which prefixes are used w ith these w ords to form opposites? .......... possible .......... convenient ................reliable

DI Ễ

N

ĐÀ N

.......................fair ...................polite .............. relevant ...................likely





Vocabulary

NH ƠN

V.

- institution (n): organization for a particular purpose- to chức được lập cho một mục đích cụ thể

TP .Q UY

- deposit (n): money left with an organization, e.g. a bank, for sale keeping or to earn interest - tiền gửi (ngân hàng)

ĐẠ O

There are two types of deposit: demand deposit (US: checking account) and time deposit (deposit account)- CÓ 2 loại tiền gửi: tiền gửi không kỳ hạn và tiền gửi có kỳ hạn

NG

- commercial bank (n): ngân hàng thương mại

HƯ

Commercial banks make loans to borrowers.

TR Ầ

N

- checking account (US) = demand deposit: tài khoản vãng lai, tiền gửi không kỳ hạn - deposit account (US) = time deposit: tiền gửi có kỳ hạn ỉ

00

B

- savings account (n): tài khoản tiết kiệm

A

10

- transfer (v) to convey or move from one place to another: chuyển, chuyển tiền

Í-

HÓ

This financial information needs to be transferred to the ledgers.

DI Ễ

N

ĐÀ N

TO ÁN

-L

- persist (v): kiên trì, dai dẳng - legislation (n): make laws- làm luật, ban hành pháp luật

- financial intermediary (n): trung gian tài chính

- interest rate (n): the cost of borrowing or return from lending expressed as an annual percentage: lãi suất

- real interest rate (n): the interest rate after adjusting for expected inflation. - exchange rate: value of one currency in term of another- tỷ giá hốì đoái 72





NH ƠN

- trade deficit (n): the amount by which imports exceed exports- thâm hụt thương mại

TP .Q UY

- middleman (n): nhân vật trung gian dàn xếp để người mua, người bán buôn bán với nhau

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

An agent middleman arranges for buyers and sellers to get together and conduct business.




NH ƠN


U nit 11

TP .Q UY

BANKING BUSINESS I. R e a d in g

TR Ầ

N

HƯ

NG

ĐẠ O

The essential characteristics of the banking business may be described within the framework of a simplified balance sheet. A bank's main liabilities are its capital and deposits. The latter may be from domestic or foreign sources. They may be repayable on demand or repayable only after the lapse of a period of time. A bank's assets include cash, liquid assets, investments or securities, loans and advances made to customers of all kinds, though primarily to trade and industry and, finally, the bank's premises, furniture, and fittings.

HÓ

A

10

00

B

The bulk of the resources employed by a modern bank consists of borrowed money, which is lent out as profitably as is consistent with safety. Insofar as an increase in deposits provides a bank with additional cash, the increase in cash supplements its loanable resources and permits a more than proportionate increase in its loans.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

In banking, confidence on the part of the depositors is the true basis of stability. Confidence is steadier if there exists a ị central bank to act as a "lender of last resort." Another means of maintaining confidence employed in some countries is deposit insurance, which protects the small depositor against loss in the event of a bank failure. ; Such protection was the declared purpose of the "nationalization" of bank deposits in Argentina between 1946 and 1957; banks receiving deposits acted merely as agentsof the government-owned and government-controlled centralbank, all deposits being guaranteed by the state.

i [. I j; I

74

ị



00

B

TR Ầ

N

HƯ

NG

ĐẠ O

Since the banker undertakes to provide depositors with cash on demand or upon prior notice, it is necessary to hold a cash reserve and to maintain a "safe" ratio of cash to deposits. The safe ratio is determined largely through experience. It may be established by convention or by statute. If a minimum cash ratio is required by law, a portion of a bank’s assets is in effect frozen and not available to meet sudden demands for cash from the bank's customers. In order to provide more flexibility, required ratios are frequently based on the average of cash holdings over a specified period, such as a week or a month. In addition to holding part of the bank’s assets in cash, a banker will hold a proportion of the remainder in assets th at can quickly be converted into cash without significant loss. No banker can safely ignore the necessity of maintaining adequate reserves of liquid assets; some prefer to limit the sum of loans and investments to a certain percentage of deposits, not allowing their loan-deposit ratio to run for any length of time at too high a level. t

NH ƠN


TP .Q UY


10

II. C om prehension / in te rp re ta tio n

HÓ

A

Using the inform ation in the text, answ er the questions below.

Í-

1. What are a bank’s main liabilities?

-L

2. What do a bank’s assets include?

TO ÁN

3. What happens to a bank when there is an increase in deposits?

ĐÀ N

4. What is the true basis of stability in banking?

N

5. What was the declared purpose of the “nationalization” of bank deposits in Argentina between 1946 and 1957?

DI Ễ

6. Why is it necessary to hold a cash reserve and to maintain a “safe”ratio of cash to deposits?





Language focus

1. Modal verbs in the passive

TP .Q UY

III.

NH ƠN

7. What do bankers prefer to do if they do not want t loan-deposit ratio to run for any length of time at too high level?

We can use the passive with a modal verb. The pattern is modal verb + be + pa ssive p a rtic ip le

ĐẠ O

Example: A loan can be a rrang ed within 6 days.

NG

E xercise 1: Complete the follo w in g passage, u sin g the verbs in brackets. (may I

N

HƯ

The offer of employment (1) ............................... express) directly or it (2 )..........

10

00

B

TR Ầ

(may / imply) by conduct. It (3) .................................... (must I communicate) to the employee. The offer (4)............................ (can / withdraw) at any time before acceptance. After the contract is made every employee (5) .................... (must / give) a written statement of terms and conditions of employment.

HÓ

A

2. V erb + to + infinitive

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

E xercise 2: Complete each sentence w ith a suitable verb from the box (m odal verb in the passive or verb + to + infinitive). 1. Tom refused..................me any money. 2. Jill has decided not.................in stocks.

3. The loan would have...............for a period of 5 years with a first instalment repaid after one year. 4. We are under strict orders not................ the ceiling for loans.

5. It will be safer................ the cheque so that it may only be paid into your account. 76





NH ƠN

6. Central banks are the only banks to be allowed............... bank notes.

TP .Q UY

7. Banker’s draft may...............by customers who have to travel, or they may............ to settle foreigti debts. 8. We can................these products cheaply overseas.

9. Not many people can afford.............a big house in Hanoi.

issue

cross

be

invest

be used

purchase

Word study

N

IV.

raise

be bought

HƯ

buy

give

NG

achieve lend

ĐẠ O

10. Long period equilibrium is more difficult...................

certificate

lading

invoice

expiry origin

freight payment

full . ship

HÓ

A

insurance

chamber

10

bills

00

B

TR Ầ

R ead the text below on docum entary credits. Write a word from the box to fill each o f the gaps.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

Your customer has opened an irrevocable credit on his account and in your favour. You can now go ahead and... (l)...the goods. You must not delay too long; the credit is only valid until its... (2)... date. As soon as the goods are on board ship, the bill of... (3)... is signed and sent to your freight forwarder. You can now send it to your bank with the other documents which will enable... (4)... to be made. The first is the... (5)..., showing the total cost 'c.i.f.' - cost of goods, plus... (6)..., plus... (7)... . This must be accompanied by the insurance... (8)..., and often by a certificate of... (9)..., to show where the goods, and the raw materials in them, originated. This often has to be authenticated by your local... (10)... of commerce. If the goods are going by sea, you must also enclose the... (11)... set of clean... (12)... of lading.


77 WWW.FACEBOOK.COM/BOIDUONGHOAHOCQUYNHON


Vocabulary

NH ƠN

V.


TP .Q UY

- balance sheet (n) a statement o f the assets, liabilities and capital o f an organization at a particular date bảng tổng kết tài sản - liabilities (n) money owed by a company công nợ

ĐẠ O

- reserve (n) the capital from a business that is set aside from profit or from shares sold at higher than their original price vốn để dành, vốh dự trữ

HƯ

NG

- the lapse of a period the passing o f a period o f time sau một thời gian of time

TR Ầ

N

- deposit (n) a sum o f money paid into a bank or savings account tiền gửi

00

- premies bất động sản

B

- liquit assets current assets other than stocks and work in progress tài sản lưu động, tài sản dễ thanh tiêu

10

- fittings đồ đạc, các vật dụng

HÓ

A

- supplement (v) to add to or complete sth with sth else bo sung vào

-L

Í-

- confidence (n) lòng tin

DI Ễ

N

ĐÀ N

TO ÁN

- nationalization (n) quốc hữu hoá

"70 Đóng góp PDF bởi Nguyễn Thanh Tú



NH ƠN


FISCAL POLICY I. R e a d in g

TR Ầ

N

HƯ

NG

ĐẠ O

Government spending and taxation directly affect the overall performance of the economy. For example, if the government increases spending to build a new highway, construction of the highway will create jobs. Jobs create income that people spend on purchases, and the economy tends to grow. The opposite happens when the government increases taxes. Households and businesses have less of their income to spend, they purchase fewer goods, and the economy tends to shrink.

TP .Q UY

U nit 12

TO ÁN

-L

Í-

HÓ

A

10

00

B

When the government spends more than it receives, it runs a deficit. Governments finance deficits by borrowing money. Deficit spending- th at is, money spending funds obtained by borrowing instead of taxation- can be helpful for the economy. For example, when unemployment is high, the government can undertake projects that use workers who would otherwise be idle. The economy will then expand because more money is being pumped into it. However, deficit spending also can harm the economy. When unemployment is low, a deficit may result in rising prices, or inflation. The additional government spending creates more competition for scarce workers and resources and this inflates wages and prices.

DI Ễ

N

ĐÀ N

Fiscal policy is a government policy related to taxation and public spending. Fiscal policy and monetary policy, which is concerned with money supply, are the two most important components of a government's overall economic policy, and the government uses them in an attem pt to maintain economic growth, high employment, and low inflation.





HƯ

NG

ĐẠ O

TP .Q UY

NH ƠN

Fiscal policy can be either expansionary or contractionary. It is expansionary or loose when taxation is reduced or public spending is increased with the aim of stimulating total spending in the economy, known as aggregate demand. Expansionary policy might occur, when a government feels its economy is not growing fast enough or unemployment is too high. By increasing spending or cutting taxes, the government leaves individuals and businesses with more money to purchase goods or invest in new equipment. When individuals or firms increase their purchases, they raise demand, which requires additional production, creating jobs, generating more spending. The result is higher employment and a growing economy.

A

10

00

B

TR Ầ

N

On the other hand, fiscal policy is contractionary or tight when taxation is increased or public spending is reduced in order to restrict demand and slow down the economy. A tight fiscal policy Í6 more likely when inflation is high. A contractionary fiscal policy reduces the amount of money in the economy available for purchasing goods, thus decreasing spending, demand, and ultimately, pressure on prices.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

To determine its fiscal policy, a government must make judgments about a number of factors, including the level of economic growth or unemployment likely in the future. These factors will affect the amount of revenue raised through taxes and the amount of money required for government programs. Once these determinations are made, the government can decide how to raise revenue and how to allocate it. Revenue is generated through a combination of different taxes - for example income tax, sales tax, or customs duties - and can be allocated to build new roads, fund government programs, or to pay expenses such as government employees' salaries. Another important decision a government must make regarding fiscal policy is whether or not to run a budget deficit by 80





ĐẠ O

TP .Q UY

NH ƠN

spending more money than the government raises. Deficits can be financed in two ways - borrowing or printing more money. If the government borrows money, it will decrease the supply of money available in the economy for lending, and the cost of borrowing money, the interest rate, may rise. If the government prints more money, it will increase the supply of money in the economy, without a corresponding increase in available goods, prices - and inflation - are likely to rise.

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

Decisions on fiscal policy are inevitably influenced by political considerations, such as beliefs about the size of the role that governments should play in the economy, or the likely public reaction to a particular course of action. Few governments will find it easy to raise taxes or to decrease funding for programs that have strong support from the public, such as social security or defense. Fiscal policy decisions can be influenced by other outside factors as well. In today's global economy, a government also needs to consider the fiscal policies of other countries, which may tempt companies to relocate by offering them generous tax programs or other government - controlled benefits. Some countries may find their fiscal policy decisions constrained by the requirements of the International Monetary Fund (IMF), which often grants aid packages subject to conditions relating to fiscal policy.

TO ÁN

II. Comprehension / Interpretation

ĐÀ N

1. In what way do government spending and taxation affect the economy? Give examples.

N

2. What is deficit spending? Is it useful or harmful for the economy? Why?

DI Ễ

3. What are the government's major economic policies mentioned above? 4. What are they aimed at? 81





can

fiscal

policy

be

NH ƠN

5. Under what circumstances expansionary or contractionary?

TP .Q UY

6. What are the factors involved in the making of a fiscal policy? III. Language focus

A. P u t the follow in g sentences into passive:

ĐẠ O

1. They haven't stamped the letter.

2. The company didn't pay me for the work.

NG

3. A machine could do this much more easily.

HƯ

4. You need not type this financial report.

TR Ầ

B. Complete the sentences".

N

5. Has someone posted my parcel?

10

00

B

1. He asked his parents for a loan but he didn't say what he wanted the money for, so they refused. I think if he had told.................................................

A

2. If I were you,........................................................

Í-

HÓ

3. It was the drug, not the disease, that killed him. If he hadn't taken that d ru g ...................................

-L

4. If the government prints more money..............

TO ÁN

5. If the company hadn't overspent........................ IV.

Word study

DI Ễ

N

ĐÀ N

P u t each o f the fo llo w in g w ords in its correct place below.

finance, printing, gold, expensive, policy, rates, control, print, rise, inflation, bank, value, demand, money The two main types of macroeconomic policies are fiscal and monetary..... (1).........The two policies are interrelated.




ĐẠ O

TP .Q UY

Fiscal policy is carried out by the Ministry of ...... (2).........and can be divided into two parts, government expenditures and taxation. These two parts determine whether the government has a deficit or surplus in its budget. A careful fiscal policy is the basis of a stable macro-economy. Taxes and public (public = government) spending can affect resource allocation. Fiscal deficits affect both the balance of payments and the rate o f....... (3)........

NH ƠN


NG

Monetary policy in developing countries follows fiscal policy...... (4).....

TR Ầ

N

HƯ

of money is often the source of financing for government spending. If the central ..... (5)......has to finance a big deficit, it may be unable to implement a restrictive monetary policy to ....(6).......inflation.

HÓ

A

10

00

B

If a deficit is financed by printing m o re..... (7).......than the public wants to have, prices will .... (8).......Inflation causes the real .... (9).....of personal financial assets to fall. But it also induces people to buy assets such as .... (10)......dollars or real estate which will not lose value with inflation.

TO ÁN

-L

Í-

When a budget deficit is financed by excessive domestic borrowing, it can lead to higher interest.... (11)......because of the high .... (12)......for money. These high rates can make it too.... (13).......for the private sector to borrow money.

ĐÀ N

Government deficits must be brought down with cuts in spending, or through higher taxes. If spending cuts are not made, governments eventually have to.... (14)......money to finance their deficit, making inflation unavoidable.

N

V. Vocabulary

DI Ễ

Inflation (n): rise in prices resulting from an increase in the supply of money, credit: lạm phát





NH ƠN

- Inflationary(adj): inflationary spiral: vòng xoáy lạm phát - Inflationary wage claims: những đòi hỏi tăng tiền lương từ lạm phát

TP .Q UY

- deficit(n): excess o f debts over income; tax was low and spending was high, resulting in a budget deficit: sự thâm hụt, thiếu hụt ngân sách.

ĐẠ O

- deficit spending-, bội chi

NG

- revenue(n): income, the total annual income of the state from taxes: thu nhập, nguồn thu nhập

HƯ

- growth(n): increase in economic activity, tăng, tăng trưỏng - judgement(n): opinion about sth: cách nhìn nhận, đánh giá

TR Ầ

N

- pump(v): invest much money in something', đầu tư nhiều tiền, dồn tiền vào....

B

- relate(v): be connected with sb / sth: có quan hệ, có liên

00

quan

HÓ

A

10

- reduce(v): make sth smaller in size Ị number / degree / price, etc: giảm bốt, cắt giảm - grant(v): grant aid: viện trợ, giúp đd

TO ÁN

-L

Í-

- generate(v): cause sth to exist or occur, produce: tạo ra, làm nảy sinh ra - restrict(v): put a limit on sb / sth: giói hạn, hạn chế, thu

DI Ễ

N

ĐÀ N

hẹp

- influence(v): have an impact on sb / sth: gây ảnh hưởng, tác động đến...

- idle(adj): doing or having no work: không có việc làm, nhàn rỗi, thất nghiệp - expansionary(adj): loose, become greater in size / number or importance: mỏ rộng, phát triển, nới lỏng 84





NH ƠN

- contractionary(adj): tight, become smaller in size / number-. thắt chặt, thu hẹp

TP .Q UY

- inevitably(adv): as in or was sure to happen: một cách tất yếu, hiển nhiên - global economy(n): nền kinh tế toàn cầu

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

- International Monetary Fund (IMF): quỹ tiền tệ quốc tế




U nit 13

TP .Q UY

FINANCE AND CORPORATE FINANCE

NH ƠN


I. R e a d in g

HƯ

NG

ĐẠ O

F inan ce is concerned with providing funds to individuals, businesses and governments. Finance allows these entities to use credit instead of cash to purchase goods and invest in projects. For example, an individual can borrow money from a bank to buy a home. And industrial firm can raise money through investors to build a new factory. Government can issue bonds to raise money for projects.

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

Finance plays an important role in the economy. As banks, credit unions, and other financial institutions provide credit, they help expand the economy by directing funds from savers to borrowers .For example, a bank acquires large amounts of money from the deposits of individual savers. The bank does not let this money sit idle but instead provides loans to borrowers who might then build a house or expand a business. The saving of millions of people percolate through many financial institutions, spurring economic growth.

DI Ễ

N

ĐÀ N

TO ÁN

A wide variety of financial institutions have different roles in finance and the economy, Some institutions act as an intermediary among consumers, businesses, and governments by lending out deposits. Other institutions, such as stock exchanges, provide a market for existing securities, which include stocks and bonds. Stock exchanges encourage investment because they enable investors to sell their securities when they need arise.

Many aspects of finance are studied individually. Corporate finance centers on how businesses can best raise and spend their





TP .Q UY

NG

ĐẠ O

Corporate finance is concerned with how businesses can raise and spend their money. Companies spend or invest funds in projects th at might make the firm more profitable, such as a new factory or an improved product. Corporate finance involves selecting projects that maximize profits and make the best use of a company's funds. Sometimes businesses can fund these projects on their own. Other times businesses must raise funds from outside the company. Corporate finance also involves finding the best way for businesses to pay for their projects.

NH ƠN

funds. Public finance focuses on the financial role of federal, state, and local governments.

HƯ

Corporate ownership

HÓ

A

10

00

B

TR Ầ

N

Small businesses may be owned by a single individual, but major corporations are far too large to be owned in this way. Instead corporations are owned by many people, called shareholders, who own shares of stock. Investors purchase stock because it allows them to share in the company's profits, although there are no guarantees th at the company will be successful. Each share of stock represents ownership of a portion of the firm and its possessions, or assets.

N

ĐÀ N

TO ÁN

-L

Í-

Shareholders who posses a large number of shares own a larger portion of the company than those who possess only a few shares do. For example, an individual who own one share of Exxon stock owns just less than one - billionth of the company. At the other extreme, a large financial institution, such as an insurance company or a company that manages investments, may own several million shares of Exxon stock. About half the shares of large corporation are owned directly by individuals. The other half are owned by financial institutions.

DI Ễ

Shares of stock are bought and sold on a number of stock exchanges. For example, Exxon's shares are regularly bought and





NH ƠN

sold on the New York Stock Exchange. At the end of 1995, Exxon's shares were priced at $80 each. At the price, it would have cost about $100 billion to buy all of Exxon's stock.

TP .Q UY

Although a corporation's shareholders own the company, they do not manage it. Instead the elect a board of directors who hire key company executives and review their job performance.

ĐẠ O

II. Comprehension / interpretation 1. What is finance concerned with?

NG

2. What does the term "these entities" on the text refer to?

HƯ

3. How can an industrial firm raise money?

TR Ầ

N

4. Prove th at finance plays an important role in the economy?

B

5. State the different roles financial institutions have in finance and economy?

00

6. What does corporate finance center on?

A

10

7. What does public finance focus on?

HÓ

8. What does corporate finance involve?

Í-

9. What makes investors buy stock?

-L

10. Where are shares and bonds bought and sold?

DI Ễ

A. CAN / COULD / BE ABLE TO

CAN / COULD / BE / ABLE TO are used to express ability to do something. Fill in the follow ing spaces

N

ĐÀ N

TO ÁN

III. Language focus

1.......................write an annual financial report in English? Yes, I ..............................I.............................. when I work for a consulting and auditing company.





2. Our firm.......... ........... projects at the end of the year,

NH ƠN

mobilize more capital for new

3. Restructuring of the company become a more profitable business.

TP .Q UY

makes it

ĐẠ O

4. People........................................ provide correct information about Tsunami disaster, so the thousands of people were killed.

HƯ

NG

5. Nowadays many businesses attract talented managers and skilled working staff by offering high salary.

N

B. RELATIVE CLAUSE WITH WHICH / WHO / THAT

00

B

TR Ầ

Relative clause is used to describe and define a person or thing. We use w h ich to refer to thing and who to refer people, th a t for both.

A

10

Select which, who, th a t to fit each blan k space in the sentences:

Í-

HÓ

1. The m oney....................... you pay for services to a centre of foreign languages, is called fees.

TO ÁN

-L

2. The acco unt.......................describes the trading activities of a business over a stated period of time is the profit and loss account.

ĐÀ N

3. The p erso n ............................... is in charge of running of a company is called the Managing Director.

DI Ễ

N

4. People........................buy the products of a firm (eg. Food, cars, computers, ect) are called consumers.

IV. Word study: Use the correct form of the words in brackets to complete sentences. 89





NH ƠN

1. This company has been o peratin g ..................... as Impex nternational (SUCCESSFUL). 2. He ......................... this morning, and he was late for vork.(SLEEP).

TP .Q UY

3. We don't think th at there is ........................... to this problem. (SOLVE).

ĐẠ O

4. Taxation has been used to increase the price and reduce he................... of cigarettes. (CONSUME).

Vocabulary

HƯ

V.

NG

5. Buyers must take delivery of the goods within seven days )f......................... at the port of discharge. (ARRIVE)

TR Ầ

N

- allow (v) sb / sth to do sth: permit sb to do sth or let sb / sth ỉo sth: cho phép ai làm cái gì

B

- instead of (prep) replacement to sb / sth: thay thế, thay cho

10

00

- be concerned with sb / sth: related to or be about sth: đề cập, iên quan đến

Í-

HÓ

A

- play an important role in sth: be important / necessary 'finance plays very important role in the economy): đóng vai trò luan trọng

-L

- idle (adj): not in use, be idle', nhàn rỗi (tiền)

TO ÁN

- acquire (v) sth: gain for oneself, come into possession of: CÓ ỉược, giành, đạt được

ĐÀ N

- percolate(v): through (about an idea, a feeling, information)-. ỉược biết đến thông qua cái gì

DI Ễ

N

- encourage(v) sb / sth to do sth: khuyến khích, khích lệ. Giue support or hope to sb or help sth to develop, stimulate. - raise (v) sth: increase the amount, value-, tăng, nâng lên





NH ƠN

- maximize (v) sth: make as larger or great as possible: tăng tối đa, lốn nhất - shareholder(n): the owner o f share in a company, cổ đông

TP .Q UY

- portion (n): part or share-, phần được chia - posses (v) sth: hold as property, own', có, sỏ hữu

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

- focus (v) on sth: concentrate on sth: tập trung vào

91




U nit 14

TP .Q UY

FUNDING THE BUSINESS

NH ƠN


I. R e a d in g

Read the passage below about the gearing. As you read it, complete Chart 14.1

TR Ầ

N

HƯ

NG

ĐẠ O

To ensure a company’s long - term survival and prosperity, finance managers need to make decisions about the gearing of the company. Gearing is the relationship between equity capital invested in the business and long - term debt. The higher gearing (in other words, the greater the proportion of long - term debt), the more exposed the company is in times of economic difficulty.

Í-

HÓ

A

10

00

B

The first form of equity is owner’s capital. This is the most exposad form of capital since a return is received only after all other calls on a company’s profits have been satisfied. In an extreme case - bankruptcy - the owner’s equity will be repaid only after everyone else, including employees, creditors, banks, etc, has received what they are owed. On the other hand, in successful times, the owners have a claim on all the net profit of the company.

I

DI Ễ

N

ĐÀ N

TO ÁN

-L

An owner does not need to rely on his or her own funds, s he can go to other sources of equity finance. There are three main sources: firstly venture capital: this is usually provided by venture firms interested in financing high - growth companies. However, the provider usually demands a much faster and higher rate of return than an owner would expect from his / her own capital. On the other hand, the venture capital company does not usually interfere in the running of the company. Another source of equity finance is the unlisted securities market - sometimes called the second or third market. This has 92





NH ƠN

the advantage of allowing a company to raise money from outside investors without losing much control of the company.

ĐẠ O

TP .Q UY

The last source is available only to large companies - the Stock Exchange. If a company gains a listing on the Stock Exchange, this will provide the long - term opportunity of raising capital by issuing fresh shares. However, at least 25 percent of the equity must be in public hands - thereby reducing the control of the original owners.

TR Ầ

N

HƯ

NG

Companies prepared to increase their gearing can raise capital through long - term loans. They can go to sources such as the clearing banks, merchant banks and even pension funds. However, in all three cases they will usually secure their debt over the fixed assets of the business and, of course, interest must be paid, usually linked to bank base rate.

HÓ

A

10

00

B

In times of prosperity, a high gearing will give the owners a much better return as net profits will be a much higher percentage of equity after interest payments on the long - term debt. However, in harder times, the owner’s earnings will drop dramatically as interest payment soak up most of the company’s profits.

-L

Í-

Chart 14.1

TO ÁN

S ources of fun ds (i) Owner’s capital

(ii) (iii) (iv)

High gearing

Long - term loans

DI Ễ

N

ĐÀ N

Low gearing

A d v a n ta g e s / d isa d v a n ta g e s





NH ƠN

II. C o m p re h e n s io n / I n te r p r e ta ti o n .

Analyse the gearing of these two companies and comment on he dangers C om pany B

Equity

$100,000

$250,000

Long - term debt

300,000

150,000

Profits

50,000

Interest paid (10%)

30,000

Earnings

20,000

ĐẠ O

TP .Q UY

C om pany A

30,000

15,000

HƯ

NG

15,000

Language focus

3.1.

Comparison o f a djectives

TR Ầ

N

III.

00

B

Look at the following sentences taken from the Reading •assage:

10

“This is the most exposed form of capital...”

HÓ

A

“The provider usually demands a much faster and higher ate of return than an owner...”

-L

Í-

Now complete the sentences with the correct comparative or uperlatiue form o f the adjectives in brackets:

TO ÁN

1. It’s much................... (hard) to raise money on the Stock Exchange.

ĐÀ N

2. Increasing owner’s capital is th e................ (risky) way of aising money for investment.

DI Ễ

N

3. The banks will be..................(cautious) than the securities narkets. 4. Interest rates are much..... ........... (high) this year than.

a s t.




NH ƠN


6. A fixed - term loan is................................. (flexible) than a fluctuating overdraft. 7. On the other hand, a medium - term loan is ................ (easy) to control than a fluctuating overdraft.

ĐẠ O

8. Venture capital is much.................(difficult) to raise than we are led to believe.

TP .Q UY

5. The.................(safe) method of increasing working capital is to plough back profits.

HƯ

Contrast

TR Ầ

3.2.

(attractive) in times of low

N

10. Expansion is.................. interest rates.

NG

9. The Stock Exchange rules are much.................. (formal) than the USM.

00

B

Look at the following sentences taken from the Reading passage:

10

“On the other hand, in successful times, the owners have a claim on all the profit of the company’.

HÓ

A

“However, at least 25% of the equity must be in public hands...”

Subject Sutton Savings Bank

ĐÀ N

First National Bank

TO ÁN

-L

Í-

Now weigh advantages against disadvantages using the following prompts:

Trust Financial Services

A dvantage

Disadvantage

Small and friendly

No solid experience

Solid, good track record

Very impersonal

Attractive venture capital High interest rates scheme

DI Ễ

N

Welcome Investments Ltd Low interest rates


Low

maximum

capital

sums




NH ƠN

1. Sutton Savings Bank offers a small and friendly service. On the other hand,... 2. First National Bank...

TP .Q UY

3. Trust Financial Services... 4. Welcome Investment Ltd... Word study

ĐẠ O

IV.

NG

One way to extend your active vocabulary is to generate other forms of a base word (usually the verb). For example: Verb: to compete

N

Noun: competitor

HƯ

Noun: competition

TR Ầ

Note: Not all the verbs have a noun agent form

00 10

to prosper

__________________ __________________

HÓ

________

-L TO ÁN ĐÀ N N

nouns

to survive

to bankrupt

DI Ễ

nouns (concept)

Í-

A

verbs (agent)

B

Generate other forms from these verbs:

a________

(to go bankrupt)

to provide

_________

to interfere

__________________

to invest

_________

to secure

__________________

to earn to own

a

i

an_______

____; _________

an________




V ocabulary

- fund 1. (n): money set aside for a special purpose: vôn, quỹ

TP .Q UY

2. (v): to provide money for: cấp vôn, cấp ngân sách

NH ƠN

V.


- gearing (n): ratio between a company’s capital borrowed at fixed interest and the value o f its ordinary shares: tỷ sô' vốn vay. - exposed (adj) risk: may rủi

ĐẠ O

- equity (n): right to receive dividends on the shares you own in a company: vôn cổ phần

NG

equities (n): ordinary shares: cổ phiếu thường

HƯ

equity capital: vốn cổ phần thưòng

N

- bankruptcy (n): State o f being bankrupt-, tình trạng phá sản

TR Ầ

- claim 1. (n): request for money, đòi (khiếu nại) tiền bồi thưòng

00

B

2. (v): to ask for money

10

- venture (n): risky business project: việc kinh doanh mạo

A

hiểm

HÓ

- run (v): to manage / organize: quản lý, tổ chức

-L

Í-

- merchant bank (n): financial institution which carry out a range o f services-, ngân hàng thương nhân, ngân hàng thương mại

TO ÁN

- clearing bank (n): ngân hàng bù trừ, ngân hàng thương nghiệp trợ

ĐÀ N

- finance 1. (n): money used by a company: tài chính, tiền tài (n): money available: khả năng tài chính

DI Ễ

N

2.(v): to provide money for: cấp tiền (vốn) cho

- securities (n): investments in stocks and shares: chứng khoán 97





NH ƠN

(n): guarantee that a debt will be repaid. - stock (n): cổ phiếu

TP .Q UY

- stockbroker (n): person who buys and sells shares for clients: ngưòi môi giổi chứng khoán stock controller (n): person who controls inventories', người kiểm soát hàng hoá

ĐẠ O

stock exchange (n): a market in which securities are traded: thị trường chứng khoán

NG

- public (adj)

HƯ

- interest (n): a percentage o f the capital paid by a borrower to a lender: tiền lãi

TR Ầ

N

interest rate (n): lãi suất

- dramatically (adv): nhanh chóng, sâu sắc

00

B

- soak up (v): thu hút (tiền), rút tiền của ai bằng cách đánh thuế nặng

HÓ

A

10

' fluctuate (v): rise and fall, change irregularly: dao động thất thường fluctuation (n): a changing back and forth-, sự dao động

-L

Í-

- unlisted securities market (USM): market for buying and selling shares not

DI Ễ

N

ĐÀ N

TO ÁN

listed on the Stock Exchange: thị trưòng chứng khoán không đăng ký (không chính thức)

98




NH ƠN


MANAGEMENT OF WORKING CAPITAL I. Reading

ĐẠ O

Read the following extract which describes the types and uses of working capital. As you read it, complete the classification shown in Chart 15.1

TP .Q UY

U nit 15

TR Ầ

N

HƯ

NG

Profitability is determined in part by the way in which a company manages its working capital. Basically there will be a drop in profit if working capital is raised without a corresponding rise in production or margins. So one of the principal functions of financial management is to provide the correct amount of working capital at the right time and in the right place to realise the greatest return on investment.

-L

Í-

HÓ

A

10

00

B

Working capital can initially be broken down into two types: permanent and temporary. Permanent working capital is tied up in keeping the business flowing throughout the year, while temporary working capital is needed from time to time to take account of seasonal, cyclical or unexpected fluctuation in the business. The latter type is usually serviced from an overdraft facility.

TO ÁN

Both types of working capital have three major applications: firstly inventories, secondly debtors and finally cash.

DI Ễ

N

ĐÀ N

Inventories can be further divided into inventories of raw materials, work in progress and finished goods. These three can soak up an enormous amount of excess working capital if not well managed. It is the job of the financial manager to minimize the stocks of raw materials, the level of the work in progress and the quantity of finished goods. However, over-stringent control can





ĐẠ O

TP .Q UY

NH ƠN

lead to disruption in production caused by the delay in receiving raw materials, a failure to take account of costly price rises in the pipeline, a failure to keep the production volume required by future sales, and resulting expensive and damaging effects on customer goodwill. As one can see from the foregoing diagram, this can become a vicious circle where the loss of goodwill finally leads to loss of sales and results once again in stringent cost controls.

HƯ

NG

O ver-stringent cost control

Disruption in production

00

B

TR Ầ

N

Loss of sales

A

10

Loss of customer Failure to meet goodwill ---------------- customer orders

-L

Í-

HÓ

The just-in-time philosophy, developed in Japan, is aimed at reconciling these often conflicting interests and keeping inventory costs to a minimum.

DI Ễ

N

ĐÀ N

TO ÁN

On the debtor side, working capital is required to finance the gap between payment due to suppliers and payment owed by customers. It is the task of financial management to see that generous credit terms are negotiated with suppliers but minimal credit is offered to customers. Again a balance must be achieved between getting and giving good credit terms in order to attract customers and maintain positive relationships with suppliers on the one hand, and minimising cash outlay on the other hand. Finally, cash is needed for both normal and abnormal requirements. Sound cash management will ensure th at adequate 100





NH ƠN

cash is always available for meeting the company’s day-to-day debts and that there is also a small reserve on hand to meet contingencies.

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

TP .Q UY

Chart 15.1

Í-


-L

1. For what purpose is temporary working capital required?

TO ÁN

2. What methods are there to rescue the working capital required to finance debtors?

ĐÀ N

III. Language focus 3.1.

D escribing stru ctures an d system s

DI Ễ

N

Look at the following sentences taken from the Reading passage: “Working capital can initially be broken down into two types...” 101





NH ƠN

“The latter type is usually serviced from an overdraft facility”.

TP .Q UY

Now complete the passage which describes the organigram shown in Chart 15.2:

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

Chart 15.2

TO ÁN

-L

Í-

HÓ

A

The finance department 1.____ into three sections: financing, control and planning. Financing is further 2.____ into short - term and long - term financing. The 3.____ deals with the management of cash and working capital; the 4.____ with long term loans and repayments. The control function is also 5.____ two sections: accounts and credit.

DI Ễ

N

ĐÀ N

The accounts section is 6.____ for bookkeeping and production of management accounts; the credit function 7.____ after credit terms and credit worthiness of suppliers. 8.____ , the planning departm ent is 9.____ two sections: budgets and investment. The 10.____ is 11._____ for collating - departmental annual budgets and updating and revising them on a monthly basis while the 12.____ assesses the return and profitability of new investment projects. 1no





NH ƠN

3.2. Cause and effect

“Over - stringent control can lead to disruption in production caused by delay in receiving new materials...”

ĐẠ O

Now use the diagram in the Reading passage to put the following parts of sentences into the correct order:

TP .Q UY

Look at the following sentence taken from the Reading passage:

which will cause costs to be controlled

NG

and the subsequent loss of customer goodwill

HƯ

This will inevitably mean a decline in sales

N

Over-stringent control can lead to disruption in production

TR Ầ

This may, in turn, result in the failure to meet customer orders

00

B

Due to delays in raw materials

10

IV. Word study

HÓ

A

4.1. R aise versus rise. Study the difference between these two sentences:

-L

(ii) Prices rose

Í-

(i) The company raised its prices.

TO ÁN

In (i) there is an active agent - the company; in (ii) there is no active agent.

ĐÀ N

Decide which verb to use in the following sentences. Make sure you use the right tense!

N

1. The issue of new shares _____ an additional £50,000 worth of capital.

DI Ễ

2. I wish my salary would_____ . 3. T h e_____ in inflation will cause us to ______prices.





NH ƠN

4. When the share price _____ , I _____ my stake in the company.

TP .Q UY

4.2. M atch the words on the left w ith the best opposi on the right: 1. to tie up

a. too lax b. past

ĐẠ O

2. to soak up 3. over-stringent

c. an intersection

d. to use sparingly

NG

4. in the pipeline

e. a virtuous circle

HƯ

5. a vicious circle 6. to reconcile

g. to conflict

TR Ầ

V.

N

7. a gap

f. to free

Vocabulary 1

10

00

B

- capital (n): money, property and assets used in a business: vôn, tư bản (gồm toàn bộ tiền, tài sản hiện có của công ty được sử dụng trong sản xuất hoặc kinh doanh)

HÓ

A

- margin (n): difference between income and costs: sự chênh lệch giữa thu nhập và các chi phí

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

- overdraft (n): amount of money which a person / company withdraws from a bank account and which is more than that in the account: số tiền rút quá mức ở ngân hàng.

- overdraft facility (n): arrangement with a bank for an overdraft to a certain limit: thỏa thuận với ngân hàng về khoản vay vượt quá mức ở một giối hạn nhất định. - inventory (n): stock: kho hàng (để bán), hàng tồn kho. - minimise (v): to make something as small as possible: giảm tối thiểu, đánh giá thấp. - maximise (v): to make something as large as possible: tăng tối đa. 104





NH ƠN

- over-stringent (adj): quá nghiêm ngặt.

TP .Q UY

- goodwill (n): good reputation of a business - intangible asset connected to customer base, track record,etc: uy tín (thương mại), trị giá tài chính tín nhiệm. - disruption in production: tổn hại, rốĩ loạn trong sản xuất. hòa. - conflict (v): mâu thuẫn, đối lập (ngược).

ĐẠ O

- reconcile (v): to make two accounts agree: đối chiếu, điều

NG

- credit 1. (n) time given to a customer to pay.

(v) to put money into someone’s account.

HƯ

2.

N

- cash 1. (n) money in notes and coins: tiền mặt (v) to exchange a cheque for cash: đổi lấy tiền mặt.

TR Ầ

2.

B

- outlay (n): expenditure: chi tiêu, chi phí tiền.

10

00

- contingency (n): possible state of emergency, điều ngẫu nhiên, điều xảy ra bất ngờ, bất thường.

HÓ

A

- debt (n): money owed: tiền nợ

Í-

- collateral (n): synonym for security: vật đảm bảo / thế chấp

-L

- collate (v): synonym for reconcile: so sánh, đối chiếu

TO ÁN

- profit (n): money gained from doing business: tiền lời, lợi nhuận - a vicious circle (n): cái vòng luẩn quẩn

DI Ễ

N

ĐÀ N

- (a) failure to do sth (n): quên, lơ là, sao lãng.




U n it 16

TP .Q UY

RAISING MONEY FOR INVESTMENTS

NH ƠN


I. R e a d in g

NG

ĐẠ O

Investments require cash. There are three common ways a corporation may be able to raise this cash: (1) By paying smaller dividends, (2) By borrowing, or <3) By selling more stock. Each method has advantages and disadvantages.

10

00

B

TR Ầ

N

HƯ

A firm can finance projects by paying smaller dividends. By paying out less of its profits in dividends, the company can keep more of its profits as retained earnings appeals and use them to fund its investments. Using retained earnings to finance projects appeals to the managers because they can avoid paying interest. However, the shareholders may not like it if their dividend becomes smaller. Also, sometimes, the firm needs more money for a particular project than it has available in retained earnings.

TO ÁN

-L

Í-

HÓ

A

A company can also choose to borrow money to fund it projects. A firm can either borrow from a bank or directly from investors by issuing bonds. Although a firm m ust pay interest if it borrows money, it can deduct the interest from its profits and therefore pay less in taxes. However, there are limit to how much a company can borrow, and too much borrowing could lead to bankruptcy.

DI Ễ

N

ĐÀ N

Selling stock is the third way companies can raise funds. Unlike a loan, the funds received from the sale of stock belong to the company and do not have the expense of paying interest. However, the firm m ust still earn the certain return on its investment to obtain the cash to" pay dividends or devote to returned earnings. Business also may to not want to issue stock, 106





TP .Q UY

A financial manager must consider factors other than cost when deciding how to raise money. For example, if the firm tries to raise new funds, the public will speculate the company's plans. If investors think the plans are a bad idea, the company's stock price could fall

NH ƠN

such as fees for legal and banking services, are usually higher than for issuing bonds.

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

International financial markets have become increasingly important sources of funds. United States firms frequently raise money in overseas financial centers such as London or Tokyo. Loans from abroad often have a lower interest cost to domestic Ư.S corporations because foreign banks are not subject to the restrictions of the u.s .Federal Reserve System. For example, instead of borrowing dollars from a bank in the United States, American firms may borrow dollars th at have been deposited in Tokyo or London banks. These are known as Eurodollars. Eurodollars are U.S. dollars held in banks outside the United States. Similarly, instead of issuing bonds in the United States, U.S. firms may issue bonds in the foreign country to a group of international investors. These are called Eurobonds.

TO ÁN

-L

Í-

Eurobonds are bonds sold outside the country whose currency used to write the bond. For example, a bond denominated in u.s .dollars issued by a Japanese bank is a Eurobond.

ĐÀ N

Events outside the control of a corporation can affect the firm and its financing decisions .Many economic factors, such as the changes in the price of oil or the price of foreign currency, can affect the business as well.

DI Ễ

N

Corporate financial managers need to make sure that potential economic fluctuations do not threaten the firm. A variety of tools, known as derivatives, help manage the risk of 107





00

B

TR Ầ

N

HƯ

NG

ĐẠ O

TP .Q UY

NH ƠN

such events occurring. Four important kinds of derivatives include (1>Futures, (2>Forwards, (3) Options, (4) Swaps. Futures are promises to buy and sell something in the future at a priced that is agreed upon today. For example, a candy manufacturer might commit to purchasing a specific quantity of cocoa at specified price from the producer in six months. Futures are traded on organized future exchanges, such as Chicago Mercantile Exchange or Chicago Board of Trade. Forwards are similar to future but they are arranged directly between a firm and a bank. Options give a firm the right to buy or to sell something in the future at the price that is agreed upon today. For example, if the candy manufacturer does not know how much cocoa will be needed in six months, it could take out an option to buy cocoa at a certain price. Swaps involve firms swapping one set ỏf payments for another. For example, an American firm may agree to make a series of dollar payments to a Japanese bank in return promises to make a series of yen payments.

HÓ

A

10

Method of corporate finance continually evolves as financial managers invent new ways to raise money and avoid risk. Smart investment and financing decisions are crucial to a firm's success.

-L

Í-


DI Ễ

N

ĐÀ N

TO ÁN

1. In what way(s) can a corporation increase its capital?

2. What are the advantages and disadvantages of each way?

3. Give the example to express th at a financial manager must consider factors other than cost when deciding how to raise money?

4. What is it advantageous for an American corporation to raise funds overseas? 5. What are Eurodollars? 6. What are Eurobonds? 108





NH ƠN

7. What may effect the corporation's financing decisions? III.Language focus

TP .Q UY

GERUND:......................by doing something Notice this sentence from the text.

ĐẠ O

There are three common ways a corporation may be able to raise this cash: - By paying smaller dividends.

NG

- By borrowing.

HƯ

- By selling more stock.

TR Ầ

N

Note the (-ing) form after the preposition use this form to respond following cues:

B

Examples: How should I invest my savings? / buy common stock.

10

00

I should invest my savings by buying common stock.

A

How can they raise capital? / issue shares of stock.

HÓ

They can raise capital by issuing shares of stock.

-L

Í-

1. How can we finance this project? / borrow money from government.

TO ÁN

2. How can our company make a profit? / raise investment capital.

ĐÀ N

3. Where can our business get funding? / offer equity to interested friends.

DI Ễ

N

4. How can we sell more of stock? / offer a dividend. 5. What should we do first? / look at the Annual report.

6. How can He earn his living? Write. 7. How could he gain rapid promotion? / work hard. 109





NH ƠN

IV.Word study Fill in each blank with one word from the list:

TP .Q UY

profit, shareholders, possessions, earnings, actual, retained, however, distributed, stock, investment, dividends.

.............. j

Vocabulary

-L

V.

Í-

HÓ

.............

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

A business regards an ...............(1)............. as successful if it increases the wealth of the shareholders who own the company. This is accomplish when the firm earns .............(2)............. and passes them back to the shareholders either in the form of ........... (3)............. or as increases in the value or price of the stock. Dividends are a share of profits paid to ..............(4)............... as cash or as additional shares of stock. Profits or earnings that are not.......... (5.............. to shareholders stay with the firm and are called returned earnings . These earnings influence the value of t h e .............(6 )........... because they increase the total asset value, or total amount of assets, of the firm. Because the value of their com pany's.............(7)............has increased, the shareholders own that is worth more. If the firm realizes retain e d ..........(8)............ of $1 per common share, it will add $1 to the value of each share, (9) since many forces influence stock prices, the ......... (10)........... price of the stock will probably fluctuate and to be more or less than the additional $1 per share.

TO ÁN

- Invest (v):- sth in sth: use o f money to buy shares, property,....in order to earn interest or bring profit', đầu tư

ĐÀ N

- The best time to invest is now. - He invested $1000 in government bonds.

DI Ễ

N

- Investment (n) in sth: investing of money, make a profit by careful investment: sự đầu tư. - Those oil shares were a good investment 110





NH ƠN

- Investor (n): person who invest money', người, nhà đầu tư. - finance (v): provide money for a project, or fund,-, cấp vốn

TP .Q UY

- The scheme is partly financed by a government grant. - finance (n) a. management of money, tài chính - Ministry o f Finance

ĐẠ O

b. for sth: money used or needed to support an undertaking: tài chính

NG

- Finance for the National Health service comes from taxpayers.

N

HƯ

c. finances(pr) money available to a person, company or country.

TR Ầ

- Are the firm s finances sound?

00

B

- finance company: (finance house) company that lends money for hire- purchase transactions

A

10

- financial (adj): concerning money and finance: thuộc về tài chính.

HÓ

- in financial difficulties: short of money.

Í-

- Tokyo and New York are major financial centers.

TO ÁN

-L

- Financial year (US fiscal-year): period o f 12 months over which annual accounts and taxes are calculated.

ĐÀ N

- financier (n): person engaged in financing business: nhà tài chính. - dividend (n)-.share o f profits paid to shareholders in a CO t ứ c

N

company or in a football po ol :

DI Ễ

- To pay dividend: thanh toán cổ tức - retained earnings: tiền lãi giữ lại 111





NH ƠN

- appeal (v)to sb for sth:- to make an earnest request: yêu cầu khẩn khoản

- avoid paying interest: tránh trả lãi

TP .Q UY

- attractive and interesting', rất quyến rũ và đẹp

- deduct (v) sth from sth: take away an amount or a part: trừ, khấu trừ

ĐẠ O

- Tax is deducted from your salary.

NG

- Deductive (adj): that may be deducted from one's taxable earnings: có thể bị khấu trừ

HƯ

- Money spent on business expenses is deductible

TR Ầ

N

- Deduction (n): deductions from pay for insurance and pension: sự khấu trừ

B

- bankrupt (adj):- declared by the court to be a bankrupt.

00

- unable to pay one's debts: phá sản

A

10

To go / to be bankrupt

HÓ

To make sb bankrupt

TO ÁN

-L

Í-

- Bankruptcy (n): person judged by a law court to be unable to pay his debts in full, whose property is then taken by the court and used to repay his creditors.

- These books belong to me. ie are mine. - be a member of (a group, a family, an organization)

ĐÀ N N DI Ễ

- belong to sb / sth: - be the property of sb: thuộc về ai

- return on investment (ROI): Lợi nhuận (lãi) từ vốn đầu tư - devote (v) oneself / sth to sb / sth - to give (one’s time, energy) to sb / sth: dành thòi gian, sức lực của mình cho ai, cống hiến, hiến dâng





TP .Q UY

- Devoted (adj) to sb / sth: tận tụy, tận tình, trung thành

NH ƠN

- Devote all one's efforts to one's task: Dành hết cô" gắng cho nhiệm vụ

- A devoted son, friend, supporter. She is devoted to her children.

ĐẠ O

- Devotee (n): person who is devoted,-, người nhiệt tình, người hâm mộ

NG

A mother’s devotion to her children

HƯ

- devotion (n): sự tận tâm, sự tận tụy, lòng trung thành

N

- speculate (v) - upon / about / on sth: suy đoán

B

TR Ầ

- in sth: buy and sell goods or stocks and shares in the hope of making a profit through changes in their value, but with the risk of losing money: đầu cơ

10

00

- Speculator: người, kẻ đầu cơ

HÓ

A

- to be subject to sth: bị phụ thuộc, lệ thuộc, theo cái gì, tuỳ thuộc cái gì

Í-

- The plan is subject to the director's approval:

us

TO ÁN

-L

- eurodollars: dollars pu t outside the country whose currency used to write the bond: Đô la Châu Au Eurobonds: bonds sold outside the country whose currency used to write the bond: trái khoán Châu Âu

ĐÀ N

- US Federal Reserve System: Hệ thông của cục dự trữ liên bang Mỹ

DI Ễ

N

- denote (v): be the name sign or symbol o f sth : chỉ ra, cho biết - fluctuation (n) of / in sth: sự dao động, biên độ

- Fluctuate (v) between A and B: dao động





NH ƠN

- derivative (n,adj) - derived from sth else, not original: phái sinh

- options: quyền lựa chọn - swaps: exchange: trao đổi - commit(v) sb to sth / to doing sth: cam kết

TP .Q UY

- forwards: thị trường định hạn

ĐẠ O

The company has committed funds to an advertising campaign

NG

- evolve(v): develop naturally and gradually: tiến triển dần

HƯ

- Evolution (n): sự tiến triển dần, tiến hóa

N

- crucial(adj) to / for sth: very important: rất quan trọng

TR Ầ

- A crucial decision, issue, factor.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

Getting this contract is crucial to the future o f our company.

1 A r>.




NH ƠN


U nit 17

TP .Q UY

WHAT IS THE FOREIGN EXCHANGE MARKET? I. Reading

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

The foreign exchange market is the market in which such national currencies as dollars, pesos, deutsche marks, yen, francs, and others are exchanged. It is not an organized market with fixed hours and a physical meeting place, such as the New York Stock Exchange or Chicago Board of Trade. The foreign exchange market is an over - the - counter market, the primary communications instrum ents being the telephone and the computer. The market has developed rapidly in the past quarter century, and the volume of activity has escalated dramatically in response to growth in the volume of world trade in goods and services, and especially in response to the expansion of international capital flows- the acquisition of financial ancĩ real assets across national borders. Total worldwide foreign exchange market transactions in 1996 were approximately $1.2 trillion, or $ 1200 billion per day. More than 90 percent of these transactions are associated with capital flows. Among the most important financial centers are New York, London, Tokyo, Paris, Frankfurt, Hong Kong, and Zurich.

DI Ễ

N

ĐÀ N

The direct participants in the foreign exchange market include us commercial banks with deposits in foreign branch banks or foreign correspondent banks, and these foreign banks. Several hundred dealers (mostly banks) m aintain inventories of major foreign currencies in the form of bank deposits denominated in foreign currencies. The Chase M anhattan Bank, for example, maintains deposit balances in foreign correspondent banks in the form of yen in Tokyo, francs in Paris, deutsche 1 1c





ĐẠ O

TP .Q UY

NH ƠN

marks in Frankfurt, and so on. When the dealer sells a foreign currency, it sells deposits its owns in foreign commercial bank. When it buys foreign exchange, it acquires addition deposits in foreign bank. In other words, the foreign exchange market involves buying and selling bank deposits rather than physical packages of currency and coins. Foreign exchange dealers do not charge a commission. Instead, as with dealers in U.S. government securities, a bid- to- ask price spread is the source of income.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

But who are the ultimate participants in the foreign exchange market? First, consider the thousands of large and small import and export firms in the United States, together with their foreign counterparts, that must buy or sell foreign currencies in connection with their business. Second, consider all the tourists and other travelers around the world who want foreign currencies. For example, Americans want lire to finance vacations in Italy, and Japanese businessmen need dollars to travel in the United States. Third, consider financial entities such as banks, private pension and government retirement funds, and money market mutual funds in one country, which seek to purchase financial assets (relatively high - yielding CDs and other money market instrument, bonds, and stocks) in another country. In addition, the Federal Reserve and U.S. Treasury often have occasion to conduct transactions in the foreign exchange market, as do corresponding agencies in other countries. II. C om prehension / in te rp re ta tio n 1. What is the foreign exchange market? 2. What were the total worldwide foreign exchange market transactions in 1996? 3. What are the most important financial centers in the world? 116





TP .Q UY

5. What does the foreign exchange market involve?

NH ƠN

4. Who are the direct participants in the foreign exchange market?

6. Why don’t foreign exchange dealers charge a commission? 7. Who are the ultimate participants in the foreign exchange market?

Language focus

NG

III.

ĐẠ O

8. What does CD stand for? Explain the meaning of CDs.

HƯ

1. G erunds a n d in fin itiv es

TR Ầ

N

The gerund is a noun formed from a verb by adding - ing •Use the gerund: - after verbs and expressions of liking and disliking:

B

hate, love, can't stand, enjoy, dislike

10

00

I hate working overtime at weekends.

A

- after certain verbs, such as: risk, avoid, mind

HÓ

Would you mind swapping your day off next week?

Í-

- as the subject or object of a sentence

-L

Smoking is bad for your health.

TO ÁN

- after prepositions, expressions and phrasal verbs which use prepositions:

ĐÀ N

Ju st after arriving at work she was given an important message.

DI Ễ

N

He gave up smoking last week.

I look forward to hearing from you.

2. a. Use the in fin itive w ith out to (base from o f the verb) 117





NH ƠN

- after modal verbs He can type fifty words a minute. - after make (someone) and let (someone)

TP .Q UY

She made him write the report again.

b. Use the fu ll infinitive (to + base form o f the verb) - to express a reason or purpose:

ĐẠ O

He rang to apologize for the late delivery.

NG

- after certain common verbs, such as: want, offer, manage, seem, forget, need, hope

HƯ

I hope to meet him at the next conference.

TR Ầ

N

- with the verb patterns with two objects, such as: persuade, order, permit, remind, force He persuaded him to place an order.

00

B

Use the correct form o f w ords in the brackets:

A

10

1. My boss expects me.................. (fulfill) this work as soon as possible.

Í-

HÓ

2. Do you mind........................... (travel) such a long way to work everyday?

-L

3. Do you enjoy........................... (play) tennis?

TO ÁN

4. She sent a letter........................ (request) payment. promised........................

(come)

on the

ĐÀ N

5. Mrs. Brown following day.

6..........................(Fish) is prohibited here.

DI Ễ

N

7. You can improve your English by..................... (do) a lot of reading.

8. If you w ant....................... "... (buy or sell) some stocks,, you can go to a Stock Exchange. 11«





NH ƠN

9....................... (Start) a. business you require capital.

IV. Word study F ill in the ga p s using the given words in the box below.

ĐẠ O

management,

is call

HƯ

1. In Britain the Chief Executive Officer (CEO) the.... ........................ Director.

NG

organization, managing, competition, organizational, competitor, economy, economic

TP .Q UY

10. A business must be profitable........................... (attract) investors.

N

2. The firm went bankrupt because of bad...........

TR Ầ

3. An.......................... chart shows the structure of the entire company.

10

00

B

4. I wonder how our main....................... will react to the new product.

HÓ

A

5. Speculation in stocks and shares is bad for the ........

TO ÁN

V. Vocabulary

-L

Í-

6. The............................. problems of developing countries are very hard to solve.

- Foreign exchange market: Thị trường ngoại hối (ngoại tệ)

N

ĐÀ N

International market in which foreign currencies are traded. It consists primarily of foreign exchange dealers employed by commercial banks (acting as principals) and foreign- exchange brokers (acting as intermediaries) York

DI Ễ

- New York Stock Exchange: sở giao dịch chứng khoán New 1 1n





NH ƠN

Main US stock exchange, situated on New York city’s Wall Street. Founded in 1972, it is an Unincorporated organization with over 1500 members.

TP .Q UY

- Foreign counterparts (n): Đồng sự, đốì tác nưỗc ngoài.

ĐẠ O

- Counterpart (n): Ngưòi đồng sự (cùng chức năng / chức vụ) person or thing like another or forming the complement or equivalent to another. - Federal Reserve: Cục dự trữ Liên bang

NG

- US Treasury: funds or revenue o f a state - Ngân khố Hoa Kỳ

HƯ

- Kho bạc, ngân quỹ, ngân khô'

N

- The Treasury (UK): Bộ Tài chính

TR Ầ

The UK Treasury is responsible for the country’s financial policies and management of the economy. i

10

00

B

- Currency (n): the money in circulation, legal tender (tien đang lưu hành, tiền chính thức)

HÓ

A

Importers and exporters must exchange their currency for the currency o f the country with which they are doing business.

TO ÁN

-L

Í-

- Over - the - counter market: (OTC market): market in which shares are traded outside (thị trường ngoài quầy, thị trường ngoài danh mục) - the jurisdition of a recognized Stock Exchange (quyền pháp

DI Ễ

N

ĐÀ N

định)

- escalate (v): increase or develop by successive stages (leo thang) - transaction (n): a business activity which involves the transfer of money, goods, and or services (sự giao dịch, công việc giao dịch) All business transactions must be recorded in the journal. 120





NH ƠN

- transfer (v): to convey or move from one place to another (chuyển tiền)

TP .Q UY

This financial information needs to be transferred to the ledgers. - correspondent bank: ngân hàng đại lý

- acquisition (n): thing acquired (vật, điều thu được, có được)

ĐẠ O

- deposit balance: số’dư tiền gửi

- a bid- to- ask price: giá hỏi mua và chào bán

NG

Bid price ị offer / asked price: giá hỏi mua -ệ giá chào bán

HƯ

- spread (n): difference: chênh lệch, mức chênh lệch giá

TR Ầ

N

- entity (n): a separate unit for ownership or legal purpose (thực thể pháp nhân: một đơn vị biệt lập để làm chủ hoặc có những mục đích pháp lý)

00

B

- CD: certificate of deposit: chứng chỉ tiền gửi

HÓ

A

10

A certificate issued by a bank in which the bank acknowledges that it holds the face o f the certificate; CDs are negotiable instruments.

Í-

- high - yielding CDs: chứng chỉ tiền gửi có lợi tức cao

TO ÁN

-L

- inventory (n): the amount of goods, merchandise or materials on hand (hàng hóa tồn kho: vật liệu có sẵn trong kho)

ĐÀ N

Once each year the owners of the store must record all their inventory in order to know which goods they have on hand.

DI Ễ

N

- financial (a): refers to money or the management o f money (liên quan đến tiền bạc - tài chính - hoặc việc quản lý tiền bạc) This company is in good financial condition

- commission(n): the money or fee which salesman receives from making a sale: tiền hoa .hồng 121




Unit 18 THE FOREIGN EXCHANGE MARKET

TP .Q UY

I. R e a d in g

NH ƠN


NG

ĐẠ O

The foreign exchange market enables banks and nternational corporations to trade foreign currencies in large imounts. Capital flows arising from trade in goods and services, nternational investment and loans together create this demand or foreign currency.

TR Ầ

N

HƯ

Foreign exchange trading is divided into spot and forward msiness. Generally speaking, spots transactions are undertaken or an actual exchange of currencies (delivery or settlement) two msiness days later (the value date).

HÓ

A

10

00

B

Forward transactions involve a delivery date further into the uture, possibly as far as a year or more ahead. By buying or selling in the forward market a bank can, on its own behalf or hat of a customer, protect the value of anticipated flows of foreign :urrency from exchange rate volatility.

ĐÀ N

TO ÁN

-L

Í-

Un'iike some financial markets, the foreign exchange market las not single location - it is not dealt across a trading floor, nstead, trading is via telephone, telex, and computer links ietween dealers in different centres and, indeed, different :ontinents. London is the world’s largest foreign exchange centre, ỉanks here trade almost $200 billion each day in foreign mrrencies.

DI Ễ

N

London’s trading position arises partly from the large volume of international financial business generated here nsurance, eurobonds, shipping, commodities and banking, -london also benefits from its geographical location, which enables IS to trade not only with Europe through - out the day but also 22





TP .Q UY

ĐẠ O

From 1 p.m. London Banks can trade with banks in New York: before they close at 5 p.m, their counterparts may be in Los Angeles or San Francisco. The foreign exchange market thus trades 24 hours a day.

NH ƠN

with the US and the Far East, whereas time difference makes it difficult for those two centres to trade with each other. When banks in London begin trading at 8 a.m. they can deal with banks in Tokyo, Hong Kong, Singapore whose trading day is just ending.

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

Broadly speaking, there are three types of participants in the market: customers, such as multinational corporations, are in the market because they require foreign currency in the course of their cross border trade or investment business. Some banks participates as market makers; that is their dealers will at all time quote buying and selling rates for currencies - dollars to the pound, deutschemarks to the dollar and so on. Other banks or corporations call them ask for their rates, and then buy or sell as the caller chooses. The market makers earn a profit on ithe difference between their buying and selling rates, but clearly they have to be ready to change their prices very quickly so that they avoid holding large volumes of a depreciating currency, or being short of a rising currency. The third type of participant, the brokers, act as intermediaries between the banks. They are specialist companies with the telephone lines to the banks throughout the world so that at any time they should know which bank has the highest bid (buying) rate for a currency and which the lowest offer (selling) rate. By calling a broker, therefore, it should be possible for banks to find the best dealing rate currently available. The broker doesn’t deal on his own account but charges a commission for his services.

DI Ễ

II. Comprehension / Interpretation 1. What is the foreign exchange market? !?•* Đóng góp PDF bởi Nguyễn Thanh Tú



2. How are foreign exchange dealings done?

NH ƠN


3. Where is the world’s biggest foreign exchange centre?

TP .Q UY

4. Which parts of the world can London deal with directly? 5. Is the world foreign exchange market on the go round the clock? 6. How many types of participants are there? Who are they?

ĐẠ O

7. Why do multinational corporations need foreign currency?

NG

8. When corporations / banks call the market makers? What do they want to know?

N

HƯ

9. Why do the dealers have to be ready to change their prices very quickly?

TR Ầ

10. What is the meaning of the “bid rate” for a currency? What is the opposite of the “bid rate”?

00

B

ill- Language focus

HÓ

A

10

3.1. Showing D irect Opposition: (Adverb Clause) “whereas and while” are used to show direct opposition, whereas and while may be used with the idea of either clause with no difference in meaning.

-L

Í-

Eg: Some people are fat, whereas others are thin.

DI Ễ

N

ĐÀ N

TO ÁN

Mary is rich, while John is poor.

3.2. Expressing Purpose: Using “so th a t”

“So th a t” expresses purpose. It express the same m eaning as “in order to”. The w ord “th a t” is often om itted especially in speaking.

Eg: a. I turn off the T.v in order to enable my roommate to study in peace and quiet.

b. I turn off the T.v so (that) my roommate could study peace and quiet. 124





NH ƠN

So th a t + can or could “so that” is often used instead of “in order to” when the idea of ability is being expressed.

TP .Q UY

“can” is used in the adverb clause for a present or future meaning. Eg: I’m going to cash a check so that I can buy my textbooks.

ĐẠ O

“could” is used after “so that” in past sentences.

NG

Eg: I cashed a check so that I could buy my textbooks.

HƯ

* Also possible but less common: the use o f “may or might” in place o f “can or could”.

TR Ầ

N

“so th a t” + Will / sim ple presen t or w ould eg: I’ll take my umbrella so that I won’t get wet.

00

B

I’ll take my umbrella so that I don’t get wet.

10

Yesterday I took my umbrella so that I wouldn’t get wet.

A

IV.Exercises

Í-

HÓ

4.1. Complete the follow ing sentences, using w hereas or while:

-L

1. Some people are tall, whereas..........

TO ÁN

2. Some people prefer to live in the country, while........ 3. While some people know only their native language,.........

ĐÀ N

4. Some people are extremely rich,......... 5. Some people like fat meat,..........

DI Ễ

N

4.2. Combine the ideas by using “so th a t”

1. saying.

Please be quiet. I want to be able to hear what Peter is





NH ƠN

2. I asked the children to be quiet. I wanted to be able to hear the president’s speech.

TP .Q UY

3. I’m going to cash a check. I want to make sure th at I will have enough money to go to the market.

ĐẠ O

4. Ann and Larry have a 6-year-old child. Tonight they’re going to hire a baby-sister. They want to be able to go out with some friends.

NG

5. I unplugged the phone. I didn’t want to be interrupted while I was working.

HƯ

V. Word study

N

Read the text carefully and then find words which haue the same meaning as the definitions below:

TR Ầ

Definition

Word in text

00

10

1. Makes it possible

B

From another country....................... Abroad

A

2. quantities

HÓ

3. resulting from

-L

5. world

Í-

4. need, desire, want

TO ÁN

5. for itself, for its own benefits 7. expected

ĐÀ N

8. selling rate 9. buying rate

DI Ễ

N

10. The intermediaries between banks

11. If Mr. Brown wants to sell his shares, what do we call the price he will be offered? Ỉ26




12. If Mr. Brown wants to buy some shares, what do we call the price he will be quoted?

TP .Q UY

A. The bid price B. The offer price c . The share value

ĐẠ O

D. The capital value VI.

NH ƠN


Vocabulary

NG

- exchange (n): giving one thing for another-, buôn bán, trao đổi, hôi đoái, phòng giao dịch

TR Ầ

- trade 1. (n): business of buying and selling

N

HƯ

- capital flow (n): movement o f money into and out of a business as goods are bought and sold: luồng vôn

B

2. (v): to buy and sell

10

00

- spot (n): immediate; the spot rate gives prices for immeĩỉiate delivery: ngay tức thì

A

- spot and forward business: kinh doanh tức thì và kỳ hạn

Í-

HÓ

- transaction (n): exchange o f goods or services for money. kinh doanh, giao dịch, trao đổi (mua - bán)

TO ÁN

-L

- anticipate (v): expect sth, see what is going to happen or what needs to be done: thây trưốc, đoàn trưốc, tính trưốc. - volatility (n): (of trading conditions, etc) likely to change suddenly or sharply: hay thay đổi, không ổn định, dễ đột biến

N

ĐÀ N

- a trading floor (n): sàn kinh doanh (công việc kinh doanh ngoại hối, chứng khoán được tiến hành ngay tại sàn của sỏ giao dịch)

DI Ễ

- deal 1. (n): a business agreement-, hiệp định, thỏa thuận 2. (n): amount: số lượng




NH ƠN


3.(v): to trade, buy and sell

TP .Q UY

- counterpart (n): person or thing that corresponds to or has the same function as sb or sth else: vật đôi chiếu, bản đối - quote (n): an estimate: bản dự kê giá, khảo giá (v): estimate the value ■cost: định giá

ĐẠ O

quota (n): fixed amount which is allowed: hạn ngạch, chỉ tiêu

NG

- depreciate (v): to reduce the value o f currency in the accounts over a certain time: sụt giá, mất giá của đồng tiền

HƯ

- rising currency (n): đồng tiền tăng giá

N

- bid (n): offer to buy sth at a certain price: định giá mua

TR Ầ

bidder (n): a person who makes an offer: người đấu giá / đấu thầu

10

00

B

- bròker (n): person who buys and sells shares / currency: người môi giới

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

- commission (n): payment to sb for selling goods which increases with the quantity of goods sold: tiền hoa hồng, tiền thù lao




Unit-19

TP .Q UY

FUNCTIONS OF THE STO CK EXCHANGE

NH ƠN


I. Reading

NG

ĐẠ O

To start a business you require capital. Perhaps you have enough money yourself - or you may borrow it. But if you are starting a large enterprise, you will need considerably greater sums than friends or relatives could possibly provide and in one way or another the extra capital must be found.

00

B

TR Ầ

N

HƯ

To meet this situation, the practice of forming Joint Stock Companies came into being - a system whereby a large number of people can, by buying the shares of a company, provide the capital for a business enterprise that is too large for an individual to support financially.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

But it is an essential of this system that those who own shares must be able to sell them whenever they wish to do so. No one can reasonably be expected to lock up money in a company forever and a company cannot give an investor his money back because it has been spent on buildings, machinery, materials, and so on. So the shareholder must be able to sell his shares to someone else who wants to buy them and to take his place as a shareholder in the company. The Stock Exchange has, ever since Joint Stock Enterprise first began, made this possible by providing a market place where sellers and buyers can be brought together to buy or sell their shares at fair prices which are determined by the free competition which exists in this open market. A company, when it wishes to issue shares th at can be freely bought or sold on the stock market, must apply for permission 129





NH ƠN

known as a "quotation" - and this is only granted if certain strict conditions are fulfilled.

TP .Q UY

The Stock Exchange, therefore, has two main functions: through its market men with ideas can find the capital they need to start new enterprises or to expand existing businesses and individuals are given the widest possible scope to invest their savings in securities which they can sell again when they choose.

ĐẠ O


1. What will you need if you want to start a business?

HƯ

NG

2. How can people provide the capital for a business enterprise? 3. What is the basic necessity of this system?

TR Ầ

N

4. What m ust a company do when it wants to issue shares that can be freely bought or sold on the stock market?

00

B

5. What are the two main functions of the Stock Exchange?

10

III. Language focus Expressing pu rpose

HÓ

A

° We use the to infinitive to express purpose, to say why we do things.

Í-

Example: We went to the airport to m eet Mr All.

TO ÁN

-L

o We can use in order + to infinitive or so as + to infinitive place of to infinitive. They are more formal. Example: The CEO called a press conference in order to exp la in the merger.

DI Ễ

N

ĐÀ N

° We can use the negative in order not + to infinitive or so as not + to infinitive. Example: Til call a taxi so as not to m iss my flight.

Exercise 1. Com plete thesề sentences w ith the infinitive o f pu rpose sta tin g the reasons why these th in gs were done: 130




NH ƠN


1. He went to the b a n k ............................................

3. He turned out the lig h t......................................... 4. To get a good seat, you n e ed ................................ 5. The company borrowed m oney............................

HƯ

8 .1 wrote it in my diary so as n o t...........................

NG

7................................. we'll fax all the information.

ĐẠ O

6. Paul wore a suit to his job interview so as .....

TP .Q UY

2. Laura has gone to tow n.......................................

N

9. They studied English in order............................

TR Ầ

10.1 went to the police sta tio n ...............................

A

10

00

B

E xercise 2. Fill in the following spaces, using can, could, be able to: I 1. At the end of the month the post office will send him an enormous telephone bill which h e ..................... pay.

-L

Í-

HÓ

2. When I was a child I .................................... understand adults, and now that I am an adult....................... understand children.

TO ÁN

3. The police were suspicious at first but I .................... convince them that we were innocent. 4 .1 am afraid I..................... come to your party next Friday.

ĐÀ N

5 . 1................................. sleep recently. IV.

Word study

DI Ễ

N

Exercise 1. Select the answ er which is m ost accurate according to the inform ation given in the passage: 1.......................... You need to start a business.





NH ƠN

a. money and equipment’s b. a sum of money

TP .Q UY

c. capital d. capital and funds

ĐẠ O

2. One of the main functions of the stock exchange is to gi individuals to invest their savings in securities. a. The greatest area

NG

b. The wide scope

HƯ

c. The large field

3 can be expected to lock up money in a company for ever.

TR Ầ

N

a. Everyone

00

B

b. Nobody 1 c. All stockholders

A

10

4. Those who own shares to sell them whenever they wish to do so.

HÓ

a. have the right

Í-

b. have an opportunity

TO ÁN

-L

c. have the power d. must be able

5. The shareholder must be able to sell his shares to someone else who wants to buy them and .

ĐÀ N

a. to be replaceable

DI Ễ

N

b. to take on a replacement c. to be in his place as a shareholder Exercise 2. Look a t the pa ssa g e above and say what words have the sam e meaning as: 132





NH ƠN

- agree to give - a sum of money used to start a business - to invest money

TP .Q UY

- completed - at reasonable prices

ĐẠ O

- necessary thing

Exercise 3. What words have the opposite m eaning to:

NG

- small

HƯ

- narrow

N

- decrease

TR Ầ

- loose

00

B

E x ercise 4. Look a t the p assag e a g a in a n d explain what the fo llow ing m ea n :

HÓ

A

- stock Exchange

10

- come into being

-L

Í-

V. Read the follow ing passage and translate it into V ietnam ese What is the Stock Exchange?

DI Ễ

N

ĐÀ N

TO ÁN

A market is a place where people meet to buy and sell. Most markets deal in goods that have a practical use and are sold by producers of those goods. The sellers have grown more corn, tomatoes, or rubber than they themselves require. The buyers need vegetables to eat, coal or oil to burn, or metals to supply their factories. In most markets, the producers, on the one hand, provide a steady supply of the goods traded, and the consumers, on the other hand, provide a steady demand, which keeps the producers and the market in business. 133





NH ƠN

The Stock Market deals with a different sort of commodity. The goods of sale, in themselves, have no intrinsic use or worth. Stock and share certificates merely represent value and are evidence of your stake in the company.

TP .Q UY

How can the Stock M arket operate to ensure th at there are always shares available to meet buyers' requirements, and buyers available to meet sellers' needs? How can there be a market at.all, when the public all want to buy or sell at the same time?

HƯ

NG

ĐẠ O

In Britain, this essential function used to be performed by a group of traders operating within the Market, who stood ready to buy or sell securities as principals at their own risk. The role played by these traders, the Jobbers, constituted a unique feature of the British Market.

10

00

B

TR Ầ

N

Since the computerization and reorganization of the London Stock Exchange, brokerage firms have been entrusted with the role of market makers: by standing ready to buy or sell securities, they provide the constant flow of business th at is needed to match supply and demand and thus ensure freedom of dealings.

A

VI. Vocabulary

TO ÁN

-L

Í-

HÓ

- stock exchange (n) a market where stocks and shares are bought and sold under fixed rules, but at prices controlled by supply and demand thị trường chứng khoán / sỏ giao dịch chứng khoán - considerably (adv) much nhiều / lớn, đáng kể - come into being to begin to exist ra đòi, hình thành

DI Ễ

N

ĐÀ N

- essential (n) a necessary basic element or thing nét độc đáo, nét cơ bản... - whenever (conj) at any time bất kỳ lúc nào - reasonably (adv) in a ỉogical and sensible way một cách hợp

lý 134

Đóng góp PDF bởiTNguyễn Thanh Tú




__฀/

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

- scope (n) the range or extent of matters being dealt with, studied lĩnh vực, phạm vi

TP .Q UY

- quotation (n) a statement of the current price of stocks “sự yet gian _ a 'j

NH ƠN

- lock up money in a company to invest money so that it cannot easily be converted into cash forever đầu tư dài hạn / vôn nằm mãi ỏ một công ty

135




NH ƠN


TAXATION I. Reading

TP .Q UY

Unit 20

NG

ĐẠ O

Most of the money to run the Government comes from taxes of all sorts -on personal and corporate incomes, on sales of goods, on imports and on inheritances. The ultimate source of all tax money is the same-people.

HÓ

A

10

00

B

TR Ầ

N

HƯ

The primary function of taxation is, of course, to raise revenue to finance government expenditure, but taxes can also have other purposes. Indirect excise duties, for example, can be designed to dissuade people from smoking, drinking aleohol, and so 0 *1 . Governments can also encourage capital investment by permitting various methods of accelerated depreciation accounting that allow companies to deduct more of the cost of investments from their profit, and consequently reduce their tax bills.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

There is always a lot of debate as to the fairness of tax system. Business profit, for example, are generally taxed twice: companies pay tax on their profits (corporation tax in Britain, income tax in the USA), and the shareholders pay income tax on dividends. Income taxes in most countries are progressive, and are one of the ways in which governments can redistribute wealth. The problem with progressive taxes is that the marginal rate- the tax people pay on any additional income-is always high, which is generally a disincentive to both working and investing. On the other hand, most sales taxes are slightly regressive, because poorer people need to spend a larger proportion of their income on consumption than the rich. 136





N

HƯ

NG

ĐẠ O

TP .Q UY

NH ƠN

The higher the tax rate, the more people are tempted to cheat, but there is a substantial ‘black’ or ‘underground’ economy nearly everywhere. In Italy, for example, self- employed people whose income is more difficult to control than that of company employees - account for more than half of national income. Lots of people also have undeclared part-time jobs (some people call this ‘moonlighting’) with small and medium - sized family firms, on which no one pays any tax or national insurance. At the end of 1996, the Director of the Italian National Institute of Statistics calculated the size of the underground economy, and added 16.7% to Italy’s gross national product (GNP) figure, and then claimed that Italy had overtaken Britain to become the world’s fifth largest economy.

-L

Í-

HÓ

A

10

00

B

TR Ầ

To reduce income tax liability, some employers give highpaid employees lots of ‘perks’ (short for perquisites) instead of taxable money, such as cars, free health insurance, and subsidized lunches. Legal ways of avoiding tax, such as these, are known as loopholes in tax laws. Life insurance policies, pension plans and other investments by which individuals can postpone the payment of tax, are known as tax shelters. Donations to charities that can be subtracted from the income on which tax is calculated are described as tax- deductible.

DI Ễ

N

ĐÀ N

TO ÁN

Companies have a variety of ways of avoiding tax on profits. They can bring forward capital expenditure (on new factories, machines, and so on) so that at the end of the year all the profits have been used up; this is known as making a tax loss. Multinational companies often set up their head offices in countries, where taxes are low; such countries are known as tax havens. Criminal organizations, meanwhile, tend to pass money through a series of companies in very complicated transactions in order to disguise its origin from tax inspectors - and the police; this is known as laundering money. 137






NH ƠN

According to the text, are the follow ing statem ents TRUE or FALSE ?

TP .Q UY

1. Taxes can be designed both to discourage and to encourage spending. 2. The same amount of money can be taxed more than once.

ĐẠ O

3. Progressive taxes may discourage people from working extra hours.

NG

4. Sales taxes are unfair because poor people spend more than rich.

N

HƯ

5. The Italian government knows th at about one seventh of national income escapes taxation

TR Ầ

6. ‘Loopholes’ are a common form of tax evasion.

00

B

7. If you pay a lot of your income into a pension fund or a life insurance policy you never have to pay tax on it.

HÓ

A

10

8. A company th at makes an unusually large profit during a tax year might quickly decide to spend it, for example, on a new factory or equipment.

Í-

III. Language focus THE PRESENT PARTICIPLE

-L

A. Form: The infinitive + ing Use:

TO ÁN

Bo

1. To form the continuous tenses:

ĐÀ N

The economy is growing.

Interesting people developing countries

DI Ễ

N

2. As adjectives

3. The present participles can sometimes replace relative clauses 138





NH ƠN

The girl talking to our Sales manager is his daughter. 4. It can also replace the construction: s + V

TP .Q UY

She sat in the garden reading a book. Taking a key out o f the pocket, John opened the door.

ĐẠ O

5. After verbs of sensation (see, hear, feel, sm ell, listen, watch...) I heard him making arrangement for his journey.

HƯ

They spent a lot o f money modernizing the factory.

NG

6. After go, come, spend., waste, be busy

7. After catch, fin d , leave

TR Ầ

N

The Marketing Manager left him talking to clients.

10

00

B

Exercise: Indicate if the follow ing sen ten ces are correct (C) or incorrect (I). If they are incorrect, correct them. ’

HÓ

A

1. We study the effect of the fall in the dollar’s value at the moment.

-L

Í-

2. The shift in relative wages will cause a shift of workers into the growing occupations.

TO ÁN

3. While lived in Burma last year, I learned many things about Burmese customs.

ĐÀ N

4. Lack the necessary qualifications, he was not considered for the job.

N

5. Driving to my grandparents’ house last night, we saw a young woman selling flowers.

DI Ễ

We stopped so th at we could get some flowers for my grandparents. 139





NH ƠN

6. We didn’t have much trouble finding a suitable office. 7. She has a PhD and an MBA so she’s certainly very well qualify.

TP .Q UY

8. In my opinion, the advantage of to have a credit card is that you can pay for things over the phone..

ĐẠ O

9. The latest economic statistics show th at both unemployment and inflation are falling and that the economy is growing at an annual rate of 7.6%.

Word study

N

IV.

HƯ

NG

10. You are wasting your time to try to persuade him: he’ll never help you.

TR Ầ

A .Find words in the text that m ean the following.

00

B

1. reducing the value of a fixed asset, by charging it against profits

10

2. something which discourages an action

HÓ

A

3. an adjective describing a tax that is proportionally higher for people with less money

Í-

4. spending money to buy things, rather than saving it

-L

5. working for yourself, being your own boss

DI Ễ

N

ĐÀ N

TO ÁN

6. a tax on incomes that pays for sickness benefit, unemployment benefit, and old-age pensions 7. non-financial benefits or advantages of a job 8. a way to delay the payment of tax to a later time 9. an adjective describing expenditure that can be taken away from taxable income or profits

10. a country offering very low tax rates to foreign businesses 140





NH ƠN

B. Which term s do the follow ing sentences define? 1. The tax people pay an. their wages and salaries is called B. income tax

TP .Q UY

A. capital transfer tax c. wealth tax

B. indirect tax

NG

A. direct tax

ĐẠ O

2. A tax on wages and salaries or on company profit is a / an

HƯ

c.value-added tax

TR Ầ

N

3. A tax levied at a higher rate on higher incomes is called a A. progressive tax

B. regressive tax

B

c. wealth tax

A

10

00

4 A tax paid on property, sales transactions, imports, and so on is a / a n ...............

HÓ

A. direct tax

B. indirect tax

Í-

c. value-added tax

TO ÁN

-L

5. A tax collected at each stage of production, excluding the already-taxed costs from previous stages, is called a / a n ............... A. added-value tax

B. sales tax

ĐÀ N

c. value-added tax

DI Ễ

N

6. Profits made by selling assets are generally liable to a

A. capital gains tax

B. capital transfer ta

c. wealth tax 14] Đóng góp PDF bởi Nguyễn Thanh Tú




NH ƠN

7. Gifts and inheritances over a certain value are often liable to a............................

B. capital transfer tax

TP .Q UY

A. capital gains tax c. wealth tax

A. added-value tax

B. capital gains tax

NG

c. wealth tax

ĐẠ O

8. The annual tax imposed on people’s fortunes is a / an

HƯ

9. Making false declarations to the tax authorities is called B. tax avoidance

N

A. fiscal policy

TR Ầ

c .tax evasion

10

A. creative accounting

00

B

10. Reducing the amount of tax you pay to a legal minimum called...............

HÓ

A

c .tax evasion

B. tax avoidance

Í-

V. Vocabulary

-L

- dissuade (v) ~sb (from sth / doing sth)

TO ÁN

to persuade or try to persuade sb not to do sth: ngăn cản, cản !, can gián

DI Ễ

N

ĐÀ N

- progressive tax: tax in which the rate o f tax increases with reases in the tax base thuế lũy tiến - disincentive (n) (to sth) a thing that discourages an action effort: điều làm nản lòng 1 hành động hoặc một sự cố gắng - regressive tax: tax levied at a rate that decreases as income "eases thuế lũy thoái




NH ƠN


- loophole (n) a way o f avoiding sth, esp. because the words of a law, contract,... are not clear or are badly chosen, kẽ hỏ - donation (n) a thing, esp. money that is donated vật, quà tặng, cúng

ĐẠ O

- disguise (v) - to hide something che giấu

TP .Q UY

- perk (perquisite) money or goods received in addition to salary tiền thù lao thêm

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

- to make sb / sth look or sound different from normal, to give sb / sth a false appearance: cải trang, trá hình




NH ƠN


Unit 21

TP .Q UY

INTRODUCTION TO CORPORATE TAXATION I. R eading

TR Ầ

N

HƯ

NG

ĐẠ O

A well - worn saying holds that nothing is certain but death and taxes. Unhappily, governments are often responsible for the former, and they are virtually always the source of the latter. Since the United States is the world’s largest capital market, we will focus on taxes levied on us citizens and corporations. Most of the specific tax rates and provisions applied in the first half of the 1980s. By far the most important taxes for investment decision making are personal and corporate income taxes.

00

B

1 CORPORATE INCOME TAX

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

In the US and most countries, the corporate form of organisation is the most important in terms of dollar value of assets owned, although many more firms are organised as partnerships or single proprietorships. Legally, a corporation is regarded as a separate entity, while partnerships are considered as extensions of their owners. Income earned through proprietorships and partnerships is taxed primarily through the personal tax levied on their owners. Income earned by a corporation may be taxed twice - once when it is earned via corporate income tax and again when it is received as dividends by holders of the firm’s securities, via personal income tax.





El

(.source: Sharp. Investment. Prentice HƠIKÌ978)

B

CORPORATE TAX RATES

TR Ầ

N

HƯ

NG

ĐẠ O

TP .Q UY

a _____

NH ƠN

Chart 21.1: M arginal and average corporate tax rates, 1983

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

The corporate income tax is relatively simple in one respect. There are usually only a few basic rates. For example, in 1983 there was a tax rate of 15 percent applicable to the first $25,000 of taxable income, a rate of 18 percent applicable to the next $25,000, a rate of 30 percent applicable to the next $25,000, 40 percent to the next $25,000 and finally a rate of 46 percent applicable to all income over $100,000. The result is shown in Chart 19.1 above - the top line shows the marginal rate, the bottom line shows the average tax rate. The marginal rate is more relevant for most decisions. For example, if a corporation were considering an investment that would increase its income from $65,000 to $70,000 each year, the increase in income would be (10.3) X $5,000. As the figure shows, the larger a corporation’s taxable income, the closer its average tax rate comes to the higher marginal rate. Overall, such corporations pay taxes equal to virtually the largest marginal rate (46 percent). 145





DEFINING INCOME

N

HƯ

NG

ĐẠ O

TP .Q UY

NH ƠN

For tax purposes, corporate income is defined as revenue minus expenses. The problems arise in measuring these two elements. The most dramatic instance of this difficulty concerns depreciation of assets. If a corporation buys a computer for $1 million, it is entitled to eventually charge off this cost as a deductible expense when computing taxable income. On 46 percent rate, this represents an eventual tax saving of $460,000. The sooner the cost can be written off, the greater the benefit to the company. For the purposes of reporting corporate income to the IRS, assets are grouped into four broad classes. Automobiles and research equipment are considered three - year property, most business equipment is considered five year property, buildings are usually considered as fifteen - year property.

Í-

HÓ

A

10

00

B

TR Ầ

Another vexing problem associated with the measurement of corporate income concerns the cost of inventory sold during the year. This arises when prices are changing fairly and rapidly and a company holds inventory for long periods. To take a fairly simple case, imagine a retailer of sailboats. At the start of the year he has 100 in stock, all purchased for $10,000 each. During the year he takes delivery of 100 more but must pay $11,000 each, ending with 90 in stock. The boats are sold for $15,000 each.

-L

What was his income?

ĐÀ N

TO ÁN

The question concerns the relevant cost of the 110 boats that were sold and of the 90 th at remain. The firm may have sold all the “old” boats first, or all the “new” boats, or a mixture of the two. An accountant may assume any of the above combinations without regards to the actual facts of the situation.

DI Ễ

N

The impact of different inventory valuation methods is illustrated in Chart 21.2. When prices have been rising, the LIFO method will permit a corporation to charge more to cost in the 1AA

Đóng góp PDF bởiT Nguyễn Thanh Tú


ĐẠ O

present and less in the future. This will lower taxes in the present and raise them in the future. However, before 1970 many companies used the FIFO method, suggesting th at in times of moderate inflation many managers were willing to sacrifice some real benefits to improve the appearance of their company’s financial statements. In all cases, investors should examine depreciation and inventory procedures carefully when assessing the profitability of a company.

NH ƠN


TP .Q UY


method

b. Cost by

method

c. Cost b y ___method

HƯ

a. Cost by

NG

C h a rt 21.2. The impact of different inventory valuation methods

[00 at $11,000 = $1,100,000

55 at $10,000 = 5550,000

10 at 11,000=

10 at 510,000= 100,000

55 at 11,000= 605,000

$1,200,000

$540,000

$450,000

Tax (at 46%)

-2,484,000

-207,000

Income after tax

$2,916,000

$243,000

00

Income

$1,155,000 5495,000 -277,70»

10

$267,300

90 at $10,000 = $900,000

45 at $10,000 45 at $11,000=

$945,000

Í-

$990,000

HÓ

A

Cost remaining inventory: 90 at SI 1,000=

TR Ầ

$1,110,000

B

110,000

N

100 at SI0,000 = $1,000,000

-L

Revenue: 110 boats at $15,000 = $1,650,000

TO ÁN

Source: Sharp, Investment, Prentice Hall (1978) II. C om p reh en sio n / In te rp r e ta tio n

ĐÀ N

1. What are the tax advantages of a single proprietorship / partnership versus a corporation?

N

2. In what senses is corporate income liable to double taxation?

DI Ễ

3. Why is the marginal rate of taxation most relevant for investment decisions?





how long does it take to depreciate a

NH ƠN

us,

4. In the photocopier?

TP .Q UY

5. Why do most companies nowadays operate the LIFO inventory method? III. L anguage focus 3.1.

E xpressing com parative relations

ĐẠ O


HƯ

NG

“The larger a corporation’s taxable income, the closer its average tax rate comes to the higher marginal rate”.

TR Ầ

N

“The sooner the cost can be written off, the greater the benefit to the company”.

00

C h art 21.3

B

Now study the four graphs in Chart 21.3 and write two sentềnces about each expressing a comparative relation:

10

Tim e

HÓ

A

2

Dem and

4 Probability

Trade deficit

3.2. M uch / m any / few / little Look at the following sentences taken from the Reading passage:

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

ROI

“Although many more firms are organized as partnerships...” “There are usually only a few basic rates...” 148





Much

many few little

fewer

NH ƠN

Now complete the sentences with one of the following words: less

TP .Q UY

1. ______ people realise how _______ tax they could avoid paying if they studied the tax laws. 2 . ______ people believe they pay to o_______ tax.

ĐẠ O

3. There is to o______ time and too_______problems to talk about irrelevant issues. 4. There isn’t ______ evidence to support these figures.

have clear plans for

N

6. Very ______ tax authorities corporation tax in the future.

HƯ

NG

5. You’ll pay m uch ______ tax in the Cayman Islands than most places.

TR Ầ

7. There are many ______ opportunities to avoid tax nowadays.

Word study

10

IV.

00

B

8. ______ companies operate the FIFO method nowadays.

HÓ

A

Complete the list below:

-L

to govern to provide

Í-

V erb

N oun

A djective

______________ ___________ _ ______________ ______________ ___

TO ÁN

______________ A decision

ĐÀ N

______________ ______________ considerable to a p p l y ______________________________

DI Ễ

N

______________ Depreciation to deduct ______________ ______________ to assess to sacrifice

______________ _____________ ______________ ______________

to profit

______________ ______________

___




V.


V ocabulary

NH ƠN

- well-worn (adj): over-used: cổ, cũ rích

- levy 1. (n) money collected by the authorities: tiền thuế thu 2.(v) to demand payment o f taxes and dues, levy sth / on sb: đánh thuế lên, thu thuế

TP .Q UY

được

ĐẠ O

- provision (n): money set aside in accounts for later use: tiền dự phòng, tiền dự trữ

NG

- tax (n) money charged by the government or an official body to pay for services: tiền thuế, thuế

HƯ

- corporate (adj): refering to the whole company

TR Ầ

N

- partnership (n): unregistered business where two or more people share risks and profits', hợp doanh (hai hoặc nhiều người cộng tác vói nhau)

00

B

- proprietorship (n): kinh doanh do 1 ngưòi độc quyền sỏ hữu

10

- via (prep): by way ofsth, through: qua

HÓ

A

- securities (n): investments in stocks and shares: chứng khoán

-L

Í-

- dividend (n): percentage of profits paid to share holders: cổ tức (phần lợi tức chia cho cổ đông)

TO ÁN

- one respect (n): một khía cạnh, một phương diện - rate (n): charge for service or work, or for loans: tỷ suất

ĐÀ N

- ratio (n): proportion o f something compared with another

DI Ễ

N

thing

- applicable (adj): thích hợp, có thể áp dụng được - marginal rate (n): tỷ suất tối hạn / mức cao nhất (trần)

- virtually (adv): hầu như, gần như





NH ƠN

- depreciation (n): sự sụt / giảm giá

- vexing problem (n): difficult problem that causes much discussion: vấn đề khó khăn - measure (n): action, step: hoạt động, bước (biện pháp) - take delivery of sth (v): nhận (hàng, cái gi đó)

ĐẠ O

- LIFO: Last in First out (inventory system): nhập sau, xuất

TP .Q UY

- an eventual tax (n): thuế tận thu

trước

HƯ

NG

- FIFO: First in First out (inventory system): vào trưóc, ra' trước (nhập trước, xuất trưổc) - ROI: return on investment: Thu nhập từ vôn đầu tư

TR Ầ

N

- write down (v): to enter an asset in the books at a lower value than before: giảm giá

00

B

- write off (v): to cancel I remove a debt from the accounts: xóa / hủy bỏ một món nợ »

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

- bad debt (n): debt which will not be paid: nợ không trả được, nợ xấu.

151




NH ƠN


Unit 22

TP .Q UY

CUSTOMS AND EXCISE CHARGES I. R e a d in g

Customs and excise charges take three forms as follow:

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

1. Customs duties, which are indirect taxes levied on imports at the point of entry. The rates are laid down in the EC Common Customs Tariff (CCT) and are standard throughout the community. Duties can be calculated in two ways by value or by unit measurement. They have been reduced progressively in the various GATT (the General Agreement on Tariffs and Trade) rounds. The full rate is now paid on imports from only a few developed countries, other countries being beneficiaries of a variety of preferential schemes. Goods can be relieved from duties in a number ways:

10

(a) Under EC free circulation rules.

HÓ

A

(b) Under outward and inward processing relief procedures.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

(c) Under the concession which, in certain circumstances, temporarily suspends duty on some goods which are not currently produced within the EC or are used in industrial research or for the handicapped. 2. Excise duties, which are also indirect taxes levied on specific products, both imported and domestically produced. The most important of these products, in terms of imports, are beers, wines, spirits, tobacco, perfume and hydrocarbon products. Excise duties are a replacement for and not in addition to tariff duties. Currently the EC member states have widely disparate excise duties and the European Court has ruled that these differentials have equivalent effect to quantitative restriction and are therefore 152





NH ƠN

illegal. In the meantime, goods subjects to excise duties are charged with these differentials when they cross member state borders.

TP .Q UY

3. A g ricu ltu re levies are charged which replace customs duties on products which are covered by the Common Agriculture Policy regime. They are adjusted annually and are highly complex.

Choose the best answ ers according to the text.

B

1.1

TR Ầ

II. Comprehension questions

N

HƯ

NG

ĐẠ O

From the government’s point of view, these three taxes have two advantages: they discourage import and provide revenue. The weakness is that they can rarely be levied at a rate which ensures a controlled reduction in import because of the wide range of prices at which the different exporting countries are able and willing to trade in the same product.

10

00

1. Customs duties - a kind of tax levied on imports - are...

HÓ

c. value-added tax

b. indirect tax

A

a. direct tax

Í-

2. Customs duties can be computed based on...

-L

a. value of imports

b. quantity of imports

TO ÁN

c. both a & b

3. The abbreviation “EC” in the first paragraph refers to:

ĐÀ N

a. European Community

b. European Countries

DI Ễ

N

c. European Court 4. The term “beneficiaries” in the first paragraph means:

a. countries who gain preferential schemes. b. countries who offer preferential schemes. 153





NH ƠN

c. neither a or b. 5. Excise duties are indirect taxes levied on... a. imports

b. exports

TP .Q UY

c. some special goods

8. Excise duties are.......... . among the EC members. b. a little different

ĐẠ O

a. not different c. much different

b. change every year,

HƯ

a. are very simple.

NG

7. Agriculture levies...

N

c. stay the same for years.

TR Ầ

8. The goal of imposing three kinds of taxes (customs duties, excise duties and agriculture taxes) is to...

00

B

a. limit import.

10

b. increase revenue for the Government’s budget.

HÓ

A

c. protect domestic goods.

L an g u ag e focus

-L

III.

Í-

d. all the answers above.

TO ÁN

Study the sentences from the text

ĐÀ N

1. Customs duties, which are indirect taxes levied on im ports a t th e p o in t o f entry.

DI Ễ

N

2. Excise duties, which are also indirect taxes levied on specific pro ducts, both im p o rted a n d do m estica lly produced. The words in bold in the aboye sentences are p a rtic ip ia l p h rase s - VecL 154





NH ƠN

Participial phrases:

The people who are m a k in g the real decisions are all at Head Office.

ĐẠ O

Food w hich is sold in su p erm a rkets needs a relatively long shelf-life.

TP .Q UY

* Relative clauses can have a continuous verb form (with an -ing ending) or a passive verb form (with an -ed ending).

HƯ

NG

* In this cases we can simplify the sentence by leaving out both the relative pronoun and the verb be. The phrases reduced from relative clauses are called participial phrases.

N

The people m a k in g the real decisions are all at Head Office.

10

00

B

participial phrases are derived from two sentences or with the same subject. Participial phrases contain no so the subject in these sentences is understood to be the the main clause nearest the participial phrase.

A

* Most clauses subject, noun in

TR Ầ

Food sold in su p erm a rkets needs a relatively long shelf-life.

HÓ

These are the technologies cla ssified as tra d itio n a l.

TO ÁN

-L

Í-

The law crea tin g an extension service was passed in 1898.___________________________________________________ Exercise for practice;

ĐÀ N

Put a continuous verb form (with an -ing ending) or a passive verb form (with an -ed ending) for the verbs in brackets.

N

1. The products........... . (attract) most interest were smaller, lighter models. door.

DI Ễ

2. There’s a lot of noise from the builders.............(work) next 1ss





NH ƠN

3. This is a new drug............ (develop) at our Cambridge laboratories.

TP .Q UY

4. I was talking to a man........... (go) to the same conference as us. 5. The ‘assets’ include everything.............. (own) by the company. (run) by

ĐẠ O

6. LVMH fought a battle with Gucci............ Domenico De Sole.

HƯ

NG

7. Tom took me to the restaurant........... (call) ‘Noodle Heaven’. 8. The train ............ (go) to Brussels leaves from here.

IV.

TR Ầ

N

9. This model............ (launch) last year is selling very well. Word study

10

00

B

4.1 Read the text again and answ er the followin questions:

HÓ

A

1. Look at the first paragraph again. What words have the same meaning as:

Í-

- Quantity of goods

-L

- Taxes rate

ĐÀ N

TO ÁN

2. Look at the second paragraph again. What words have the opposite meaning as: - Overseas - Simple

DI Ễ

N

3. Can you explain the following word: - Regime - EC free circulation rules 156





to goods trading

TP .Q UY

specified by of international including objectives reducing trade with

NH ƠN

4.2. Fill in the blank with a suitable word:

TR Ầ

N

HƯ

NG

ĐẠ O

The General Agreement of Tariffs and Trade (GATT), an (1)........... organization set up in 1947, had the (2)........... of encouraging international trade, (3)............ making tariffs the only form of protectionism, and of (4)............ these as much as possible. The most favored nation clause of the GATT agreement (5)........... that countries could not have favored (6)........... partners, but had to grant equally favored conditions (7)........... all trading partners. The final GATT agreement - (8)........... services, copyright, and investment, as well as trade in (9)........... - was signed in Marrakech in 1994, and the organization was superseded (10)........... the World Trade Organization.

00

B

V. V ocabulary

HÓ

A

10

- charge (n): the amount o f money that you have to pay for something, especially for an activity or service', phi.

Í-

- customs (n): the taxes that must be paid to the government on goods brought form other countries: hải quan.

-L

- customs charge / customs duty: phí / thuế hải quan.

ĐÀ N

TO ÁN

- excise charge / duty(n): a tax made by a government on some types of goods produced and used within their own country: thuế tiêu thụ đặc biệt.

DI Ễ

N

- tariff (n): a charge or list o f charges either for services or on goods entering a country: biểu thuế; thuế xuẩt nhậpkhẩu. - customs tariff: thuế quan, thúế suất nhập khẩu.

- preferential (adj): describes something you are given which is better than what other people receive: ưu đãi 157





NH ƠN

preferential tariff: biểu thuế ưu đãi. - GATT: General Agreement on Tariffs and Trade', hiệp định chung về thuế quan và mậu dịch.

TP .Q UY

- disparate (adj): (of two or more things) so different from each other that they cannot be compared or cannot work together, khác nhau

ĐẠ O

The five experiments gave quite disparateresults.

NG

fNam cuộc thí nghiệm đem lại những kết quả hoàn toàn khác hẳn nhau)

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

- regime (n): a particular government or a system or method of government or o f organizing in business: chế độ, cách thức quản trị, hệ thống (trong kinh doanh).

1s s Đóng góp PDF bởi Nguyễn Thanh Tú



NH ƠN


Unit 23

I. R e a d in g

NG

ĐẠ O

Customs plays a vital role in protecting Australia’s borders from the entry of illegal and harmful goods and unauthorized people. These crucial community protection roles are balanced with the need to ensure th at legitimate movement of people and goods across the border is not unnecessarily impeded.

TP .Q UY

AUSTRALIAN CUSTOMS SERVICE

TR Ầ

N

HƯ

Recent changes in the international environment required Australia to implement rapid responses at the border to protect our community. Outbreaks of infections disease, and the consequences of overseas terrorism, are examples of events that can change border priorities at short notice.

Í-

HÓ

A

10

00

B

Australia’s current level of border control and security is unprecedented. Customs is a world leader in the commitment of innovative, cutting-edge technology to border protection tasks, real-time satellite communication technology and container examination facilities work together with our world-renowned Detector Dog Unit to protect Australia’s borders.

N

ĐÀ N

TO ÁN

-L

Australian Customs continues to maintain close bilateral links with other border protection administrations around the world, as well as playing an active role in a number of multilateral and regional organizations. Our international activity assists in harmonizing and simplifying international customs procedures to facilitate global trade and travel, while providing for greater trade and travel, while providing for greater cooperation in protecting our community.

DI Ễ

Customs meets the challenge of balancing urgent Government priorities, while continuing deliver day-to-day 1i n





ĐẠ O

TP .Q UY

NH ƠN

business requirements, through a robust strategic and risk planning framework. Our regulatory philosophy recognizes that our interaction with clients represents a continuum that balances service, facilitation and enforcement activities. A stronger, more coordinated approach to risk identification and intelligence client focus resulted in development of a national compliance assurance strategy and an Integrated Cargo System. Customs underwent a major organizational restructure to realign our business processes and functions to meet future needs and the expectations of our stakeholders.

TR Ầ

N

HƯ

NG

Securing Australia is achieved through Customs use of innovation, technology, counter-terrorism activity; cooperation with the other international agencies; and the adaptability and flexibility of the organizations and its people in the face of challenges. The performance highlights outline briefly just some of the ineasures taken by Customs to protect our borders.

00

B

II. C om prehension / in te rp re ta tio n

HÓ

A

10

1. The role of Australian Customs is to protect their border from... a. illegal and harmful imports.

Í-

b. unauthorized immigration

-L

c. both a & b

ĐÀ N

TO ÁN

2. What is not the reason for Australia to implement rapid responses to protect their community? a. trend of free cross border trade b. outbreaks of infected diseases c. the consequences of overseas terrorism

DI Ễ

N

3. The word “unprecedented” in the 3rd paragraph refers to: a. having happened or existed before. b. have never happened or existed before. c. have been done or been known before. 160





a. harmonizing international customs procedures.

TP .Q UY

b. making international customs procedures simpler.

NH ƠN

4. Australian Customs’ international activity is aimed at...

c. providing for greater cooperation in protecting their country.

5. The tasks of Australia Customs are to...

NG

a. balance urgent government priorities.

ĐẠ O

d. all the answers above

HƯ

b. deliver day-to-day business requirements.

N

c. balance service, facilitation and enforcement activities.

TR Ầ

d. all the answers above

B

6. Securing Australia is achieved through customs use of...

10

00

a. innovation, technology, counter-terrorism.

A

b. cooperation with the other international agencies

Í-

HÓ

c. the adaptability and flexibility of the organization and its people in the face of challenges.

TO ÁN

-L

d. all the above. III.

L anguage focus -ing form after prepositions.

• We use -ing form after prepositions.

DI Ễ

N

ĐÀ N

Please switch off the lights before leaving. She succeeded in the business by being completely single. We never launch a new product witnout doing extensive minded. market research. Our international activity assists in harmonizing... After washing the fruit, we sort it according to size and put it into b o i ^ ^ e providing for greater trade and travel. 161





in

against

by

in addition to

as a result of

by means of

in favour of

as well as

despite

in spite of

because of

for

instead of

before

how about

NH ƠN

beside

TP .Q UY

after

ĐẠ O

We can use - ing form after th ese prepositions

on

NG

while

HƯ

Exercise:

TR Ầ

N

Complete each sentences by choosing a preposition from list A followed by an -ing from list B.

00

B

A: after, without, by, in spite of, after, of, before, instead of, how about, in

HÓ

A

10

B: leaving, taking over, going, having, increasing, building, landing, coming, being.

-L

Í-

1...................................... leaving university I worked in IT recruitment for a while.

TO ÁN

2. I still feel tired ....................................... slept eight hours. 3 Manchester.

a Heathrow, we had to go to

5.......................................... round this evening?

DI Ễ

N

ĐÀ N

4. The new drug was put on the m a rk e t....................... .......... approved by the government.

6............................................ a new motor way, they attracted new industry to the area. 162





NH ƠN

7. I was aware ................................... very nervous at the start of my presentation.

9. The Fed is hoping to ................................................ interest rates.

reduce

inflation

ĐẠ O

10.....................................on, I’d just like to book at this graph in a little more detail.

TP .Q UY

8. Vodafone g rew .......................................................................... .......local operators.

IV. Word study

HƯ

NG

From the words listed below, select a work to fit each blank space in the passage progress

protection

aids

considerable

promoting

basic

permits

trade

collection

illegal

system

B

TR Ầ

N

institution

TO ÁN

-L

Í-

HÓ

A

10

00

t Customs is recognized as a critical (1) ...................... to good governance, prosperity and the (2) ........................ of society. The World Customs Organization (WCO) (3) ................ the national economic wealth and social protection of its Members by (4) ......................... an honest, transparent and predictable Customs environment. This (5) ................... legitimate international (6) ................... to flourish and effective action to be taken against (7) ..........activity.

DI Ễ

N

ĐÀ N

For many years, the wco has been making (8) ............ on the harmonization of international Customs procedures. These efforts have met with (9 )..... .........success. The wco developed and introduced the Harmonized Commodity Description and Coding (10)............., which is used world-wide as the (11) ............... for classifying goods and for the (12) .................. of Customs revenue.





Vocabulary

NH ƠN

V.

TP .Q UY

- protect (v): to keep someone or something safe from harm, damage or illness bảo vệ - unauthorized (adj): without official approval or permission không được phép, trái phép - legitimate (adj): acceptable or allowed by law hợp pháp

ĐẠ O

- impede (v): to make it difficult for someone or something to move forward làm trở ngại

NG

- outbreak (n): it suddenly starts to happen Sự bột phát

N

HƯ

- priority (n): the most important thing that needs attention before anything else Ưu tiên

TR Ầ

After several burglaries in this area, security is now a high priority.

00

B

* - innovative (adj): an idea or way of doing something is ne different, and better than those that existed before. Làm thay đổi

HÓ

A

10

- facilities (plural N): opportunity or equipment for doing something easily and well: Điều kiện thuận lợi, phương tiện dễ dàng

DI Ễ

renowned author / actor / photographer... He is a renowned as a brilliant speaker. - Detector Dog Unit: Đội chó nghiệp vụ

- security (n): protection from danger or from bad situation-. an toàn, an ninh

N

ĐÀ N

TO ÁN

-L

Í-

- renowned (adj) = famous for, known and admired by a lot of people, especially for a special skill, achievement or quality.

- bilateral (adj): involving two groups or nations: song phương - multilateral (adj): involving several different countries or groups: đa phương 164





NH ƠN

- robust (adj): a robust system or organization is strong and not likely to have problems. cứng rắn, nghiêm minh, trôi chảy

TP .Q UY

- continuum (n) a scale o f related things on which each one is only slightly different from the one before: chuỗi, liên tục things having a continuous structure: bảng biến thiên

ĐẠ O

- compliance (n) = someone obeys a rule, agreement or demand.

NG

compliance with the rules is expected o f all members.

HƯ

He is a renowned as a brilliant speaker.

N

- Integrated Cargo System: Hệ thống hàng hóa hợp nhất.

10

00

B

TR Ầ

- stakeholder (v) someone who has invested money into something or who has some important connections with it and therefore is affected by its success or failure, người giữ tiền đặt cược / doanh nghiệp.

HÓ

A

- undẹrgo (v): to experience sth, especially a change or sth unpleasant: trải qua

Í-

The country has undergone massive changes recently.

TO ÁN

-L

- agencies (n): an organization or department, especially within a government, that does a specific job: Cục, sở A UN agency is responsible for helping refugees.

ĐÀ N

- enforcement (n) when people are made to obey a rule, law: thi hành nghiêm nghặt

DI Ễ

N

- realign (v) to change the way in which something is organized: chỉnh đốn, sắp xếp lại The company is planning to realign its sales operations.




NH ƠN


Unit 24

TP .Q UY

INSURANCE I. Reading

HƯ

NG

ĐẠ O

Throughout human history, unexpected economic losses have occurred. Such losses would continue to occur whether or not a system of insurance had ever been devised. But through the operation of insurance system, losses can be predicted in advance, it allows the cost of losses to be financed and redistributed in advance.

00

B

TR Ầ

N

The first definition of insurance th at we will examine is the finance one. In this instance, insurance is a financial arrangement that redistributes the costs of unexpected losses. The insurance arrangement involves the transfer of many different exposures to loss to one insurance pool, which combines the numerous

10

exposures.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

An insurance system accomplishes the redistribution of the costs of losses by collecting a premium payment from every participant in the system. In exchange for the payment of the premium, the insured receives a promise from the insurance system to be compensated in the event of a loss. In most insurance systems only a small percentage of those insured suffer losses. Thus, an insurance system redistributes the costs of losses from the unfortunate few members who experience them to all the members of the insurance pool (including those who suffer losses) who have paid premiums. An insurance system is able to operate because all the insured are willing to substitute a relatively small certain outlay, the insurance premium, for a relatively large uncertain loss. ifiiS




ĐẠ O

TP .Q UY

It is generally assumed that most people find the possibility of suffering a large loss unpleasant to contemplate. Therefore, people are willing to pay an insurance premium to be relieved of the uncertainty about a loss, as well as to be compensated if the loss actually occurs. Thus, even if no loss occurs during a year, as will be the case for most insured, value has still been received in the form of an eliminated unpleasant mental state, the anxiety about a loss.

NH ƠN


II. Com prehension / interpretation

TR Ầ

N

HƯ

NG

It is sometimes said that insurance is like gambling. The law however has found a mean of distinguishing between gambling contracts, which it will not enforce, and insurance contracts, which it will. Contracts of insurance form a special class of contract in that the law requires parties to them, the insured and the insurer, to exercise the utmost goods faith towards each other.

A

10

00

B

1. In what way, losses can be predicted before they occur? * 2. Why the predictability of losses in advance is basic to an insurance system’s operations?

HÓ

3. What is insurance in financial definition?

-L

Í-

4. What does the insurance agreement involve? system

accomplish

the

TO ÁN

5. How can an insurance redistribution of the costs of loses?

6. What does the insured receive when a loss occur?

ĐÀ N

7. Why are people willing to pay an insurance premium? 8. Is insurance like gambling? Why?

DI Ễ

N

9. What do you know about contracts of insurance? III. Language focus: Use the - ing form (gerund) after prepositions 167 Đóng góp PDF bởi Nguyễn Thanh Tú




NH ƠN

We use the - ing form after prepositions. Example: - She became successful by providing the right product at the right price.

TP .Q UY

Exercise 1: Rewrite the following sentences, using the - ing form of the verb in italic and the prepositions in brackets. 1. He left the office. He did not speak to his boss, (without)

ĐẠ O

2. We will not offer them a discount. We will give them better credit terms, (instead of)

HƯ

NG

3. We managed to expand. We didn’t increase our debts, (without)

TR Ầ

N

4. He worked in industry for many years. Then she joined the government, (before)

00

B

The company made 700 workers redundant. That is how it became more profitable, (by)

A

10

Exercise 2: Complete the following sentences by putting the suitable verbs in italic into the gerund.

HÓ

examine, fall, advertise, start, order, make

Í-

1. Before.... anything, first get the different quotations.

TO ÁN

-L

2. Nobody is really responsible for....decisions on.... I wish it wasn’t such a gray area.

DI Ễ

N

ĐÀ N

3. After.... throughout the morning stock prices gained ground steadily by the close of trading.

4. It’s necessary before.... a business to raise sufficient capital. 5. By..... the balance sheet and other documents we ware able to find out that the company was not doing as well as they claimed. 168




Word study

NH ƠN

IV.


E xercisel. Choose the -best answ ers to complete the following sentences.

a. life

TP .Q UY

1. Insurance companies can be considered as professional .......... takers. b. risk d. misfortune

ĐẠ O

c. chance

b. branch

c. rank

d. standard

HƯ

a. selection

NG

2. My insurance company offers a wide.................of coverage.

TR Ầ

N

3. His insurance company has told him not to admit......... even though it was clearly his fault. b. likelihood

c. liability

d. crime

10

00

B

a. legality

HÓ

A

4. N atural........... insurance is obligatory in areas prone to flood, earthquakes, and hurricanes. b. chaos

Í-

a. damage

-L

c. catastrophe

d. disaster

TO ÁN

5. Make sure all this equipment is insured............accidental damage.

ĐÀ N

a. over

c. with

b. against d. from

DI Ễ

N

E xercise 2: From the list below, select the w ord th a t best fits each blank. Use each w ord only once.

between market

claim, medical premium

relationship

factors 169





over price loss original insure policies life

NH ƠN

1. A man or woman obviously has an interest in his or her own.......... and can therefore.......... it and also the life of a husband or wife.

TP .Q UY

2. There are many......... th at provide the basis for an insurable interest.

ĐẠ O

3. Government tax policies will affect cost of private......... insurance.

NG

4. Many insurance companies will only pay you th e..........cost of the items for which you make a.......

HƯ

5................ can change significantly from month to month, year to year o r ..........companies.

B

TR Ầ

N

6. The easiest way to build up .........share is to offer low premiums, even if th at means making a ......... for the first few years.

10

00

7. If insurers want to avoid a ..........war, they may start trying to compete on o th e r.....

HÓ

A

8. Direct insurers are those which sell only their own ........... , and only directly to the consum ers......... the telephone.

-L

Í-

Vo Vocabulary

TO ÁN

- accomplish(v): to succeed in doing or completing sth / to achieve: hoàn thành - compensate(v): bồi thường

ĐÀ N

- economic losses(n): những tổn thất về kinh tế

DI Ễ

N

- experience(v): to have a particular situation after you or happen to you: trải qua, nếm mùi - exposure(n): nguy cơ, sự rủi ro. - occur(v): to happen: xảy ra





- devise(v): to invent sth new or a new way o f doing sth\ tạo ra

TP .Q UY

- the predictability of losses in advance: khả năng dự doán trước các tổn thất

NH ƠN

Something unexpected occurred.

- cost of unexpected losses: chi phí cho các tổn tha't ngoài dự kiến

ĐẠ O

- premium payment / payment of premium: thanh toán / trả phí bảo hiểm

HƯ

- insurance pool / insurance fund(n): quĩ bảo hiểm

NG

- the insured(n): người mua bảo hiểm

TR Ầ

N

- participant(n): a person who is taking part in an activity or event: - to be willing to do sth: ready to undertake: sẵn lòng, sẵn

B

sàng

00

They are willing to accept responsibility.

*

HÓ

A

10

- contemplate (v): to thing about whether you should do sth or how you should do sth: suy ngẫm

Í-

He contemplated what the future would be like without money.

-L

- eliminate(v): to remove to get rid ofsth / sb: loại bỏ

TO ÁN

Credit cards eliminate the need to carry a lot o f cash. - mental state: trạng thái tinh thần

DI Ễ

N

ĐÀ N

anxiety: sự lo lắng

171




Unit 25

TP .Q UY

WHAT IS ACCOUNTING?

NH ƠN


I. R e a d in g

N

HƯ

NG

ĐẠ O

Some people think of accounting as a highly technical field which is practiced only professional accountants. Actually, nearly everyone practices “accounting” in one form or another on an almost daily basis. Accounting is simply the means by which we measure and describe the results o f economic activities. Whether you are managing a business, making investments, preparing your income tax return, or just paying your phone bill, you are working with accounting concepts and accounting information.

A

10

00

B

TR Ầ

Accounting often is called the “language of business” because it is so widely used in describing all types of business activities. Every investor, the manager, and business decision maker needs a clear understanding of accounting terms and concepts if he or she is to participate and communicate effectively in the business community.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

But the use of accounting information is not limited to the business world. We live in an era of accountability. An individual must account for his or her income and m ust file income tax returns. Often an individual must supply personal accounting information in order to qualify for a loan, to obtain a credit card, or to qualify for a college scholarship. The federal government, the states, the cities, and the school districts all use accounting information as the basis for controlling their resources and measuring their accomplishments. Accounting is just as important to the successful operation of a government, a social program, or a church as it is to a business organization. The study of accounting should not be limited to students majoring in accounting or finance. Everyone who engages in 172





NH ƠN

economic activity- which means everyone- will benefit from understanding the nature, significance, and limitations of accounting information.

TP .Q UY

The Purpose o f Accounting

NG

A ccounting from a User's Perspective

ĐẠ O

The basic purpose of accounting is to provide decision makers with information useful in making economic decisions. The input to the accounting process is economic activity; the output is useful information.

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

Our primary goals in this text are to develop your understanding of accounting information and your ability to use it effectively. The diagram below illustrates the role of accounting in society.

ĐÀ N

In order to use accounting information effectively, you must understand: described in

DI Ễ

N

- The nature o f the economic activities accounting reports.

- The assumptions and measurement techniques involved in the accounting process. 173




How to relate the accounting information to the decision at

NH ƠN

hand.


Types o f A cco u ntin g In fo rm a tio n

ĐẠ O

TP .Q UY

Just as there are m any types o f econom ic decisions, there are many types o f accounting inform ation. The terms fin an cial accounting, m anagem ent accounting, and tax accounting often are used in describing the types of accounting inform ation m ost w idely in the business community.

10

00

B

TR Ầ

N

HƯ

NG

Financial Accounting - "General - Purpose": Information Financial accounting refers to information describing the financial resources, obligations, and activities of an economic entity (either an organization or an individual). Accountants use the term financial position to describe an entity’s financial resources and obligations at one point in time, and the term results of operations to describe its financial activities during the year.

TO ÁN

-L

Í-

HÓ

A

Financial accounting information is designed primarily to assist investors and creditors in deciding where to place their scarce investment resources. Such decisions are important to society, as they determine which companies and industries will receive the financial resource necessary for growth, and which will not.

DI Ễ

N

ĐÀ N

However, many other decision makers also make use financial accounting information. A company’s managers and amployees constantly need such information in order to run and control daily business operations. For example, they need to know ;he amount of money in the company’s bank accounts, the types ind quantities of merchandise in the company’s warehouse, and ;he amounts owed to specific creditors. Financial accounting nformation also is used in income tax returns. In fact, financial 174





TP .Q UY

NG

ĐẠ O

Management Accounting: Management (or managerial) accounting involves the development and interpretation of accounting information intended specifically to aid management in running the business. Managers use this information in setting the company’s overall goals, evaluating the performance of departments and individuals, deciding whether to introduce a new line of products- and in making virtually all types of managerial decisions.

NH ƠN

accounting information is used for so many different purposes that it often is called “general- purpose” accounting information.

B

TR Ầ

N

HƯ

Much “management accounting” information is financial in nature, but has been organized in a manner relating directly to the decision at hand. However, management accounting information often includes evaluations of “nonfinancial” factors, such as political and environmental considerations, product quality, customer satisfaction, and worker productivity.

Í-

HÓ

A

10

00

Tax Accounting: The preparation of income tax returns IS a specialized field within accounting. To a great extent, tax returns are based upon financial accounting information. However, the information is often adjusted or reorganized to conform with income tax reporting requirements.

ĐÀ N

TO ÁN

-L

The most challenging aspect of tax accounting is not the preparation of an income tax return, but tax planning. Tax planning means anticipating the “tax effects” of business transactions and structuring these transactions in a manner that will minimize the income tax burden. II. Comprehension / interpretation

N

1. What is accounting?

DI Ễ

2. What is the basic purpose of accounting? 3. What are the types of accounting information?





NH ƠN

4. What does Financial Accounting refer to? 5. What does Management Accounting involve in? III.

Language focus

must, have to, do not have to

TP .Q UY

6. What is Tax Accounting?

We use have to and must to express obligation or necessity.

ĐẠ O

• Use have to

- to talk about duties or responsibilities.

HƯ

NG

I have to check the mail in the morning and welcome visitors to the office.

N

- to indicate an absence of obligation or necessity

TR Ầ

I don't have to pay the invoice until next month. - ỉịave to behaves as a full verb

00

B

He has to stay late today.

10

You’ll have to do it again.

A

• Use must

HÓ

- for order we give to ourselves

Í-

I / We must pay these bills straight away.

TO ÁN

-L

- for strong commendations

You must get the new model; It’s so much faster.

ĐÀ N

Remember: There is no past or future from of must, so use have to. He must send it. He had to send it. He’ll have to send it.

DI Ễ

N

- to prohibit something You mustn't interrupt her while she’s on the phone. Complete these sentences w ith m u st or have to (in its correct form )





1. I’m sorry I couldn’t come yesterday. I

NH ƠN

work late.

2. Tom may........................ gcfaway next week. 3. The government really, about unemployment.

TP .Q UY

4. I.....

do something

write to Ann. I haven’t written to her for ages.

..................... forget what I told you. It’s very

ĐẠ O

5. You important.

N

IV. Word study

tell anyone

HƯ

7. I don’t want anyone to know. You what I said.

NG

wear a suit to work but I usually do.

6. I.....

TR Ầ

Complete the gaps with one of the words from this box employment,

quotas,

competition,

10

00

B

dumping, competitive, employ, unemployment

A

1. People are worried about the rise in........................... has

provided

opportunities

of

Í-

HÓ

2. The new factory ..................... for local people.

TO ÁN

-L

3. Government.....................limit the import of luxury cars to just 200 each year. 4. We can’t compete with their prices; be.....................their goods to put us out of business.

they

must

ĐÀ N

5. Our prices are no longer........................; we have to cut costs somehow.

DI Ễ

N

V. Vocabulary

- accounting (n) (Am. E): accountancy (n): work as an account: nghề kế toán, công việc kế toán - financial accounting: kế toán tài chính


177




NH ƠN

- management accounting = managerial accounting: kế toán quản trị

TP .Q UY

Management accounting applies to the decision need of managers, as oppose to the decision need o f investors and creditors. - tax accounting: kế toán thuế

- obligation: constraining power of a law, duty, contract, etc: trách nhiệm, nghĩa vụ pháp lý.

ĐẠ O

- entity (n): thing’s existence in itself-, sự tồn tại của một vật

NG

Thing with real existence: thực thể

N

HƯ

- community (n): group of people living in the same local or having same religion: cộng đồng nhóm người sông cùng một khu vực hoặc có chung tôn giáo chủng tộc, v.v...

TR Ầ

- economic community: cộng đồng kinh tế

B

- tax return: giấy khai th uế

00

income tax return: giấy khai thuế thu nhập

A

10

Statements o f any capital gains, inheritances, etc. are also required in the return.

Í-

HÓ

- tax burden: amount of tax suffered by an individual or organization'. gánh nặng thuế khoá

-L

- scholarship (n): award, o f money học bổng

TO ÁN

- accomplishment (n): sự hoàn thành tốt đẹp accomplish (v): One’s aim, a task:

ĐÀ N

- perspective (n): Viễn cảnh perspective (a): có tỉ lệ

DI Ễ

N

- conform (v): (cause to) fit, suitable with: làm cho phù hợp, thích hợp, thích ứng - anticipate (v): deal with or use before due time: xử lý trước, dùng trưốc hạn kì 17Q




NH ƠN


U nit 26

TP .Q UY

FINANCIAL STATEMENTS I. R e a d in g

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

All businesses need to maintain financial records in order to find out if they are making a profit. These records exist in several forms. In daily business operations recordings of business transactions are first made in a journal. This journal is sometimes called the book of original entry. In the journal, bookkeepers record sales, uses of raw materials, and purchases. Periodically, bookkeepers transfer figures from the journals to ledgers. This activity is known as posting. The ledger is a book containing all the accounts of a company. An account is a financial record which contains information about a group of similar transactions. For example, all sales activities are recorded in one account. Another account may be a record of all the costs of raw materials.

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

Nowadays, a more sophisticated system of accounting is needed. The design, maintenance, and interpretation of the formation recorded in account are referred to as accounting. Accountants use information in account to construct financial statements. These statements are analyzed by management and used as a basis for business decisions such as allocation of financial resources, development of new products, and expansion of operations. The most important of these financial statements are the balance sheet and the statem ent of income and expenses. These statements are also used for determining income taxes liabilities.

DI Ễ

Companies generally include three financial statements in their annual reports. The profit and loss account (GB) or income statement (US) shows earning and expenditure. It usually gives





TP .Q UY

NH ƠN

figures for total sales or turnover and costs and overhead. The first figure should obviously be higher than the second, i.e. there should be a profit. Part of the profit goes to the government in taxation; part is usually distributed to shareholders (stockholders) as dividend, and part is retained by the company.

TR Ầ

N

HƯ

NG

ĐẠ O

The balance sheet shows a company’s financial situation on a particular date, generally the last day of the financial year. It lists the company’s assets, its liabilities and shareholders’ (stockholders’) funds. A business’s assets include debtors or accounts receivable as it is assumed that these will be paid. Liabilities include creditors or accounts payable, as these will have to be paid. Negative items on financial statements, such as creditors, taxation, and dividends paid, are usually enclosed in brackets.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

In accordance with the principle of double-entry bookkeeping (that all transactions are entered as a credit in one account and as a debit in another), the basic accounting equation is Assets = Liabilities + Owners’ (or Shareholders’) Equity. This can be rewritten as Assets - Liabilities = Owners’ Equity or Net Assets. This includes share capital (money received from the issue of shares), share premium (GB) or paid- in surplus (US) (any money realized by selling shares at above their nominal value), and the company’s reserves, including the year’s retained profits. Shareholders’ equity or net assets are generally less than a company’s market capitalization (the total value of its shares at any given moment, i.e. the number of shares times their market price), because net assets do not record items such as good will. The third financial statement has various names, including the source and application of funds statement, and the statement of changes in financial position. This shows the flow of cash in and out of the business between balance sheet dates. Sources of funds include trading profits, depreciation provisions, sales of assets, 180






TP .Q UY

NH ƠN

borrowing, and the issuing of shares. Applications of fun include purchases of fixed assets or financial assets, payment dividends, repayment of loans, and- in a bad year- trading losses

1. Why do businesses need financial statements? 2. What are financial statements used for?

ĐẠ O

3. How profits are usually split?

NG

4. How many financial statements do companies include their annual report?

HƯ

5. What does the profit and loss account show?

N

6. What does the balance sheet show?

TR Ầ

7. What do a business’s assets include?

B

8. What do liabilities include?

10

00

9. What do a company’s net assets consist of?

HÓ

A

10. Where is flow of cash both in and out of the compa recorded?

Í-

III. Language focus: Infinitive of purpose

-L

To + infinitive can be used to explain why we do something

TO ÁN

In order to + infinitive and so as to + infinitive are also us to express purpose but they are more formal than to + infinitive. Example: - 1 went to the warehouse to get some more stock

DI Ễ

N

ĐÀ N

- You should book your tickets early in order to avc disappointment. - She put the letter in her bag so as not to lose it. Exercise 1.Complete the sentences, using the words in italii attract, reduce, prevent, increase, demand





NH ƠN

1. I am writing..... you of our change of address. 2. It is likely that the union will go on strike..... a pay rise.

4. We have cut the 0%.......... more customers.

price

out

of our

TP .Q UY

3. We will have to employ more factory workers..... reduction. products

by

ĐẠ O

5. The government may soon raise interest rates........ iflation growing.

NG

IV. Word study

HƯ

Exercise 1: Match up these words or phrases with the .efinitions below.

00

B

TR Ầ

N

a- assets b- depreciation c- liabilities d- turnover ereditors (GB) or accounts payable (US) f- debtors (GB) or iccounts receivable (US) g- overheads (GB) or overhead (US) hevenue or earnings or income 1- stock (GB) or

A

10

i- shareholders (GB) or stockholders (US) nventory (US)

HÓ

1. a company’s owners

Í-

2. all the money received by a company during a given period

TO ÁN

-L

3. all the money th at a company will have to pay to someone ỉlse in the future including taxes, debts, and interest and mortgage payments

ĐÀ N

4. the amount of business done by a company over a year

DI Ễ

N

5. anything owned by a business (cash investments, buildings, machines, and so on) th at can be used to produce goods or pay liabilities 6. the reduction in value of a fixed asset during the year it is in use (charged against profits)





9. (the value of) raw materials, work in progress, and finished products stored ready for sale.

ĐẠ O

10. The various expenses of operating a business that can not be charged to any one product, process or department

TP .Q UY

8. sum of money owed to suppliers for purchases made 0 X1 credit

NH ƠN

7. sum of money owed by customers for goods or services purchased on credit

NG

Exercise 2: Choose the best answers.

c. Posted in the ledger

b. Balanced

TR Ầ

a. Entered in the journal

N

HƯ

1. Financial information is regularly transferred from the journal to a book containing all the accounts. This means th at the figures are:

d. Considered as assets. difference between

10

00

B

2. The best way to explain the bookkeeping and accounting is:

HÓ

A

a. Bookkeeping is done by a bookkeeper, but accounting must be done by an accountant.

-L

Í-

b. Bookkeeping is the daily recording of financial information, but accounting is the design and maintenance of the bookkeeping system.

TO ÁN

c. Bookkeeping is done in the journal, but accounting is done in the ledger.

ĐÀ N

d. Bookkeeping is more sophisticated than accounting.

DI Ễ

N

3. An accountant can interpret the information found in the ledger and use it to construct financial statements. This means an accountant can. a. Make financial decisions for the company. 183





NH ƠN

b. Allocate capital resources.

d. Analyze book keeping procedures.

TP .Q UY

c. Prepare a balance sheet and income - expense statement after examining the accounts.

4. Management analyzes the financial statements and uses them as a basis for allocating financial resources. This means:

ĐẠ O

a. All transactions and sales of securities must be considered.

HƯ

NG

b. The statements help them decide how to invest their capital.

TR Ầ

d. All of the above.

N

c. The sale of securities can help finance expansion.

B

5. Since all the fixtures are included in the price of the building,

10

00

a. Lighting and plumbing equipment are to be removed by the seller.

HÓ

A

b. All attach shelves and heating equipment must show a decline in value.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

c. Air conditioning and other attached electrical and plumping devices will remain attached when the building is sold. d. All of the above.

V. Vocabulary

- the profit and loss account (GB) or income statement (US): báo cáo lỗ lãi (Anh) hoặc báo cáo thu nhập (Mỹ)

- overheads (GB) or overhead (US): the various expenses of operating a business that can not be charged to anyone product, process, or department: tổng phí (các loại chi phí hàng ngày có liên quan đến hoạt động của doanh nghiệp). 184





NH ƠN

- liabilities: all the money that a company will have to pay to someone else in the future including taxes, debts, and interest and mortgage payments', trách nhiệm trả nợ, nợ

TP .Q UY

- accounts receivable (US) or debtors (GB): sum of money owed to customers for goods or services purchased on credit: khoản phải thu

ĐẠ O

- accounts payable (US) or creditors (GB): sum of money owed to suppliers for purchases made on credit', khoản phải trả

NG

- negative items: the items les than zero: (khoản) mục âm / lỗ

HƯ

- double-entry bookkeeping: every transaction is recorded in one account as a sum received and other as a sum paid: ghi sổ kép

TR Ầ

N

- equation: statement that two mathematical expression are equal: phương trình, công thức - share premium (GB) or paid-in surplus (US): chênh lệch cổ

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

phần





NH ƠN

U nit 27 THE BALANCE SHEET

TP .Q UY

L R e a d in g

Read the following explanation o f the balance sheet. As you •ead it, fill in the headings in the left - hand column o f Chart 27.1:

NG

ĐẠ O

The balance sheet is a statem ent of what a company owns its assets) and what it owes (its liabilities) at a particular time. It :onsists of three major sections: assets, liabilities and equity.

TR Ầ

N

HƯ

These three sections are arranged differently from country to ountry. In the USA and many European countries, the assets ippear on the left - hand side of the page and the liabilities on the ight. In England, the three sections mentioned above are .rranged vertically.

Í-

HÓ

A

10

00

B

In the balance sheet below (Chart 27.1), the fixed assets are iroken down into intangibles (such as patents and goodwill, ntered in the books at a value of £1.5 million) and tangible assets such as freehold property, land and equipment, at a book value of 7.5 million).

DI Ễ

N

ĐÀ N

TO ÁN

-L

The next heading is current assets and this is split into hree: firstly stocks valued at £3.2 million, then debtors (in other /ords outstanding payment for goods sold) at £1.3 million, and hirdly cash at the bank, worth £350,000. The total of current ssets is then reduced by the total of current liabilities, which in his case is £2.2 million and represents amounts owing to reditors, leaving a net figure of £2.65 million. Thus the total ssets less the current liabilities amount to £11.65 million. To reach the final balance this figure must be reduced by the um of long - term liabilities such as loans and also any




NH ƠN


TR Ầ

N

HƯ

NG

ĐẠ O

The net asset figure is represented by the final section of the balance sheet - capital and reserves. This company has a share capital of £6.5 million. This sum is topped up by a share premium account which represents the difference between the above issued share value and the actual price of the shares. In this case, the capital is further increased by £1.4 million. The company has also revalued its fixed assets to give them a more realistic market price so that the shareholders’ equity increases by a further £1.15 million and an equivalent amount is charged to depreciation in the profit and loss account. Finally, £300,000 is deducted in retained profit.

TP .Q UY

provisions. In this case £2.45 million is set aside for long - term loans and there is a £450,000 provision for deferred taxation. So this leaves a final balance of £8.75 million worth of net assets.

1991

1990

10

as at 31 December

*

00

BALANCE SHEET

B

Chart 27.1

0

1.500

1.40

7.500

7,200

9,000

8,600

3,200

2,800

1,300

1,400

350 4 ,8 5 0

250 4 ,4 5 0

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

0





(2,100)

TP .Q UY

2,650

NH ƠN

(2,200)

2,350

10,950

(2,450)

ĐẠ O

11,650

(2,850)

8,750

8,100

6,500

6,500

1,400

1,200

1,150

800

(300)

(400)

8,750

8,100

TR Ầ

N

HƯ

NG

(450)

10

00

B

*

A

Shareholders' funds

HÓ


DI Ễ

2. Why should taxation be deferred?

3. Why is it sometimes necessary to account for the share premium? ■ III. Language focus

N

ĐÀ N

TO ÁN

-L

Í-

1. In many companies, intangible fixed assets do not appear in the balance sheet. In what circumstances must a company value its intangible assets?

3.1.

Prepositions - am ount and difference

Look at the following sentences taken from the Reading passage: 188





“This leaves a balance of £8.75 million...” the

sentences

below

with

the

correct

TP .Q UY

Now complete prepositions:

NH ƠN

“This figure must be reduced by the sum of the long - term liabilities...”

ĐẠ O

1. When current liabilities are subtracted _____ current assets, there is net balance_____ £50,000.

NG

2. Debtors have increasedlast year’s figure of £25,000 _____ a to ta l______£48,000.

HƯ

3. Our bank loan has decreased _____ 10 percent, so a balance_____ £25,000 remains.

TR Ầ

N

4. The bank overdraft stood______ £18,000 last year. It has been reduced_____ £5,000 and now sta n d s____________ £13,000.

10

00

B

5. There has been an in crease______ 2 percent per year in interest payments. So in fact it’s rocketed _____ 6 percent in 1987_____ 12 percent this year.

HÓ

A

3.2. Sequence

Í-


TO ÁN

-L

“The next heading in current assets...: firstly..., then... and thirdly...” Now pu t the following process in the right order:

ĐÀ N

Setting up a joint venture

DI Ễ

N

a. If no published accounts are available, then you should check on its financial standing with credit agencies. b. Initially, s / h e may be wary of your approach.

c. In the meeting, you should identify clear objectives for both sides. 189





NH ƠN

d. The first step is to identify a company in the right sector. e. Once you have a clear picture of its financial status, arrange to meet the managing director.

TP .Q UY

f. Finally, it’s important to remember that, however, good relationship, a clear legal contract is necessary to cement the deal.

ĐẠ O

g. Having done this, you need to look closely at its published accounts.

IV.

NG

h. However, once you have made your intensions clear, you should be able to establish a good relationship. W ord stu d y

Value expression is valued at

TR Ầ

N

Item

HƯ

Expressing value

A m ount £2 5 million

B

has been revalued at amounts to

10

00

Property

A

is worth

HÓ

is set at a book value of

-L

Í-

is topped up by

TO ÁN

Am ount

DI Ễ

N

ĐÀ N

Ê 25 million

Value expression is charged to

Item fixed assets

is entered under is set aside for

Now complete these sentences: 1. The la n d ______ at $40 million. 2, $40 million______ for the land.





NH ƠN

3. The share value was too low so i t ______ by £10 million.

5. An additional $400,000______ to depreciation. V.

Vocabulary

ĐẠ O

- balance (n): amount which makes the total credits and debits equal: số lượng cân đối giữa có và nợ (số dư)

TP .Q UY

4. Fixed a s s e ts ______ of £20 million. However, in reality they are at least £35 million.

HƯ

NG

- balance sheet (n): statement o f the financial position of a company or business at a certain moment: bảng cân đối, bảng quyết toán, bảng tổng kết tài sản

TR Ầ

N

- asset (n): something o f value which is owned by a company: tài sản

10

00

B

+ current assets (n): assets in daily use by a business: tài sản lưu động * + fixed assets (n): property and machinery', tài sản cố định

HÓ

A

+ frozen assets (n): assets which can not be sold, usually because there is a dispute: tài sản phong toả

-L

Í-

+ intangible assets (n): assets which can not be seen (such as goodwill, patents, etc): tài sản vô hình

TO ÁN

+ liquid assets (n): cash or bills which can be easily converted into cash: tài sản dễ thanh tiêu

ĐÀ N

+ tangible assets (n): assets which can be seen (such as property, machinery, etcj: tài sản hữu hình

DI Ễ

N

- asset - stripping (v): buying a company in order to sell its assets: mua thanh lý tài sản giá rẻ (tháo dỡ tài sản) - goodwill (n): good reputation of a business - intangible asset connected to customer base, track record, etc: uy tin





NH ƠN

- patent (n): bằng phát minh / sáng chế; quyền sỏ hữu đất. - split (v): break sth into parts; divide or share sth: chia ra thành từng phần, chia sẻ

TP .Q UY

- stock (n):kho hàng, trái phiếu, cổ phần, chứng khoán (Mỹ) - liability (n): legal obligation: trách nhiệm pháp lý

ĐẠ O

- liabilities (n): debts of a business: những khoản nợ của doanh nghiệp, công nợ

NG

+ current liabilities (n): short - term debts-, những khoản nợ ngắn hạn, nợ không kỳ hạn

N

HƯ

+ deferred liabilities (n): long - term debts', những khoản nợ trả chậm, nợ kỳ hạn.

TR Ầ

- defer (v): to p ut to a later date: để chậm lại (ngày) sau

00

B

-k deferred payments (n): payments postponed to a later date: mua chịu / thanh toán sau.

10

+ deferred taxation (n): đánh thuế sau.

HÓ

A

- provision (n): money set aside in accounts for later use: khoản dự trũ, dự phòng

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

- share (n): a small part of a company's capital', một phần nhỏ vốn của công ty (cổ phần của công ty) - premium (n) 1. extra charge: tiền bù, tiền các (tính thêm)

2.

price paid for insurance: phí bảo hiểm

- profit (n): money gained from doing bussiness: lợi nhụận

- outstanding (adj): not yet paid, done, resolved, etc\ còn tồn đọng, chưa chi trả, chưa giải quyết xong. - freehold (adj): complete ownership of property for an unlimited period of time: quyền sở hữu




NH ƠN


U nit 28

TP .Q UY

THE PRO FIT AND LOSS ACCOUNT I. R e a d in g

ĐẠ O

Read the following explanation o f profit and loss (P&L) accounts. As you read it, complete the statement of accounts (Chart 28.1)

HƯ

NG

The profit and loss account, also known as the income statement, summarises the profitability of the company by balancing revenue against expenses.

00

B

TR Ầ

N

Revenue (sometimes called turnover) represents any increase in the owner’s equity resulting from the operation of the business. Expenses are costs incurred in connection with the earning of revenue.

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

In the P&L account below (Chart 28.1), the direct costs, or cost of sales of £30 million, are deducted from the turnover of £65 million to reach a gross profit of £35 million. The operating profit is reached by deducting other operating expenses, sometimes called fixed costs (in this case £15.5 million) to reach a figure of £19.5 million as an operating profit. On some statements, especially consolidated accounts, minority interests will be deducted from this sum. In this case, £5.4 million is due to the minority shareholders in the company’s subsidiaries and associated companies.

DI Ễ

N

The profit figure now reached (£14.1 million) is taxable at whatever rate of corporation tax is applicable. This company pays £1.8 million in tax to end up with £12.3 million in profit after tax. This year, an amount of £450,000 is set aside as an extraordinary item. This represents a sum contributed to a special disaster fund. 193





ĐẠ O

TP .Q UY

NH ƠN

The £11.85 million can now be distributed between shareholders and retentions to the reserves. In this case there are a small number of preference shareholders who receive a fix dividend of £50,000 in total; a further £300,000 is paid out as a dividend to the ordinary shareholders. The company retains earnings of £11.5 million. Of particular interest to investors is the earnings per share, which has risen from 25p last year to 31p this year. Chart 28.1

NG

CONSOLIDATED PROFIT AND LOSS ACCOUNT

HƯ

Year ended 31 December

£000 60,000

(30,000)

(29,000)

35,000

31,000

(15,500)

(14,800)

19,500

19,200

(5,400)

(4,800)

14,100

11,400

(1,800)

(1,900)

12,300

9,500

00

65,000

10 A HÓ Í-L TO ÁN ĐÀ N N DI Ễ

1990

B

TR Ầ

£000

N

1991

(450) 11,850

9,500

(50)

(40)

(300)

(190)

11,500

9,280

31p

25p





NH ƠN


2. W hat type of expenses would be included under ‘other operating expenses (fixed costs’?)

ĐẠ O

3. W hat type of cost can be included under ‘extraordinary items’?

TP .Q UY

1. Compare this year’s with last year’s results. What are the significant changes?

NG

4. What is the difference between preference and ordinary shares?

HƯ

5. Why is the earnings per share interesting to the investor?

III. Language focus

N

D efining an d non-defining relative clauses

TR Ầ

3.1.

B


10

00

‘The profit and loss account, also known as the inc’ome statement, summarises the profitability...’

HÓ

A

‘In this case there are a small number of preference shareholders who receive a fixed dividend of £50,000 in total...’

-L

Í-

Now complete the following sentences: 1. The profit and loss statem ent make depressing reading.

TO ÁN

You received it yesterday. 2. The bookkeeper made some terrible mistakes.

ĐÀ N

We hired him last year. 3. The accounts were audited two months late.

DI Ễ

N

You will find the accounts attached. 4. The production manager underestimated the operating costs.





NH ƠN

We fired the production manager two days ago.

5. Profits have still not been distributed to the employees.

3.2.

Passive versus active voice

TP .Q UY

Profits were well down on last year.

ĐẠ O

Look at the following sentences taken from the Reading passage: ‘The direct costs... are deducted from the turnover...’

NG

‘This company pays £1.8 million in tax...’

HƯ

Now change the following sentences from active to passive voice or vice versa:

TR Ầ

N

1. The profit and loss account summarises the profitability the company.

B

2* This company pays £1.8 million in tax.

10

00

3. The preference shareholders received a fixed dividend of £50,000.

HÓ

A

4. Earnings of £11.5 million are retained by the company.

Í-

5. The accountants calculate the taxable profit.

DI Ễ

7. We will maximise our profits by deferring taxation.

8. Savings would have been made by reducing production capacity. IV.

Word study

With some words, many forms can be generated. For example:

N

ĐÀ N

TO ÁN

-L

6. Considerable costs have been incurred by investing in property.

to profit

a profit

profitability

profitable

(to make aprofit) 196 Đóng góp PDF bởi Nguyễn Thanh Tú




Adjective

to operate

______________

_____________

to deduct

______________

_____________

to tax

______________

_____________

to apply

______________

_____________

to contoibute

______________

_____________

to retain

______________

_____________

to distoibute

_____________

_____________

Vocabulary

ĐẠ O

HƯ

V.

TP .Q UY

Noun

NG

Verb

NH ƠN

Generate other forms (where indicated) of the following verbs:

TR Ầ

N

- turnover (n): total amount of sales: Doanh thu e.g: Our turnover in 2006 was 25 percent upon 2005.

10

00

e.g: incur debts: mắc Ĩ1 Ợ

B

- incur (v): to be liable, to have to pay: Gánh chịu

A

- P&L account: profit and loss account', báo cáo thu chi

HÓ

- deduct (v): to subtract from the total figure'.

khấu trừ

Í-

e.g: after deducting all the costs, we actually made a loss

TO ÁN

-L

- consolidate (v): to put the accounts o f subsidiary companies into the parent's accounts: kết hợp, liên kết e.g: Consolidated accounts: tài khoản hợp nhất

ĐÀ N

- subsidiary (n): công ty nhánh, công ty con - subsidise (v): to help or support financially, trợ giúp, trợ cấp

DI Ễ

N

e.g: the government subsidises new investment in depressed areas. - subsidy (n): money given to support unprofitable enterprises: tiền trợ cấp 197





- retention (n): giữ lại, tích lại

NH ƠN

- retain (v)

- retained earinings / profits: undistributed earnings / profits

- account (n): a record o f financial transactions

TP .Q UY

- operating profit (n): profits from normal trading of a company: lợi nhuận kinh doanh

ĐẠ O

accounts (n): the financial records of a business.

e.g: The bank would like to see the accounts- profit and loss

HƯ

NG

account (n): accounts showing income and expenditure (u .s : income statement): báo cáo thu chi

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

- earnings per share (EPS): dividends per share shown as a percentage o f the market value o f a share: Tiền lòi theo đầu cổ phiếu




NH ƠN


U nit 29

TP .Q UY

AUDITING I. Reading

TR Ầ

N

HƯ

NG

ĐẠ O

Auditing is an accounting function that involves the review and evaluation of financial records. It is done by someone other than the person who entered the transactions in the records. Not so many years ago, the presence of an auditor suggested that a company was having financial difficulties of that irregularities had been discovered in the records. Currently, however, outside audits are a normal and regular part of business practice. In addition, many corporations, especially the larger ones with complex operations, maintain a continuous internal audit by their own accounting departments.

A

10

00

B

Even those companies th at do not conduct an internal audit need to maintain a system of internal control. Most good systems will provide accounting controls against errors, as well as a division of duties to reduce the possibility of misappropriations.

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

Ideally, a business should use as many internal controls as are consistent with efficient operation. Many companies employ their own accountants to maintain an internal audit. They continuously review operating procedures and financial records and report to management on the current state of the company’s fiscal affairs. These accounts also report on any deviations from standard operating procedures; th at is, the company’s established methods for carrying on its operating and recording functions. The internal auditors also make suggestions to management for improvements in the standard operating procedures.

DI Ễ

Finally, they check the accounting records in regard to completeness and accuracy, making sure that all irregularities 199





NH ƠN

are corrected. Overall, the internal auditors seek to ensure that the various departments of the company follow the policies and procedures established by management.

NG

ĐẠ O

TP .Q UY

The emphasis placed on different parts of the internal auditor’s report varies from company to company. In some organizations, the auditor’s major or even sole function is to report on the completeness and accuracy of the books of account, as the financial records are known collectively. In more progressive companies, greater attention may be paid to the auditor’s suggestions.

A

10

00

B

TR Ầ

N

HƯ

A weakness exists, however, in internal auditing. If a report is unfavorable, it may not be shown to the person in management who can correct the problem. As a result, management receives the false impression that things are running smoothly because they ỔO not know about the problems that the internal audit has uncovered. To make effective use of an internal auditing function, management must ensure that reports are received at all levels with an absolutely objective attitude.

HÓ


Í-

1. What does auditing function of accounting involve?

-L

2. How is auditing done?

DI Ễ

N

ĐÀ N

TO ÁN

3. What kind of system for checking on operating and recording jobs is maintained by many organizations? 4. What do accountants do to maintain an internal audit? 5. What is the aim of internal auditors? 6. What different emphases can be placed on an internal auditor’s report? 7. What weakness exists in the internal auditing system?





9. How can management overcome this weakness?

NH ƠN

8. What happens if management receives the incorrect information?

TP .Q UY

III. Language focus: The differences between the present perfect simple and the past simple.

ĐẠ O

- We use the present perfect simple to talk about a present situation which is a result of something that happened at unspecified time in the past.

HƯ

NG

Example: I have given your report tố the Managing Director. (I gave him your report and he has it now.)

N

- We use the past simple to talk about completed actions in the past.

B

TR Ầ

Example: We did business with that company a few years ago, but then we stopped dealing with them.

10

00

Exercise 1: Complete the following sentences by putting the verbs in brackets into the correct tense.

HÓ

A

1. The company lost money in its first year, but last year it (make)..... a profit of $ 25m.

-L

Í-

2. We (spend)........ a lot of modernizing, and it is now very well equipped.

TO ÁN

3. Their shares (fall)........ by over 23% and now look like a good buy.

ĐÀ N

4. He couldn’t find a suitable job in his own country, so he (go abroad)....... to look for work.

DI Ễ

N

5. I am going to send them a reminder.They (not pay)....... us for their last order. 6. High interest rates (drive up)........ real estate prices during the first quarter of last year. 201





NH ƠN

Exercise 2: Match each of the sentences (1-8) with a suitable context (a-f).

2 .1 hope you have enjoyed the launch party. 3. Has the post come this morning?

ĐẠ O

4. Did the post come this morning?

TP .Q UY

1 .1 hope you enjoyed the launch party.

5. Has Mary finished th at report?

NG

6. Did Mary finish th at report?

HƯ

a. Mary has gone home. It is 5.15. b. the launch party is about to finish.

TR Ầ

N

c. Mary is still at the office. It is 2.30. d. it is 10.00 in the morning.

00

B

e. it is 3.00 in the afternoon.

10

f. the launch party was last week.

A

Word study

HÓ

IV.

GAAS

TO ÁN

CPA

-L

Í-

Exercisel: Look up in a dictionary or reference book the correct meanings of the following abbreviations.

VACO

IAG

AASC

AISC

IAPC

IFAC

AFC

ĐÀ N

Exercise 2: Complete the sentences with one of the words in italic. modern liabilities discount

DI Ễ

N

accountant accounting fiscal transactions

accounting purchased

record

payable controller

period

reliable

->VO Đóng góp PDF bởi Nguyễn Thanh Tú



1. The accounting........ for the budget is usually either the calendar year or the........... year.

TP .Q UY

2............. are price that are generally reduced, as when a store has a sale.

NH ƠN


3. Debts owed to creditors are known as..........

ĐẠ O

4. The chief...... officer of a company is the.............. , as he or she is sometimes called.

NG

5. Many private organizations also hire salaried............. to perform audit.

HƯ

6. Knowledge of different aspects of law is necessary in many areas of..........

TR Ầ

N

7. Accounting is an essential element of every............ business.

00

B

8. Auditors can help the business set up a ............accounting system. f

A

10

9. If money is owed to an organization or person for things or services...........on credit this liability is called an account............

-L

V. Vocabulary

Í-

HÓ

10. An account is a............of the financial.......... th at concern one item or a group of similar items.

TO ÁN

audit(v): to officially examine the financial accounts o f a company, kiểm toán

ĐÀ N

. audit(n): an official examination of business and financial records to see that they are true and correct', sự kiểm toán

DI Ễ

N

. auditor(n): a person who officially e r m in e s the business and financial records o f a company, kiểm toán viên . internal audit: kiểm toán nội bộ 203





NH ƠN

- affairs(n): matter, concern, or thing to be attended to: vấn đề, công việc That is my affair.

TP .Q UY

- record(yj: to keep a permanent account o f facts or events by writing them down, filming them, storing them in a computer, etc: ghi chép

ĐẠ O

. record(n): a written account of sth that is kept so that it can be looked at and used in the future: sổ sách, chứng từ kế toán

N

. misappropriation(n)

HƯ

NG

- misappropriate^): to take sb eỉseũs money or property for yourself, especially when they have trusted you to take care o f it: tham ô, tham nhũng

TR Ầ

- state(n); the mental, emotional or physical condition that a person or thing is in: trạng thái

00

B

anxieties about the state o f the country’s economy

A

10

- procedure(n): the official or formal order or way of doing th, especially in business, law or politics: trình tự, thủ tục

-L

Í-

HÓ

- review(v): to carefully examine or consider sth again, especially so that you can decide i f it is necessary to make changes'. rà soát

DI Ễ

N

ĐÀ N

TO ÁN

- deviation(n): the act o f moving away from what is normal or acceptable, a difference from what is expected or acceptable: sai lệch





NH ƠN

U nit 30 THE ROLE OF AUDITORS

TP .Q UY

I. R e a d in g

ĐẠ O

Read the article “Auditors may assume the role of whistle blower” by David Walker. After you have read it, complete true Ị false exercise:

HƯ

NG

An auditor finds out early in his training that he is a watchdog and not a bloodhound. From today, when the Auditing Practices Committee (APC) issues its long - awaited guideline on auditors and fraud, an auditor will also have to consider himself a whistle - blower.

10

00

B

TR Ầ

N

The guideline, which follows a gestation period of no less than five years, sets out to clarify auditors’ responsibilities in relation to fraud, as well as other irregularities and errors. It recommends that auditors take a modestly pro-active role in reporting fraud to third parties.

-L

Í-

HÓ

A

The document acknowledges that an auditor’s primary duty is one of confidentiality to the client. But the document says an auditor should also consider throwing this narrow duty aside and think of the wider public interest.

ĐÀ N

TO ÁN

Taking its cue from an ethical statem ent issued in 1998, Professional Contact in Relation to Defaults or Unlawful Acts, the document spells out the circumstances when the public interest could be served by a nod and a wink to the Department of Trade and Industry or some other official authority.

DI Ễ

N

Under normal circumstances, the auditor’s first step would be to alert the client’s management to the existence of fraud. But the guideline says th at if senior managers or directors are involved in the fraud, the auditor may see fit to go over the head 205





NH ƠN

of the board of directors, even non-executive directors and the audit committee, to directly report to the regulatory authorities.

ĐẠ O

TP .Q UY

Alerting the authorities would be justified the fraud is likely to result in a material gain or loss for any one person or group of people; is likely to be “repeated with impunity” if not disclosed; or if “there is a general management ethic....... of flouting the law and regulation”. The strength of the auditor’s evidence is deemed important too.

N

HƯ

NG

Legal advice on the m atter given to the APC said auditors should attach importance to the wider interests of the company in any case “where the auditor considered th at the directors could not be relied upon to apply their minds property to those interests”.

HÓ

A

10

00

B

TR Ầ

The advice continued: “An auditor will not be in breach of any legal duty if, although entitles to disclose, he fails to do so. His decision whether to do so or not is therefore a m atter of professional judgment and not a m atter of law. It is a decision which should reflect the proper expectations which the public has of his profession”.

ĐÀ N

TO ÁN

-L

Í-

So despite the codification of responsibilities within the guideline, it is all a m atter professional judgement. It appears that the only circumstances where the auditor of a company not in the financial sector definitely must “blow the whistle” is when he stumbles upon treason; a practice for which there is as yet no APC guideline.

DI Ễ

N

Responsibilities are different for companies covered by the special requirements of the Financial Services Act 1986, the Building Societies Act of the same year and the Banking Act 1987. Following Professor Grower’s reports on Investor Protection (in 1982 and 1984), companies covered by this legislation can only be

206




authorised to conduct business if they'keep proper accounting records and have adequate internal controls.

TP .Q UY

These Acts require that auditors make specific representations to the regulators 0 X1 these and other points and describe the circumstances when auditors should go directly to the authorities in order to protect the interests of shareholders or depositors.

NH ƠN


NG

ĐẠ O

Today’s guideline - which for the first time establishes rules for auditors reporting on companies not in the financial sector will offer solace to auditors confused about the precise nature of their duties.

B

TR Ầ

N

HƯ

The guideline makes it clear that the prime responsibility for detecting fraud rests with management. The auditor must plan an audit so th at he or she has a “reasonable expectation” of spotting serious misstatements which impinge on the tru th and fairness of a set of accounts.

-L

Í-

HÓ

A

10

00

Thus the discovery of a major fraud after a set of accounts has been signed off is not necessary evidence that the auditors have been failed to meet their responsibilities, guideline will say. This is accurate - but hardly consolatory to companies who employ auditors or investors who rely on audited accounts which subsequently prove to be less than “true and fair”.

ĐÀ N

TO ÁN

Investors, for one, are still reeling from the implications of the verdict in the Caparo case earlier this month which, in layman’s terms, said that auditors do not owe much of a duty to anybody other than existing shareholders.

DI Ễ

N

Today’s guideline from the APC is pitched towards the practitioner and not the business public at large. It is unlikely to do much to tackle the gulf between what the public think auditors should do and what the auditors themselves think that they are doing. 907





NH ƠN

Research by KPMG Peat Marwick Me Linktock shows, this gap is very wide.

NG

ĐẠ O

TP .Q UY

Peat Marwick polled 2,191 adults in the UK, of whom 122 were categorised as “influential” (i.e. chairman, director or partner in an enterprise employing more than 50 people), and a further 232 described as “financially aware” (owing and managing a portfolio of shares). For the accountant worried about his or her image, the results were disturbing. There was widespread ignorance of what auditors do, even on the part of people in the influential and financially aware groups.

TR Ầ

N

HƯ

Three - quarters of the total sample thought th at it was the responsibility of auditors to check for fraud of all kinds, including 56 percent of the influential category and 78 percent of the financially aware group.

10

00

B

Mpre than 61 percent of the total believed th at it was the responsibility of auditors to actively search for fraud, including 42 percent of the influential and 65 percent of the financial aware.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

Other disturbing findings were that more than one third of the financially in the know group thought that auditors guaranteed the financial soundness of a company; and one-in-five of this group thought th at audited financial statements give a very accurate or exact picture of the financial soundness of a company.

Some 27 percent of the total thought that auditors checked between 91 and 100 percent of all a company’s financial transactions. However, there is some good news for the much misunderstood auditors: almost two-third of the top people have a favourable impression of auditors. This compares to a mere 33 percent who have a favourable impression of the management consultants. 208





NH ƠN

Exercise

Indicate whether the following statements are true (T) or false

TP .Q UY

(F):

1. The report confirms an auditor’s first responsibility of confidentiality to his client.

ĐẠ O

2. The report suggests auditors must also consider other publics.

NG

3. Auditors should always go direct to the regulatory authorities in cases of fraud.

N

HƯ

4. There are no cases where an auditor is legally obliged to disclose information to the authorities.

TR Ầ

5. Most “professional people” are aware of what auditors do.

00

B

6. An auditor’s role is very often confused with that of an accountant.

10


HÓ

A

Match these three roles (the expressions are metaphors) with their best definition:

TO ÁN

1. Watchdog

a. Responsibility for overseeing a company’s finances

b- ResPonsibility for authorities of malpractice

informing

the

ĐÀ N

2 Bloodhound

D efinitions

-L

Í-

Roles

N

c. Responsibilities for tracking down the 3. W histle-blower instigators of malpractice.

DI Ễ

2.2. In what circumstances should auditors not inform management of fraud / malpractice? 2.3. Who is protected by the Financial Services Act 1986? 209





2.4. What do you think the Carapo case was about?

NH ƠN

2.5. How would you summarise the responsibilities of an auditor?

TP .Q UY

III. Language focus 3.1. M ass a n d U nits

ĐẠ O


NG

“It is a decision which should reflect the proper expectations which the public has of his...”

TR Ầ

N

HƯ

Now decide whether the following words are mass words (they cannot be counted / can only be used in the singular) or unit words (they can be counted / can be used in singular and plural). Use this code: uncountable (U), countable (C): 8.

information

9.

public

10.

confidentiality

11.

advice

12.

duty

guideline

13.

practice

solace

14.

fairness

equipment

2.

news

3.

fraud

4.

ignorance

5.

ethics

6. 7.

HÓ

Í-

-L

TO ÁN

A

10

00

B

1.

3.2. O bligation

ĐÀ N


DI Ễ

N

“The only circumstances where the auditor... must “blow the whistle” is when he stumbles upon treason...”

Now use the modal verbs: m ust, have to, and sh o u ld to complete the sentences below: Tin





NH ƠN

1. It is compulsory to obey the law. You____________________obey the law. 2. It is not a legal duty to report fraud.

TP .Q UY

Y ou____________________report fraud. 3. It is a moral obligation to report fraud.

ĐẠ O

You______________ ______ report fraud.

NG

4. It is the prime duty of an auditor to respect a client’s confidentiality. You____________________ respect a client’s confidence.

N

TR Ầ

You____________________ follow the code.

HƯ

5. Auditors are advised to follow the code.

6. Auditors are not allowed to be employed by a client.

00

Word study

10

IV.

a client.

B

Y ou____________________ be employed by

HÓ

A

Match the words on the left with their best synonym on the right: 1. to alert

TO ÁN

-L

Í-

to stumble upon to spot to give a nod and a wink pro-active to spell out to see fit

ĐÀ N

2. 3. 4. 5. 6. 7.

a. to affect

DI Ễ

N

8. impunity 9. to flout 10. solace

11. to impinge upon 12. a g u lf


b. c. d. e. f. g.

consolation to consider right to state clearly to come across to warn to notice

h. i. j. k.

to inform indirectly initiating to openly ignore an abyss

1. freedom from punishment




Vocabulary

NH ƠN

V.

- audit (n): examination of the accounts of a company, kiểm - auditing (n): quá trình kiểm toán

TP .Q UY

toán

- auditor (n): person who audits: nhân viên kiểm toán

ĐẠ O

- bloodhound (n): chó săn khát máu - guideline (n): nguyên tắc

HƯ

NG

- fraud (n): making money by not telling the truth: gian trá, gian lận, lừa đảo - fraudulent (adj): not honest

TR Ầ

N

- gestation (n): sự thai nghén / ấp ủ (một ý tưỏng) - clarify (v): make clear: làm rõ i

00

B

- pro-active role (n): vai trò chủ động tích cực

10

- acknowledge (v): accept the truth o f sth: thừa nhận

HÓ

A

- throw sth aside (v): để... sang một bên - cue (n): gương tốt, điển hình

-L

Í-

- ethical (adj): hợp lẽ phải, có đạo đức

- spell sth out (v): giải thích - a nod and a wink (n): một cái gật đầu và một cái nháy mắt

- see / think fit to do sth (v): quyết định / chọn lựa thích hợp để làm cái gì đó

DI Ễ

N

ĐÀ N

TO ÁN

- default (n): trễ hẹn trả nợ, thất bại

- justify (v): chứng minh - impunity (n): thoát nạn, được miễn tội - disclose (v): tiết lộ, phơi bày ra





- breach (n): to be in breach: vi phạm (luật...) - codification (n): việc soạn / lập bộ luật, điều lệ.

- solace (n): niềm an ủi, niềm khuây khỏa

NG

- spot (n): ngay lập tức, ngay tại chỗ

ĐẠ O

- treason (n): sự phản ứng, phản đối

TP .Q UY

- deem (v): regard, consider (in passive): nghĩ rằng

NH ƠN

- flout (v): disobey sb / sth openly and scornfully, coi thường (luật pháp, pháp luật...)

HƯ

- misstatement (n): lời phát biểu sai, lời tuyên bô" sai - impinge on / upon sth (v): gây ảnh hưỏng / tác động tới

TR Ầ

N

- consolatory (n) sb on sth: để chia sẻ, an ủi - reel from sth (v): cảm thấy chóng mặt / choáng váng

00

B

- verdict (n): lòi phán quyết, nhận định

10

- layman (n): ngưòi không chuyên môn, nghiệp dư

HÓ

A

- pitch towards sb (v): tạo đà làm việc hăng say cho ai - tackle (v): khắc phục, giải quyết

-L

Í-

- gulf (n): sự khác biệt, hô" sâu ngăn cách

TO ÁN

- poll (v): hỏi ý kiến thăm dò

DI Ễ

N

ĐÀ N

- malpractice (n): việc làm phi pháp, hành động bất chính.




U nit 31

TP .Q UY

DISTINCTION BETWEEN AUDITING AND ACCOUNTING

NH ƠN


1 Reading 0

TR Ầ

N

HƯ

NG

ĐẠ O

Many financial statem ent users and members of the general public confuse auditing with accounting. The confusion results because most auditing is concerned with accounting information, and many auditors have considerable expertise in accounting matters. The confusion is increased by giving the title “ public accountant” to individuals performing a major portion of the audit function.

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

Accounting is the process of recording, classifying and summarizing economic events in a logical manner for the purpose of providing financial information for decision making. The function of accounting, to an entity and to society as a whole, is to provide certain types of quantitative information that management and others can use to make decisions. In order to provide relevant information, accountants must have a thorough understanding of the principles and rules th at provide the basis for preparing the accounting information. In addition, accountants must develop a system to make sure that the entity’s economic events are properly recorded on a timely basis and at a reasonable cost.

DI Ễ

N

In auditing accounting data, the concern is with determining whether the recorded information properly reflects the economic events that occurred during the accounting period. Since the accounting rules are the criteria-for evaluation whether the accounting information is properly recorded, any auditor involved 214




with these data must also thoroughly understand the rules accounting standards.


NG

1. Why do people confuse auditing with accounting?

ĐẠ O

TP .Q UY

In addition to understanding accounting, the auditor must also possesses expertise in the accumulation and interpretation of audit evidence. It is the expertise that distinguishes auditors from accountants. Determining the proper audit procedures, sample size, particular items to examine and timing of the test, and evaluating the results, are problems unique to the auditor.

NH ƠN


HƯ

2. What is the job of an accountant?

N

3. What is the function of accounting?

TR Ầ

4. In your opinion, what qualifications are needed for an accountant? *

00

B

5. What is the task of an auditor?

A

10

6. What is the expertise that distinguishes auditor from accountants?

Í-

m u st and have to to say th at something is

-L

We use obligatory.

have to ; must

HÓ

III. Language focus

TO ÁN

I have to finish this report before the sales conference. Applicants must include the names o f two referees.

N

ĐÀ N

Often the difference between m u st and have to is very small. We use have to to talk about things which are necessary because of some objective necessity, for example, company policy or law.

DI Ễ

We use m u st or ‘11 have to to talk about things which are necessary because of a subjective necessity. ?1S





Vocabulary

NH ƠN

V.

- audit (n): examination of the accounts of a company, kiem - auditing (n): quá trình kiểm toán

TP .Q UY

toán

- auditor (n): person who audits: nhân viên kiểm toán

ĐẠ O

- bloodhound (n): chó săn khát máu - guideline (n): nguyên tắc

HƯ

NG

- fraud (n): making money by not telling the truth: gian trá, gian lận, lừa đảo - fraudulent (adj): not honest

TR Ầ

N

- gestation (n): sự thai nghén / ấp ủ (một ý tưỏng) - clarify (v): make clear: làm rõ *

00

B

- pro-active role (n): vai trò chủ động tích cực

10

- acknowledge (v): accept the truth of sth: thừa nhận

HÓ

A

- throw sth aside (v): để... sang một bên - cue (n): gương tốt, điển hình

-L

Í-

- ethical (adj): hợp lẽ phải, có đạo đức

- spell sth out (v): giải thích - a nod and a wink (n): một cái gật đầu và một cái nháy mắt

- see / think fit to do sth (v): quyết định / chọn lựa thích hợp để làm cái gì đó

DI Ễ

N

ĐÀ N

TO ÁN

- default (n): trễ hẹn trả nợ, thất bại

- justify (v): chứng minh - impunity (n): thoát nạn, được miễn tội - disclose (v): tiết lộ, phơi bày ra





- breach (n): to be in breach: vi phạm (luật...) - codification (n): việc soạn / lập bộ luật, điều lệ.

- solace (n): niềm an ủi, niềm khuây khỏa

NG

- spot (n): ngay lập tức, ngay tại chỗ

ĐẠ O

- treason (n): sự phản ứng, phản đối

TP .Q UY

- deem (v): regard, consider (in passive): nghĩ rằng

NH ƠN

- flout (v): disobey sb / sth openly and scornfully, coi thường (luật pháp, pháp luật...)

HƯ

- misstatement (n): lời phát biểu sai, lời tuyên bố sai - impinge on / upon sth (v): gây ảnh hưởng / tác động tối

TR Ầ

N

- consolatory (n) sb on sth: để chia sẻ, an ủi - reel from sth (v): cảm thấy chóng m ặt / choáng váng

00

B

- verdict (n): lời phán quyết, nhận định

10

- layman (n): ngưòi không chuyên môn, nghiệp dư

HÓ

A

- pitch towards sb (v): tạo đà làm việc hăng say cho ai - tackle (v): khắc phục, giải quyết

-L

Í-

- gulf (n): sự khác biệt, ho’sâu ngăn cách

TO ÁN

- poll (v): hỏi ý kiến thăm dò

DI Ễ

N

ĐÀ N

- malpractice (n): việc làm phi pháp, hành động bất chính.




U n it 31

TP .Q UY

DISTINCTION BETWEEN AUDITING AND ACCOUNTING

NH ƠN


I « Reading

N

HƯ

NG

ĐẠ O

Many financial statem ent users and members of the general public confuse auditing with accounting. The confusion results because most auditing is concerned with accounting information, and many auditors have considerable expertise in accounting matters. The confusion is increased by giving the title “ public accountant” to individuals performing a major portion of the audit function.

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

Accounting is the process of recording, classifying and summarizing economic events in a logical manner for the purpose of providing financial information for decision making. The function of accounting, to an entity and to society as a whole, is to provide certain types of quantitative information that management and others can use to make decisions. In order to provide relevant information, accountants m ust have a thorough understanding of the principles and rules th at provide the basis for preparing the accounting information. In addition, accountants must develop a system to make sure th at the entity’s economic events are properly recorded on a timely basis and at a reasonable cost.

DI Ễ

N

ĐÀ N

In auditing accounting data, the concern is with determining whether the recorded information properly reflects the economic ỉvents that occurred during the accounting period. Since the iccounting rules are the criteria for evaluation whether the iccounting information is properly recorded, any auditor involved 114






TP .Q UY

NG

1. Why do people confuse auditing with accounting?

ĐẠ O

In addition to understanding accounting, the auditor must also possesses expertise in the accumulation and interpretation of audit evidence. It is the expertise that distinguishes auditors from accountants. Determining the proper audit procedures, sample size, particular items to examine and timing of the test, and evaluating the results, are problems unique to the auditor.

NH ƠN

with these data must also thoroughly understand the rules accounting standards.

HƯ

2. What is the job of an accountant?

N

3. What is the function of accounting?

TR Ầ

4. In your opinion, what qualifications are needed for an accountant?

00

B

5. What is the task of an auditor?

A

10

6. What is the expertise that distinguishes auditor from accountants?

Í-

m u st and have to to say th at something is

-L

We use obligatory.

have to ; m ust

HÓ

III. Language focus

TO ÁN

I have to finish this report before the sales conference. Applicants must include the names of two referees.

N

ĐÀ N

Often the difference between m u st and hav e to is very small. We use h ave to to talk about things which are necessary because of some objective necessity, for example, company policy or law.

DI Ễ

We use m u st or ‘11 have to to talk about things which are necessary because of a subjective necessity.





NH ƠN

Notice these two: It is not necessary to = don’t have to (no obligation)

TP .Q UY

It is necessary not to = m u stn ’t (prohibition)

Exercise. Complete these sentences w ith must, have to, don’t have to or m ustn’t

ĐẠ O

1. You...............save a file before you turn the computer off, or you will lose it.

NG

2. You................ come to the meeting if you have more important things to do.

N

HƯ

3. Employees are reminded th at they.................... use the office phone to make personal call.

TR Ầ

4. We............. submit our VAT returns quarterly. 5. Next time you’re in Milan, you.................come and see us.

10

00

B

6. We................ spend too much time on the details. Let’s keep to the main point.

A

7. Y ou................forget to bring the sales figures with you.

HÓ

8. If you don’t like the canteen food, you................eat here.

Í-

9. Italy is a good market. We...............miss this opportunity.

IV.

Word study

Exercise 1: The letters in the words in brackets are in the wrong order. Rearrange them and put the words with the letters in the correct order into the gaps in the sentences:

DI Ễ

N

ĐÀ N

TO ÁN

-L

10. I...............send in my tax return before March 31st or pay a fine.

1.

Many accountants work in government offices or (pnorofnit) organization.





NH ƠN

2. Business enterprises, government agencies all employ .....................(biclpu) accountants either regularly or on a part time basis.

TP .Q UY

3. An audit is a.................... (riweve) of the financial records of an organization.

ĐẠ O

4. The account which describes the trading activities of a business over a period of time is.................. (tforpi) and loss account.

NG

5 Money used to operate a business on a day-to-day basis is its................. (girwokn) capital.

TR Ầ

N

HƯ

6. A statem ent produced, usually at the end of a financial year, showing the financial state of the business and including, among other things, its assets and liabilities, is its................ (nablaec) sheet.

10

00

B

7. Items which a business expects to keep for a year or more are its..................(xidfe) assets.

HÓ

A

8. A company plans how much money it wants to make in the coming year by setting a............... (aslse) target.

Í-

Exercise 2. Match the definitions to the words in the

-L

box.

ĐÀ N

TO ÁN

salary, asset, depreciation, cash flow, tax accounting, cost accounting, profit (margin), internal audit

N

1. The actual receipt and expenditure of cash by an organization.

DI Ễ

2. Anything of value or use to an organization. This includes cash, receivables, securities, property and intangibles, such as goodwill. 217





4. The difference between the cost and the selling price.

NH ƠN

3. Fixed regular pay each month for a job, especially á job done by a senior member of staff.

TP .Q UY

5. The gradual decline in value of a fixed asset, such as real estate (but not land) or machinery.

ĐẠ O

6. The branch of accounting th at involves determining the correct liability - th at is, the amount owed - for taxes, and preparing the necessary tax- return forms.

NG

7. A review and evaluation of a company’s financial records by employees of the same company.

TR Ầ

N

HƯ

8. Calculating and controlling the cost of a unit - a single item or a group of items - of a product, service, function, or operation of a business. TEXT TWO

00

B

AUDITING

TO ÁN

-L

Í-

HÓ

A

10

To related parties and to outsiders of a business, any financial record should be fair and lawful. They want it audited. Auditing is the task of checking and affirming the fairness and reliability of financial records on the base of accounting standards. Each country has its own auditing standards. International auditing standards aim at developing the coordination of accounting work across the world.

DI Ễ

N

ĐÀ N

Auditing is carried out in three levels: government auditing or legal auditing, a compulsory inspection-, independent auditing or certified public accounting, a consultant service performed at the request o f businesses; and internal auditing, a system of internal control that aims at protecting the assets o f a business. An audit is an investigation of every item, in currency amount, and disclosure which appears in the financial 21R



statements. Its process consists of: audit planning (an internal control is analyzed to assess inherent and control risks), audit performance (serious improperties should be found or the auditor may suffer auditing risks that affect his fame), audit completion (audit report - auditor’s opinion - is given). Comprehension / Interpretation

ĐẠ O

A ccording to the text, are the following statem ents TRUE o r FALSE ?

NH ƠN


TP .Q UY


HƯ

NG

1. Auditing is an accounting function that involves the review and evaluation of financial records. 2. All countries have the same auditing standards.

TR Ầ

N

3. The precision with which an auditor expresses his opinion is not important.

B

4. Only very large corporations need audits.

10

00

5. An auditor needs to have a good backgrounfi in accounting.

HÓ

A

6. Independent auditing is done by accountants who are not employees of the organization whose books they examine.

-L

Í-

7. The more internal controls an organization has, the more efficient is its operation.

ĐÀ N

TO ÁN

8. The people who keep the financial records for an organization are the same people who carry out an audit of those records. V. Vocabulary

DI Ễ

N

- confuse (v): to mistake one person or thing for another. nhầm lẫn - expertise (n): (in sth / doing sth)





NH ƠN

expert great knowledge or skill, esp. in a particular field kiến thức chuyên môn, sự lão luyện - quantitative (adj): of or concerned with quantity định lượng

TP .Q UY

- entity (n): a thing with distinct and independent existence thực thể

ĐẠ O

- criterion (pi: criteria): a standard or principle by which something is judged tiêu chuẩn - unique (adj) (to sb / sth)

HƯ

NG

belonging to or connected with only one person, group or thing chỉ liên quan, thuộc về 1 người, 1 nhóm người, 1 đồ vật... - affirm (v) to State form ally or confidently that sth is true or

TR Ầ

N

correct xác nhận

B

- compulsory (a) that must be done required by the rules cưỡng bách

10

00

- inspection official examination thanh tra

HÓ

A

- disclosure the action of making sth known a thing that is made known những ghi chép sự công khai, không che giấu

-L

Í-

- inherent existing as a matural or permanent feature or quality ofsb / sth cố hữu, vốn có, tiềm tàng

DI Ễ

N

ĐÀ N

TO ÁN

- improperty behaviour that is dishonest, morally wrong or not appropriate in the circum stances sai phạm




NH ƠN


U n it 32

TP .Q UY

FINANCIAL ANALYSIS I. R e a d in g

ĐẠ O

Read the following text about financial ratios and complete Chart 32.1 below:

NG

There are four critical areas of a company’s business which can be analysed by applying ratio. These are liquidity, capital structure, activity and efficiency, and profitability.

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

Measurements of liquidity should answer the question: Can a company pay its short - term debts? There are two ratios commonly used to answer this question. Firstly, the current ratio, which measures the current assets against the current liabilities. In most cases, a healthy company would show a ratio above 1, in other words more current assets than current liabilities. Another method of measuring liquidity is the so - called quick ratio - this is particularly appropriate in manufacturing industries where stock levels can disguise the company’s true liquidity. The ratio is calculated in the same way as above but the stocks are deducted from the current assets.

DI Ễ

N

ĐÀ N

TO ÁN

The balance sheet will also reveal the gearing of the company - this is an indicator of the company’s capital structure and its ability to meet its long - term debts. The ratio expresses the relationship between shareholder’s funds and loan capital. Income gearing is also important and shows the ratio between profit and interest paid on borrowings. Relatively high borrowings would indicate vulnerability to an interest rate rise. Highly geared companies generally represent a greater risk for investors. The balance sheet and the profit and loss account can be used to assess how efficiently a company manages its assets. 221





NG

ĐẠ O

TP .Q UY

NH ƠN

Basically, sales are compared with investment in various assets. For example, in the retail sector, an im portant ratio which indicates efficiency is sales divided by stock - the resulting figure should be much higher than in the manufacturing sector where stock tends to show a much slower turnover. Another example of efficiency measurement is to calculate the average collection period on debts. This is found by dividing debtors by the sales per day. This can vary tremendous from industry to industry. In the retail sector it may well be as low as one or two days, whereas in the heavy manufacturing and service sectors it can range from thirty to ninety days.

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

Finally, profitability ratios show the manager’s use of the company’s resources. The profit margin figure (profit before tax divided by sales and expressed as a percentage) indicates the operational day-to-day profitability of the business. Return on capital employed can be calculated in a number of ways. One common method is to take profit before taxes and divide by the total assets - this is a good indicator of the use of all the assets of the company. From a shareholder’s point of view, the return on owner’s equity will be an important ratio; this is calculated by dividing the profit before taxes by the owner’s equity and expressing it as a percentage. If the company does not earn a reasonable return, the share price will fall and thus make it difficult to attract additional capital.

Key in d ica to rs

R atio s u sed

ĐÀ N

Chart 32.1

(i)

DI Ễ

N

Liquidity

I n te rp r e ta tio n

(ii) ...

Capital structure

ft) .................

Efficiency

(ii)

.............. ........... ............

' ‘l




NH ƠN


ii) Profitability

TP .Q UY

(ii) (l) (ii)

ĐẠ O

(iii) .. II. Comprehension / Interpretation

HƯ

NG

Which o f the ratios is likely to be the key indicator for the following groups ?

N

1. Shareholders

TR Ầ

2. Managers 3. Customers

00

B

4. Suppliers

10

5. Employees

HÓ

A

III. Language focus 3.1.

Adjective m odification

-L

Í-


TO ÁN

“This is particularly appropriate in manufacturing industries where stock levels...”

ĐÀ N

“Relatively high borrowing would indicate vulnerability to an interest rate rise”.

DI Ễ

N

Now combine two adjectives from the list below to complete the sentences: High particular

Long lower


short unusual

High geared Dangerous considerable




3. Retail companies collection periods on debts.

have

companies

TP .Q UY

2. __________ ____________ represent a greater risk for investors.

NH ƠN

1. Normally a healthy company has a current ratio above 1. This company has a n ____________ratio of 2.

___________

generally

___________

ĐẠ O

4. Most people would consider a collection period over 90 days a s _______________ . ___________

HƯ

NG

5. Manufacturing companies have a ___________stock turnover than retail companies. 3.2.

Adjectives and adverbs

TR Ầ

N


10

00

B

“The balance sheet and the profit and loss account can be used to assess how efficiently a company manages its assets”.

HÓ

A

“Finally, profitability ratios show the managers’ use of the company’s resources”.

Í-

Now complete the list beloui: Adjective

Adverb

Profitable

____________

efficiency

____________

____________

health

____________

____________

appropriacy

____________

____________

operation

____________

____________

finance

____________

____________

productivity

____________

____________

management

____________

____________

-L

Noun

DI Ễ

N

ĐÀ N

TO ÁN

profitability





4.1. indicated.

NH ƠN

IV. Word study Group the follow ing adjectives under the headings reasonable

disastrous

disappointing

excellent

satisfactory

vulnerable

poor

adequate

weak

marvellous

moderate

strong

tremendous

catastrophic

ĐẠ O

NG

Average / okay

Negative

HÓ

Now stu dy how we can use these a djectives? For

Í-

4.2. example:

A

10

00

B

TR Ầ

N

HƯ

Positive

TP .Q UY

healthy

-L

We can say: The company is in a vulnerable position.

TO ÁN

We can not say: The company had vulnerable results. Which of the adjectives in 4.1. above can not be used with the following nouns:

ĐÀ N

1. __________ results

______ condition / position

DI Ễ

N

2.

V. Vocabulary

ratio (n): proportion of something compared with another thing : tỷ số, tỷ lệ





NH ƠN

- liquidity (n): having assets which can be converted into cash: tài sản có khả năng đổi thành tiền m ặt (tài sản lưu động)

- capital structure (n): cơ cấu vốn (của công ty)

TP .Q UY

- liquid (adj): easy to realize: lỏng, dễ thanh tiêu, lưu lượng tiền mặt.

ĐẠ O

- profitability (n): ability to make a profit: khả năng kiếm lòi (thu lợi nhuận) - disguise (v): hide sth: che dấu, che đậy

NG

- deduct (v): to subtract from the total figure: khấu trừ

HƯ

deductable (adj): which can be deducted

deduction (n): subtraction from the total figure

TR Ầ

N

- reveal (v): make sth known: tiết lộ - vulnerability (n): sự tổn hại, sự công kích

00

B

- gearing (n): tỷ sô' vốn vay

10

- assess (v): to calculate the value of', định giá

HÓ

A

- turnover (n): total amount of sales: doanh thu - collect (v): to make somebody pay their debts: thu

-L

Í-

- resources (n): source of supply of something-, nguồn

TO ÁN

- margin (n): difference between income and costs: giới hạn, sự chênh lệch, suất lợi nhuận - operational (adj): working, running: hoạt động, điều hành

ĐÀ N

- return on capital (n): tiền lãi thu về từ vôn

DI Ễ

N

- employ (v): to use (money, return on capital employed): sử dụng tiền lãi từ vốn - indicator (n): something which is significant-, vật biểu thị




NH ƠN


U nit 33

TP .Q UY

FINANCIAL EVALUATION I. R e a d in g

ĐẠ O

Read the chief accountant’s report. As you read it, complete Chart 33.3. FINANCIAL EVALUATION

NG

Project: Automation of No. 3 assembly line

HƯ

Estimated cost: $2,000,000 (see detailed costing attached) INTRODUCTION

00

B

TR Ầ

N

This project has been very carefully costed and all the production, quality and short-term financial benefits are undisputed. This short report aims to evaluate the return on investment over a full five year period.

10

FINDINGS

TO ÁN

-L

Í-

HÓ

A

If we adopt a simple payback method of analysis, the project will recoup its investment after three years. However, it is vital that we take a more complex view of the project given that there are other competing projects involving similar sums. It is important that we look at the return and cash flow implications over a full five years and take account of the opportunity cost of this investment.

N

ĐÀ N

If we adopt an average rate of return (ARR) method, we can spread the cash flow beyond the payback period to the full five years and we calculate an ARR of 40%. This figure would seem to be considerably better than some competing projects.

DI Ễ

However, this method does not take account of the timevalue of money and therefore can give a very misleading rate of





TP .Q UY

NH ƠN

return. We have therefore applied a discounted cash flow calculation which translates any future earnings into their present-day value. In the table below, we have set the discounted cash flow at two different rates: firstly 10% which is 2% above the current bank base rate, and secondly 25% which is 2% above the best rate of return we earn from one of the franchise operations in our portfolio.

NG

ĐẠ O

It is clear that at 10% DCF the project shows a very healthy profitability of $932,000 net after five years’ operation; at 25 % DCF the project breaks even in the fifth year.

HƯ

CONCLUSION

B

TR Ầ

N

The 25% DCF makes the project look very unattractive but, as stated above, this is based on a highly competitive, if not unrealistic rate of return. The true picture lies somewhere in betweerj. This means we can probably expect an internal rate of return of about 15% on this project.

10

00

RECOMMENDATION

Í-

HÓ

A

Given the activities of our competitors and the increasing difficulty of employing skilled workers to run our existing semiautomated production line, I would recommend the project is adopted.

TO ÁN

-L

Chief Accountant Chart 33.3

DI Ễ

N

ĐÀ N

10%

Capital cost Year 1 Year 2 Year 3 Year 4 Year 5 -2,000

546

496

600

546

744

-2,000

-1,454

-958

-358

188

a.____

DCF

-2,000

-480

384

410

330

396

Cumulative cash flow

-2,000

-726

-396

DCF Cumulative cash flow 25% -1,520 -.1,136

b.





NH ƠN

II. Comprehension / Interpretation What are the advantages / disadvantages of the three methods mentioned?

TP .Q UY

1. Straightforward payback method 2. Average rate of return

ĐẠ O

3. Discounted cash flow III. Language focus C onditions

NG

3.1.

HƯ


TR Ầ

N

‘If we adopt a simple payback method of analysis, the project will recoup its investment after three years.’

00

B

Now complete the following sentences by putting the verbs in the right form:

10

1. If the project _____ (fail), w e _____ (lose) a lot of money.

HÓ

A

2. W e _____ (can) extend the payback period if w e _____ (adopt) an ARR method.

-L

Í-

3. We _____ (get) a truer picture if w e _____ (take) into account present values of money.

TO ÁN

4. We _____ not (invest) unless we _____ (foresee) a realistic chance of long-term profits.

ĐÀ N

5. As long as the project______ (be financed) from outside sources, w e______ (have to) ensure a much higher rate of return.

DI Ễ

N

6. If w e ______ (lose) money in the first two years, w e______ (start) to doubt the viability of the project.

7. Unless w e______ (be committed) to the project long-term, w e_____ not (carry) it through. 229





3.2.

NH ƠN

8. Breakeven point ______ (come) a year earlier if we ______ (manage) to reach these sales targets. R eport-w ritin g

aims

to

evaluate

the

return

on

ĐẠ O

‘This short report investment...’

TP .Q UY


NG

‘Given the activities of our competitors... I would recommend the project is adopted.’

TR Ầ

N

HƯ

One o f the decisions a report writer must take is whether to use a person a l or im personal style. Now change the following sentences from personal to impersonal (avoid the use o f I / we)

B

1. In this report, I aim to evaluate the return on investment...

10

00

2. It is vital th at we take a more complex view of the project.

A

3. If we adopt the ARR method, we can spread the cash flow.

HÓ

4. We have therefore applied a DCF method.

-L

Í-

5. We have set the DCF at two different rates.

TO ÁN

6. This means we can probably expect an internal rate of return of about 18%. 7. We can conclude th at the 25% DCF is unrealistic.

IV.

competitors,

I

would

Words study

DI Ễ

N

ĐÀ N

8. Given the activities of our recommend the project is adopted.

Match the financial terms ỒĨÍ the left with a situation on the right: 230





3. Investment portfolio

b. The company must consider what else it could do with its money c. We must calculate the benefit to the company not only in terms of the market’s calculations

NG

4. Breakeven point

TP .Q UY

2. Time - value of money

a. The company is putting together a number of shareholdings in a variety of companies

ĐẠ O

1. Opportunity cost

Situations

NH ƠN

F inancial term s

TR Ầ

N

HƯ

5. Internal rate of return d. The company must take into account the project’s value in presentday figures

Vocabulary

A

V.

*

10

00

B

e. The least we can achieve is for sales to cover our costs

HÓ

- evaluate (v): đánh giá

Í-

e.g: We can't evaluate his ability without seeing his work.

-L

- estimated cost (n): chi phí dự tính

TO ÁN

-payback (n): paying back money which has been borrowed or invested: hoàn vốn

ĐÀ N

- recoup (v): to get back money, nhận lại vốn, đền bù e.g: We recouped our investment in two years.

N

- take account of, take sth into account: đánh giá, xem xét

DI Ễ

- opportunity cost (n): chi phí cơ hội - ARR (n): average rate of return', tỷ lệ lợi nhuận bình quân 231 Đóng góp PDF bởi Nguyễn Thanh Tú




NH ƠN

- misleading (adj): đưa ra ý tưỏng sai, lừa dối - discount (v): to reduct the full price: chiết khấu, chiết tính

TP .Q UY

Discount (n): percentage reduction in a full price: tiền lãi chiết khấu - present-day value (n): giá trị hiện thòi

- discounted cash flow (DCF) (n): luồng tiền chiết tính

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

- portfolio (n): danh mục đầu tư

ĐẠ O

- franchise (n): đặc quyền kinh tiêu, mức miễn bồi thường




NH ƠN


U nit 34

TP .Q UY

MARKETING I. Reading

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

The term market and marketing can have several meanings depending upon how they are used. The term stock market refers to the buying and selling of shares in corporations as well as other activities related to stock trading and pricing. The important world stock markets are in London, Geneva, New York, Tokyo, and Singapore. Another type of markets is a grocery market, which is a place where people purchase food. When economists use the word market they mean a set of forces or conditions that determine the price of a product, such as the supply available for sale and the demand for it by consumers. The terra marketing in business includes all of these meanings, and more.

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

In the past, the concept of marketing emphasized sales.The producer or manufacturer made a product he wanted to sell. Marketing was the task of figuring out how to sell the product. Basically, selling the product would be accomplished by sales promotion, which included advertising and personal selling. In addition to sales promotion, marketing also involved the physical distribution of the product to the places where it was actually sold. Distribution consisted of transportation, storage, and related services such as financing, standardization and grading, and the related risks.

DI Ễ

N

The modern marketing concept encompasses all of the activities mentioned, but it is based on a different set of principles. It subscribes to the notion that production can be economically justified only by consumption. In other words, goods should be produced only if they can be sold. Therefore, the 233




WWW.FACEBOOK.COM/DAYKEM.QUYNHON Ị

NH ƠN

producer should consider who is going to buy the product, or what the market for the product is before the production begins. This is very different from making a product and then thinking about how to sell it.

HƯ

NG

ĐẠ O

TP .Q UY

Marketing now involves first deciding what the customer wants, and designing and producing a product th at satisfies these wants at profit to the company. Instead of concentrating solely on production, the company must consider the desires of the consumer, and this is much more difficult since it involves human behavior. Production, on the other hand, is mostly an engineering problem. Thus, demand and market forces are still an important aspect of modern marketing, but they are considered prior to the production process.

HÓ

A

10

00

B

TR Ầ

N

Because products are often marketed internationally, distribution has increased in importance. Goods must be at the place where the customer needs them or brought there. This is known as place utility: it adds value to a product. However, many markets are separated from the place of production, which means that often both raw materials and finished products must be transported to the points where they are needed.

ĐÀ N

TO ÁN

-L

Í-

Raw materials requiring little or no special treatm ent can be transported by rail, ship or barge at low cost. Large quantities of raw materials travel as bulk freight, but finished products that often require special treatm ent, such as refrigeration or careful handling, are usually transported by truck. This merchandise freight is usually smaller in volume and requires quicker delivery.Merchandise freight is a term for the transportation of manufactured goods.

DI Ễ

N

Along all points of the distribution channel various amounts of storage are required. The time and manner of such storage depends upon the type of product. Inventories of this stored merchandise often need to be financed.




TP .Q UY

Modern marketing is therefore a coordinated system of many business activities, but basically it involves four things: (1) selling the correct product at the proper place, (2) selling it at a price determined by demand, (3) satisfying a customer’s need and wants, and (4) producing a profit for the company.

NH ƠN



ĐẠ O

1. In general, what is said about the term marketing? 2. What are two aspects of marketing?

NG

3. What are two activities of sales promotion in the second paragraph?

HƯ

4. What are three aspects of distribution?

TR Ầ

N

5. How does modern marketing differ from the past ideas and practices of marketing?

00

B

6. What makes solving marketing problems more difficult than solving production problem? *

HÓ

A

10

7. What activity of marketing deals with the need for goods to be at the place where customers can use them?

Í-

8. How does the cost of rail freight compare with truck freight?

TO ÁN

-L

9. Why do you think finished products require faster transport than raw materials?

ĐÀ N

10. Why does the author conclude th at marketing is a coordinated system of activities? III. Language focus: Zero conditional

DI Ễ

N

We can talk about general facts or things th at are always true using if sentence. This kind of sentence has the present tense in both parts. In statem ents like this, if means the same as when or every time.





NH ƠN

Example: - If interest rates fall, company profits rise. Exercise: Match the sentences (1-10) with the sentences (a-j)

2. Every time Peter chairs a meeting 3. People are more productive

ĐẠ O

4. If you send a letter by Datapost,

TP .Q UY

1. Governments expect something in return

5. If inflation rises,

NG

6. When you have a high staff turnover,

HƯ

7. If anyone from our Hamburg office visits,

N

8. We spend a great deal on promotion

TR Ầ

9. I always fly Club Class 10. *Ef the camera is on

00

B

a. something is wrong with the management.

10

b. it gets there the following morning.

HÓ

A

c. I usually look after them.

Í-

d. if they give aid

-L

e. if we launch a new model.

TO ÁN

f. it goes on for a long time.

g. if they work in pleasant surroundings.

ĐÀ N

h. the value of people’s savings goes down. i. when I go on a long haul flight

DI Ễ

N

j. a red light appears IV.

Words study

Exercise 1: Match the price term with the person or organization that charges it: 236





Price term

2. rate

b. insurance company

3. premium

c. white-collar worker

4. fare

d. local council

5. commission

e. social club

6. fee

f. blue-collar worker

7. rent

g. taxi driver

8. dues

h. sales agent

9. retainer

i. private school

10. tuition

j. lawyer

11. wage

k. bridge owner

12. toll

1. bank

TP .Q UY

a. visiting lecturer

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

1. salary

NH ƠN

Personal / organization charging

m. architect

10

13. honorarium

n. property owner

A

14.interest

Í-

HÓ

Exercise 2: Choose the best answer to complete the following sentences.

TO ÁN

-L

1. In-the past, the main objective of marketing was sales promotion. Marketers ware people who... a. bought and sold stock

ĐÀ N

b. consumed

c. tries to sell products

N

d. supplied and demanded

DI Ễ

2 The word market can have several meanings. A person who wants to buy uses the word to indicate... a. standardization and grading 237





b. a place where groceries are for sale

NH ƠN

c. sales prices 3. Marketing is an important consideration for... a. the consumer b. the distribution

ĐẠ O

c. all aspects of production

TP .Q UY

d. supply and demand

d. the salesman

HƯ

NG

4. Demand and market forces are considered prior to production. Before designing and producing the product, companies consider...

TR Ầ

b. the desire by consumers

N

a. the supply of consumers

B

c. distribution to the consumers

10

00

d. all the marketing activities to purchase a product

HÓ

A

5. Among other things modem marketing considers selling the correct product at the proper place. This means that...

Í-

a. place utility and consumer demand m ust be considered

-L

b. advertising will help increase sales

TO ÁN

c. distribution is more important than product design d. if a product is for sale, someone will buy it V. Vocabulary

ĐÀ N

- advertise (v): to announce that something is for sale

N

. ad (n-informal): short for advertisement.

DI Ễ

. advertisement (n): notice or announcement that sth is for sale: sự quảng cáo . advertiser (v): person or company which advertises




. advertising (n): business of announcing that sth is for sale: công việc quảng cáo - barge (n): xà lan

TP .Q UY

- coordinated (adj): được phối hợp

NH ƠN


- demand (n): need for goods: cầu, nhu cầu There’s not much demand for these products.

ĐẠ O

- desires (n): nhu cầu, ao ưốc, mong muốn, cần

- determine (v): find out or establish precisely: xác định, định rõ

HƯ

NG

- distribute (v): to send out goods from the manufacturer to the end user: phân phôi . distribution channel (n): tuyến / mạng lưới phân phối

TR Ầ

N

- emphasize (v): to focus on: nha'n mạnh, chú trọng vào... - grading (n): xếp hạng

00

B

- inventory (n): stock, store: kho hàng, hàng tồn kho

10

To reduce inventory is the aim of all businsses.

A

- personal selling (n): chào / bán hàng trực tiếp

HÓ

- place utility (n): tiện ích về địa điểm

Í-

- sale promotion (n): khuyến mại, quảng cáo bán hàng

-L

- standardization (n): tiêu chuẩn hóa 2.

TO ÁN

- supply 1. (n): providing products or services: cung (v): to provide a service or product', cung cấp

ĐÀ N

- task (n): a business: công việc - transportation (n): việc vận chuyển

N

- concept (n): khái niệm

DI Ễ

- grocery (n): hàng tạp hóa, tạp phẩm - encompass (n): bao gồm, chứa đựng




Unit 35

TP .Q UY

MARKETING PLANNING

NH ƠN


I. R eading

ĐẠ O

In this section you will find an edited extract from The Principles o f Marketing (Kotler and Armstrong) entitled “Strategic plannin”. Read it through and complete Chart 35.1 and 35.2.

TR Ầ

N

HƯ

NG

Strategic planning is the process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing market opportunities. It relies on developing a clear company mission, supporting objectives, a sound business portfolio, and co-ordinated functional strategies.

-L

Í-

HÓ

A

10

00

B

The steps in the strategic planning process are shown in Chart 39.1. At the corporate level, the company first defines its overall purpose and mission. This mission is then turned into detailed supporting objectives th at guide the whole company. Next, top management decides what portfolio of businesses and products is best for the company, and how much support to give each one. Each business and product unit must in turn develop detailed marketing and other functional plans that support the company - wide plan.

DI Ễ

N

ĐÀ N

TO ÁN

Chart 35.1

When management senses that the organisation is drifting, it must renew its search for purpose. It is time to ask: What is our 240





NH ƠN

business? Who is the customer? What is value to the customer? What will our business be? What should our business be?

ĐẠ O

TP .Q UY

Companies traditionally defined their business in product terms such as, ‘We manufacture video games’, or in technological terms such as, ‘We are a chemical processing firm’. But some years ago, Theodore Levitt proposed that market definitions stated in terms of particular customer groups or needs were better.

00

B

TR Ầ

N

HƯ

NG

Management should avoid making its mission too narrow or too broad. Mission statements should be specific, realistic and motivating. As an illustration, the International Minerals and Chemical Corporation is in many businesses including the fertilizer business. As you can see in Chart 35.2, the fertilizer division does not say that its mission is to produce fertilizer. Instead, it says th at its mission is to ‘fight world hunger’. This mission leads to a hierarchy of business objectives, marketing objectives and, finally, marketing strategy.

HÓ

A

10

Chart 35.2 Business mission

TO ÁN

-L

Business objectives

Í-

a.

T Increase agricultural productivity

1 ị

b. c. d.

Reduce costs

N

ĐÀ N

Marketing objectives

DI Ễ

f.

*

Marketing strategy g- ...

h. 241





TP .Q UY

NH ƠN

The mission of fighting world hunger leads to the company’s prime business objective of ‘increasing agricultural productivity’. This in turn leads to ‘researching new fertilizers which promise higher yields’. But research is expensive and requires improved profits to plough back into research programmes. So a major objective becomes ‘to improve profits’.

NG

ĐẠ O

Profits can be improved by increasing sales or reducing costs. Sales can be increased by enlarging the company’s shares of the J S market and by entering foreign markets. These became the :ompany’s current marketing objectives.

TR Ầ

N

HƯ

Marketing strategies must be developed to support these narketing objectives. To raise its u s market share, the company vill increase its product’s availability and promotion. To enter lew foreign markets, the company will cut prices and call on large arms abroad. These are the broad marketing strategies.

00

B


A

10

1. What is wrong with definition a company’s mission in erms of its products or technology?

Í-

HÓ

2. Do you think the following mission statem ent of a pencil nanufacture is too broad or too narrow”

-L

‘We are in the communication equipment business’

TO ÁN

3. Why is improving profits a necessary objective for the ertilizer division?

ĐÀ N

III. Language focus 3.1. Sequence

DI Ễ

N

Look at the following sentences taken from the Reading >assage: ‘The company first defines its overall purpose and mission.’





NH ƠN

‘This mission is then turned into detailed...’

a. Following these meetings, progress reports must be submitted to the Board.

ĐẠ O

b. Before final submission of the project report, the project leader should match the findings with original specification.

TP .Q UY

The following steps describe management procedure. Put them into the right order.

NG

c. Having agreed investment, the first step is to see what action steps are needed to implement it.

N

HƯ

d. As the project neat completion, it is im portant to outline future steps.

TR Ầ

e. Once an action plan has been agreed, select a competent project leader. ?

00

B

f. Finally, the result should be presented to the Board.

A

10

g. Once the project has started, regular meetings should be held to monitor progress.

Í-

HÓ

h. The project leader should then call together his or her team and establish clear roles and responsibilities. E xpressin g p urpose

-L

3.2.

TO ÁN


ĐÀ N

‘Sales can be increased by enlarging the company’s share of the US market...’

DI Ễ

N

‘To raise its market share, the company will increase its product’s availability and promotion.’ Now match the purpose with the means:





Means

NH ƠN

Purpose

a. a regular product update was circulated

2. To establish a technological lead

b. research efforts were increased

3. The salesforce strengthened

d. by headhunting salespeople

IV. Word study

were

ĐẠ O

N

customers

e. by introducing new accounts software.

TR Ầ

5. So that informed

new

NG

reporting was

c. the workforce was reduced

HƯ

4. Financial streamlined

was

TP .Q UY

1. In order to reduce labour costs

A

HÓ

2. goal

10

1. purpose

00

B

Find the closest synonym for the word in the left. Select from a-k on the right.

b. narrow c. reduce

4. reinvest

d. mission

Í-

3. plan

-L TO ÁN ĐÀ N N DI Ễ

a. drift

5. wander aimlessly

e. overall

6. sensible

f. objective

7. general

g. increase

8. limited

h. broad

9. wide

i. plough back

10. raise

j. sound

11. cut

k. strategy




Vocabulary

NH ƠN

V.


- strategy (n): future action to achieve objectives - chiến lược

TP .Q UY

Strategic (adj): refering to a plan of action

- mission (n): long term objectives and philosophy of a company - sứ mạng, nhiệm vụ

ĐẠ O

- portfolio (n): collection; a product portfolio - range of a company products

NG

- drift (v): buông trôi vô hưống, phó mặc

HƯ

- renew (v): đổi mối

TR Ầ

- illustration (n): ảnh minh họa

N

- motivating (adj): khích lệ, khuyên khích làm việc

- fertilizer (n): phân hóa học, phân bón

00

B

- hierarchy (n): sự phân cấp

A

10

- productivity (n): measurement o f output per worker: năng suất lao động

HÓ

- yields (n): sản lượng

Í-

- plough back (v): reinvest in... - tái đầu tư, đầu tư lại

TO ÁN

-L

- promotion (n): all means o f communicating a message about a product or service: sự quảng cáo, hoạt động khuyến mại

DI Ễ

N

ĐÀ N

- sense (v) that: cảm nhận được




U nit 36 THE PROMOTION MIX IN THE MARKETING

TP .Q UY

L R eading

NH ƠN


ĐẠ O

A d v e rtisin g lets the seller repeat a message many times, and it lets the buyers receive and compare the message of various competitors. Large-scale advertising by a seller says something positive about the seller’s size, popularity, and success.

10

00

B

TR Ầ

N

HƯ

NG

Advertising is also very expensive, letting the company dramatize its products through the artful use of print, sound, and color. Advertising can reach masses of geographically spread-out buyers at a low cost per exposure. But advertising also has some disadvantages. Advertising is able to carry on only one way communication with the audience. Although some forms, such as newspaper and radio advertising can be done on small budgets, other forms. Such as net work TV advertising, require very large budgets.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

P e rso n a l selling. Personal selling is the most effective tool at certain stages of the buying process, particularly in building up buyers’ preferences, convictions, and actions. As compared with advertising, personal selling has several unique qualities. It involves personal interaction between two or more people, so each person can observe the other’s needs and characteristics and make quick adjustment. Personal selling also lets all kinds of relationships spring up, ranging from a mater-of-face selling relationship to a deep personal friendship. The effective salesperson keeps the customer’s interests at heart in order to build a long-run relationship. Finally, the buyer usually feels a greater need to listen and respond'J even if the respond is a polite: ‘no thank you’.




TP .Q UY

S ales prom otion . Sales promotion includes a wide assortment of tools coupons, contests, cents-off deals, premiums, and others and these tools have many unique qualities. They attract consumer attention and provide information that may lead the consumer to buy the product. They offer strong incentives to purchase by providing inducements or contributions that give addition value to consumers.

NH ƠN


N

HƯ

NG

ĐẠ O

P u b lic rela tio n s. Public relations offer several unique qualities. It is very believable news stories, features, and events seem more real and believable to readers than do ads. Public relations can reach many prospects who avoid salespeople and advertisements the massage gets to the buyers as ‘news’ rather than as sales-directed communication. And like advertising, public relations can dramatize a company or products.

00

B

TR Ầ

Marketers tend to under use public relations or use it as an afterthought. Yet a well-thought-out public relations campaign used with other promotion mix elements can be effective and economical. ’

10


HÓ

A

1. What are advantages and disadvantages of advertising? 2. What’s role of personal selling?

-L

Í-

3. What can sales promotion help consumers?

TO ÁN

4. What is a key difference between public relation and advertising? 5. Which ones have influenced you? Why?

ĐÀ N

I. L an gu age focus

Study the sentences from the text:

DI Ễ

N

1. Advertising lets th e seller repeat a message many times, and it lets the buyers receive a n d com pare the message of various competitors. 247





NH ƠN

2. Marketers tend to un d er use public relations or use it an afterthought

TP .Q UY

1. Verb + to + in finitive * Some verbs are foolowed by to + infinitive.

ĐẠ O

‘PCCW has openly stated that it w ishes to become the biggest broadband

NG

player in Asia,’says Richard Ferguson, a telecom analyst in Hong kong.

HƯ

‘That means it cannot afford to s ta n d s till.’ (Asiaweek website)

ag ree

arra n g e

a tte m p t

claim

decide*

dem and

deserve

expect

fail

g u a ra n te e

h e sita te

hope

le a rn

m anage

offer

plan

p re p a re

p re te n d

refu se

seem

te n d

10

B

afford

00

TR Ầ

N

List of the verbs which are usually followed by to + infinitive

Í-

tra in

HÓ

prom ise

A

neglect

w ant

th re a te n

w ould like

-L

2. V erb + object + in fin itiv e

Common examples are:

advise

allow

ask

invite

o rd e r

p ersu ad e

DI Ễ

N

ĐÀ N

TO ÁN

* There are a number of verbs that can take a direct object and to + infinitive

en able

en co u rag e

rem in d

tell

force w arn

The lawyer advised me to read the contract carefully. 248





NH ƠN

The negotiators p ersu a d ed the un ion to accept the pay deal. 3. Verb + object + bare infinitive

TP .Q UY

* Some verbs are followed by an object and a bare infinitive, such as let, m ake:

ĐẠ O

She wanted to go home, but her boss m ad e h er sta y until the work was finished.

NG

My boss let m e have the afternoon o f to go to my sister’s weeding.

B

I saw h im sign the cheque.

TR Ầ

N

HƯ

We use some verbs of perception see, w atch , n o tice, hear, liste n to an d feel with bare infinitive if we want to say that we h e a rd or saw , etc the whole action from beginning to end.

10

00

I h ea rd the m a ch in e m a ke a strange noise.

HÓ

A

E xercises for p ractice:

We were very unhappy with the service they had provided,

TO ÁN

1. (refuse)

-L

Í-

A. Continue the sentences using the words in brackets with a verb in the infinitive.

ĐÀ N

2. The company is taking on a lot of new staff, (plan)

DI Ễ

N

3. He was angry about the way the company had treated him.(threaten)





NH ƠN

4. Maria was getting tired of her job. (decide)

Answers: (sample answers only)

TP .Q UY

1. We refused to pay them. 2. We are palnning to expand. 3. He threatened to take them to court.

ĐẠ O

4. She decided to give in her notice.

NG

B . Rewrite the sentences beginning with They made us... or hey let us...

N

HƯ

1. We had to work extremely hard on the training course.

B

TR Ầ

2. We were allowed to go out at the weekends.

A

10

00

3. w e gave a presentation every morning.

Í-

HÓ

4. We spoke English all the time.

TO ÁN

-L

5. There was a TV we could watch.

Answers:

ĐÀ N

1. They made us work extremely hard on the training course.

DI Ễ

N

2. They let us go out at weekends. 3. They made us give a presentation every morning. 4. They made us speak English all the time. 5. They let us watch TV.




IV. Word study

design

develop

identify

influence

modify

paragraph

by

TP .Q UY

4.1 Now com plete the following inserting these verbs in the gaps below:

NH ƠN


persuade

TR Ầ

N

HƯ

NG

ĐẠ O

M arketers have to: (1)........... or anticipate a consumer need; (2)............ a product or service that meets th at need better than any competing products or services; (3)............target customers to try the product and service; and, in the long term, (4)........... it to satisfy changes in consumer needs or market conditions. M arketers can (5)........... particular features, attractive packaging, and effective advertising th at will (6)........... consumers’ wants. Marketing thus combines m arket research, new product development, distribution, advertising, promotion, product improvement, and so on.

10

00

B

4.2 Match up the words or expressions on the left with the definitions on the right.

B. an idea for a new product, which is tested with target consumers before the actual product is developed

TO ÁN

2. to launch a product

-L

Í-

HÓ

A

1. distribution channel A. all the companies or individuals involved in moving a particular good or service from the producer to the consumer

ĐÀ N

3. market opportunities

DI Ễ

N

4. m arket research

c. attributes

or characteristics of a product: quality, price, reliability, etc D. dividing a market into distinct groups of buyers who have different requirements or buying habits 251





E. places where goods are sold to the public - shops, stores, kiosk, market stalls, etc

6. packaging

F. possibilities of filling unsatisfied needs in sectors in which a company can profitably produce goods or services

7. points of sale

G. someone who contacts existing and potential customers, and tries to persuade them to buy goods or services

8. product concept

H. collecting, analyzing and reporting data relevant to a specific marketing situation (such as a proposed new product)

TR Ầ

N

HƯ

NG

ĐẠ O

TP .Q UY

NH ƠN

5. market segmentation

00

B

9. product feature

J. wrappers and containers in which products are sold

A

10

10. sales representation

I. to introduce a new product onto the market

HÓ

V. Vocabulary

TO ÁN

-L

Í-

message (n) a short piece of information that you give to a person when you cannot speak to them directly: lời nhắn, thông điệp.

DI Ễ

N

ĐÀ N

large-scale (a) describes an event or activity that is large in size: phạm vi rộng. spread-out (v) to reach or have an effect on a wider or increasing area', rải khắp. exposure (v) to remove what is covering something so that it can be seen: chào hàng, phơi bày. one way communication: giao tiếp một chiều. 252





NH ƠN

spring up (v) to appear or start to exist suddenly, nảy sinh. matter-of-fact selling: mua- bán đơn thuần.

TP .Q UY

coupon (n) a piece of paper which can be used to obtain something without paying for it or at a reduced price: phiếu giảm giá.

ĐẠ O

contest (n) a competition to do better than other people, usually in which

Premium (n): bán hàng có thưỏng

HƯ

cents - off - deal: bán hàng giảm giá.

NG

prizes are given: cuộc thi có trao giải

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

premium offer (n): giá chào đặc biệt (để quảng cáo).




U n it 37

TP .Q UY

ANALYSIS OF MARKET OPPO RTU NITIES

NH ƠN


I. Reading

ĐẠ O

Read the following overview o f the market research process. As you read it complete charts 37.1 and 37.2. MAHKET RESEARCH

TR Ầ

N

HƯ

NG

This section briefly describes the four steps in market research process, as shown in chart 37.1: firstly defining the problem and the research objectives, secondly developing the research plan, then implementing the plan, finally interpreting and presenting the findings.

TO ÁN

-L

Í-

HÓ

A

10

00

B

Defining the problem and research objectives is often the hardest step in the research process. The manager may know that something is wrong, but not the specific causes. For example, managers of a discount retail chain store hastily decided that falling sales were caused by poor advertising. When the research showed that the current advertising was reaching the right people with the right message, the managers were puzzled. It turned out that the stores themselves were not providing what the advertising promised.

DI Ễ

N

ĐÀ N

Chart 37.1




TP .Q UY

When the problem has been carefully defined, the research objectives must be set. The research may be exploratory in order to gather information to better define the problem. It may be descriptive - in order to describe market potential, customer attitudes, etc. Sometimes, it may be causal - to test hypotheses about cause - and - effect relationships: for example, would a 10 percent decrease in price lead to significantly higher sales or not?

NH ƠN


NG

ĐẠ O

The second step involves developing a plan for collecting the information. The information may be available in the form of secondary data - i.e. it already exists somewhere or it needs to be collected specifically for this project - primary data.

TR Ầ

N

HƯ

Primary data collection calls for decisions about the research approaches, contact methods, sampling plan and research instrum ents (see Chart 37.2) Chart 37.2 Contact methods g.

b.

e.

h.

c.

f.

i.

B

00 10

d.

Research instruments

j.

m.

k.

n.

.

1

TO ÁN

-L

Í-

a.

Sampling plan

A

Research approaches

HÓ

Research objectives

DI Ễ

N

ĐÀ N

There are three main research approaches: the observational approach involves gathering information by observing relevant people, actions and situations. For example, a museum checks the popularity of certain exhibits by noting the floor wear around them. This approach is most suited where the objective is exploratory. For descriptive research, surveys are best suited. These can be structured using formal lists of questions asked of all





NH ƠN

respondents in the same way or unstructured where the interview is guided by the respondent's answers.

TP .Q UY

Finally for causal research, an experimental approach is most effective. Experiments involve selecting matched groups of subjects, giving them different treatments, controlling unrelated factors and checking for differences in group responses.

NG

ĐẠ O

We will look at contact methods in more detail in Part 2. Briefly, information can be gathered either by mail, telephone or personal interview.

00

B

TR Ầ

N

HƯ

Another decision which has to be made concerns the sampling plan. A sample is segment of the population selected to represent the population as a whole. There are three variables here: firstly, the sample unit, i.e. who is to be sampled.? Secondly, the sample size, i.e. how many should be surveyed? Thirdly, the sampỉing procedure, i.e. how should the people be chosen: at random, at convenience, on the basis of prejudgement?

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

Finally, in developing the research plan, a choice must be made in terms of the research instruments. The most common is the questionnaire. In preparing the questionnaire, the market researcher must decide what questions to ask, the form of the questions (e.g. open / closed, multiple choice), the wording of the questions and their ordering. Although questionnaires are the most common instrument, mechanical instrum ents such as a galvanometer can be used: this instrument measures the strength of a subject's interest or emotions aroused by and exposure to an advert or a picture.

Once all these decisions have been made concerning the research plan, the researcher must then put it into action. The implementation phase is generally the most expensive and the most subject to error. The fieldwork must be monitored closely to make sure the plan is correctly implemented. 256





TP .Q UY

NH ƠN

The last phase is the interpretation and reporting. The I researcher should try not to overwhelm managers with statistics, but to present major findings that are useful in the decisions faced by the management. II. Com prehension / interpretation

2. Can you think of another example of a causal research objective?

NG

I

ĐẠ O

1. In the case of the retail chain store, what should the I management have done first?

HƯ

I 3. Where could the researcher find secondary data such as I competitor information?

TR Ầ

N

4. What do you think are the advantages / disadvantages of structured versus unstructured surveys?

10

00

B

5. What sort of experimental research could you carry if you wanted to find out about the relationship between the weather and the incidence of psychological depression?

3.1. Questions

HÓ

A

III. Language focus

-L

Í-

Look at the following sentences taken from the reading passage:

TO ÁN

"Who is to be sampled?" How many should be surveyed?

ĐÀ N

How should these people be chosen?

DI Ễ

N

Now make questions for the following answers as part of a market research survey: 1. A: My name's Dorothy. 2. A: It's Squires. Mrs. Squires. 257





3. A: Yes, I live here.

NH ƠN

4. A: There are four of us: My husband, two daughters and myself.

TP .Q UY

5. A: No, I don't. I used to work as a nurse before the children were born. 6. A: He's a computer analyst.

ĐẠ O

7. A: He works for Halfords - a food processing group. 8. A: Yes, we've got two. An Audi and Peugeot.

NG

9. A: I drive the Audi.

HƯ

10. A: They're both at school. One's 12, the other 16.

N

11. A: We usually go to the South of France.

TR Ầ

12. A: Two weeks in the summer holidays. 13. A: No, we drive.

A

M odals.

HÓ

3.2.

10

00

B

14. A: No, not this year. We're going to visit our relatives in the States.

Í-

Look at the following sentences taken from the reading passage:

-L

"The manager may know th at something is wrong..."

TO ÁN

"Another decision which has to be made..."

ĐÀ N

Now complete the following sentences with an appropriate modal verb:

DI Ễ

N

1. Entrance is forbidden. You____ not enter.

2. Success is possible. We____ be successful. 3. Participation is compulsory. We____ to take part.

4. Permission is given. You____ take thè afternoon off.





NH ƠN

' 5. Success is probable. W e___ succeed. 6. He has the ability. He___________ win the competition.

8. Failure is impossible. We____ fail.

TP .Q UY

7. Participation is voluntary. We_____ go to the reception.

9. It’s possible to segment the market. It____ be segmented.

ĐẠ O

10. Permission is not given. You______leave the building. IV. Word study

NG

A useful way of expanding your active vocabulary is to generate different forms o f a word from the base form, for example:

HƯ

- to compete (verb) - competition (noun / concept)

- competitive (adjective)

TR Ầ

N

- competitor (noun / agent)

Fill in the following table. Use dictionary if necessary: Noun (concept)

Noun (agent)

to explore

___________

__________

_______ 1

to respond

___________

__________

___________

to describe

___________

__________

to analyse

___________

to manage to hypothesise

___________

to observe to interpret

___________

__________

___________

___________

__________

___________

__________

___________

___________

__________

___________

___________

__________

___________

TO ÁN

Í-

HÓ

A

Adjective

-L

10

00

B

Verb

ĐÀ N

V. Vocabulary

brief 1. (nj objectives for a campaign given by an advertiser to an agency, bản tóm tắ t hồ sơ tố tụng, bản cáo thị

DI Ễ

N

-

2. (v) to explain to people before an assignment: giải thích cho mọi người trưốc khi nhiệm vụ được giao. 'K Q





NH ƠN

3.(adj) ngắn gọn, vắn tắt. - objective (n): thing aimed at or wished for, purpose: mục tiêu. hiện.

which

is

not

easily

ĐẠ O

interpret (v): explain sth understandable: giải thích, lý giải.

TP .Q UY

- implement (v): put sth into effect, carry out: thi hành, thực

NG

- puzzle (v): make sb think hard: bắt ai phải suy nghĩ, nghiền ngẫm

TR Ầ

N

HƯ

- hypothese (n): idea or suggestion that is based on known facts and is used as a basic for reasoning or further investigation: những giả thuyết.

B

- observation method (n): market research method based on watching consumers', phương pháp quan sát.

10

00

- respond (v): phúc đáp, trả lòi.

HÓ

A

- sample 1. (n) a specimen o f a product used to show what it is like: mẫu hàng, mẫu sản phẩm

Í-

2.(v) to try out something', thử hàng mẫu, dùng thử.

-L

- segment 1. (n) a section o f the market', phần, đoạn

DI Ễ

N

ĐÀ N

TO ÁN

2.(v) to divide a market into different parts. - represent (v): to act on behalf of a company, đại diện representative (n): a sales person-, người đại diện bán hàng.

- survey (n): an investigation o f a particular market'. CUỘC điều tra, xem xét. - prejudge (v): make a judgement about (a person or case): phán xét về ai / phán đoán - galvanometer (n): máy mạ kim loại 260





NH ƠN

- arouse (v): đánh thức, gợi lên tình cảm của ai - exposure (n): publicity given to a product or company, sự phơi bày 1 sản phẩm hay 1 công ty ra trước công chúng.

TP .Q UY

- monitor (v): make continuous observation of sth,record or test the operation o f sth: theo dõi, quan sát liên tục, ghi chép hoặc kiểm nghiệm hoạt động.

ĐẠ O

- overwhelm (v): overpower sb / sth by force of numbers, defeat: áp đảo bằng... đánh bại.

HƯ

NG

- a discount retail chain store (n): cửa hàng liên nhánh bán lẻ hạ giá

TR Ầ

N

- exhibit (n): tang vật, hiện vật đưa ra triển lãm (hoặc làm chứng cố) - at convenience (n): tuỳ tiện, tuỳ thích

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

- fieldwork (n): việc nghiên cứu bên ngoài, việc nghiêncứu thực tế.




U n it 38

TP .Q UY

WAYS OF ENTERING A FOREIGN MARKET

NH ƠN


I. Reading

ĐẠ O

Read the extract about entering foreign markets. As you read t, complete Chart 38.1.

10

00

B

TR Ầ

N

HƯ

NG

The simplest way to enter a foreign m arket is through ixporting. The company may passively export its surpluses, or it nay make a commitment to expand exports to a particular (larket. In either case the company produces all its goods in the Lome country though it may make changes to them for the export larket. There are two types of exporting: indirect and direct, ndirect exporting means working through independent liddlemen such as agents and dealers. Indirect exporting can be one with little investment and therefore involves less risk, listakes can be made but they shouldn’t be too costly.

-L

Í-

HÓ

A

Direct exporting involves setting up an export department or ven an overseas sales branch which actively uses the company’s wn employees. This will give the seller more presence and )ntrol in the m arket but obviously means heavier investment.

TO ÁN

A second method of entering a foreign market is through lint ventures with foreign companies. There are four types of lint venture.

DI Ễ

N

ĐÀ N

Licensing is the simplest way for a manufacture to produce s goods in the foreign market. The company enters into an ịreement with a licensee offering the right to use a lanufacturing process, trademark, patent or other item of value r a fee or royalty. Once again the cởrtipany gains entry into the arket at little risk but there are potential disadvantages. The )2





TP .Q UY

NH ƠN

company has less control over the licensee than if it had set up its own production facilities. If the licensee is very successful, the company has given up the potential for large profits and, if and when the contract ends, it may find it has created a competitor.

NG

ĐẠ O

Another option is contract manufacturing. This means contracting with foreign manufacturers to produce the product. It has the drawback of less control over the manufacturing process and the loss of potential profits on manufacturing. On the other hand, it offers the company the chance to get off to a quicker start and take on less risk. There is also the opportunity to form a partnership or buy out the local manufacturer later.

HÓ

A

10

00

B

TR Ầ

N

HƯ

Joint ownership ventures consist of the company joining with foreign investors to create a local business in which they share joint ownership and control. Joint ownership may make sense for political or economic reasons. Sometimes foreign governments make joint ownership a condition for entry. It also has certain drawbacks. Above all, there is the danger of disagreement over crucial issues such as investment and marketing. One firm may want to put money back into the company while the other wants to take it out.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

Beside exporting and joint ventures, there is also the possibility of direct investment - in other words developing foreign-based assembly or manufacturing facilities. If the foreign market is large enough, local production facilities offer many advantages. The company may have lower costs in the form of cheaper labour, raw materials and transport / distribution. The company will gain a better image in the host country because it creates jobs. It also develops deeper relationship with government, customers, suppliers and distributors. Finally, by direct investment, the company keeps full control over investment and marketing policies. The main disadvantage is that the firm





NH ƠN

faces many risks such as devalued currencies, declining market or even government takeover. C hart 38.1 Method of entry

Disadvantages

TP .Q UY

Advantages

1. Export

ĐẠ O

1.1. Indirect 1.2. Direct

NG

2. Joint venture

HƯ

2.1. Licensing 2.2. Contract manufacturing

TR Ầ

3. Direct investment

N

2.3. Joint ownership

00

B


A

10

1. Why do you think joint ventures, rather than direct investment, are becoming more common in international trade?

-L

Í-

HÓ

2. Setting up a foreign subsidiary is a large investment for the parent company. Do you think the senior management positions should be held by local or headquarters staff?

DI Ễ

3.1.

M ake a n d do

Look at the following sentences taken from the Reading oassage: ‘It may make a commitment to expand exports...’ ‘Indirect exporting can be done with little investment...’

N

ĐÀ N

TO ÁN

III. Language focus

Now complete the following sentences with an appropriate orm of m a ke and do: 64




1. W e_______ the mistake of setting up a joint venture.

NH ƠN


2. There’s a lot of work to- 2 ______ before setting up in a foreign country.

TP .Q UY

3. H e _______ the job of importing goods from the Far East. 4. The government_______ us register the company locally.

ĐẠ O

5. If we had _______ our homework, we wouldn’t have _______ the investment. 6. It’s important t o _______ friends in high places.

HƯ

NG

7. Deals like th at are _______ on the ground. You can’t business with these people without meeting them.

TR Ầ

N

8. We could _______ without interference from politicians but w e _______ the best of the situation.

00

B

9. H e _______ very well to establish the business. It’s a pity he didn’t _______ more money.

Verb + prepo sitio n

HÓ

3.2.

A

10

10. In order t o _______ this work. We’re going to have to _______ a lot of research.

-L

Í-


TO ÁN

‘Direct exporting involves setting up an export department...’ ‘It offers the company the chance to get off to a quicker start...’

DI Ễ

N

ĐÀ N

Now complete the following sentences with the correct preposition: 1. They put a lot of money_____ the project.

2. The project had to be p u t_____ due to production delays.

3. Once we had got _____ the joint venture, it was very difficult to g e t_____ of it.





5. I’d like to ta k e _____ your offer of collaboration.

NH ƠN

4. Companies are often unwilling to give _______ their independence.

TP .Q UY

6. The company was put _____ by the size of the investment. They decided instead to g o _____ partnership with a local firm.

ĐẠ O

7. They m ade_____ for their lack of financial investment by doing a lot of the ground work.

Inhabitant

Language

United States

American

France

__________

__________

China

__________

__________

Japan

__________

__________

Brazil

__________

__________

A

10

B

TR Ầ

N

Country

00

HƯ

NG

8. We could only p u ll_____ of the joint venture if they gave _____ their position in the market.

__________

__________

__________

__________

United Kingdom __________

__________

Germany

__________

__________

Netherlands

__________

__________

HÓ

Spain

English

TO ÁN

-L

Í-

Sweden

ĐÀ N

IV. W ord stu d y Complete the following table:

DI Ễ

N

V. Vocabulary - surplus (n): having more stockthan needed: dư thừa - make a commitment (v): cam kết

266 I Đóng góp PDF bởi Nguyễn Thanh Tú



- direct export (n): selling direct to an overseas customer xuất khẩu trực tiếp

TP .Q UY

- direct selling (n): selling direct to a customer without going through any middlemen - bán hàng trực tiếp

NH ƠN


- agent (n): person who represents a company - đại lý

- dealer (n): person / company who buys and sells - người bán

ĐẠ O

buôn

- royalty (n): money paid to an investor / creator / writer by the license or publisher - tiền bản quyền, tiền nhuận bút

NG

- licence (US: license) (n): official permission to do sth - giây who

has

permission

to

sell,

N

person

licensor (n): person who give the license

TR Ầ

licensee (n): manufacture...

HƯ

phép

10

00

B

- contract (n): legal agreement between two or more parties'. bản hợp đồng

HÓ

A

- contract manufacturing (n): agreement which allows an overseas manufacture to make your goods ■ sản xuất theo hợp đồng

Í-

- joint ownership venture (n): xí nghiệp liên doanh đồng sỏ

-L

hữu

TO ÁN

- drawback (n): số tiền th uế quan được giảm - advantage (n): lợi thế

ĐÀ N

- disadvantage (n): bất lợi - customer (n): person / company that buys goods: khách hàng

N

customize (v): to adapt a product for a particular customer

DI Ễ

- supplier (n): person or company which provides products or services: nhà cung cấp




U nit 39

TP .Q UY

PRO JEC T PLANNING

NH ƠN


I. R eading

As you read, complete the tasks in the text:

TR Ầ

N

HƯ

NG

ĐẠ O

The project process is adopted by businesses involved in providing tasks normally of considerable magnitude and usually, but not always, carried out on a one - off basis. If the project contains only a few activities, an informal scheduling and control approach can be adopted. However, most projects are complex and involve a large number of interrelated activities and hence it is necessary to develop a formal plan.

HÓ

A

10

00

B

The one - time or infrequent nature of these tasks, however, militates against the use of the more traditional scheduling methods. As a result, network analysis has been developed for projects and the principles behind this technique are now described. GENERAL ASPECTS

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

The first task is to determine the level of detail on which the activities to complete the task will be based. Often in large projects an overall network will be developed with subnetworks being provided to give control at a more detailed level. After this has been agreed, the activities which have to be completed will be listed. Activities are tasks which have a time duration. At the start and finish of each activity there will be, in network language, an event which occurs at an instantaneous moment in time and says that the preceding activity (or activities) is now complete and other activities which depend upon its (or their) 268





o Event

TP .Q UY

—>Activity —> Dummy activity

NH ƠN

completion can now start. These are the two principal building blocks for the networks and use the symbols shown below. In addition, there is one further symbol, that of a dummy activity.

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

All the activities listed represent the total task. By building a network, the task is stated as a series of activities, all of which have to be completed for the task to be finished. The key, however, is to build so th at the activities are shown in the order in which they have to occur. To do this it is necessary to establish for each activity the other activity (or activities) which has to be completed before it can start. This is called dependency. One or more activities will, however, be independent of other activities and these are obviously the ones which are completed at the beginning. When these have been completed (an event) then other activities can start and so on. In this way the network is developed. Those activities which follow others are said to be sequential whilst those which can be completed at the same time as others (i.e. they are independent) are said to be parallel. The steps to follow in network construction are:

TO ÁN

-L

Í-

1. Planning. Establishing all the activities or steps to be completed, determining the dependency between these activities and drawing the network.

N

ĐÀ N

2. Scheduling. Applying to the network any limiting factors such as time, cost and the availability of materials, equipment and labour. These factors will often necessitate the redrawing of parts of the network to accommodate the constraints they impose.

DI Ễ

3. Controlling. The task of obtaining feedback during the project to ensure adherence to the plan and to update the plan in the light of any changes which occur. 269





PLANNING

NG

ĐẠ O

TP .Q UY

NH ƠN

The first task is to establish and list all the activities or stages necessary to complete the project and at the level of detail already agreed. This is the most important step and will be invaluable as part of the overall control of the project. Following this, it is necessary to determine which activities depend upon which other activities being completed before they can start: this is described as dependency. The final task is to draw the network. The following general guidelines will prove useful when setting about the task of drawing a network. 1. All activities start and end with an event.

N

HƯ

2. An activity is a time - consuming task and happens for a period of time.

10

00

B

TR Ầ

3. An event is instantaneous and occurs at a moment in time. In effect it says th at all activities entering that event sign have now been completed and therefore all activities leaving th at event sign can now be started.

A

4. Any number of activities can go into and out of an event.

HÓ

5. Activities, wherever possible should go from left to right.

-L

Í-

6. Activities occurring on the same path are sequential and are thus directly dependent upon each other.

ĐÀ N

TO ÁN

7. Activities on different paths are termed parallel activities, are independent of other sets of parallel activities are taking place. 8. Dummy activities are used in two ways:

As and aid to drawing the network and, as such, form part of the set of conventions to be followed. Thus, two or more activities cannot leave one event sign and enter the same end sign.

DI Ễ

N

(a)




(b) As the way of extending the dependency of one or more activities to other activities.

TP .Q UY

The role of the dummy activity is, therefore, to facilitate the presentation of networks and to extend the dependency function which is the essence of the network concept Dummy activities, therefore, are not time - consuming (this is already covered by the original activity) and hence their name.

NH ƠN


ĐẠ O

Only one of the diagrams below is possible. Which is it, (a) or (b)? Chart 39.1

o —_ >o__

,o —

NG

A ctivity c

N

HƯ

A ctivity a

TR Ầ

A ctivity b Q

10

00

B

The following example lists the activities to be undertaken to complete a task and indicates those activities on which an activity is dependent. As you read complete Chari 39.2

TO ÁN

-L

Í-

HÓ

A

Activity A is the start point and is independent of other activities. Activity B cannot start until activity A has been completed and the same goes for activity E. Activities c and D cannot start while activity B is still in operation. F cannot start until both c and D have been completed and c cannot start until E had been completed. Finally, H cannot start until F and c have been completed. C h a rt 39.2: Activity table

ĐÀ N

Activity

F H

DI Ễ

c

N

A

Activities on which it is dependent None A





NH ƠN

Chart 39.2 can now be built up into a network to represent the statement o f the task.

TP .Q UY

Complete Chart 39.3 by inserting the appropriate letter for the activity.

B

TR Ầ

N

HƯ

NG

ĐẠ O

C hart 39.3: Network

00


A

10

1. What type of analysis lends itself to project planning?

Í-

HÓ

2. Networks are made up of activities and events. What is the difference between these two elements?

TO ÁN

-L

3. What principle of relationship is used to build up a network?

(i) Sequential activities cannot take place at the same time.

ĐÀ N

(ii) Parallel activities can take place at the same time. III. Language focus

N DI Ễ

4. Are the following statements true or false?

3.1.

Be

Look at the following sentences taken from the Reading passage: 272





NH ƠN

“To do this it is necessary to establish for each activity the other activity (or activities) which has to be completed before it can start”.

TP .Q UY

“In addition, there is one further symbol, that of a dummy activity”.

ĐẠ O

“Those which can be completed at the same time as others (i.e. they are independent) are said to be parallel”.

NG

Now complete the following sentences by putting in it, they or there with an appropriate part o f the verb to be:

HƯ

I ...........important first to determine the level of detail on which the activities to complete the task will be based.

TR Ầ

N

2. In the project we did last year............. a clear need to develop an overall network.

00

B

3 three principal building blocks for networks: the activity, the dummy activity and the event.

A

10

4. When this activity has been completed.............. time for the next activity to start.

HÓ

5...............no other way that the network can be developed.

-L

Í-

6. If you had looked, you would have seen th at.............places on the chart for all the activities.

TO ÁN

7........... nearly time to draw the network. 8........... still time to draw the network.

ĐÀ N

9........... many factors over the last month that have necessitated the redrawing of parts of the network.

DI Ễ

N

10. As I said before..... all the activities or stages necessary to complete the project.

I I ............... some important general guidelines to follow when drawing a network. 273





NH ƠN

1 2............. many activities which can go into and out of the same event. 1 3............. the role of the dummy activity to facilitate the presentation of networks.

TP .Q UY

1 4 ............. where an activity starts and where it finishes that is important. 3.2. For, during, w h ile a n d u n til

ĐẠ O


HƯ

NG

“An activity is a time - consuming task and happens for a period of time”

TR Ầ

c

and D can not sta rt while activity B is still in

B

"Activities operation".

N

“Controlling (is the) task of obtaining feedback during the project to ensure adherence to the plan...”

10

00

Now complete the following sentences with for, during, while or until:

HÓ

A

1. We don’t expect them to finish the project.............the end of the year.

-L

Í-

2. The project has already been running.............. three months.

TO ÁN

3.......... the initial stages of the project, we used an informal control approach.

ĐÀ N

4.......... we were preparing for the project we didn’t realise how complex it was.

DI Ễ

N

5. We worked on the first task............. the whole of the summer. 6. Often............ large projects-an overall network will be developed.




7.............. discussing this, the activities which have to be completed will be listed. 8. An actively continues.............. a point of time when an event occurs,

NH ƠN


TP .Q UY

9. The task is not completed.............. all the activities have been carried out.

11. Each activity continues............... a period of time.

ĐẠ O

10............... the activities are in progress, the task is not completed.

HƯ

NG

12................. the planning stage, we establish all the activities or steps to be completed. task

and

TR Ầ

N

13. An activity is a time - consuming happens............a specified period of time.

00

Word study

f

10

IV.

B

14. We expect to have to change the project............... the coming months.

Find in the text the opposites of the words given

HÓ

A

4.1. below:

Í-

1. simple

-L

2. following

4. general

ĐÀ N

5. leave

TO ÁN

3. initial

6. interrelated

N

7. often

DI Ễ

8. partial 9. obstacle 275 Đóng góp PDF bởi Nguyễn Thanh Tú




NH ƠN

4.2. Form a verb from the ita licised w ord in order make a sentence with the sam e m eaning as the one given. For example:

TP .Q UY

"Activities occurring on the same path are dependent upon each other.” “Activities occurring on the same path depend (up) on each other.”

ĐẠ O

1. We must make sure of adherence to the plan.

NG

2. The plan must be made up-to-date in the light of any changes which occur.

N

HƯ

3. These factors often make it necessary to redraw parts of ;he network.

TR Ầ

4. These activities will be the basis of the task.

B

(Begin your sentence: “The task...”)

00

5. We must have a formal plan.

10

6. The next step is to make an analysis of the activities and

HÓ

A

5vents.

V.

V ocabulary

-L

Í-

- project (n): way of doing work based on the demand for one l.hing: dự án, đề án

TO ÁN

- magnitude (n): size: -

ĐÀ N

2. (v): fix the timetable for the planned activities - militate (v): have great force or influence - one-off (adj): (of an order or product) produce only once:

N DI Ễ

schedule 1. (n): timetable for planned activities'.

- dummy activity (n): activity in cortical path analysis which is not time-consuming; it is a convention for the logic o f the path: >76




NH ƠN


Unit-40

TP .Q UY

INTERNATIONAL BUSINESS I. R e a d in g

ĐẠ O

Most countries realize the advantages of world trade. Countries have developed their economies, increased production of goods, and met market demands though increased world trade. The interdependence among trading nations has provided

TO ÁN

-L

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

International trade develops because certain countries are able to produce some goods more efficiently than other countries. They exchange goods to satisfy their needs and wants. Efficient production may be the result of several factors. A certain climate in particular country may allow that country to grow agricultural products in abundance. For instance, the climates in the United State and Canada are suitable for production of large amount of wheat. Natural resources such as oil or coal are abundant in other countries. Countries with a large pool of unskilled laborers are able to produce products which are labor intensive more cheaply than countries with highly paid, skilled labor forces. Another factor is geographical location. Countries like Singapore and Panama engage in banking and trading because they are located on world trade routes.

DI Ễ

N

ĐÀ N

The Scottish economist, Adam Smith (1723-1790) theorized th at in a free market, countries produce whatever they can most efficiently grow or manufacture, or what is of the greatest advantage to them. In other words, if they can make more money growing cotton than making cloth, they grow cotton and export it. Then they import cloth from a country that makes cloth more efficiently than it grows cotton. In an uncontrolled free market trade situation, there is international specialization which results in the most efficient production of goods. Therefore, competition





ĐẠ O

TP .Q UY

NH ƠN

guarantees that countries import products which are most efficiently manufactured abroad and export products which are most efficiently produced domestically. Price is determined by the supply side of the market. Smith’s theory was a theory of absolute advantage. The English economist, David Ricardo (1772 - 1823) refined Smith’s theory to one of comparative. He theorized th at an exporting country does not have to be the most efficient producer of the product; it only has to be more efficient than the country which imports the product. Mutually beneficial trade arises when one country has a comparative advantage.

Í-

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

There are several reasons why governments try to control :he imports and exports of a country. One reason is th at a country injoys an advantage if it exports more than it imports. Wealth iccrues to the exporting country. Some countries have special urograms to encourage exports. They may be programs that )rovide marketing information, establish trade missions, lubsidize exports and provide tax benefits or incentives, jovernment subsidies allow companies to sell products cheaply, sometimes these subsidized companies export their products and ell them cheaply overseas. This practice is known as dumping. )umping is selling' on a foreign market at a price below the cost of iroduction.

N

ĐÀ N

TO ÁN

-L

On the other hand, governments impose taxes and quotas to estrict imports of certain products. For example, to protect apanese farmers, Japan limits the amount of produce th at can be mported. Sometimes governments want to protect a domestic ndustry because th at industry provides employment for the opulation. Not only the industries, but also the labor unions ncourage the government to enact protectionist controls.

DI Ễ

The comparative advantage which exporting countries enjoy ometimes changes. If transportation'costs increase or currency xchange rates change, it may become cheaper to produce the 78




NG

ĐẠ O

TP .Q UY

product in the market country, especially if large amounts of exports are involved. Exporting companies sometimes set up subsidiaries in the market countries. The larger company is referred to as the parent company. Some countries have laws restricting the foreign ownership of factories or other production facilities, while others encourage foreign investment. A large company th at sets up production facilities in several different countries is referred to as a multinational. Multinational corporations develop a global philosophy of management, marketing and production. They choose to operate in those countries th at afford them comparative advantages.

NH ƠN


HƯ


N

1. What advantages do countries derive from world trade?

TR Ầ

2. How could climate affect a country’s production efficiency? 3. Why do governments encourage exports?

Ị

00

B

4. How do governments encourage exports?

10

5. Why do governments try to control imports?

HÓ

A

6. Why might government subsidize an inefficient export industry?

-L

Í-

7. Why does the comparative advantage which exporting countries enjoys sometimes change?

TO ÁN

8. What is a parent company? 9. What would be a good reason for an exporting company to set up a subsidiary in the country th a t imports its product?

ĐÀ N

10. Why might a country encourage foreign investment or the establishment of subsidiaries of foreign companies?

DI Ễ

N

III. Language focus: Gerund as subjects and objects of sentences + Gerund can be subjects of sentences:





+ Gerund can be objects of sentences:

TP .Q UY

- What time did you finish reading last night?

NH ƠN

- Living in a foreign country can be very difficult.

Exercise 1: Match the beginning of the sentences (1-6) with the ending (a-f).

ĐẠ O

1. Giving employees shares 2. Flying Business Class

NG

3. Taking over other businesses

HƯ

4. Becoming a fully - qualified doctor 5. Breaking into the Japanese market

TR Ầ

N

6. Getting unemployment down a. is difficult without local contacts.

00

B

b. can make overseas trips less stressful.

10

c. can help to increase motivation.

A

d. is one of the government’s priorities

HÓ

e. takes about seven years.

Í-

f.is one way of increasing market shares.

-L

E xercise 2: Complete these sentences with a verb in -ing

DI Ễ

N

ĐÀ N

TO ÁN

form.

1. I’ll never forget (see)........... ..her for the first time.

2. A lot of business people in this country object ............ such high taxes.

to (pay)

3. I am not aware of any regulations th at shouldprevent us from (export)...... to those countries. 4. They have imposed restrictions on the (sell).................of certain electronic goods. 28 0





IV.

NH ƠN

5. If a country has a floating currency, importers and exporters may have to keep (change)........ the prices of their goods. Words-study

а. balance of payment

b. balance of trade

e. tariffs

NG

d. deficit

ĐẠ O

c. barter or counter-trade

TP .Q UY

Exercise 1: Match up these words and expressions with the definitions below:

HƯ

f. visible trade (GB) or merchandise trade (US) h. surplus

i. quotas

j. invisible imports and exports

TR Ầ

N

g. dumping

1. trade in goods

00

B

2. trade in services (banking), insurance, tourism, and so on

10

3. direct exchanges of goods, without the use of money

HÓ

A

4. the difference between what a country receives and pay for its exports and imports of goods

-L

Í-

5. the difference between a country’s total earnings from exports and total expenditure on imports

TO ÁN

б. a positive balance of trade or payments 7. a negative balance of trade or payments

ĐÀ N

8. selling goods abroad at (or below) cost price 9. taxes charged on imports

DI Ễ

N

10. quantitative limits on the import of particular products or commodities Exercise 2: Select the answer which is consistent with the meaning of the sentence. 281





NH ƠN

1. International trade develops because certain countries are able to produce some goods more efficiently than other countries. They exchange these goods in order to satisfy their needs and wants.

TP .Q UY

a. Countries import the goods which they produce efficiently. b. Countries probably export the goods which are not efficiently produced.

ĐẠ O

c. Countries probably exchange goods which they produce efficiently for goods which other countries produce efficiently.

NG

d. Efficiently exchange results from international trade.

HƯ

2. Price is determined by the supply side of the m arket

N

a. If the demand for products increased so would the price.

TR Ầ

b. There is such an abundance of products for sale that prices would have increase.

00

B

c. If the supply is low, the price is low.

A

10

d. Supply is more of a factor than demand in determining the price.

Í-

HÓ

3. A country cans accurse wealth if it exports more than it imports.

-L

a. This country has a balance of trade deficit.

TO ÁN

b. Demand for this country’s currency will fall.

ĐÀ N

c. This country receives money from countries which import its products. d. All of the above.

DI Ễ

N

4. Governments try to control imports of products to protect domestic industries.

a. quotas.

Protectionist measures take the form if import duties and

Đóng góp PDFT bởi Nguyễn Thanh Tú




c. Workers are always opposed to protectionism.

TP .Q UY

d. All protectionist policies have the same effect on the market.

NH ƠN

b. Protectionist measures insure free trade.

5. M ultinational companies set up production facilities in countries where production is most efficient.

ĐẠ O

a. All countries allow foreign ownership of production facilities.

NG

b. The larger company is called the parent company the production facilities are referred to as a subsidiary.

N

HƯ

c. Subsidiary companies climate the problem of worldwide competition.

B

Vocabulary

00

V.

TR Ầ

d. Each subsidiary needs to consider only local market conditions. 5

A

10

- accrue (v): to increase and to be due at a later date: tích lũy, dồn lại

Í-

HÓ

Interest will accrue i f you keep your money in a saving account.

-L

. accrual (ĩì):graduaỉ increase by addition

TO ÁN

- advantage (n): lợi thế, lợi điểm - deficit (n): amount by which expenditure is higher than income: thâm hụt

ĐÀ N

- division of labor (n): sự phân bô" lao động

DI Ễ

N

- dump (v): sell goods to a foreign market at a low price: bán phá giá hàng xuất khẩu The government has passed anti-dumping legislation. - duty: thuế





NH ƠN

- geographical (adj): thuộc về địa lý - global (n): worldwide: toàn cầu

TP .Q UY

- interdependence (n): dependence on each other: sự phụ thuộc lẫn nhau - labor intensive (n): việc tận dụng lao động chân tay - multinational (adj): operating in several countries: đa quốc

ĐẠ O

jia

NG

- parent company: company which owns more than 50% of he shares of another company: công ty mẹ

HƯ

- protectionism (n): chế độ bảo hộ

TR Ầ

N

- quota (n): a limit on the amount o f goods which can be mported / exported: hạn ngạch, chỉ tiêu, cô ta Distribute through a quota system.

10

00

B

- subsidiary (n): company which is at least 51% owned by a
HÓ

A

- subsidize (v): to help or'support financially: hỗ trợ (của nhà iưốc)

Í-

The government refused to subsidize the car industry.

-L

- subsidy (n) tiền trợ cấp

TO ÁN

- surplus (n): having more stock than needed: thặng dư, số dư

DI Ễ

N

ĐÀ N

- restrict (n): limit: hạn chế, giới hạn - tax benefit: quyền lợi về thuế

- theory (n): supposition or system o f ideas explaining omething, esp, one based on general principles independent of the articular things to be explain: thuyết, học thuyết - theorize (v): đề ra học thuyết 84




U nit 41

TP .Q UY

TRADE SURPLUSES AND DEFICITS

NH ƠN


I. R eading

NG

ĐẠ O

Ju st like any business, a country has to keep track of its inflow and outflow of goods, services, and payments. At the end of any given period, each country has to look at its “bottom line” and add up its international trade and investments in one way or another.

10

00

B

TR Ầ

N

HƯ

The narrowest measure of a country’s trade, the merchandise trade balance, looks only at “visible” goods such as videocassette recorders, wine, and motorcycles. Trade in visible goods is commonly referred to as the trade balance even though it includes only those tangible goods that can actually be loaded on a ship, airplane, or whatever means of transport to move goods from one country to another.

TO ÁN

-L

Í-

HÓ

A

The current account is a better measure of trade, because it includes a country’s exports and imports of services, in addition to its visible trade. It may not be obvious, but many countries make a lot of money exporting “invisibles” such as banking, accounting, and tourism. A tourist abroad, for example, “buys” hotel and restaurant services in the same way as a consumer at home would buy an imported appliance. Movies and banking services have to be paid for just like bags of rice.

DI Ễ

N

ĐÀ N

The current account tells us which countries have been profitable traders, running a current account surplus with money in the bank at the end of the year, and which countries have been unprofitable traders, having imported more than they’ve exported, running a current account deficit, or spending more than they’ve earned. 285





TP .Q UY

NH ƠN

Trade deficits and surpluses are balanced by payments that nake up the difference. A country with a current account surplus, Dr example, can use the extra money to invest abroad, or it can ut it in its cookie jar of foreign currency reserves. A country unning a current account deficit has to look abroad for loans or avestments, or be forced to dip into its own reserves to pay for its xcessive imports. All of these payments and transfers of funds re added up in a country’s capital account.

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

The widest measure of a country’s trade is called its balance epayments. It includes not only payments abroad, but the goods, ỉrvices, and all transfers of funds th at cross international orders. The balance of payments adds up everything in a juntry’s current account and capital account. Since all the trade 1 goods and services is “balanced” by the international transfers : funds, the balance of payments should add up to zero at the end ' accounting period. Every banana, every automobile, every ivestment and payment th at crosses a country’s borders gets lcluded in this final tally of international trade and investment le balance of payments.

HÓ

A

II.Com prehension / interpretation

Í-

1. Trade surplus means:

-L

a. more of something is coming in more than going out.

TO ÁN

b. the amount by which value of goods th at a country sells to ;her countries is more than the value of goods it buys from them.

ĐÀ N

c. amount of money th at a country has left after it has paid >r all things it needs. 2. “ bottom line” in the first paragraph refers to:

DI Ễ

N

a. the lowest part of something.

b. what the most im portant part"-of situation is or w hat the lost important thing to consider is.




the profit or the amount of money that a business makes

3. What can not be definition for the term ‘trade balance’?

TP .Q UY

a. a statem ent of how much money a business has earned and how much it has paid for goods and services.

NH ƠN

c. or losses.


ĐẠ O

b. the difference in value between the goods a country buys from abroad and the goods it sells abroad. c. the net balance between a country’s exports and imports.

NG

4. Current account in the third paragraph refers to: a. a bank account that you can at any time.

TR Ầ

c. both visible and invisible transactions.

N

HƯ

b. part of the balance of payments account th at records non capital transactions.

B

5. What does a country gain a current account surplus for?

00

a. to invest overseas

HÓ

A

c. both a & b

10

b. to reserve foreign currency

*

6. Balance of payment in the last paragraph means:

-L

Í-

a. the total and capital account.

TO ÁN

b. the difference between what a country spends in order to buy goods and

ĐÀ N

services abroad and the money it earns selling goods and services abroad.

DI Ễ

III.

N

c. a detailed record of all financial and economic transactions between the residents of two countries. Language focus

Study the oppossite adjectives in pairs from the reading text: 287 Đóng góp PDF bởi Nguyễn Thanh Tú




NH ƠN

“visible - invisible”, “tangible - intangible”

TP .Q UY

Many adjectives can be made into their opposite form by adding prefixes (e.g. dis-, U-, im-, in-, ir-, un-). Unfortunately, there are very few rules to tell you which adjectives take which prefixes; you have to learn each one individually. However the most common prefix is un-. Exercise 1.

1.

likelv

2.

logical

NG

certain

3.

appropriate

13.

active

4.

responsible

14.

literate

patient

TR Ầ

15.

relevant

possible

16.

satisfied

honest

00

17.

fortunate

expected

18.

obedient

regular

19.

accessible

convincing

20.

legal

6.

HƯ

N

i

10

7.

HÓ

proper

Í-

10.

A

8. 9.

12.

B

5.

11.

ĐẠ O

Make the opposites of these adjectives by adding prefixes.

-L

E xercise 2

TO ÁN

Complete these sentences using the opposites from Exercise 1.

DI Ễ

N

ĐÀ N

1. The resignation of the vice-president was m ost _____ - she ;eemed to be enjoying the job so much. 2. Cindy was or a new one.

with her job and decided to start looking

3. The volcano has been ___________ for many centuries. AThether it will remain so for much longer is a source of great lebate amongst vulcanologists.





NH ƠN

4. It i s _____to sell liquor without a license. 5. The student w a s ______ to leave the lecture. He needed to meet a friend at the other end of the campus.

TP .Q UY

6. Many employers in the media regard Media Studies as to the day-to-day workings of the industry. 7. It’s _______ to greet a Japanese businessman with a kiss.

ĐẠ O

8. The only way to enter the lecture theatre was via the stairecase, making i t _____ for disabled students.

NG

9. Most self-respecting scientists would consider i t ______ to turn base metal into gold.

N

HƯ

10. With so few schools or teachers, it is hardly surprising th at so many children a r e ____________________________ .

TR Ầ

11. Richie had only one more question to answer in the exam. It was therefore________ th at his pen ran out of ink.

A

IV. W ord stu d y

10

00

B

12. The doctor w a s_______as to whether the operation would benefit the patient.

TO ÁN

with

balance

deficit

records

on

surplus

imports

another

outflow

into

spend

-L

abroad

Í-

HÓ

From the words listed below, select a work to fit each blank space in the passage.

DI Ễ

N

ĐÀ N

If residents of one country spend more (1)........... than nonresidents (2)........ in that country, it is said to have a (3)............... on its balance of payments. When a country’s exports exceed its (4).................. th at part of the (5)...............of payments will show a (6)........... Even if there is a surplus, a substantial (7)...............of capital could swing the balance (8)........... a deficit. One should note th at one country’s deficit is (9).......... country’s surplus. 289





V.

TP .Q UY

NH ƠN

Japan traditionally has a big surplus on its import-export balance (10).......... the United State. The United State, therefore, has a deficit (11)............ its trade with Japan. The part of the balance of payments which (12)............... imports and exports is called the trade balance. V ocabulary

ĐẠ O

- keep track of sth / sbd: pay attention to someone or something so that you know where they are or what is happening to them: nắm được thông tin về ai, cái gì

NG

- visible (adj): something that is can be seen: có thể thấy, hữu

HƯ

hình

N

- tangible (adj): tangible assets I property such as building, equipment: hữu hình, tài sản hữu hình

B

TR Ầ

- load (v): to p u t a large quantity of something into a vehicle or container, chất hàng

00

- appliance (n): a piece of equipment: thiết bị, dụng cụ

A

10

- surplus (n): the amount of money that a country or a company has left after it has paid for all the things it needs: thặng

HÓ

dư, dư thừa

TO ÁN

-L

Í-

- deficit (n): the difference between the amount of something that you have and the higher amount that you need: thâm hụt, sô" thiếu hụt - aboard (adv): in or to a foreign country, ồ nưốc ngoài

ĐÀ N

- reserve (n): (usually plural) a supply of something kept to be used if it is needed: dự trữ

DI Ễ

N

- transfer (n): the process by which someone or something moves or is moved from one place to another: chuyển, chuyển nhượng - automobile (n): car: xe ôtô




NH ƠN


U nit 42

TP .Q UY

WHAT IS THE BALANCE OF PAYMENTS? I. Reading

HÓ

A

10

00

B

TR Ầ

N

HƯ

NG

ĐẠ O

The balance of payments is a statistical record of all the economic transactions between residents of the reporting country and residents of the rest of the world during a given time period. The usual reporting period for all the statistics included in the accounts is a year. However, some of the statistics th at make up the balance of payments are published on a more regular monthly and quarterly basis. Without question the balance of payments is one of the most important statistical statements for any country. It reveals how many goods and services the country has been exporting and importing and whether the country has been borrowing from or lending money to the rest of the world. In addition, whether or not the central monetary authority (usually the central bank) has added to or reduced its reserves of foreign currency is reported in the statistics.

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

A key definition that needs to be resolved at the outset is th at of a domestic and foreign resident. It is important to note th at citizenship, and residency are not necessarily the same thing from the viewpoint of the balance of payments statistics. The term residents comprises individuals, households, firms and the public authorities. There are some problems that arise with respect to the definition of a resident. Multinational corporations are by definition resident in more than one country. For the purposes of balance-of-payments reporting the subsidiaries of a multinational are treated as being a resident in the country in which they are located even if their shares are actually owned by domestic 291 Đóng góp PDF bởi Nguyễn Thanh Tú




NG

ĐẠ O

TP .Q UY

NH ƠN

residents. Another problem concerns the treatment of international organisations such as the International Monetary Fund, the World Bank, United Nations and so forth. These institutions are treated as being foreign residents even though they may actually be located in the reporting country. For example, although the International Monetary Fund is located in Washington, contributions by the u s government to the Fund are included in the u s balance-of-payments statistics because they are regarded as transactions with a foreign resident. Tourists are regarded as being foreign residents if they stay in the reporting country for less than a year.

B

TR Ầ

N

HƯ

The criterion for a transaction to be included in the balance of payments is th at it must involve a transaction between a resident of the reporting country and a resident from the rest of the world. Purchases and sales between residents from the same country aỉe excluded.

10

00


A

1. What is the balance of payments?

HÓ

2. What does the balance of payments reveal?

-L

Í-

3. What is a key definition that needs to be resolved at the Dutlet?

TO ÁN

4. What does the term residents comprise?

6. What is the criterion for a transaction to be included in ;he balance of payments? II. L anguage focus

DI Ễ

N

ĐÀ N

5. Are there any problems that arise with respect to the iefinition of a resident? What are they?

C ontrasts: although, though and even though', in spite )f and despite 192





NH ƠN

• We use although, tho ugh when we want to say that there is an unexpected contrast between what happened in the main clause and what happened ih the adverbial clause.

TP .Q UY

Example: She bought a car, alth o u g h / th o u g h she was still too young to learn to drive.

ĐẠ O

• We can use even though like a lth o u g h to give a stronger contrast.

NG

Example: Even though I wasn’t feeling very well, I still went to work.

HƯ

• In spite o f and despite are like a lthough, but they are followed by a noun or noun phrase.

TR Ầ

N

Example: A lth o u g h I was ỈU, I went to work. = In spite o f m y illness, 1 went to work.

00

B

A lth o u g h sales increased, profits fell. = D espite the increase in sales, profits fell.

HÓ

A

10

• Remember th at a gerund (verb with -ing) can act as a noun.

Í-

Example: In spite o f / D espite feeling ill, I went to work.

TO ÁN

-L

Exercise: Complete these sentences usin g although, thoungh, even thoungh, despite or in spite of

ĐÀ N

1............. the crucial feature of money is its acceptance as the means of payment or medium of exchange, money has other functions.

DI Ễ

N

2. Price were quoted in dollars...............payment was made in marks, the German medium of exchange. 3. We found an Information Centre,.......... it was closed. 4. I didn’t get the job...................my qualifications. 293





6. I decided to accept the job.................the salary was low.

NH ƠN

5. I’m not tired...................working hard all day.

TP .Q UY

7.......... competition is the public goal for most businesses in the United States, most operate in imperfect competition.

8........... VAT returns have to be submitted to the Customs and Exercise authorities every three months, they are checked again during the audit.

ĐẠ O

III. Word study

HƯ

NG

Fill each of the numbered blanks in the following passage. Use only one word from the box in each space. on

expenditures

TR Ầ

N

foreign currency figures transactions agencies statistical customs bonds

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

HÓ

A

10

00

B

The balance of payments statistics record all of the....... (1)..... between domestic and....(2)......residents be they purchases or sales of goods, services or of financial assets such as.... (3).... , equities and banking transactions. Reported figures are normally in the domestic....... (4).... of the reporting country. Obviously, collecting statistics.... (5).... every transaction between domestic and foreign residents is an impossible task. The authorities collect their information from the.... (6).... authorities, surveys of tourist numbers and expenditures, data on capital inflows and outflow obtained from banks, pension funds, multinationals and investment houses. Information on government... (7).... and receipts with foreign residents is obtained from local authorities and central government.... (8)...... The statistics are based on reliable sampling techniques but nevertheless, given the variety of sources, the.... (9).... provide only an estimate of the actual transactions. The responses from th, 3 various sources are compiled by government.... (10)...... agencies. In the United States the 294




statistics are compiled by the u s Department of Commerce and ir. the United Kingdom by the Department of Trade and Industry. IV. Vocabulary

TP .Q UY

statistics (n) a collection of numbers which represent facts 0 / measurement con sô" thống kê

NH ƠN


transaction (n) the act of doing business giao dịch

ĐẠ O

reveal (v) to make known sth that was previously secret Oi unknown làm rõ

HƯ

NG

at the outlet at the beginning o f an event or process ngay ti đầu...

N

resident (n) someone who lives or stays in a place such a. house or hotel người dân, cư dân, người cư trú

B

TR Ầ

citizenship (n) the legal right o f belonging to a particula country quyền công dân

00

residency (n) the fact o f living in a particular placq cư trú

HÓ

A

10

comprise (v) consist of... or be composed o f bao gồm and SI forth và vân vân

DI Ễ

N

ĐÀ N

TO ÁN

-L

Í-

criterion (n) principle taken as standard in judging tiêi chuẩn đánh giá



ENGLISH FOR FINANCE - CAO XUÂN THIỀU

Recommend Documents