IEA 2.14 Engleza An II 2009

THE LANGUAGE OF ECONOMICS
UNIT I
INTRODUCTION KEY WORDS
This chapter presents the general vocabulary as well as the definitions of those
key words absolutely indispensable to anyone who wants to have access to all
kinds of economic information.
A
achiziie acquisition; purchase
acord agreement
acionar shareholder; stockholder
aciune (bursier) share, (US) stock
a administra (a conduce) to manage; (un cont) to handle
administrator manager
administraie management
afaceri business; trade
afacere (contract) deal
agricol agricultural; farm, farming
agricultor farmer
angajat employee
articol item, article
asigurare insurance
aocietate de asigurri insurance company
B
balan balance
banc 1.(instituie) bank; (activitate) bank-
ing
bani money
bani mruni small change
beneficiu profit
buget budget
bun, bunuri (marf) goods
burs stock-exchange; stock-market
8ATENIE: benefit = 1) avataj 2) alocare, subvenie

good nu se folosete la singular dect n sens macro- economic: un mijloc
de producie a capital good.
C
capital, capitaluri capital
cadre, personal de conducere executive
cerere demand
cheltuial, cheltuieli spending, expense
cifr figure
cifr de afaceri turnover
client customer
comerciant trader
comer trade
competitiv competitive
a concedia to lay-off, to dismiss, to make re-
dundant
concediere redundancy, lay-off, laying-off
concurent competitor
concuren competition
consum consumption
a consuma to consume
consumator consumer
cont account
contabilitate accounting
cost cost
crean debt
credit credit
creditor creditor
criz slump, crisis (pl. crises)
a cumpra to purchase to buy
cumprare purchase, buy
cumprtor purchaser, buyer
D
datorie debt
deficit deficit
deflaie deflation
depresie (economic) depression
devize currency
director manager
disponibilizare mass-dismissal
distribuie distribution
dividend dividend
drept 1. law 2. (vam) duty
E
echilibru balance
economie 1. (tiin) 1. economics
2. (caractersitici economice) 2. (the) economy
economia romneasc the Romanian economy
economic economic
economicos economical
economii saving, savings
a economisi to save
econom (despre o persoan) saver
export export
a exporta to export
exportator exporter
exterior foreign; overseas (GB)
F
a fabrica, a produce to manufacture, to make
fabricant, productor manufacturer, maker
a factura to invoice, to bill
factur invoice, bill
faliment bankruptcy, failure
financiar financial
finanare financing, funding
a finana to finance, to fund
finane finance
finanist financer
fisc (the) tax authorities; the inland revenue
(GB)
fiscal tax, fiscal
flux flow
fond, fonduri 1.m. sg. fund 2. m. pl. funds
a furniza to supply
furnizor supplier
a fuziona to merge
fuziune merger
8ATENIE: to fabricate = a inventa, a nscoci

e.g. He fabricated a lie to avoid hurting his wifes feelings.
G
a globaliza to go global, to globalize
globalizare globalization
grev strike
grevist striker
I
importator importer
import import
a importa to import
a impoza to tax
impozitare taxation
impozit/e tax, taxes
indice index, (pl.) indexes, indices
indicator indicator
industrie industry
inflaie inflation
inflaionist inflationary
intern domestic
a investi to invest
investiie investment
investitor investor

mprumut loan
a mprumuta (a lua cu mprumut) to borrow
a mprumuta (a da cu mprumut) to lend
a nfiina to set up
ntreprindere business, firm, enterprise
L
liber schimb free-trade
lichiditi cash, liquidities
M
marasm slump, doldrums
marf commodity, product
mrfuri commodities, goods
mas monetar money supply
materii prime raw materials
mn de lucru labour force, workforce
mondial world, global
moned currency
munc work
a munci to work
muncitor worker
N
naional national, domestic, home
a naionaliza to nationalize
a negocia to negotiate
negociere negotiation
negustor merchant, dealer
nivel level
nivel de trai standard of living
O
obligaiune bursier bond
ofert supply
a oferi, a face o ofert to make an offer
P
patron manager
pensionare retirement
pensionare retiree, pensioner
pia market
plat payment
a plti to pay
povar fiscal burden
a prognoza to forecast
prognoz forecast
a privatiza to privatize
privatizare privatization
productor producer
a produce to produce, to make
productivitate productivity
produs product, (agricol) produce
progres progress
profit profit
proporie rate
protecionism protectionism
publicitate 1. advertising 2. (anun) ad
R
randament output; (agricol, financiar) yield;
return
rspundere responsibility; (susceptibil de ur-
mri judiciare) liability
rspunztor responsible; (susceptibil de urmri
judiciare) liable
recesiune recession
a relansa to boost, to revive, to refuel
relansare boosting, revival;
(prin investiii de stat) pump-priming
rentabil profitable
rentabilitate profitability
resurse resources
S
salariat wage-earner
salariu wage, salary
sectorul privat private sector
sectorul public public sector
serviciu, slujb employment, job
sindicalist union member
sindicat trade union
social social
societate 1. (ntreprindere) company, business firm
2. (via n societate) society
3. (asociere n scop nelucrativ) society
sondaj poll, survey
stoc inventory, stock
subvenie subsidy
a subveniona to subsidize
sum amount

omaj unemployment
omer unemployed person
omerii the unemployed
T
tarif rate
transport transport
trimestru quarter
U
utilizator user
uzin plant
V
valut currency
vam customs
vnztor salesperson, seller
a vinde to sell
vnzare sale
Here is a list of some verbs and nouns used when one points to a possible eco-
nomic increase or decrease:
a) a crete, a se mri
to go up
to rise
to increase
to move up
to inch up a crete puin cte puin
to surge a crete subit
to baloon a crete rapid
to skyrocket a crete fulgertor
to peak a atinge nivelul maxim
b) a scdea, a cobor
to go down
to fall (noun) a fall
to drop a drop
to decrease a decrease
to sag a se prbui
to slump a cdea brusc
to plunge a scdea n mod dramatic i brusc
to be on the skids a fi n declin
a downturn cdere, recesiune
c) a se stabiliza
* dup o scdere
to bottom out
* dup o cretere
to reach a plateau
to level off
d) a fluctua
to fluctuate
to seesaw
e) a face s creasc
to raise (noun) a raise
to step up
to boost
f) a face s scad
to bring down; to cut back (noun) a cutback
to slash a reduce considerabil
PREPOSITIONS
* Atenie la folosirea prepoziiilor:

an increase of 5% sau a 5% increase
an increase in production sau a production increase
it increased by 5%
Acest lucru este valabil pentru toate verbele i substantivele care desemneaz
creterea sau scderea (to rise, to go up, to drop etc.)
POINT AND COMMA
* Atenie la folosirea corect a punctului i a virgulei:

2,5% = 2.5 (two point five) per cent
0,5% = 0.5 (zero point five) per cent sau .5% (point five)
zece mii (10

000) = 10,000
5000 lire = 5,000
2 milioane de dolari = $ 2 million
* Atenie i la:
sute/mii/milioane/miliarde de lire
hundreds, thousands, millions, billions of pounds;
cinci sute/mii/milioane/miliarde de lire
five hundred/ thousand/ million/ billion pounds
UNIT II
THREE ECONOMIC ISSUES
1. Trying to understand what economics is about by studying definitions is
like trying to learn to swim by reading an instruction manual. Formal analysis
makes sense only once you have some practical experience. This chapter presents
three economic issues to show how society allocates scarce resources between
competing uses.
2. Oil is an important commodity in modern economies. Oil and its deriva-
tives provide fuel for heating, transport, and machinery, and are basic inputs for
the manufacture of industrial petrochemicals and many household products rang-
ing from plastic utensils to polyester clothing. From the beginning of the 20th cen-
tury until 1973 the use of oil increased steadily. Over much of this period the price
of oil fell in comparison with the prices of other products.
3. In 1973-74 there was an abrupt change. The main oil-producing nations,
mostly located in the Middle East but including Venezuela and Nigeria, belong to
OPEC the Organization of Petroleum Exporting Countries. Recognizing that
together they produced most of the worlds oil, OPEC decided in 1973 to raise the
price for which this oil was sold.
4. Oil prices are traditionally quoted in US dollars per barrel. But let us con-
sider what happens when the price of oil goes up. When, as in the 1970s, the price
of oil increased six fold, every firm will try to reduce its use of oil-based products.
Chemical firms will develop artificial substitutes for petroleum inputs to their
production processes; airlines will look for more fuel-efficient aircraft; electricity
will be produced from more coal-fired generators. In general, higher oil prices
make the economy produce in a way that uses less oil. This concerns the how the
economy produces goods and services dimension.
5. How dose the oil price increase affect what is being produced? Firms and
households reduce their use of oil-intensive products, which are now more expen-
sive. Households switch to gas-fired central heating and buy smaller cars. Com-
muters form car-pools or move closer to the city. High prices also encourage con-
sumers to purchase substitute commodities. Designers produce smaller cars, archi-
tects contemplate solar energy, and research laboratories develop alternatives to
petroleum in chemical production.
6. The for whom question has a clear answer. OPEC revenues from oil sales
increased from $35 billion in 1973 to nearly $300 billion in 1980. Much of their
increased revenue was spent on goods produced in the industrialized Western na-
tions. In contrast, oil-importing countries had to give up more of their own pro-
duction in exchange for the oil imports that they required. In terms of goods as a
whole, the rise in oil prices raised the buying power of OPEC and reduced the
buying power of oil-importing countries such as Germany and Japan. Although
this is the most important answer to the for whom question, the economy is an in-
tricate, interconnected system, and a disturbance anywhere ripples throughout the
entire economy.
Increase your vocabulary
1. Look at the first paragraph and say which words correspond to these defini-
tions:
part of a novel, book
a book which teaches you something
separation into parts by examination
2. Look at paragraph 2 and say what words have the opposite meaning to:
rare, scarce
outputs
fell, decreased
3. Look at paragraph 3 and say what words have the same meaning as:
sudden
cut down
six times
5. Look at paragraph 5 and say what words have the opposite meaning to:
exports
get, acquire
simple
5.a. Look at paragraph 5 and say what words have the same meaning as:
people who used goods or services
Check your grammar
Use the following verbs to complete the paragraph below:
concern, base, discuss, be, show, take up, be, hope for, say, offer, wish, live, sug-
gest, provide, govern.
Students economics for different reasons. Some a career in busi-
ness, some for a deeper understanding of government policy, and some
about the poor or the unemployed. This book an introduction
which that economics a live subject. It real insight into
the world in which we . The material that we in this book
by two ideas. The first that there a body of economics which has
to be learned in any introductory course. The second on the belief that
modern economics is more readily applicable to the real world than traditional
approaches .
VOCABULARY GENERAL ECONOMIC DATA
ageni economici economic agents

Ameliorare improvement
Annual annual
Austeritate austerity
Birocraie red tape, bureaucracy
bloc comercial trading bloc
Bogie wealth
Brut gross
Capitalism capitalism
Cdere fall, drop
Ciclu cycle
Cifr figure, digit
Competitivitate competitiveness
Concurent competitor
Concuren competition
Conjunctur current situation
Cretere rise, increase
Criz crisis
Curb curve
Dat datum (pl. data)
UNIT III
FINANCIAL MARKETS
The Second World War saw major changes in the international organiza-
tion of monetary flows. By the end of the conflict, the United States had acquired
a hegemonic position, owning 70% of the worlds gold reserves. The monetary
authorities of the allied forces thus met in 1944 with a view to setting up a new
international monetary system in which the dollar would become the standard cur-
rency in international exchanges, thus replacing the British Sterling Pound which
had been the international currency for a century or so. This conference, known as
the Bretton Woods Conference, gave birth to the International Monetary Fund
(IMF) which was to become the international body in charge of supervising and
regulating international monetary flows.
The new system was based on the following three principles:
a) convertibility of currencies
b) fixed parity rule
c) the dominant role of the dollar, with gold convertibility. The
Bretton Woods system was efficient up until the sixties. The year 1971 was a ma-
jor turning point for two main reasons: President Nixon announced he had decided
to suspend the gold convertibility of the dollar. Furthermore, the U.S. Trade Bal-
ance showed a deficit for the first time since the end of the World War II.
As a result, speculation ran high against the dollar, which was devalued by
8% while the former Deutschemark and the Japanese Yen were being 5% revalue.
The fixed parity rule was abandoned: in 1973, the dollar was further devalued and
started to float depending on market quotations.
The 1976 Jamaica Conference officially confirmed those changes by set-
ting a floating exchange rates rule 1. The dollar still remained the international
landmark 2 currency. The same year, the IMF designed 3 a new international stan-
dard currency, called the Special Drawing Rights 4 unit, namely a basket made up
of the worlds major currencies; however, this unit has not been officially
adopted.
Today, the IMF has lost much of its original purpose and strength and has
been gradually replaced by a parallel system operated by the worlds major bank-
ing institutions.
1. floating exchange rates rate de schimb variabile
2. landmark punct de reper
3. to design a concepe
4. Special Drawing Rights DST (drepturi speciale de tragere)
Check your grammar

Make complete sentences out of the following notes, putting the verbs in brackets
in the right tense. Then arrange the sentences into a paragraph. Make sure that the
sentences follow each other logically and that the paragraph makes sense.
GATT (General Agreement on Tariffs and Trade)
rounds/steadily/under/successive/GATT/tariffs (fall)
tariffs/ensuing/half/the/then/by/nearly/in/15/years (reduce)
war/the/determination/to see/a world trade/after collective/there (be; restore)
start/throughout/the/world/the/at/probably/low/as/as/they/
1980s/of/the/tariff levels (be; be)
in 1939/level/about/US/one-fifth/1960/their/by/only/tariffs (be)
such/IMF/bodies/as/the/number/GATT/and/countries/of/large/a (set up; sign)
this/success/GATT/at/restrictions/partly/from/in/trade/the least/of (arise; re-
move)
UK/wartime/mid-1950s/quotas/the/in/system/imports/of/the/
by/ (dismantle)
decades/rapid/three/trade/of/world/growth (see)
Definitions
Commercial Paper Titluri de valoare, Obligaiuni pe termen scurt

Short term bonds with flexible maturities ranging from 2 to 270 days issued by
banks and companies/corporations
Financial Bubble Bomb financiar
An accumulation of speculative non-liquid moneyout of touch with real economic
activity.
Hot Money Capitaluri speculative

Money that is moved around the globe by speculators to take advantage of the
highest returns (randamente)
Institutional investor Investitor instituional

An organization that invests in large volumes of securities, e.g. banks, insurance
companies, pension funds, mutual funds, etc.
Intermediation Intermediere
The recourse to financial intermediaries such as banks or brokers when investing
in securities, loans, and mortgages (ipoteci) etc.
IRS Fiscul
Internal Revenue Service
Money Market Piaa monetar

Market for short term debt instruments
Money Supply Mas monetar
It is divided into:
M1: paper money plus sight depozit
M2: M1 plus savings accounts
M3, money and near-money (cvasi-moned): M2 plus such elements as time
deposits, monez market funds, bonds close to redemption date, assets convertible
into cash.
Mutual Fund Fond Mutual

A fund that raises money from share-holders and invests it in shares, bonds, etc.
members buy the securities at market value and can redeem them at anz prevailing
market price.
Pension Fund Fond de Pensii/Cas de Pensii
Fund set up by a business firm, a union, or other organization to pay the pensions
benefits of retirees. They invest billions of dollars every year on the stock market
and their earnings are tax exempt.
Tax Haven Paradis Fiscal

A country or an area where taxation is lower than elsewhere, for individuals
and/or other companies and corporations
economia unei ri the economy

economic (rentabil) economical
economic economic
economie (tiin) economics
economie liber laisser-faire economy
economie subteran underground economy
economie planificat state-run economy
economist economist
eficien efficiency
fluctuaie fluctuation, swing
fluxuri economice economic flows
grad, msur degree, scale
grafic graph, chart
impas stalemate
independen economic self-sufficiency
indexare indexing
indice index (pl. indexes, indices)
UNIT IV
MICROECONOMICS AND
MACROECONOMICS
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. Still, we need not classify branches of economics according to the
area of economic life in which we ask the standard questions what, how, and for
whom. The very broad division of approaches into microeconomics and
macroeconomics cuts across the large number of subject groupings.
Microeconomics analysis offers a detailed treatment of individual
decisions about particular commodities. The sophisticated branch of
microeconomics known as general equilibrium theory extends this approach to its
logical conclusion. It studies simultaneously every market for every commodity.
If you think this sounds very complicated you are right. It is. The interesting task
of economics, a task that retains an element of art in economic science, is to
devise judicious simplifications which keep the analysis manageable without
distorting reality too much. It is here that microeconomics and macroeconomics
proceed down different avenues.
Macroeconomics emphasizes the interactions in the economy as a whole.
It deliberately simplifies the individual building blocks of the analysis in order to
retain a manageable analysis of the complete interaction of the economy.
Macroeconomics typically do not worry about the breakdown of consumer goods
into cars, bicycles, television sets, and computers. They prefer to treat them all as
a single bundle called consumer goods because they are more interested in
studying the interaction between households purchases of consumer goods and
firms decisions about purchases of machinery and buildings.
1. Look at the first paragraph. What words correspond to these definitions?

Give particular attention to
Way of looking at a subject
2. Look at the first paragraph again. What words have the opposite meaning to:
General
Small
Few
3. Look at paragraph 2 and say which words have the same meaning as:
Detailed
Balance
At the same time
Showing or having good sense
4. Look at paragraph 2 and say which words have the same meaning as:
Keep
To stress
Makes easier, less complicated
Check your grammar

Adjectives and Adverbs
Complete the following sentences, using the words in brackets.
1. This is a book to read.
(comparative, easy)
2. car production is not always... to estimate .
(total, easy, accurate)
3. Even some tools of analysis are not known.
(common, economic, general)
4. Some microeconomic analyses offer datailed treatments of
decisions.
(extreme, individual)
5. analysis ignores induced effects.
(partial, indirect)
indicatori economici economic indicators

indicatori de tendin trend indicators
indicatori principali leading, key indicators
industrializare industrialization
inferior lower
infrastructuri infrastructures
mbtrnirea populaiei ageing
ncetinire slowdown
la scar redus small-scale
legea cererii i a ofertei law of supply and demand
liberalism laisser-faire, liberalism
liber schimb, pia liber free market
lumea a treia third world
lunar monthly
macroeconomie macroeconomics
microeconomie microeconomics
mercantilism mercantilism
mediu (adj) average
migrri ale populaiei population shifts
mutare relocation
UNIT V
SUPPLY AND DEMAND
Demand is the quantity of a good buyers wish to purchase at each of the

quantity of chocolate the buyer would purchase at each and every price which
might be charged. Thus demand is not a particular quantity, such as six bars of
chocolate, but rather a full description of a quantity of chocolate the buyer would
like to purchase at each and every price which might be charged. The first column
of Table I shows a range of prices for bars of chocolate. The second column
shows the quantities that might be demanded at these prices. Even when chocolate
is free, only a finite amount will be wanted. People get sick from eating too much
chocolate. As the price of chocolate rises, the quantity demanded falls, other
things equal. Taken together, columns (1) and (2) describe the demand for
chocolate as function of its price.
Supply is the quantity of a good sellers wish to sell at each conceivable
price. Again, supply is not a particular quantity but a complete description of the
quantity that sellers would like to sell at each and every possible price. The third
column shows how much chocolate sellers wish to sell at each price. Chocolate
cannot be produced for nothing. Nobody would wish to supply if they receive a
zero price. Taken together, columns (1) and (3) describe the supply of chocolate
bars as a function of their price.
TABLE I
The Demand for and Supply of Chocolate
(1) (2) (3)
PRICE DEMAND SUPPLY
(/bar) (million bars/year) (million bars/year)
0.00 200 0
0.10 260 0
0.20 120 40
0.30 80 80
0.40 40 120
0.50 0 160
0.60 0 200
0.70 0 240
Notice the distinction between demand and the quantity demanded. De-
mand describes the behaviour of buyers at every price. At a particular price such
as 0.30, there is a particular quantity demanded, namely 80 million bars/year.
The term quantity demanded makes sense only in relation to a particular case. A
similar distinction applies to supply and quantity supplied. Therefore, we must
examine how the price adjusts to balance quantities supplied and demanded, given
the underlying supply and demand schedules relating quantity to price.
It is well known that the lower the price of chocolate, the higher the quan-
tity demanded; on the other hand, the higher the price of chocolate, the higher the
quantity supplied. A campaign by dentists warning of the effect of chocolate on
tooth decay, or a fall in household incomes, would change the other things rele-
vant to the demand for chocolate. Either of these changes would reduce the de-
mand for chocolate, reducing the quantities demanded at each price. Cheaper co-
coa bean, or technical advances in packing chocolate bars, would change the
other things relevant to the supply of chocolate bars. They would tend to in-
crease the supply of chocolate bars, increasing the quantity supplied at each pos-
sible price.
1. Look at paragraph 1. Complete the following sentences, using words from the
paragraph.
Would you believe it? That shop me 40p for a bar of chocolate!
As there are only so many people in the country, the number of cars required
is .
2. Look at paragraph 3. What words have the opposite meaning to:

is nonsense
different
pay no attention to
3. Look at paragraphs 3 and 4. Write a sentence showing you understand the
meaning of the words:
schedule
adjust
balance
Check your grammar

Complete the following paragraph, using (al)though or whereas
Anne works extremely hard, she finds her Economics option very hard
work. She spends a great deal of time on it, she never gets good marks,
her friend Karen gets high marks with hardly any effort at all.
Karen helps Anne as much as she can, it doesnt seem to make any difference. So
Karen is quite happy with her course, Anne is thinking of changing sub-
jects at the end of term, that will be difficult.
net net
ofert, cerere supply, demand
parteneri comerciali trade partners
perspectiv outlook, prospects
pe scar larg large-scale
pe termen lung long-term
pe termen mediu medium-term
pe termen scurt short-term
plafon ceiling
plan de relansare recovery plan, incentive plan
planificare planning
politic economic economic policy
politic de preuri pricing policy
populaie activ working population
prag threshold
pragul srciei poverty line
pre price
prognoze economice economic forecast, survey
procentaj percentage
proiect project
UNIT VI
MARKETS
Markets bring together buyers of goods and services. In some cases, buy-
ers and sellers meet physically. In other cases, such as stock market, business can
be transacted over the telephone, almost by remote control. A market is a short-
hand expression for the process by which households decisions about consump-
tion of alternative goods, firms decisions about what and how to produce, and
workers decisions about how much and for whom to work are all reconciled by
adjustment of prices.
Prices of goods and of resources, such as labour, machinery and land, ad-
just to ensure that scarce resources are used to produce those goods and services
that society demands. Much of economics is devoted to the study of how markets
and prices enable society to solve the problems of what, how and for whom to
produce. Suppose you buy a hamburger for your lunch. You chose the caf be-
cause it was fast, convenient and cheap. Given your desire to eat, and your limited
resources, the low hamburger price told you that this was a good way to satisfy
your appetite. You probably prefer steak but that is more expensive.
Now think about the sellers viewpoint. The caf owner is in the business
because, given the price of the hamburger meat, the rent and the wages that must
be paid, it is still possible to sell hamburgers at a profit. Prices are guiding your
decision to buy a hamburger, as well as the owners decision to sell hamburgers.
Society is allocating resources meat, buildings, and labour into hamburger
production through the price system. If nobody liked hamburgers, the owner could
not sell enough at a price that covered the cost of running the caf and society
would devote no resources to hamburger production. Peoples desire to eat ham-
burgers guides resources into hamburger production. However, if cattle contracted
a disease, thereby reducing the economys ability to produce meat products, com-
petition to purchase more scarce supplies of beef would bid up the price of beef,
hamburger producers would be forced to raise prices, and consumers would buy
more cheese sandwiches for lunch.
There were several markets involved in your purchase of a hamburger.
You (the buyer) and the caf owner were part of the market for lunches. The stu-
dent behind the counter was part of the local labour market. The caf owner was
part of the local; wholesale meat market and the local market for rented buildings.
1. Look at the first paragraph and say what words have the same meaning as:
at a distance
of the neighbourhood
carried out, done
ask for
make certain that
3. Using words from paragraph 2, can you complete the following statements?
I quite like lamb but really I beef.
He was a very keen student. He most of his time to his studies.
I dont like the canteen, but it is more than going out to a caf.
A good degree should you to get a job.
buy
illness
managing
put up
rareness
Check your grammar
Complete the following sentences, taking into account that some verbs in English
are followed by the infinitive, to:
She wants to leave early today.,
others are followed by the ing form:
He enjoys playing football.
And some verbs can take both to and ing, but their meaning sometimes
changes:
He remembered (=did not forget) to book a table.
I remember (=recall) seeing that film about five years ago.
He suggested (go) into the country on Sunday.

Im sorry I forgot (return) your book yesterday.
Stop (make) that noise! I cant work!
Which definition would you use (describe) markets?
You must avoid (make) unnecessary mistakes.
Try (understand) the difference between microeconomics and macro-
economics.
Try (pay) more attention to what I say.
Would you mind (lend) me more notes?
Tomorrow I intend (discuss) macroeconomics with you.
Serious illness prevented him from (take) the exam.
I am looking forward to (study) economics.
progres progress, advance

prosperitate prosperity
protecie social social protection
rata fertilitii fertility rate
rata mortalitii mortality rate
rata mortalitii infantile infant mortality rate
rata natalitii birth rate
recesiune recession
reform reform
redresare recovery, rebound
reform reform
relansare revival
restructurare restructuring
reea network
revoluie industrial industrial revolution
rigoare austerity
saturaie saturation, glut
srcie poverty
scdere decrease
schimburi comerciale trade exchanges
UNIT VII
MARKETING
When it started a century ago, marketing treated all customers as the same.
By the 1960s, marketers were able to break that anonymous mass into segments.
Now, computer databases allow them to treat customers as individuals. They may
know customers names and addresses, what they buy, what they have stopped
buying and even how they respond to a rise in the price of dog food.
For big multinational retailers, this is the equivalent of going back to the
days of the individual storeowner who knew and greeted each customer person-
ally. The benefits are potentially huge: instead of spending millions on advertising
beamed at people who may be indifferent or even hostile to it, retailers can use
databases to help them hang on to their existing customers and persuade them to
spend more. This is important: typically, 20-35% of customers generate 70-80%
of a retailers profit.
Retailers think of themselves as merchants, as buyers, and sellers of goods.
They have been slow to harness computers to managing customers as well as
stock. Manufacturers have been nimbler, and many of them are building data-
bases, offering free samples to persuade customers to fill in questionnaires. Mail-
order firms have a built-in-advantage because they already maintain databases,
and so do department stores that issue their own credit cards. Supermarket chains
offer customers loyalty cards that entitle them to discounts on selected item and
give presents to great spenders. They also use clubs to promote higher-margin
items and own-label products.
Every year, thousands of individuals invest their money in their own busi-
ness through franchising. Entrepreneurs are particularly attracted to franchises be-
cause they combine business autonomy with a proven concept, national market-
ing, training and back-up support. The franchise concept stands as one of the
United States most successful exports; the industry can boast a huge positive bal-
ance of trade, only $458 million in exports. Outside of the United States, fran-
1
chises have been gaining momentum throughout the world. The reason vary
from region to region, but universally franchises offer a way to introduce products
and services into under serviced markets by proven companies while retaining
some degree of local autonomy.
1. to gain momentum a ctiga teren
1. The wholesaler is a middleman between the manufacturers and the retail . .

tradesman
owners
keepers
traders
2. Most big stores now have a . section

postal order
mail-order
order mail
postal tuition
3. You are required to leave a 20% . .

cash deposit
repository
cash discount
cash register
4. Please . the cheque with your next letter.

join
enclose
include
enjoin
5. The firm deals in electrical appliances and . Goods.

housing
housewife
household
housekeeping
6. We can send you a . range of samples.
wide
broad
big
deep
7. These articles are currently . display in our showrooms.

in
on
being
Check your grammar
Match the following clauses together, using and, but, when, after, so and because:
I worked hard all week I wanted some company

my friend was driving home we drive into the country
a long argument I decided to get away on Sunday
I invited a friend to go with me we were involved in an accident
they said it wasnt his fault the other driver didnt agree
it wasnt his fault we called the police
we hired a car for the day it was an unpleasant end to the day.
Now arrange your sentences into a single paragraph.

societate de consum consumer society

societate de servicii service society
speran de via life expectancy
spirit de iniiativ entrepreneurship
stagnare stagnation
statistic statistics
strategie strategy
strategie de reconversie reconversion strategy
subdezvoltare underdevelopment
supranclzire overheating
trgnare sluggishness
tendin ascendent, descendent upward, downward trend
teoria ofertei supply-side economics
tran bracket
ar care crete rapid fast-growing country
ar care se dezvolt rapid fast-developing country
ar industrializat industrialized country
ar n curs de dezvoltare developing country
rile cele mai srace less developed countries (LDC)
ri recent industrializate newly industrialized countries
UNIT VIII
MONEY AND BANKING
Although the crucial feature of money is its acceptance as a means of

payment or medium of exchange, money has three other functions. It serves as a
unit of account, as a store of value, and as a standard of deferred payment.
Money, the medium of exchange, is used in one-half of almost all ex-
change. Workers exchange labour services for money. People buy or sell goods in
exchange for money. We accept money not to consume it directly but because it
can subsequently be used to buy things we do wish to consume. Money is the me-
dium through which people exchange goods and services.
The unit of account is the unit in which prices are quoted and accounts are
kept. In Britain prices are quoted in pounds sterling; in France, in Euros, in dollars
in the United States. It is usually convenient to use the units in which the medium
of exchange is measured as the unit of account as well. However, there are excep-
tions. During the rapid German inflation of 1922-23 when prices in marks were
changing very quickly, German shopkeepers found it more convenient to use dol-
lars as the unit of account.
Money is a store of value because it can be used to make purchases in the
future. To be accepted in exchange, money has to be a store of value. Nobody
would accept money as payment for goods supplied today if the money is going to
be worthless when they tried to buy goods with it tomorrow. But money is neither
the only nor necessarily the best store of value. Houses, stamp collections, and
interest-bearing bank accounts all serve as stores of value. Since money pays no
interest and its real purchasing power is eroded by inflation, there are almost cer-
tainly better ways to store value.
Finally, money serves as a standard of deferred payment or a unit of ac-
count over time. When you borrow, the amount to be paid next year is measured
in pounds sterling. Although convenient, there is not an essential function of the
money. UK citizens can get bank loans specifying in dollars the amount that must
be paid next year. Thus, the key feature of money is its use as a medium of ex-
change. For this, it must act as store of value as well. And it is usually, though not
invariably, convenient to make money the unit of account and standard of de-
ferred payment as well.
In prisoner-of-war camps, cigarettes served as money. In the nineteenth
century money was mainly gold and silver coins. These are examples of commod-
ity money, ordinary goods with industrial uses (gold) and consumption uses (ciga-
rettes), which also serve as a medium of exchange. To use a commodity money,
society must either cut back on other uses of that commodity or devote scarce re-
sources to producing additional quantities of the commodity. But there are less
expensive ways for society to produce money.
A 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 as
money. A 10 note is worth far more money than as a 3 x 6 inch piece of high-
quality paper. Similarly, the monetary value of most coins exceeds the amount
you would get by melting them down and selling off the metals they contain. By
collectively agreeing to use token money, society economizes on the scarce re-
sources required to produce money as a medium of exchange.
The essential condition for the survival of token money is the restriction of
the right to supply it. Private production is illegal. Society enforces the use of to-
ken money by making it legal tender. The law says it must be accepted as a means
of payment. In modern economies, token money is supplemented by IOU money.
An IOU money is the medium of exchange based on the debt of a private firm or
individual. A bank deposit is IOU money because it is a debt of the bank. When
you have a bank deposit the bank owes you money. You can write a cheque to
yourself or a third party and the bank is obliged to pay you whenever the cheque
is presented. Bank deposits are a medium of exchange because they are generally
accepted as payment.
1. Look at the first paragraph. What words have the same meaning as:
put off till later
vital
2. Look at paragraph 2. What words have the opposite meaning to:

reject
take away
3. Look at paragraph 4. What words have the same meaning as:
worn away
without value

always
giving the name or details of
serving to avoid difficulty
5. Look at paragraphs 6 and 7. What words have the opposite meaning to:
in a minor way
increase
is less than
separately
very large

against the law
limitation
7. Look at paragraph 8 again. What words have the opposite meaning to:
be under no compulsion
public
Check your grammar
Do you remember?
Some verbs must be followed by the ing form:
He admitted taking my book.
Some verbs must be followed by the infinitive:

He agreed to lend me his book.
Make sentences from the following notes. Think whether you should use the in-
finitive or the ing form after the verbs:
he/suggest/read/chapter 5/before/we/go/lecture
he/want/spend/more/time/study
the rain/not stop/fall/until yesterday evening
good manager/try/set/objectives
debt/prevent/my country/develop
I/enjoy/listen/music
he/not mind/work/weekends
I/not want/risk/fail/my exams
he/forget/hand in/essay/last night
there/nothing/that shop/worth/buy
it/no use/leave/your work/last minute
I/miss/watch/college football match/last week
he/hope/get/good results/his examinations
I/expect/see/increase/interest rates/next month
alocaie allowance
beneficiarul unei pli payee
cheltuieli expenditures, spending
controlul preurilor price control
costuri salariale labour costs
credit credit
cretere a cererii excess demand
cretere a productivitii productivity gain
cretere zero zero growth
disponibilizare dismissal
deficit deficit
economii savings
econom saver
emisiune monetar money issuing
excedent surplus
export export
flexibilitate elasticity, flexibility
import import
impozit asupra consumului consumer tax
impozit asupra venitului corporate income tax
impozit funciar land tax
UNIT IX
BANKING AND MEANS OF PAYMENT
Historically speaking, banks can be traced back to the days when religious
people lent their assets often in the shape of perishable goods to people who
needed them in return for a promise to be paid back the goods under considera-
tion along with a slight increase in the amount lent; this was meant to be a fee of
sorts to pay for the service provided. Also, religious people used to collect depos-
its from the public who thought that their belongings would be safest in temples or
shrines.
Today, the banking sector still performs such tasks but no longer does it in
the name of a god or a divinity. Still, in the same way that the exchange of goods
was central in religion, bankers have now become key participants in economic
activity.
Banks can be roughly divided in accordance with the type of customers
they cater for. Commercial banks, also called high-street banks, are those which
develop services tailored to the general public, such as the use of a cheque book,
the provision of credit, etc.
They are privately-owned profit-seeking institutions. They accept funds
from customers which can readily be used through the use of a cheque book
have extensive branch networks and are major participants in the clearing system,
namely, settling of debts between banks. They inject large amounts of money
through cheques, payments made by direct debit, standing order or credit cards.
When a cheque is made out, the payee sends or takes it to his bank which
credits the amount to his account and sends the cheque to be presented to the
drawers bank through the clearing system. The clearing system is operated by the
Clearing House in London; it adds up the total amount each bank owes to each
other bank and reconciles the difference in the banks accounts with the Bank of
England. The cheque is then sent to the drawers bank which debits the drawers
account. Sometimes the drawers bank may decide not to honour a cheque if
there is not enough money in the drawers account or the cheque is incorrectly
written.
Other ways of paying include plastic money. A typical bank can do three
things: it can guarantee a cheque, it can obtain cash from Automatic Teller Ma-
chines (ATMs), it can pay for goods by electronic funds transfer at point of sale
(EFTPOS).
Definitions
AUTOMATIC TELLER MACHINE (ATM) DISTRIBUITOR AUTOMAT

DE BANCNOTE
Cash dispensers that have replaced tellers in banks and are to be found in most
busy streets and shopping areas.
BASE RATE RATA DE BAZ A DOBNZII

The base rate is the prime lending rate or best rate at which bankers agree to lend
money for top borrowers. It sets the annual interest rate and serves as a reference
for the credit terms granted by banks.
CERTIFICATE OF DEPOSIT CERTIFICAT DE DEPOZIT

Debt instrument issued by banks that usually pays interest. Maturities range from
a few weeks to several years.
CLEARING COMPENSARE
A method adopted by banks to settle their mutual indebtedness by exchanging
cheques and bills held by each other against the others before settling the cash
balance.
COLLATERAL GARANIE
Property offered as a guaranty to obtain a loan or the extension of a credit line.
CREDIT STATUS SOLVABILITATE

The credit status of a person or company is their financial standing, i.e. an as-
sessment of the trust a bank puts in a customer when it comes to recovering a
loan. Creditworthy customers are likely to be granted larger loans at a lower rate
of interest; hence banks efforts to determine the creditworthiness of customers.
CURRENT ACCOUNT CONT CURENT

A current account is the type of bank account the general public is most familiar
with as its aim is to serve customers needs for their day-to-day operations. An
account can be interest-bearing, in which case the cost of the services attached to
it are generally passed on to the customer.
INSTAL(L)MENT TRAN; RAT; VRSMNT PARIAL

An instal(l)ment is the money paid in regular amounts at regular intervals, for
instance when paying back a loan.
BY INSTAL(L)MENT N RATE
INTEREST DOBND
An interest is the payment made by a borrower for the use of money lent to him
by a bank or financial institution, usually calculated as a percentage of the capital
borrowed.
LOAN-SHARKING CAMT
Lending money at extortionate interest rates.
MORTGAGE IPOTEC
Debt instrument by which the borrower mortgagor gives the lender a lien (un gaj)
on his property as a security for the repayment of the loan. Mortgage financing is
the standard practice of British Building Societies and US Savings and Loans As-
sociations to finance home acquisition.
PAWN SHOP, PAWNBROKERS SHOP CAS DE AMANET

A pawnbroker lends money against the security of personal property pledged in
his keeping. The transaction used to be materialized by a pawn which the bor-
rower had to produce when regaining possession of his property on repaying the
loan.
PIN COD PERSONAL

This is the acronym of Personal Identification Number which is issued to account
holders to allow them to use Automatic Teller Machines (ATM).
RESCHEDULING OF A DEBT REEALONAREA UNEI DATORII

Lengthening the maturity of a loan to make it easier for the borrower to meet his
obligations.
SAVINGS ACCOUNT CONT DE ECONOMII
A savings account is a bank account into which the account holder pays money
not to be spent for some time and which earns more interest than an ordinary ac-
count. The banks that provide such services are known as savings banks (UK) or
thrifts (US).
SECURITY GARANIE
A security is an asset given by the borrower to a bank against a loan, credit or an
overdraft (cont descoperit); if the borrower defaults on payment, the bank is thus
guaranteed to recover part of its money.
SERVICE A DEBT (TO) A RAMBURSA UN CREDIT

To service a debt is to effect the necessary operations for the regular repayment of
a debt. It is often used in the sense of meeting interest on a debt.
SHIPPING DOCUMENTS DOCUMENTE DE EXPEDIIE

They are the documents covering an export consignment; they are handed to the
bank supervising the collection of payment from the importer.
BANK STATEMENT OF ACCOUNT EXTRAS DE CONT

A statement of account is the list of debts and credits which is printed out at regu-
lar intervals so that customers may know how much money is left in their ac-
counts.
SWAP CREDIT NCRUCIAT

In a technical sense, denotes an exchange of currencies by monetary institutions
(central banks) with a view to discouraging speculation against this or that cur-
rency.
SWIFT SISTEMUL DE TRANSFER ELECTRONIC AL FONDURILOR

Society for Worldwide Interbank Financial Telecommunication.
UNSECURED LOAN MPRUMUT NEGARANTAT

A loan against which no collateral or security is pledged, and which, as such, con-
stitutes an uncovered risk for the lender.
CHECK YOUR VOCABULARY
1. I have been requested to a deposit.

a) leave
b) let
c) put
d) do
2. Your payment is and your account is now in the red.

a) overtime
b) overdue
c) overtaxed
d) overcome
3. The bank does not want to lend me any money. I shall have to go to the
a) borrower
b) hireling
c) pawnbrokers
d) cash-register
4. A bad cheque may be referred to as a cheque.

a) red
b) black
c) dud
d) void
5. A bill of exchange is drawn up by

a) the payer
b) the debtor
c) the creditor
d) the drawee
6. The contract provides for the to leave 10% of the loan on deposit.
a) lender
b) depositor
c) borrower
7. Most foreign bills are payable 30, 60 or 90 days after
a) record
b) sight
c) fill in
d) signature
8. Deeds of property may be as security for loans.

a) hedged
b) dredged
c) pledged
d) fledged
9. You are supposed to give a few days before withdrawing the balance of
your deposit account.
a) period
b) delay
c) warning
d) notice
10. The bill will due on January 30th.

a) fall
b) come
c) get
d) reach
11. The acceptor of a bill of exchange is the

a) drawer
b) lender
c) payee
d) drawee
12. When making a deposit you have to fill in the
a) folder
b) paying-in-slip
c) application form
d) statement of account
13. Banks collect and lend them out again.

a) coins
b) bookings
c) savings
d) ratings
inflaie inflation
nghearea salariilor wage-freeze
lips, penurie shortage
mas monetar money supply
menaj, gospodrie household
mic investitor small investor
nivel de trai standard of living
pib comercial merchant GDP
plusvaloare capital gain
pnb pe cap de locuitor GNP per capita
politic bugetar budget policy
productivitate productivity
Produs intern brut (PIB) Gross Domestic Product (GDP)
Produs naional brut (PNB) Gross National Product (GNP)
putere de cumprare purchasing power
randament return, productivity, yield
rata de cretere growth rate
reducerea personalului downsizing
rentabilitate profitability
relaxarea politicii de credite easy credit policy
ADVERTISING
Half the money I spent on advertising is wasted, and the

trouble is that I dont know which half.
Lord Leverhulme
Advertising, when broadly considered to communicate a message about a
product, can be traced back to the emergence of a market economy, i.e. to the very
beginnings of bartering, not to mention buying and selling. The signs used for
identifying shops, for instance, can be considered early forms of advertising, as
can family names referring to a specific craft or trade.
A more relevant definition of advertising today might be as follows: any
paid form of non-personal communication through the mass media about a
product by an identified sponsor.
The mass media referred to include magazines, direct mail, radio, TV,
billboards, newspapersas for sponsors, they may be a non-profit organization, a
political candidate, a company, an individual
The ultimate goal of advertising being to sell a product, the effectiveness
of any advertising campaign could be checked against the total number of sales,
votes, or calls it has produced. Things, however, are not that simple; advertising
indeed is only one of the many factors that affect sales; prices, tradition, weather
conditions, changes in distribution to supermarkets and in the way the product is
displayed as well as other factors also play a part.
If it cannot be assessed in terms of quantity, what can be called successful
advertising then? Persuasiveness is probably the answer, a successful advertising
campaign must be persuasive enough to cause its targeted audience to alter its re-
sponse or behaviour as a result of experiencing it, thus causing consumers to
switch brands or voters to change their minds.
Persuasion is usually seen as being made up of four objectives: awareness,
comprehension, conviction and action. Awareness means making the customer
aware of the existence of a product or service, which is especially important dur-
ing the early stages of the product life cycle. Then comes comprehension, i.e.
making the would-be customer understand the benefits he can derive from this or
that product or service. When the conviction objective is achieved, the customer
is thought of as loyal to specific product or service. As for action, it is aimed at
heightening the customers feelings of rightness or preference about the product
or service and at encouraging brand royalty further still.
Money. Put each of the following words or phrases into its correct place in the
text below.
banks beads buy coins change

currency depositing earn value
goods investments money paper bills
savings ac- sell shells exchange
counts rate
Money
Money is what people use to .. things. People spend money on .. and ser-
vices. Many people save part of their money by .. it in a bank. People ..
money by performing services. They also earn money from .., including gov-
ernment bonds, and from ... .. . .. can be anything that people agree to ac-
cept in exchange for the things they .. or the work they do. Ancient peoples
used such varied things as .., .., and cattle as money. Today, most nations use
metal coins and .. .. . Different countries .. and bills look different and
have different names.
A person can .. his money for the money of any country according to the .. .
Usually, such rates are set by the central .. of a country. The .. of a countrys
.. may change, depending on the economic and political conditions in that coun-
try.
Money. Match the definitions with the correct money word.
1. an allowance a) money paid to authors or inven-

tors according to the sales of their
work
2. a bonus b) a sum of money used to make
more money from something that
will increase in value
3. commission c) the money which a building so-
ciety or bank lends to someone to
buy a house
4. a deposit d) the money that a person pays to
an insurance company to protect
against loss or damage
5. a dividend e) money, usually from a relative,
to live on
6. an investment f) an additional payment which is a
reward to those who work for a
company for their extra work
7. a legacy g) the amount of money borrowed
from a bank, greater than that
which is in your account
8. maintenance h) money received from someone
in his or her will
9. an overdraft i) the amount of money that goes to
a shareholder
10. a premium j) money paid by divorced or sepa-
rated people to support the former
husband or wife
11. royalties k) part of the value of a company
that you may buy
12. a share l) part-payment of money which
you make to stop the seller from
selling his goods to others
13. a mortgage m) an amount of money, related to
the value of goods sold, which is
paid to a salesman for his services
CHECK YOUR VOCABULARY
1. The oldest form of advertising is

a) by way of mouth
b) by word of mouth
c) from mouth to mouth
d) from mouth to ear
2. Kodak is a famous
a) nickname
b) brand name
c) surname
d) namesake
3. A synonym for an advertising adhesive label is

a) tickler
b) ticker
c) sticker
UNIT X
INSURANCE
Insurance is a system in which one party, the insurer, against payment of a

premium, promises the other party, the insured, a service if the risk becomes a re-
ality. Thus, insurance is related to hazard. But the insurer will take steps, if not to
remove it completely, at least to contain it within reasonable limits. In his firm, he
will bring together the largest possible number of similar risks. This is called a
community of risks. In the operation of insurance there is a degree of uncertainty
involved for each insured. His risk can either occur tomorrow, or the day after to-
morrow, or never. As to the insurer, his observation of the past and of the present
enables him to forecast with a certain margin of error, how many of the risks he
has collated will occur in a given period of time, usually a year.
The cost of claims that occur during any given year is called the incurred
losses of the year. Other items of expenses are: remuneration of intermediaries
who produce business, staff costs and other running expenses. The insurer also
has receipts made up of a premium paid to him by the insured, together with re-
turns on investments. Different elements make up the annual accounts of an insur-
ance company: what is paramount, however, is that premiums should de sufficient
to meet incurred losses.
The fixing of premium rates, in other words, the working out of tariffs, is
determined by actuarial procedures. They process statistical data in order to take
into account demographic, technical and economic trends. However reliable statis-
tics may be, and however carefully processed and exploited, differences, known
as deviations, will be observed between what is forecast and what occurs. These
deviations can pose serious problems to the insurer, yet he has at his disposal a
means of lessening or suppressing their most severe consequences: reinsurance.
Accident Insurance covers policies including motor vehicles, burglary and theft,
sickness, public liability, employers liability, plate glass, etc.
The owner of any vehicle is required by law to be covered in the event of
claims for injuries to persons caused by his vehicle. Everybody is insured against
injuries to persons or damage to property. In addition, many people have compre-
hensive cover against damage to their own vehicles. Many insurers re-insure in
bulk with Lloyds or other companies. This is a way of spreading the risk.
NOTE!!!
1. Insurance is the term used in US and popular English for all forms of insur-
ance whereas assurance is used by the majority of British insurance compa-
nies for life insurance for marine, fire and accidents insurance.
2. Lloyds is not an insurance company but an institution providing standardized
documents, shipping intelligence services, a daily newspaper, a claims bureau
and agents all over the world. Its members, called underwriters, carry on the
business of insurance. Each of them is a sole trader although they usually op-
erate in syndicates. The corporation itself is not a liable for the defaults of its
members.
Translate into Romanian
Insuring an airline is a huge gamble. Each time a passenger jet takes off,
the airline might carry $ 1 billion or more in insurance for the flight. That cover-
age is spread among many insurance companies that hedge that bets selling off
much of their risk to yet other insurers.
After a crash, however, one company must organize the airliners defence
against the inevitable lawsuits and act as lead insurer on behalf of a pool.
The job entails confrontation. It is often up to the insurance company to
battle lawyers trying to win large awards for the families of victims. To that end,
insurers sometimes pursue theories about the cause of a crash that might reduce
the airlines liability.
They also look into the personal and professional backgrounds of victims
for information that may be used to limit the dollar value placed on the victims
lives.
In a widely publicized case, lawyers hired by the insurer dredged up in-
formation that a passenger was gay, a fact unknown to his parents, in an unsuc-
cessful bid to assert that he was therefore more likely to contact AIDS, which
would reduce his life expectancy and thus his future earnings.
Law Breakers. By moving vertically or horizontally (forwards or back-
wards) find twelve kinds of criminals.
D F G S P Y V K J D H Y S I E K L M S N B
MN B H I J A C K E R M N H Y S H D L K J
N G V O G H N A W E R T Y U I O P L K J H
I M N P B V D X A S W E R F D F G G H J F
S J H L L O A K K I D N A P P E R S G T A
S N B I U Y L S E R T P I C K P O C K E T
A W E F R D F G H J K L M N C V B S E R H
S A W T E R R E L I A M K C A L B W A S I
S A W E E R T Y G F M U R D E R E R D F E
A A S R W E R T Y U B U R G L A R S D V F
Check your vocabulary.
1. The insurers will in the first place ascertain the .. of the vessel.
a) soundness
b) safeness
c) resilience
d) seaworthiness
2. Flags of .. are those of Liberia, Panama, Honduras and a few other coun-
tries.
a) complacency
b) accommodation
c) convenience
d) willingness
3. The word .. is now used mostly for life and marine insurance.
a) assurance
b) security
c) ensuring
d) safeguard
4. The hull and cargo must be duly insured with a marine ..

a) company
b) contractor
c) underwriter
d) subscriber
5. The contract includes a provision for non performance due to ..

a) force majeure
b) overpower
c) compulsion
d) fortune
antreprenor entrepreneur
artizan craftsman, artisan
artizanat craft industry, cottage industry
atelier workshop
autoritile publice public authorities
ctiguri earnings
cifra de afaceri turnover
clasa bogat the well-off
clasa de mijloc the middle class
clasa defavorizat the lower class
clasa muncitoare the working class
clasa superioar the upper class
clasa social social class
comerciant shopkeeper, tradesman
depozit warehouse
faliment bankruptcy
filial subsidiary
funcionar al statului state employee
fuziune merger
firm firm
UNIT XI
Legal Issues
Common law when considering European law systems, one usually dis-
tinguishes between common law, i.e. the general system of law that originates
from England, and civil law; the term common law characterises the legal
systems prevailing in Anglo-Saxon countries (the USA, Canada, Australia, New
Zealand, etc.).
Common law also refers to the development in the Middle Ages of a
system of law common to all England (i.e. the extension of the jurisdiction of
the Kings courts) as opposed to local laws and customs which varied from area to
area. Lastly, the term is used today in opposition to the notions of equity and
statute law; common law then refers to a set of rules based on juridical deci-
sions and customs. The overriding principle is the rule of precedent, namely the
obligation for a judge to consider the existing set of rules and principles in making
his/her decision. This principle is reinforced by the rule of stare decisis (keep to
what has been decided previously) and clearly shows that English law is largely
based on case law.
Bribery We dont know whether corruption is getting worse, but we do
know it is no longer tolerated as it was. These words of a public official reflect
growing international concern over bribes and corrupt practices, following a rising
tide of scandals and mounting evidence in many countries of popular disgust with
corrupt individuals and institutions.
In fact, no one knows how much corruption there is in the business world
or to what extent it may be increasing. Many analysts say it is probably growing
with the worlds economy, the interplay of economic and political factors and in-
creased global competition.
Bribery and kickbacks have become common practice in former commu-
nist countries as a consequence of their embracing free enterprise without being
historically prepared for it by a relevant political and legal framework. The spread
of democracy may itself create new incentives for corruption, given the need to
fund political parties and election campaigns.
If Third World countries are often blamed for the spread of corruption, de-
veloped nations must take their share of the responsibility and blame, as the cor-
ruptors are also corporations fighting for contracts in military supplies, aircraft,
civil works and communications.
Today, international bodies are beginning to take steps to curb corruption,
and the World Bank has instituted rules that empower it to investigate corruption
complaints and to backlist companies and governments guilty of large scale cor-
ruption.
Class-action suits combine many people with the same complaint into a
single legal action. A contingency-fee system awards the winning partys lawyer a
share of the damages collected, usually one-third. The Sherman Act provides for
awards of three times actual damages.
If my mother buys a local loaf of bread for 20 cents, and then finds out
that all bakers in the country, including hers, have raised their prices to 22 cents,
its tough to find an attorney to bring an action against the corner bakery for 2
centsBut an attorney can put together a class-action suit on behalf of all buyers
of bread, and then collect a contingency-fee based on treble damages.
Trial. If you commit a crime you may be:
Accused
Arrested
Charged
Convicted
Interrogated
Paroled
Sent to prison
Suspected
Tried
Put these actions in the correct order.
Punishment. Match each punishment with its description
1. capital punishment a) a period of time in jail

2. corporal punishment b) being made to do specially hard
work while in prison
3. eviction c) death
4. a heavy fine d) a punishment imposed only if you
commit a further crime
5. internment e) a large sum of money to pay
6. penal servitude f) whipping or beating
7. a prison sentence g) regular meetings with a social
worker
8. probation h) removing a person from a house or
land by law
9. solitary confinement i) limiting the freedom of movement
especially for political reasons
10. a suspended sentence j) being imprisoned completely alone
Check your vocabulary

Put each of the following words and phrases into its correct place in the text be-
low.
accused acquit civil suits counsel
court cross-examination fault guilty
judge jurors jury legal disputes
legislature list money officer
panel sentence swear
trial witnesses testimony
A jury is a selected group of laymen that hears the .. in..and decides

the facts. A courtroom trial in which a .. decides the facts is called a .. by
jury.
Before each term, a jury commissioner or another public .. prepares a
panel, or large initial .. of qualified jurors. For each trial, .. are selected by lot
From this .. .before the trial begins, the jurors .. to decide the facts fairly.
They hear the .. given by witnesses for both sides, including .. . Then ..for
each side sum up, or summarize the case, and the .. explains the applicable law
in his institutions to the jury.
In .. for financial damages, the jury must decide who is at .. and must
determine the amount of .. to be paid. In criminal cases, the jury must decide
whether or not the .. is guilty beyond a reasonable doubt, and then either re-
turn a verdict of guilty, or .. the defendant by a verdict of not guilty. If the ver-
dict is .. the judge imposes the .., or punishment, within limits that heve been
fixed by the .. .
grev strike
grevist striker
gril de salarizare wage scale
grup group
inginer engineer
ntreprindere company (GB), corporation (US)
ntreprindere de stat state-owned company
ntreprinderi mici i mijlocii (IMM) small and medium sized businesses
maistru foreman
mn de lucru manpower, workforce
munca minorilor child labour
munc grea hard work
muncitor worker
Muncitor zilier Day labourers
naionalizare Nationalization
partener Partner
patronat Management circles
pensionare Retirement
pensionar Retiree, pensioner
privatizare privatization
UNIT XII
THE TELECOMMUNICATION EXPLOSION
Global trade would not have taken hold without the technical break-
throughs that made round-the-world round-the-clock communications possible.
In the now related fields of telephone, television and computers tremen-
dous advances were made after World War II. Transistor radio, satellite and cable
TV, fiber optics, computerization, to name just a few technological developments,
have done a lot to speed up communications and world trade.
Photocopiers, Xerox machines, tape recorders, answering machines (an-
swer phones), fax machines, word processors, personal and portable computers,
wireless phones, and video-conferencing have caused a revolution in the way
business is being transacted worldwide, and, made state-controlled systems of
communications obsolete and untenable in most modern industrial nations.
The impact on the daily life ordinary citizens and customers has of course
been considerable, with the advent of new practices and services like tele-
marketing, home-shopping, home-banking, and access to the Internet.
The combination of the new means of communication has given birth to
the information age and created the information highways. While serving the in-
terest of business, it has also generated a new economic sector in which small
firms, by filling new patents, setting new norms and standards, have occasionally
proved capable of competing with corporate giants.
But videogames, CD ROMs, interactive TV, and the whole field of virtual
reality and infotainment now represent such high economic stakes that they have
become a fierce battleground for multinationals.
As technology evolves and new markets are opened up, there is a mad
scramble for positions by firms seeking powerful partners in the telecommunica-
tions and multimedia fields. The outcome will shape the structure of the industry
in the 21st century.
Definitions
CD ROM (ROM = READ ONLY MEMORY) CD ROM
Compact disc containing a huge collection of data text, images, sound, video
clips.
CYBERCAF, CYBERPUB CAFENEA-INTERNET

A caf where people may navigate into the Internet (against payment usually
based on an hourly rate).
DISH (AERIAL) ANTEN PARABOLIC

Parabolic aerial for reception from or transmission to an artificial satellite.
ENCRYPT (TO) DATA, ENCRYPTION OF DATA CODIFICARE DE DATE

To put data into a coded form so that it cannot be understood without proper
decryption equipment.
HACKER PIRAT INFORMATIC

A computer fan who, through his/her Personal Computer, breaks into the
computer system of an institution, a company, or the government.
HARD DISK HARD DISK

An inflexible disk storing large quantities of data (typically several magabytes or
even gigabytes).
HYPERTEXT HIPERTEXT
Multi-direction, multi-level text; makes it possible for users to choose the way
they want to navigate by clicking onto various elements of a site.
INFORMATION HIGHWAY CALE INFORMATIC

Information system enabling the quick circulation of images, sound and texts
through Personal Computers.
INFOTAINMENT INFORMAIE I DISTRACIE

The information and entertainment sector.
INTERFACE INTERFA
An electronic device, linking one computer to another.
INTERNET INTERNET
An information system that was originally set up by the US army in 1969; the
Internet today is a worldwide information system which is extensively used by
researchers, academics and, more and more, by the general public.
MODEM MODEM
MOdulator-DEModulator; a device for connecting two computers by a telephone
line. Converts and deconverts computer signals into audio signals.
SERVER SERVER
A machine that gives access to the Internet against a subscription fee.
STATE-OF-THE-ART NIVEL DE VRF AL TEHNOLOGIEI/TIINEI

Level of knowledge and development achieved in a technique, science at present.
Put each of the following words or phrases into its correct place in the passge
below.
Answer Call Caller Come through number
Hang up Identify message Mouthpiece ring
Operator Reach receiver Replaced
save telephone tone directory
Telephone Etiquette
1. Know the right number before making a .......... .When in doubt, consult a .........
your personal number list, or the information .......... .
2. Allow time to Give the person you are calling enough time to
. his telephone. A little patience may . a second call.
3. Speak directly and in a normal . of voice. Your lips should be about an
inch away from the . .
4. Answer promptly. Try to answer your telephone on the first . . Other-
wise the . May hang up and you may miss an important message.
5. . Yourself when you answer the . .Do not merely say Hello.
Give your name, your telephone ., or the name of your firm.
6. Take messages for people who are not there. Write down the name and tele-
phone number of the person calling. Place the . where it can be seen.
7. gently. Slamming the . down is discourteous. Be sure the re-
ceiver is always properly. Otherwise no calls can .. to you.
Cyberspace commercials
The World Wide Web is steadily swelling with interactive, advertiser-sponsored
billboards. The Internet is a global network that enables computer users equipped
with a modem and a telephone line to exchange messages. The World Wide Web
carried the multimedia portion of the Internet, allowing centralized server com-
puters to post text, images and music onto the network. Individual computer users
then click whatever mix of information or entertainment strikes their fancy. Each
click is known as a hit.
Translate into English
Datorit mesageriei electronice, transmiterea unui document la cellalt

capt al lumii nu cost dect preul comunicrii telefonice locale ntre abonat i
prestatorul su de servicii Internet. Preul pentru restul distanei este inclus n
abonament.
robot telefonic answering machine; answer phone

panou de afiaj billboard
a naviga pe Internet to browse
televiziune prin cablu cable TV
telefon celular cellular phone
a apsa pe tast to click
informatizare computerization
telefon portabil cordless phone
spaiu virtual cyberspace
satelit pentru transmisiuni n direct direct broadcast satellite
anten parabolic dish
pot electronic e-mail, electronic mail
fax fax
fibre optice fibre optics
pirat informatic hacker
apel pe internet hit
sistemul banc la domiciliu home banking
cumprturi la domiciliu home shopping
imagine (icoan) icon
tastatur keyboard
calculator portabil, laptop laptop
a se conecta to log in/on to
reea network
conectat on-line
ziar conectat (la internet) on-line newspaper
calculator personal personal computer (PC)
fotocopiator photocopier
imprimant printer
numr cu apel gratuit toll-free number
favorabil fa de utilizator user-friendly
realitate virtual virtual reality
site pe web web site
UNIT XIII
NEW ECONOMIC SECTORS
All economic sectors have been influenced by the death of distance. But
special mention has to be made of several areas that have benefited most.
One of the greatest beneficiaries, in terms of revenue, power and job crea-
tion, is the field of infotainment (information and entertainment).
The information explosion and its consequences on the printed press, ra-
dio, TV and telecommunications has resulted in the creation of vast commercial
empires. Articles can be read simultaneously in various countries, films can be
seen and music heard by millions of people, sports events can be followed as and
when they occur by a large part of the world population. The economic and finan-
cial interests involved are such that cultural wars actually become commercial or
trade wars.
The multi-media industry, which thrives on such developments, constitutes
at the same time the underlying technology and the resulting field of activity, with
huge revenues in terms of hardware and software. No field of human endeavour,
from advanced research and intellectual pursuits to entertainment and leisure,
from data bases and CD-ROMs to video games is beyond its reach.
One of the most spectacular booms is that in sports, which have now be-
coming big business.
Thanks to extensive media-coverage, they generate huge advertising po-
tential; thanks to sponsoring, they are a favourite ground for corporate image
building.
A significant part of the advertising expenditure of automobile and
sportswear firms goes into billboards on tracks and stadiums, and into TV ads re-
lated to sports events.
Brands which have nothing to do with sports are also attracted by the ex-
posure granted to advertisements during matches and races that are beamed to au-
diences of several million people.
Virtual Holidays
It is much easier to navigate the universe of multimedia and on-line desti-
nations today than to physically journey anywhere as a tourist or business travel-
ler. A pleasant voyage in cyberspace puts literally every square inch of an afford-
able planet at your fingertips.
The on-line cosmos is increasingly multifaceted. There are thousands of
travel agents listed on the Web and an ongoing boom in the development of Web
sites relating to discount travel, business travel management, dedicated destina-
tions and niche services like renting bicycles or going back-packing.
Electronic media, spurred by increasingly computer-literate consumers,
are moving beyond travel marketing, distribution and reservation to the age of vir-
tual holidays.
Virtual and actual travel have been made easier by instantly available in-
formation, instant travel planning and instant transactions at a very low cost.
Travel is a perfect product for the online era.
There are also thousands of CD-ROMs titles concerning travel, many of
them interactive.
1. Did you see that . about wildlife in Africa on television last week?
documentary history slapstick soap opera
2. All three TV channels provide extensive of sporting events.

broadcast coverage network vision
3. We hope to bring you further news of this in our next .. at midnight.

article bulletin episode piece
4. We covered a wide .. of topics in the interview.

collection extend number range
5. TVR Channel One tries to . for all tastes.
cater furnish regard suit
6. We are interrupting this programme for a news . .

alarm alert flash signal
7. I must remember to my TV licence next week.

regain renew replace retain
8. The .. comedy in the silent films was especially funny.

clownish mocking slapstick witty
9. The programme was so successful that a . series is being made.

after-effect backup by-product follow-up
10. There are more TV . In Romania, and all of them allow advertising.
broadcasts canals channels screens
11. Violent programmes on TV may have a bad . on children.

control influence power switch
12. There is a fault at our television station. Please do not . your set.
adjust change repair switch
13. The laughter on many comedies on TV isnt real laughter, its ... laughter.
bottled canned corked wrapped
14. There are many on television where a team of people have to answer
questions.
inquiries puzzles quizzes riddles
15. The poor reception on your TV is probably due to outside .

interception interference interruption intervention
Film. Answer the clues.

1C______
2____I____
3_____N_
4______E_
5____M______
6________A_
1. animated movie
2. translation of the dialogue of a foreign film printed on the film
3. replacing the original voice sound track of a film with a translation into a
different language
4. film about vampires, black magic, etc.
5. a film showing some aspect of human or social activity
6. the script of a film
Check your grammar

Adjectives and Adverbs
Do you remember?
General equilibrium theory is a relatively difficult branch of economics to understand.
That looks an expensive cassette player.
Actually, I bought it quite cheaply.
Complete the following sentences, using the words in brackets.

This is a .. .. book to read.
(comparative, easy)
.. car production is not always .. to estimate .. .
(total, easy, accurate)
Even some ..tools of .. analysis are not .. known
(common, economic, general)
Some microeconomic analyses offer .. detailed treatments of .. decisions.
(extreme, individual)
If we compare the market for cars and bicycles .. we may be able to offer
a .. explanation for their .. prices.
(careful, good, relative)
.. she managed to pass her .. exams .. .
(fortunate, final, easy)
My tutor emphasized the .. importance of putting ideas in a .. order.
(great, logical)
.. analysis ignores .. induced effects.
(partial, indirect)
The.. economist keeps his analysis .. without distorting reality.
(sensible, manageable, undue)
Shes an .. novelist-something and .. happens in her stories.
(excellent, unusual, exciting, constant)
cazare accommodation
sporturi pentru amatori amateur sports
rucsac backpack
nclcarea drepturilor de autor copyright policy
a transmite prin televiziune to cover
transmisiune TV coverage
a promova un produs(de ctre o to endorse a product
vedet, sportiv)
divertisment, distracie entertainment
eveniment; ntlnire sportiv event
teren de sport; domeniu, sector field
succes hit
timp liber leisure
speran de via life expectancy
mediatizare media coverage
medicin; medicamente medicine
brevet patent
farmaceutic pharmaceutical
produse farmaceutice pharmaceuticals
a prescrie to prescribe
reet prescription
pres scris printed press
curs, concuren race
stadion stadium
vnzare de bilete ticketing
operator de turism tour operator (TO)
agenie de turism travel agency
UNIT XIV
THE STOCK MARKET
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, provide a steady demand, which keeps the producers
and the market in business.
The Stock Market deals with a different sort of commodity. The goods on
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.
How can the Stock Market operate to ensure that 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?
In Britain, this essential function used to be performed by a group of traders
operating within 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 fea-
ture of the British Market.
Since the computerization and reorganisation of the London Stock Exchange
(the Big Bang), 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
that is needed to match supply and demand and thus ensure freedom of dealings.
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,
one way or another, extra capital must be found.
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 to large for an individual
to support financially.
But it is an essential condition for this system to work that those who own
shares 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 in-
vestor 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 and
sell their shares at fair prices determined by the free competition which exists in this
open market.
A company, when it wishes to issue shares that can be freely bought or sold
on the stock market, must apply for permission: this is known as a quotation and is
only granted if certain strict conditions are fulfilled.
The Stock Exchange, therefore, has two main functions: thanks to its market
men with ideas can find the capital they need to start new enterprises or to expand
existing businesses, and the individuals are given the widest possible scope to invest
their savings in securities which they can sell again when they choose.
Definitions
BEAR SPECULATOR LA SCDEREA CURSULUI/ LA BAISSE

A bear is a speculator who expects a fall. He sells short (what he has not yet acquired)
in the hope of purchasing shares, or commodities, on the market at a lower price
before settling day.
BEARER SECURITIES TITLURI LA PURTTOR

Bearer securities are documents of title to stocks, shares transferable bz hand, bieng
made out to a bearer and not to a named person. The opposite are registered securities
that are recorded in the companys books, with certificates issued to their holders who
cannot dispose of them, without a deed of transfer being executed.
BID AND ASKED PRICE PRE OFERIT PENTRU CUMPRARE, PRE CERUT
LA VNZARE
Bid is the highest price a buyer is ready to pay at a particular time; asked is the lowest
price acceptable to a seller of the same security. The difference between the two
prices is the spread. (ecart).
BOND/DEBENTURE OBLIGAIUNE
Is a certificate indicating part property of a debt due by a company issuing it.
Debentures may be redeemable or irredeemable.
(STOCK) BROKER BROKER, CURTIER LA BURS; AGENT DE SCHIMB

A (stock) broker is authorized to buy and sell securities on behalf of a client; the ser-
vices offered are paid on a commission basis.
BULL SPECULATOR LA CRETEREA CURSULUI/ LA BAISSE

A bull is a speculator who plays for a rise. Let us assume he has purchased shares for
the next settling day (lichidare), thinking they are going to rise rapidly. If his bet ma-
terializes, he will sell before the said account day, making a profit on something he
has not paid for. If he has guessed wrongly, he will not wish to take up the shares at a
particular time: he will ask to have his account carried over to the following account
day in the hope of being luckier by then, but he will have to pay a premium, or inter-
est, in order to be allowed to defer payment until the future settlement.
DEBENTURE OBLIGAIUNE FR GARANIE

Theoreticallz an unsecured bond, not secured on anz specific asset of a companz, but
backed bz the integritz and credit worthiness of the borrower. In practice, ofthe used
as a synonym for bond.
HEDGING ACOPERIRE FINANCIAR; ARBITRAJ BURSIER

Hedging is a strategy aimed at minimizing or even eliminating investment risk. A
hedge may consist in acting simultaneously on the spot and forward markets (e.g.
selling spot and buying forward the same amount of securities).
JUNK BOND OBLIGAIUNE SPECULATIV; OBLIGAIUNE CU GRAD MARE

DE RISC
A junk bond is a high yield, high risk (credit rating of BB or lower) securiry specially
designed to finance leveraged buyouts and other takeovers; this is supposed to enable
the issuer of the bond to get enough bank financing to offer stockholders cash for all
the stock in the company. Junk bonds were much in favour in the mid and late 80s in
the US at a time when speculation was running high on Wall Street.
LEVERAGE EFECT DE PRGHIE
A stock is said to have a high-leverage, or to be high-geared, if the company that is-
sued it has large proportion of bonds and preferred stock outstanding in relation to the
amount of common stock.
MARGIN MARJ; ACOPERIRE

The margin is the percentage of down payment that an investor must make to buy
shares on credit. This fraction or percentage of the amount of the investment is 50%
on average.
OVER THE COUNTER (O.T.C.) PIA EXTRABURSIER

The over-the-counter market is the market on (in) which stocks and bonds not yet be-
longing to the official list may be traded. To introduce shares over-the-counter, share-
holders wishing to sell apply to a stockbroker. They inform him of the price at which
they want their shares to be initially traded and of the number of securities they are
prepared to sell.
PAR PARITATE
A security is said to be at par when its market price equals its nominal value. The
nominal value is the amount stated on the security itself. If a share is traded above its
nominal value, it is said to be above par (at a premium). If it is traded below its nomi-
nal value, it is said to be below par (at a discount).
PORTOFOLIO PORTOFOLIU
A list of the commercial paper and securities owned, especially by a bank or an in-
vestment trust.
P/E RATIO RAPORTUL PRE-CTIG

Stands for Price/Earnings Ratio. This is the price of a stock divided by its earnings per
share. This ratio gives investors an idea of how much they are paying for a com-
panys earnings power. A high P/E ratio stock is usually that of a young, innovative
and fast-growing company.
YIELD RANDAMENT
The yield on shares is a shareholders (percentage) profit on capital invested.
1. A speculator who plays for the rise is
A bear
A bull
A stag
A wolf
2. is a practice resorted to by operators who buy spot goods and protect their bar-
gains against price changes by a sale of futures (contracte la termen).
Hedging
Fledging
Edging
Etching
3. A is a organized market for gradable goods which fall into standard categories
and durable goods which can be stored for long periods.
Commodity exchange
Merchandise market
Goods exchange
Ware market
4. Stockholders equity is
The number of stocks held by a companys director
The net worth of a company
The par value of securities
The number of proxies
5. Spot market refers to

A very limited sector of the stock market
The stocks traded over the counter
Dealings transacted in cash
Dealings for immediate delivery
6. To sell short for a speculator
Is the same as to sell for the account
Is to hedge ones investment
Amounts to a backwardation
Is to sell securities, commodities or foreign exchange he does not possess or
has not contracted for at the time of the sale
7. Shares sold at the price of issue are

Below par
At par
At a discount
At a premium
8. Shares are freely bought and sold . Stock Exchange.

On
In
Over
At
9. A stock is said to have high if the company that issued it has a large proportion
of bonds and preferred stocks outstanding in relation to the amount of common stock.
Turn
Profit
Benefit
Leverage
10. Debentures are fixed-securities

Revenue
Asset
Yield
Dividend
Check your grammar
Complete the following paragraph using the right preposition.
Income elasticities are key pieces . information . forecasting the pat-
tern . consumer demand as the economy grows and people become richer.
Suppose we think that, average, incomes will grow . 3 per cent per annum
. . the next five years. Given the estimates . Table 4-11,a 15
per cent change . incomes will reduce the demand . tobacco
.7.5 per cent, but will increase the demand . drinks . 39 per
cent. The forecasts will affect decisions . firms about whether or not to build
new factories and projections . governments . tax . revenue
. cigarettes and drinks.
account day ziua lichidrii

after hour dealings pia dup nchiderea bursei
annual report raport anual
apply for shares a subscrie aciuni
to be at a discount a fi n pierdere
to auction a vinde la licitaie
bank rate rata oficial a scontului
bearer bond obligaiune la purttor
before hours nainte de nchiderea bursei
bid and asked preul oferit pentru cumprare, pre-
ul cerut la vnzare
big board bursa din new york
bona fide de bun credin
bond obligaiune
bonus bonificaie
brisk market pia activ, animat
bull account cont n cretere
call money rata zilnic
capital market piaa de capital
cash market pia monetar
to close a deal a ncheia o afacere
closing price preul la nchidere
commodity market pia de mrfuri
cover acoperire, garanie, cauiune
to dabble on the stock exchange a cota la burs
decline in prices scdere a cursului
dollar area zona dolarului
downturn curs descendent, nceput de criz
due date maturity data scadenei
dull market pia neanimat
equity valori mobiliare din patrimonial unei
societi
estate patrimoniu, avere
to fail a) a nu ndeplini un angajament
b) a da faliment
fall due to a fi scadent()
at the final bell la nchidere
floor incinta bursei
floor price pre de burs
for the settlement la termen
forward market pia la termen
gain profit, beneficiu
hoard/hoarding tezaurizare
hot money fonduri mobile, capital speculative
issue emisiune de titluri
jobber (GB) operator la burs (independent)
ledger registru
negotiable negociabil
no par issue fr valoare nominal
to peg a price a fixa un curs
price floor pre de burs
proxy procur
puts and calls opiuni de vnzare i opiuni de
cumprare
quotation cotaie
to quote a cota un curs
rally redresare
rate of exchange cursul de schimb
to sag a scdea (preuri, cursuri)
to soar a crete fulgertor (despre cursuri)
stake participare
swings oscilaia cursurilor
UNIT XV
INDUSTRIAL RELATIONS AND HUMAN
RESOURCES
The very beginnings of industrial relations date back to the great shift from
rural activities to factory work that took place in the nineteenth century in most
western countries.
The first phase was a long struggle for the legal recognition of unions,
which were formed as a mean of strengthening the bargaining power of workers.
Workers organized into associations, sometimes called brotherhoods,
along the lives of their special skills, or according to the branch of industry they
were working in. very soon, attempts were made to regroup workers from all
trades and industries into general unions and national federations.
At the end of the nineteenth century, the union movement had become so
strong that the right to form unions was officially recognized and the fights to
abolish the sweatshop, child labour and the exploitation of female labour were
eventually won.
During a second phase, lasting roughly from World War I to the seventies,
the power of unions assert itself in traditional industries like iron, steel and min-
ing, and continued to spread to other industries and business activities. Member-
ship grew, and the majority of employers became accustomed to negotiating with
unions and their representatives, and to accepting union activities on their prem-
ises.
National federations like the T.U.C. (Trade Union Congress) in Britain
and the AFL-CIO in the US represented and co-ordinated the union movement at
national level and were the natural partners of government and management in
industrial negotiations.
Such federations tended to support the political left, although the links be-
tween US labour and the Democratic Party cannot be compared with the close ties
of the U.T.C. with the British Labour Party.
During the same period, organized labour played an important part in the
development of social benefits and welfare programmes.
The conditions of children in England at the time of the Indus-
trial Revolution
The common hours of labour were from 6 in the morning till half-past eight at
night?
Yes
Were the children excessively fatigued by this labour?
Many times; we have cried often when we have given them the little victualling
we had to give them; we had to shale them, and they have fallen to sleep with the
victuals in their mouths many a time.
Had any of them any accident in consequence of this labour?
Yes, my eldest daughter when she went first time there.
Has she lost that finger?
It is cut off at the second joint.
Were her wages paid during this time?
As soon as the accident happened the wages were totally stopped; indeed, I did
not know which way to get her cured, and I do not know how it would have been
cured but for the Infirmary.
Did this excessive term of labour occasion much cruelty also?
Yes, with being so very much fatigued the strap was very frequently used.
Have any of your children been strapped?
Yes, every one; the eldest daughter; I was up in Lancashire for a fortnight, and
when I got home I saw her shoulders, and said: Ann, what is the matter? she
said: The overlooker has strapped me. But, she said, do not go to the over-
looker, for if you do we shall lose our work.
(1831-1832)
1. brotherhood fraie, sindicat muncitoresc

2. sweatshop fabric unde muncitorii sunt exploatai
3. overlooker supraveghetor
4. to strap (aici) a bate pe cineva cu o curea
Definitions
EC SOCIAL CHAPTER CONCEPIA SOCIAL A UNIUNII EUROPENE

The ideas that labour laws, regulations and practices, pay deals and benefits
should be comparable - if not similar throughout the European Union, in order
to avoid unfair competition, competitive relocation, etc.
ENTITLEMENTS BENEFICII SOCIALE

Social benefits. The term sometimes tends to be derogatory and aims at denounc-
ing the excessive costs of welfare programmes.
GENERAL UNION SINDICAT GENERAL

A union that can be joined by any worker, independently of the geographical area
and industry or trade he/she works in. the opposite of a craft union.(sindicat profe-
sional)
INDUSTRIAL UNION SINDICAT DE RAMUR

A union that organizes workers within the same industry. To be distinguished
from craft unions (workers have the same skill) and general unions (no specific
skill or industrial requirement to join).
LIFETIME EMPLOYMENT ANGAJARE PE VIA

The fact of being employed by the same employer throughout ones working life.
PAYROLL STAT DE PLAT

1) Amount of wages paid by a firm to its employees.
2) List of the people employed by a firm.
PAYROLL TAX IMPOZIT PE SALARII

Tax levied on wages and salaries and paid by the employer.
PERSONNEL AND STAFF PERSONAL I CADRE DE CONDUCERE

The two words may be synonymous. But whereas personnel will refer to all the
employees, from top to bottom of the chain of command or hierarchical ladder,
staff will often refer to the top layer of executives, engineers, etc., who have a say
in decision making.
WAGE, PAY AND SALARY SALARIU

In principle, wage refers to the pay of blue-collar or industrial workers that used
to be paid weekly.
A salary is paid monthly for the services of executives, civil servants and govern-
ment workers, etc.
The word pay has the advantage of covering both wages and salaries, and of ap-
plying to all categories of employees.
WELFARE BUNSTARE
Means well-being as applied to the population or citizens of a country. Hence wel-
fare state, the notion that the government of a country is responsible for the wel-
fare of its citizens, and should provide extensive services in the fields of health
insurance and medical care, minimum income and retirement pensions.
WELFARE BENEFITS AVANTAJE SOCIALE, AJUTOARE SOCIALE

Allowances and benefits such as sickness benefits, unemployment benefits pro-
vided by the state to its citizens.
STRIKES
to strike a face grev

to go on strike a intra n grev
to come out on strike a face grev
to call for a strike a chema la grev
a rash of strikes un val de greve
plagued/ beleaguered by strikes victim a unor greve multiple
strike notice preaviz de grev
stoppage of work oprirea lucrului
walkout grev; ieirea dintr-o organizaie n
semn de protest
to walkout a face grev; a iei dintr-o organizaie
n semn de protest
to down tools a nceta lucrul
to stop work a nceta lucrul
to walk off the job a nceta lucrul
to call off a strike a anula o grev
striker grevist
strike picket pichet de grev
to picket a picheta
strike breaker, scab, blackleg sprgtor de grev
lockout inchiderea fabricii
to lock out a nchide fabrica
TYPES OF STRIKES
organized strike grev organizat

sympathetic strike grev de solidaritate
protest strike grev de protest
warning strike grev de avertisment
lightning strike grev fulger
wildcat strike grev spontan
general strike grev general
partial strike grev parial
token strike grev simbolic, grev de avertisment
hunger strike greva foamei
whipsaw strike (US) grev selectiv viznd o ntreprindere
int pentru a obine concesii ntr-un
ntreg sector industrial
DISMISSALS AND REDUNDANCIES
Termeni neutri Termeni familiari

to dismiss/dismissal to fire (US)
to discharge to sack (UK)
1. How much would you require to report for work?

Delay
Notice
Period
Warning
2. How long has she been on ... ?

Sea-sick
Leave sickness
Sick leave
Sick list
3. How much does he in his job?

Win
Become
Gain
Make
4. With automation and the current fall in the demand, ,many workers may be-
come
Redundant
Redolent
Recumbent
Relevant
5. To make decent wages, we have to work
Overdue
Overdraft
Overtime
Overrate
6. Unemployment have been extended to all categories of workers.

Doles
Grants
Pensions
Benefits
7. We wish to make it very clear that Mr. Thompson is no longer in the com-
panys
Payload
Paying
Cash payment
Payroll
8. The car industry has been plagued with strikes.

Savage
Stop
Trigger
Wildcat
9. There was no job security and you could find yourself overnight.
Out of job
Out of a job
Off his job
Labourless
10. A closed shop is

A factory on strike
A firm that only hires union members
absence without leave absen nemotivat

accordiing to senority n funcie de vrst
to advertise a vacancy a anuna un post vacant
allowance indemnizaie
to apply for a job a candida pentru un post
applicant candidat
application candidatur, cerere
apprentice ucenic
break pauz; ntrerupere
bank holiday (GB) zi de srbtoare legal
blue collar muncitor n salopet albastr
bonus prim
claim revendicare
to claim a revendica
clerical work munc de birou
closing time ora de nchidere
collective labour agreement contract colectiv de munc
collective bargaining negocieri collective
contactor contractant
craft union sindicat profesional
deadlock impas
to deduct from wages a reine din salariu
to dismiss, to discharge a concedia
to discharge without notice a concedia fr preaviz
dispute conflict
dismissal concediere
disablement; disability invaliditate
to draw wages a ncasa un salariu
dole indemnizaie de somaj
dues cotizaii
earned income venituri
employees, the employed angajai, salariai
employment serviciu, loc de munc
employment agency, job centre (GB) oficiu de plasare a forei de munc
to engage on probation a angaja de prob
engagement angajare
executive cadre de conducere
to fire a concedia
foreman maistru
full employment angajare cu norm ntreag
gross wage salariu brut
hand mn de lucru; muncitor
to have a day off a avea o zi liber
holiday with pay concediu cu plat
illicit work munc la negru
incentive stimulent
incapacitation for work incapacitate de munc
increase in wage, wage increase cretere salarial
industrial injury accident de munc
jobless omer
labour (GB), labor (US) lucru, munc; mn de lucru
labour claims revendicrile muncitorilor
labour contract contract de munc
labour forces for de munc
labour law dreptul muncii
labour market piaa muncii
labourer muncitor
to lay off a reduce personal
layoff concediere
leave concediu
legal holiday srbtoare legal
maternity leave concediu de maternitate
minimum guaranteed wage salariu minim garantat
moonlighting practica de a avea o a doua slujb,
de obicei seara
net wage salariu net
night shift schimbul de noapte
overtime ore suplimentare
paid leave concediu pltit
part-time workers muncitori cu jumtate de norm
pay-day zi de plat
pay-deduction reineri salariale
payroll tax impozit pe salarii
pension fund fond de pensii
to pension off a iei la pensie
perks avantaje diverse (pe lng salariu)
rally adunare; ntrunire
rank and file muncitori simpli
redundancy disponibilizare
to resign a demisiona
resignation demisie
to resume work a relua lucrul
resumption of work reluarea lucrului
to retire a iei la pensie
retiree pensionar
retirement pension pensie de vrst
to retrain a recalifica, a recicla personalul
senior clerk ef de birou
seniority pay spor de vechime
the shopfloor muncitori obinuii
sick leave concediu medical
skilled worker muncitor calificat
semi-skilled worker muncitor semicalificat
social insurance asigurri sociale
social policy politic social
social welfare asisten social
supervisor ef de atelier
the unemployed omerii
unfit for work inapt pentru munc
unskilled worker muncitor necalificat
vocational training formare profesional
wage agreement convenie salarial
wage claims, demands revendicri salariale
wage control, stop, freeze nghearea salariilor
wage costs costuri salariale
wage dispute conflict salarial
wage-earner salariat
wage policy politic salarial
welfare benefits avantaje sociale
white collar worker funcionar de birou
work(ing) day zi de lucru
to work overtime a face ore suplimentare
to work in shift a lucra n schimburi
works uzin, fabric

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THE LANGUAGE OF ECONOMICS

8ATENIE: benefit = 1) avataj 2) alocare, subvenie

8ATENIE: to fabricate = a inventa, a nscoci

* Atenie la folosirea prepoziiilor:

POINT AND COMMA

* Atenie la folosirea corect a punctului i a virgulei:

zece mii (10

Increase your vocabulary

Check your grammar

Use the following verbs to complete the paragraph below:

ageni economici economic agents

Check your grammar

GATT (General Agreement on Tariffs and Trade)

Commercial Paper Titluri de valoare, Obligaiuni pe termen scurt

Hot Money Capitaluri speculative

Institutional investor Investitor instituional

Money Market Piaa monetar

Mutual Fund Fond Mutual

Tax Haven Paradis Fiscal

VOCABULARY GENERAL ECONOMIC DATA

economia unei ri the economy

Many economists specialize in a particular branch of the subject. For

1. Look at the first paragraph. What words correspond to these definitions?

Check your grammar

VOCABULARY GENERAL ECONOMIC DATA

indicatori economici economic indicators

Demand is the quantity of a good buyers wish to purchase at each of the

Increase your vocabulary

2. Look at paragraph 3. What words have the opposite meaning to:

Check your grammar

VOCABULARY GENERAL ECONOMIC DATA

Check your grammar

He suggested (go) into the country on Sunday.

VOCABULARY GENERAL ECONOMIC DATA

progres progress, advance

Increase your vocabulary

1. The wholesaler is a middleman between the manufacturers and the retail . .

2. Most big stores now have a . section

3. You are required to leave a 20% . .

4. Please . the cheque with your next letter.

5. The firm deals in electrical appliances and . Goods.

7. These articles are currently . display in our showrooms.

Check your grammar

I worked hard all week I wanted some company

Now arrange your sentences into a single paragraph.

societate de consum consumer society

Although the crucial feature of money is its acceptance as a means of

Increase your vocabulary

2. Look at paragraph 2. What words have the opposite meaning to:

4. Look at paragraph 5. What words have the same meaning as:

6. Look at paragraph 8. What words have the same meaning as:

Check your grammar

Some verbs must be followed by the infinitive:

VOCABULARY GENERAL ECONOMIC DATA

AUTOMATIC TELLER MACHINE (ATM) DISTRIBUITOR AUTOMAT

BASE RATE RATA DE BAZ A DOBNZII

CERTIFICATE OF DEPOSIT CERTIFICAT DE DEPOZIT

CREDIT STATUS SOLVABILITATE

CURRENT ACCOUNT CONT CURENT

INSTAL(L)MENT TRAN; RAT; VRSMNT PARIAL

PAWN SHOP, PAWNBROKERS SHOP CAS DE AMANET

PIN COD PERSONAL

RESCHEDULING OF A DEBT REEALONAREA UNEI DATORII