BUSINESS READING 4 - repository

BUSINESS READING 4 A Reading Comprehension Practice

compiled by

Maria F. Lies Ambarwati

C. Widi Astuti

TARAKANITA SCHOOL OF COMMUNICATION AND SECRETARIAL

STUDIES JAKARTA

2019

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Course Syllabus Session Reading Text TOEIC Wordlist

1 INTRODUCTION & WARMING-UP ACTIVITIES

2 e-Commerce 900 - 950

3 Advertising 900 – 1,000

4 TOEIC PRACTICE TEST

5 Business Cycle 900 – 1,050

6 Economics and Ecology 900 – 1,100

7 REVIEW & MINITEST of TWL 900 – 1,100

8 MID-SEMESTER EXAMINATION

9 MIDT-TERM FEEDBACK & TUNING-IN ACTVITIES

10 Digital Literacy 900 – 1,150

11 Women in Business 900 – 1,200

12 TOEIC PRACTICE TEST

13 Issues on International Business: Trade War & Globalisation Backlash

900 – 1,259

14 Issues on International Business: Differences in Ethical Standards and International Businesses

-

15 TOEIC PRACTICE TEST

16 END-SEMESTER EXAMINATION

REFERENCES

Bermngham, F. (2019). Trade war and globalisation backlash pushing trading nations to the

economic brink as recessions loom. South China Morning Post, 16 August. Retrieved

from https://www.scmp.com/economy/china-economy/article/3023123/trade-war-

and-globalisation-backlash-pushing-trading-nations

Browne, C. & Culligan, B. (2016). The TOEIC SERVICE LIST 1.1. Retrieved from

www.newgeneralservicelist.org/toeic-list/

How to use dictionary effectively. (n.d.). Retrieved from

http://esl.fis.edu/learners/advice/dic.html

Ingram, D. (n.d.). How to Address Differences in Ethical Standards and International

Businesses. Small Business. Retrieved from

https://smallbusiness.chron.com/address-differences-ethical-standards-

international-businesses-5254.html

McKenzie, I. (2002). English for Business Studies. Cambridge: Cambridge University Press.

Price, C. (2018). 14 Search Engine You Can Use Instead of Google. Retrieved from

http://www.searchenginejournal.com

Women in business. (n.d.). Retrieved from

https://www.englishdaily626.com/comprehension.php?343

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Unit 1

E-Commerce

Read this text carefully.

The internet has promoted the concept of electronic commerce. In principle, electronic commerce is no different from actual world commerce. The only difference is that electronic commerce uses the electronic medium, but the basic rules of commerce remain the same. It is true that the electronic environment has certain distinct requirement but they are merely procedural in nature and do not in any case impact the specific character of commercial transactions over the internet. Just as immovable property can be bought and sold in the actual world, so can immovable property be sold over the internet. This is evident from numerous examples that are available on the internet.

Recently there were attempts to sell a town in California over the internet. The auction site e-Bay ended a month-long auction of the 150 acre Mojave desert town called Amboy. This town has seven residents and has a post office, motel, church, gas station, cafe, gift shop and two landing strips. The owners of the town - the celebrity photographer, Timothy White and his business partner Wilson - had put the town to action on e-Bay.Com. It is a different matter altogether that none of the bids could match the reserve selling price of the town. This example once again shows that immovable property can be bought and sold over the internet. However, this is the international position.

In India, we realize that the situation is dramatically different. In India, the Information Technology Act 2000 makes it clear that it does not apply to any contract for the sale or conveyance of immovable property or any interest in such property. This really means that no legal recognition is accorded to electronic transactions relating to the sale or conveyance of immovable property or any interest in such property.

Thus, legally speaking in India, you cannot buy or sell immovable property over the internet. The restriction is because of the inadequacy of the existing Indian law. The legislature may have excluded any contract for the sale or conveyance of immovable property from the ambit of the IT Act 2000 because it felt that the situation wasn’t ripe for its inclusion as yet.

However, things are likely to change since India is in the process of coming up with laws relating to electronic fund transfer, etc., to further facilitate e-commerce and that includes sale of immovable property over the internet as well.

1. Identify the unfamiliar words or expressions. Try to guess the meaning from the

context. You might want to consult a reliable dictionary.

2. Answer these questions!

1. The passage says that this field has benefited from the growth of internet.

A. Photography B. Commerce C. Law D. Education

2. The IT Act 2000

A. is the first act related to business.

B. has stopped all illegal internet transactions.

C. has legalized the property transactions over internet.

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D. does not give legal recognition to electronic transactions of immovable

property.

3. The word ‘ambit’ as used in the passage means

A. provision B. territory C. focus D. scope

4. What is the notable difference between Indian and the US cyber law?

A. The Indian cyber law is through unlike the US cyber low.

B. The US cyber law is fool proof unlike the Indian one.

C. Transaction related to immovable property are not legalized by Indian

cyber law.

D. American cyber law was framed two decades ago whereas Indian cyber

law was framed a few years ago.

5. The author’s hope regarding e-commerce is that

A. things are not likely to change in India.

B. the laws relating to fund transfer will be formulated in due course of time.

C. the internet laws will become more severe to tackle cyber-crimes.

D. it will overtake the real commerce in a few years.

Extra Reading Text

Read this text and do the exercise!

Shopping is a necessary part of life which very few people can avoid. It is a daily routine for some people. Some people shop for pleasure while other people go shopping just to buy the necessary items in order to survive. The weekend is usually a good time to go shopping because people have free time from work. At this time the shops are usually very busy because people try to get the best items for the lowest price before the item runs out of stock.

Some people go shopping more regularly than other people to browse products in shops even when they do not have much money. This is known as window shopping and allows people to plan ahead and save for the things they want to buy in the future or wait for the items to drop in price. Some people spend a lot of time looking for bargains while others do not think of the price and are happy to spend a lot. Some people believe that the more expensive the item, the better the quality, but this is not always true. It is sensible to buy items which are affordable, but some people use a credit card or borrow money from the bank so that they can buy the items they really want rather than wait for it.

Sometimes shopping can be stressful when choosing a gift to buy other people for special occasion. It is common to buy a gift voucher so that a friend or loved one can go shopping themselves at their own convenience. Shopping online is often popular with people who have a busy lifestyle. People are able to order their necessary and luxury items from the comfort of their own home, or even on the move. Delivery is usually free and items are often cheaper than in shops on the high street. The only real problem is that the item description and quality may be different than what they hoped for. This could mean the customer may become disappointed with the item they receive and will need to return it at their own cost. People who go to shops to do their shopping often use self- service payment machines. This usually saves time as the shopper does not need to join a long

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queue. However, it can be frustrating when the machine has a problem and the sales assistant is not always available to help.

1. Check this Vocabulary List with Definitions.

afford - verb to have enough money to purchase an item or pay for a service

aisle - noun a long walkway with items for sale on either side

bag - noun a carrying aid with handles that is usually made from plastic or recycled material

baggy – adjective when an item of clothing is excessively loose

bakery - noun a shop which provides people skilled in preparing and selling pastries, cakes and bread.

barcode - noun a small square filled with lines which when scanned by a computer provides an item’s name and price

bargain - noun the price of an item that is considered to be of very good value

basket - noun a hand held square shaped mesh container usually made from either metal or plastic which is used to hold items.

best before - adjective

the date before which an edible item is most delicious

brand - noun the name of a product which is often associated with a certain price and quality

butchers - noun a shop which pr`ovides people skilled in preparing and selling meat

buy - verb an act of providing payment for goods

card machine - noun a machine which communicates with the customer’s bank for the purpose of paying for goods or services

cash – noun a rectangular piece of paper often known as a note which is used for payment of goods or services

cashier - noun a person who calculates the total cost and receives payment for the goods

change - noun a quantity of money to be returned to the person paying for goods or services usually when payment has been made with bank notes which total more than the amount requested.

cheap - adjective the cost of something considered to be reasonable and easily affordable.

chemist - noun a shop which sells general and personally prescribed medication

cheque – noun a rectangular piece of paper which serves as a method of payment after the amount is written and signed by the account holder

clearance sale - noun

a time when most items are reduced, usually due to the shop closing down

closed - adjective a time when the product or service is not accessible to customers

coin – noun a small thin piece of metal which is usually round and used for payment of goods or services

convenience store - noun

a shop that is easily accessible to the general public that sells most things

credit/debit card – noun

a rectangular piece of thin plastic often with an electronic chip which is used for paying for goods or services

customer - noun a person who pays for goods or services

delivery – noun the transportation of items from the shop to the customer’s preferred address

discount – noun a reduction in the original price of a product

estate agent - noun a shop which provides people skilled in selling land and property

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exchange – verb an act of returning a previously purchased unwanted item and receiving another in its place

expensive - adjective the cost of something considered to be excessive or unaffordable

faulty - adjective an item which does not satisfy its description or cannot fulfil its purpose

fit – verb when an item of clothing is suitable for the size of the body

fitting cubicle – noun

a small room used for changing clothes

florist – noun a shop which provides people skilled in cutting and arranging flowers

gift voucher - noun a rectangular piece of thick paper which represents money and can be used to buy goods to the value printed on its front

hanger – noun a triangular shaped piece of metal or plastic used to hold clothes in storage

label – noun a piece of paper printed with a description and attached to the item

loyalty card - noun a card provided by an establishment similar to the size of a credit card which is often used to collect points which can be exchanged for rewards

luxury items – noun items which are fashionable but not a necessity

open – adjective the time when the product or service can be accessed and paid for

packaging – noun a protective material, usually plastic or cardboard, which surrounds the product prior to purchase

price – noun the monetary value of a particular item

purchase – verb an act of providing payment for goods

purse – noun a container, usually used by women, for holding bank cards, cash and occasionally coins

quality – noun the standard expected of a particular item.

queue – noun the act of people standing behind one another to wait for a service

receipt – noun a long slip of paper which details the items bought and provides proof of purchase.

refund – noun a return of the price paid which is usually subject to company policy

sale – noun a time where certain items are lowered from their original price.

sales assistant - noun

a person who ensures a comfortable shopping experience for the customer, usually by serving their needs and informing them of current offers

scales - noun a machine which weighs items to assist with calculating the price of a product.

security tag - noun a device securely attached to a product to deter thieves

self-service - adjective

a machine used by customers to serve and pay for items by themselves

shelf - noun a horizontal, strong piece of material used for displaying items

shop - noun a designated space which offers goods or services for payment

shopper -noun a person who visits a shop with the intention of buying an item

showroom - noun a building which has the purpose of displaying cars for purchase.

size – noun a measurement of something, usually described as large, medium or small

stock – noun a quantity of a particular product held by a shop

supermarket - noun a large shop with many departments which sells a wide range of items.

till - noun a machine used to keep cash received from customers and to provide change if necessary

travel agent - noun a shop which provides people skilled in arranging trips and holidays

trolley - noun a large rectangular shaped mesh container usually made from metal which has wheels and is used to hold items

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use by - adjective the date when an edible item should be consumed by

wallet - noun a pocket-sized flat container, usually used by men, for holding bank cards and cash

window-shopping – noun

the act of browsing products without the intention to buy

2. Choose the correct definition for the shopping vocabulary in this quiz. 1) What is the definition of ‘aisle’?

A. The date before which an edible item is most delicious. B. A long walkway with items for sale on either side C. The cost of something considered to be reasonable and easily affordable. D. A shop which provides people skilled in cutting and arranging flowers.

2) What is the definition of ‘fitting cubicle’? A. A small room used for changing clothes. B. A shop that is easily accessible to the general public that sells most things. C. A triangular shaped piece of metal or plastic used to hold clothes in storage. D. The time when the product or service can be accessed and paid for.

3) What is the definition of ‘expensive’? A. The act of browsing products without the intention to buy. B. A measurement of something, usually described as large, medium or small. C. A time where certain items are lowered from their original price. D. The cost of something considered to be excessive or unaffordable.

4) What is the definition of ‘till’? A. A machine used to keep cash received from customers and to provide change if

necessary. B. The price of an item that is considered to be of very good value. C. A machine which communicates with the customer’s bank for the purpose of paying

for goods or services. D. A time when most items are reduced, usually due to the shop closing down.

5) What is the definition of ‘label’? A. The monetary value of a particular item. B. An item which does not satisfy its description or cannot fulfil its purpose. C. A piece of paper printed with a description and attached to the item. D. A person who ensures a comfortable shopping experience for the customer, usually

by serving their needs and informing them of current offers.

3. Choose the word that matches the definition given in each of the five questions in this

quiz.

1) What is the meaning of the following definition: A large shop with many departments

which sells a wide range of items?

A. Supermarket B. Till C. Travel agent D. Refund

2) What is the meaning of the following definition: A rectangular piece of thick paper

which represents money and can be used to buy goods to the value printed on its

front?

A. Gift voucher B. Purse C. Quality D. Hanger

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3) What is the meaning of the following definition: The price of an item that is

considered to be of very good value?

A. Bakery B. Card machine C. Afford D. Bargain

4) What is the meaning of the following definition: A shop which sells general and

personally prescribed medication?

A. Brand B. Coin C. Chemist D. Refund

5) What is the meaning of the following definition: A person who visits a shop with the

intention of buying an item?

A. Refund B. Scales C. Shopper D. Clearance

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Unit 2

Advertising

Read this text and answer the questions.

HOW COMPANIES ADVERTISE

Advertising informs consumers about the existence and benefits of products and services and attempts to persuade them to buy them. The best form of advertising is probably word-of-mouth advertising, which occurs when people tell their friends about the benefits of products or services that they have purchased. Yet virtually no providers of goods or services rely on this alone but use paid advertising instead. Indeed, many organizations also use institutional or prestige advertising, which is designed to build up their reputation rather than to sell particular products.

Although large companies could easily set up their own advertising departments, write their own advertisements, and buy media space themselves, they tend to use the services of large advertising agencies. These are likely to have more resources, and more knowledge about all aspects of advertising and advertising media than a single company. The most talented advertising people generally prefer to work for agencies rather than individual companies as this gives them the chance to work on a variety of advertising accounts (contracts to advertise products or services). It is also easier for a dissatisfied company to give its account to another agency than it would be to fire its own advertising staff.

The client company generally gives the advertising agency an agreed budget; a statement of the objectives of the advertising campaign, known as a brief; and an overall advertising strategy concerning the message to be communicated to the target customers. The agency creates advertisements (the word is often abbreviated to adverts or ads) and develops a media plan specifying which media – newspapers, magazines, radio, television, cinema, posters, mail, etc. – will be used and in which proportions. (On television and radio, ads are often known as commercials). Agencies often produce alternative ads or commercials that are pre-tested in newspapers, television stations, etc. in different parts of a country before a final choice is made prior to a national campaign.

The agency’s media planners have to decide what percentage of the target market they want to reach (how many people will be exposed to the ads) and the number of times they are likely to see them. Advertising people talk about frequency or ‘OTS’ (opportunities to see) and the threshold effect – the point at which advertising becomes effective. The choice of advertising media is generally strongly influenced by the comparative cost of reaching 1,000 members of the target audience, the cost per thousand (often abbreviated to CPM, using the Roman numeral for 1,000). The timing of advertising campaigns depends on factors such as purchasing frequency and buyer turnover (new buyers entering the market).

How much to spend on advertising is always problematic. Some companies use the comparative-parity method – they simply match their competitors’ spending, thereby avoiding advertising wars. Others set their ad budget at a certain percentage of current sales revenue. But both these methods disregard the fact that increased ad spending or

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counter-cyclical advertising can increase current sales. On the other hand, excessive advertising is counter-productive because after too many exposures people tend to stop noticing ads or begin to find them irritating. And once the most promising prospective customers have been reached, there are diminishing returns, i.e. an ever-smaller increase in sales in relation to increased advertising spending.

1. Now, answer these questions.

1. What is the best kind of advertising?

2. Why do most companies use advertising agencies?

3. When a company hires an advertising agency, what are the roles of both parties?

4. What is a media plan?

5. Why does advertising become ineffective after a certain point?

2. Find in the text the terms that mean the following:

1. free advertising, when satisfied customers recommend products to their friends

2. advertising that mentions a company’s name, but not specific product

3. companies that handle advertising for clients

4. a contract with a company to produce its advertising

5. the amount of money a company plans to spend in developing advertising and

buying media time or space

6. the statement of an advertising campaign that a client works out with an advertising

agency

7. the advertising of a particular product or service at a particular period of time

8. a defined set of customers whose needs a company plans to satisfy

9. the people who choose where to advertise, to reach the right customers

10. the fact that an amount of advertising is necessary to attract a prospective

customer’s attention

11. choosing the same amount on advertising as one’s competitors

12. advertising during periods or seasons where sales are normally relatively poor

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Unit 3

Business Cycle

Read this text and answer the questions.

The United States and all other modern industrial economies experience significant

swings in economic activity. In some years, most industries are booming and

unemployment is low; in other years, most industries are operating well below capacity

and unemployment is high. Periods of economic prosperity are typically called expansions

or booms; periods of economic decline are called recessions or depressions. The

combination of expansions and recessions, the ebb and flow of economic activity, is called

the business cycle.

Business cycles as we know them today were codified and analyzed by Arthur Burns

and Wesley Mitchell in their 1946 book Measuring Business Cycles. One of Burns and

Mitchell’s key insights was that many economic indicators move together. During an

expansion, not only does output rise, but also employment rises and unemployment falls.

New construction also typically increases, and inflation may rise if the expansion is

particularly brisk. Conversely, during a recession, the output of goods and services declines,

employment falls, and unemployment rises; new construction also declines. In the era

before World War II, prices also typically fell during a recession (i.e., inflation was negative);

since the 1950s prices have continued to rise during downturns, though more slowly than

during expansions (i.e., the rate of inflation falls).

Burns and Mitchell defined a recession as a period when a broad range of economic

indicators falls for a sustained period, roughly at least half a year. Just as there is no

regularity in the timing of business cycles, there is no reason why cycles have to occur at

all. The prevailing view among economists is that there is a level of economic activity, often

referred to as full employment, at which the economy could stay forever. Full employment

refers to a level of production in which all the inputs to the production process are being

used, but not so intensively that they wear out, break down, or insist on higher wages and

more vacations. When the economy is at full employment, inflation tends to remain

constant; only if output moves above or below normal does the rate of inflation

systematically tend to rise or fall. If nothing disturbs the economy, the full-employment

level of output, which naturally tends to grow as the population increases and new

technologies are discovered, can be maintained forever. There is no reason why a time of

full employment has to give way to either an inflationary boom or a recession.

Business cycles do occur, however, because disturbances to the economy of one sort

or another push the economy above or below full employment. Inflationary booms can be

generated by surges in private or public spending. For example, if the government spends

a lot to fight a war but does not raise taxes, the increased demand will cause not only an

increase in the output of war material, but also an increase in the take-home pay of defense

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workers. The output of all the goods and services that these workers want to buy with their

wages will also increase, and total production may surge above its normal, comfortable

level. Similarly, a wave of optimism that causes consumers to spend more than usual and

firms to build new factories may cause the economy to expand more rapidly than normal.

Recessions or depressions can be caused by these same forces working in reverse. A

substantial cut in government spending or a wave of pessimism among consumers and

firms may cause the output of all types of goods to fall. Another possible cause of recessions

and booms is monetary policy. The Federal Reserve System strongly influences the size and

growth rate of the money stock, and thus the level of interest rates in the economy. Interest

rates, in turn, are a crucial determinant of how much firms and consumers want to spend.

A firm faced with high interest rates may decide to postpone building a new factory because

the cost of borrowing is so high. Conversely, a consumer may be lured into buying a new

home if interest rates are low and mortgage payments are therefore more affordable. Thus,

by raising or lowering interest rates, the Federal Reserve is able to generate recessions or

booms.

This description of what causes business cycles reflects the Keynesian or new

Keynesian view that cycles are the result of nominal rigidities. Only when prices and

inflationary expectations are not fully flexible can fluctuations in overall demand cause

large swings in real output. An alternative view, referred to as the new classical framework,

holds that modern industrial economies are quite flexible. As a result, a change in spending

does not necessarily affect real output and employment. For example, in the new classical

view a change in the stock of money will change only prices; it will have no effect on real

interest rates and thus on people’s willingness to invest. In this alternative framework,

business cycles are largely the result of disturbances in productivity and tastes, not of

changes in aggregate demand.

The empirical evidence is strongly on the side of the view that deviations from full

employment are often the result of spending shocks. Monetary policy, in particular,

appears to have played a crucial role in causing business cycles in the United States since

World War II. For example, the severe recessions of both the early 1970s and the early

1980s were directly attributable to decisions by the Federal Reserve to raise interest rates.

On the expansionary side, the inflationary booms of the mid-1960s and the late 1970s were

both at least partly due to monetary ease and low interest rates. The role of money in

causing business cycles is even stronger if one considers the era before World War II. Many

of the worst prewar depressions, including the recessions of 1908, 1921, and the Great

Depression of the 1930s, were to a large extent the result of monetary contraction and high

real interest rates. In this earlier era, however, most monetary swings were engendered

not by deliberate monetary policy but by financial panics, policy mistakes, and international

monetary developments.

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1. Answer these questions!

1. Which of the following is TRUE in the context of the passage?

a) Boom in an economy can be caused by cutting down the government expenditure.

b) Central Bank is solely responsible to bring a boom/ recession in the economy by

changing the interest rates.

c) Full employment level of output can be maintained in an economy forever.

d) After world war II the inflation rates fall but didn’t become negative as compared to

before World War II.

A) Both b) and c) C) Both c) and d)

B) Both b) and d) D) Only b)

2. In a perfect scenario of Full employment what can cause a business cycle to occur?

a) A wave of optimism among consumers and producers.

b) When government’s expenditure exceeds its income.

c) When government’ income exceeds its expenditure or reduction in government

spending.

d) Pessimism among government officials.

A) All of these C) Both b) and c)

B) Both a) and b) D) All a), b) and c) E) Only b)

3. Prewar depressions, including the one of 1908, 1921, and great depression of 1930s was

the result of which phenomena?

A) Increase in money supply C) Rise in real interest rates.

B) Decrease in money supply D) Both A) and B) E) Both B) and C)

4. What theory does the alternative view or classical view hold?

A) Modern economies are rigid.

B) Change in spending does not necessarily change output and employment.

C) Both A) and B)

D) Business cycles are the result of changes in aggregate demand

E) Both B) and D)

5. How the monetary policy affects the spending habits of public?

A) It influences the size and growth rate of money stock and eventually the rates of

interests.

B) In case of high interests, a firm may postpone its decision to build a factory.

C) Monetary policy stances adopted by the central bank can throw an economy into

expansion or depression.

D) Monetary policy affects magnitude of the money supply in the economy.

E) All of these.

6. In an economy, where interest rates are low what could be the possible outcome?

A) Such an economy reflects a period of depression.

B) Public will be willing to borrow more as cost of money rises.

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C) Banks will be willing to lend more.

D) The monthly repayments of mortgage will decrease.

7. What can we infer from the paragraph regarding full employment situation?

A) Full employment is an economic situation of optimal utilization of all resources

available.

B) Full employment is an economic situation in which all available resources are being

used in the most efficient way that they wear out, break down, or insist on higher wages

and more vacations.

C) Full employment is the situation of employment provided to all the skilled labour.

D) All of these.

8. What was the main cause of business cycles in the US Post World War II?

A) Changes in public and private expenditure.

B) Changes in demand pattern

C) Monetary policy

D) Disturbances in the economy.

9. What can be the suitable title of the passage?

A) Monetary policy

B) Business cycles

C) Keynesian view and alternative view on business cycles.

D) Effects of business cycles on unemployment.

10. What is recession according to Burns and Mitchell?

A) When a broad range of economic indicators falls for a short period.

B) When a broad range of economic indicators falls for a very long period maybe 1 year.

C) When a broad range of economic indicators falls for a unrelenting period of time like

6 months.

D) All of these.

Some Extra Points:

Full employment is an economic situation in which all available labor resources are

being used in the most efficient way possible. Full employment embodies the highest

amount of skilled and unskilled labor that can be employed within an economy at any

given time.

Business cycle – Business cycles are identified as having four distinct phases:

expansion, peak, contraction, and trough. Business cycles are identified as having

four distinct phases: expansion, peak, contraction, and trough.

Contraction A period of economic decline or negative growth.

Peak The highest value reached by some quantity in a time

period.

Trough The lowest turning point of a business cycle

Expansion The act or process of expanding.

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Monetary policy – The Reserve Bank of India (RBI) uses the monetary policy to

manage liquidity or money supply in a manner that balances inflation and at the same

time aids growth. It affects the money supply in the economy by changing the interest

rates in turn affecting the demand of products which is responsible for

inflation/deflation.

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Unit 4

Economics and Ecology

Read this text carefully and then do the exercises.

For sale: a licence to pollute: Traded pollution permits have curbed sulphur dioxide emissions in the US and could soon be extended more widely, says Leyla Boulton

Six years after it was approved by the US Congress as part of the Clean Air Act, trading in permits allowing companies to pollute has cut sulphur dioxide emissions in the US faster and more cheaply than ever expected. Now the architects of pollution trading in Chicago have ambitions to extend the business to a wider range of polluting substances. And supporters are advocating an international trading system for permits to release carbon dioxide – the best-known man-made cause of global warming – into the atmosphere.

Critics may say it is immoral to give companies an explicit right to pollute. But Mr Richard Sandor, a former vice-president of the Chicago Board of Trade (CBOT), who launched sulphur dioxide trading, argues it injects pragmatism into environmental protection. ‘It’s time to take the environment out of the warm, fuzzy area,’ he says. ‘You can’t just say “I want to save all the dolphins in the world.” You’ve got to work out how to solve problems in the most cost-effective way.’

The way the sulphur dioxide ‘allowance’ system works is simple. The Environmental Protection Agency, a federal agency, issues permit to release the amount of pollution allowed by the Clean Air Act. Most are allocated to power companies, but a small number are auctioned once a year by the CBOT to set a price for them. If plant A gets permits to emit 150,000 tonnes of sulphur dioxide but wants to emit 155,000 tonnes it must purchase an extra 5,000 allowances (each worth a tonne of sulphur dioxide) – or pay a fine far exceeding the price of the permits. But if the plant is able to cut its emissions further than required, it has surplus allowances. It can either sell the surplus to another plant or save it for future years.

Trading has two main advantages over traditional environmental regulation. It gives companies a financial incentive to reduce emissions for less than it would cost to buy permits. And, by leaving it to companies to decide how and when to reduce emissions, it reduces not just the cost of compliance, but the bureaucracy required to enforce environmental legislation. The EPA reckons emission reduction through trading has so far cost US industry just $2.5bn – half as much as it would have cost under the EPA’s traditional regulatory system.

The scheme has certainly worked: the US’s 110 most polluting power plants spewed out only 5.3m tonnes of sulphur dioxide last year, well below a government ceiling of 8.7m tonnes – prompting some environmentalists to say the targets were too lax. The ultimate aim of the programme, by progressively reducing the number of permits distributed to industry, is to cut sulphur dioxide emissions to half their 1980 level by 2010.

Its success has inspired the EPA to consider extending trading to oxides of nitrogen, toxic substances such as mercury, and possibly even the particulate dust emitted by long-distance haulage trucks. […]

15

In practice, sulphur dioxide emissions need to be supplemented by local controls to avoid concentrated pockets of pollution. But trading would be perfect for carbon dioxide emissions, which occur everywhere and have no local side-effects. The International Panel on Climate Change, the body charged by governments with investigating global warming, recently described trading as the most ‘promising’ of the ways it has considered for tackling climate change. […]

Western nations are committed to agreeing national targets for reducing carbon dioxide emissions. But they are divided over how to do it: the European Union has toyed with the idea of a carbon tax. The US, however, rejects the idea of new taxation. International trading of carbon dioxide permits, distributed to countries and companies, would achieve reductions as cheaply and as flexibly as possible. […]

Trading is already US industry’s favourite option because of its flexibility. Mr Mike Shields of Detroit Edison, the US electricity producer, says sulphur dioxide trading has shown industry it can ‘get reductions faster and at lower cost than expected.’ And the concept is catching on elsewhere. Mr David Porter, chief executive of the UK’s Association of Electricity Producers, is trying to interest his members in the idea for controlling carbon dioxide emissions from power stations. […] Finally, trading could prove the best mechanism for drawing developing countries into the fight against global warming without asking them to sacrifice their right to economic development. […]

1. Now, answer these questions.

1. Why is it considered necessary to reduce carbon-dioxide emissions?

2. What does Richard Sandor mean by ‘cost-effective’ in relation to environmental

protection?

3. What are the main advantages of trading over traditional environmental regulation?

4. What are the criticisms of SO2 trading made by some environmentalists?

5. Why must the SO2 trading program sometimes be supplemented by local controls

6. Which alternative methods of reducing CO2 pollution do the Americans reject?

2. Find words or expressions in the text which mean the following.

1. designers (of a plan)

2. recommending

3. realism

4. sold to the highest bidder (whoever will pay the most)

5. a financial penalty

6. accepting or obeying a law, etc.

7. excessive administrative work

8. plan

9. upper limit

10. not strict or severe enough

11. dealing with a difficult problem

12. vaguely considered

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Unit 5

Information Computer Technology - Digital Literacy

Instruction

It’s well-known that you are the generation of fingertip. A generation that spends most of their time online; a generation that always relies on Google, Siri, Bing, DuckDuckGo, Internet Archive, even Twitter, and many others (Check 14 Great Search Engine You Can Use Instead of Google at http://www.searchenginejournal.com).

Find two or three articles on Information Computer Technology and/or Digital Literacy and bring them to class. You may print them if you want to. You are going to sit down in a group of three and discuss some questions based on your articles. Your class teacher will give you some guidance on what to find and read, as well as what to discuss. Bottom line, come to class with this topic in your head. So, good luck.

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Unit 6

Women in Business

Read this text carefully.

The Difference between Men And Women

Although there is a great deal of variation within each gender, on the average, men and women discuss a surprisingly different range of topics. According to some studies, women and men ranging in age from seventeen to eighty described the range of topics each discussed with friends of the same sex. Certain topics were common to both men and women; work, movies, and television proved to be frequent topics for both groups.

The differences between men and women were more striking than the similarities. Female friends spent much more time discussing personal and domestic subjects, relationship problems, family, health and reproductive matters, weight, food and clothing. Men, on the other hand, were more likely to discuss music, current events, sports and business. Women were more likely to gossip about close friends and family. By contrast, men spent more time gossiping about sports figures and media personalities. These differences can lead to frustration when men and women try to converse with one another.

1. It is stated in the passage that women ----.

A) are unwilling to discuss personal subjects

B) are more interested in discussing relationship problems than are men

C) never talk about other men and women

D) don't like gossiping about anything

E) discuss more important issues than men

2. According to the passage, men ----.

A) need to learn to communicate better

B) like talking about movies and television as much as women do

C) are not likely to gossip on anything

D) have no common topics with women

El get frustrated more whenever they try to converse with women

3. The passage mainly discusses ----.

A) what women's conversational topics are

B) why men don't like conversing with women

C) the topics men like discussing

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D) why women talk more than men

E) the conversational topics of men and women

Another text to read

Women in Business Time has changed. In this modern era, women are taking a positive role in society.

They are seen at par with men and because of liberalization, women have the rights to vote

and say. Today, women are more mature than men. They are becoming more independent

and are very competitive even in the corporate world. They are unlike their fore sisters,

mothers or grandmothers, who rely on men for support.

As we look around, we can see that women are now boldly involved in politics.

Politics refer to how a country is being administered by a group of people elected by its

nation. Through their involvement in politics, women have proven that they are equally

capable as men to lead. They are able to shoulder responsibilities and heavy maters

concern in the world issues due to good exposure, caliber and support from the women's

liberalization rights.

Next, as we observe around, there are also women involved in business. They have

proven to rule the business world and build an empire with ripple effects. Some venture

into cottage industries like making handicrafts and cookies while there are others who are

able to lead an empire in business industry, marketing and insurance. These women have

the potential, qualifications and expertise to mark a change in their lives. With the influence

of the mass media and Western values, women are becoming very bold, brave,

adventurous, capable and responsible. As such, men are now able to accept women into

the workforce and take them as their equals.

In the sports arena, women are bold to take a stance to show their physical ability.

This is unlike the past where women were supposed to be behind the doors and in the

confinement of their homes. With women's liberation and the advancement in science and

technology, women have shown themselves to be a sports enthusiasts and performers. we

have people like Shalin Zulkifli and Nurul Huda Abdullah who have excelled in the area of

bowling and swimming proving themselves that they can also be as good as our male

counterparts. They are good role models and from their bold involvements, more young

girls are encouraged to participate in the field of sports. With this, a vast variety of facilities

have been made available to women so that they can prove themselves to be physically fit

to compete in the various competitions. By involving themselves, women are also

becoming confident, healthy and energetic. Young girls who are actively involved in sports

are less likely to be involved in drugs, social ills and know what they want in life. They have

made the country proud of their great success.

Education has played a significant role towards the welfare of women. Education has

enabled women to be knowledgeable and skillful to face the challenges in life. Women are

considered the weaker gender, have more feminine features and motherly instincts like

patience, love, care and understanding. Therefore, they are good educators in molding the

future leaders of tomorrow. Moreover, in any tertiary level of education, women play a

main role. In fact, women are good role models for future mothers.

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Most women today have more than a role. They are a mother, a wife and a

breadwinner. They are on the move all the time. As a mother, the women know her

children's needs. As mothers have their own natural instincts, they are able to care for their

children better. They teach, train and guide the lives of their innocent children to learn and

adapt to the challenges in life. These are rather marvelous for a woman.

From paragraph 1

1. (a) Why are women at par with men?

(b) What does the word competitive mean?

From paragraph 2

2. (a) What is politics?

(b) How has politics affected the role of women?

From paragraph 3

3. List two types of cottage industry.

From paragraph 4

4. What have caused women to be different today unlike before ? Give two reasons.

From paragraph 5

5. Explain the role of education towards women.

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Unit 7

Issues on International Business

Read the following text on a global business issue.

Trade war and globalisation backlash pushing trading nations to the economic brink as recessions loom by Finbarr Bermingham

South China Morning Post, 16 August 2019

Two of the world’s most famous trading nations, Germany and Singapore, are facing recessions later this year, largely due to slowdown in global trade

Donald Trump era has helped create increasingly tough time for nations reliant on exports, with further storm clouds on the horizon

Three years of full-blooded backlash against globalisation have pushed both Germany

and Singapore to the brink of recession, highlighting the increasingly dire situation facing

the world’s trading nations.

Singapore, along with Hong Kong, has long been championed as Asia’s beacon of free

commerce and relaxed business rules. On Friday, however, its non-oil exports for July were

reported to have fallen by 11.2 per cent from a year earlier, better than the expected 15.3

per cent drop, but still a fifth successive monthly decline, and a sign of how exposed it is to

the troubled trading environment.

Only Luxembourg relies more on trade than Singapore, with the value of goods that

were traded through the Port of Singapore last year worth 326 per cent that of the city

state’s entire economy. The trade data followed Tuesday’s news that second quarter gross

domestic product (GDP) growth in Singapore was minus 3.3 per cent on a quarterly basis,

down from 3.8 per cent growth in the first quarter of 2019. Should it shrink again next

quarter, as is expected by many analysts, Singapore will be in a technical recession.

Singapore’s pain has been shared by Asia’s other export hubs such as Taiwan and

South Korea, whose economic woes stem largely from their exposure to China and its

slowing growth and intensifying trade war with the United States. The problems, though,

are not just limited to Asia, as on Wednesday, it was announced that Germany’s GDP

contracted by 0.1 per cent in the second quarter, with analysts expecting Europe’s largest

economy to also be in technical recession by the end of September.

“GDP growth was weighed down by the industrial sector and the weakness was

concentrated in foreign trade,” said Aline Schuiling, a senior economist at Dutch bank ABN

Amro, on the Germany economy. “Looking forward, we expect the recession in Germany’s

industrial sector to intensify in quarter three.” Like Singapore, Germany is

disproportionately exposed to trade disruption as its exports as a portion of GDP ratio is

roughly twice as high as the Eurozone’s average.

21

With 7.1 per cent of its exports going to China, it is heavily vulnerable to the slowdown

in the mainland economy. The biggest buyer of German goods is also the US, meaning that

if the trade war continues between Beijing and Washington to dampen global demand,

Germany will continue to feel the impact.

“As the Chinese economy matures and economic stimulus becomes less effective,

growth rates in China will decline. And as a result, data from [South] Korea, Germany and

other countries will show more negative developments,” said Stefan Legge, economics

lecturer at the University of St Gallen in Switzerland.

After the 2008 financial crisis, trading nations were often held up as model economies,

while Britain and US were slated for being too dependent on intangible services,

particularly finance. But with the anti-globalisation movement that helped usher in the

presidency of Donald Trump, and the wave of protectionist policies that followed, these

countries are first in the line of fire.

“Trade has not been a positive story for all of 2019,” said Nick Marro, global trade lead

at the Economist Intelligence Unit. “You have that political angle, the backlash against

globalisation, which really is manifested in US trade policy. This is kind of the consequence

of that type of populist response.”

For export-oriented economies, further storm clouds are on the horizon. On Thursday,

the World Trade Organisation downgraded its Goods Trade Barometer, which flags changes

in trade growth two to three months ahead of official data by analysing export orders, raw

material and component deliveries, and air and sea freight volumes. With 100 as a baseline

break-even point, the barometer is now at 95.7, suggesting a tough third quarter for world

merchandise trade.

Meanwhile, shipping giant Maersk, which operates one-fifth of the world’s sea cargo,

warned on Thursday that the US’ 10 per cent tariff on US$300 billion of Chinese goods could

“result in a reduction of up to 1 per cent” of global container demand in 2020”, when fully

implemented in December. “The biggest change that we'll start to see from now is that

countries and companies can no longer rely on traditional trade growth drivers,” added

Marro. “What we thought were safe assumptions [about trade] are no longer the case.”

Identify the following information in the text above.

1. Two countries affected most by the US – China trade war

2. Asia’s beacon of free trade and relaxed business rules

3. The decline of Singapore’s non-oil exports on July 2019

4. Two other export hubs also affected by the US – China trade war

5. The value of Luxembourg’s trade on goods shipped through the Port of Singapore

6. Germany’s GDP decrease in the second quarter

7. The proportion of Germany’s export to China

8. Germany’s biggest buyer

9. The World Trade Organization’s Good Trade Barometer

10. US global trade policy

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11. US trade policy on Chinese goods

12. Maersk

13. Nick Marro

14. Stefan Legge

15. Aline Schuiling

Now, discuss these questions with your partner.

1. How bad was the impact of the US – China trade war on Singapore’s economy?

Elaborate your answer.

2. How bad was the impact of the US – China trade war on Germany’s economy? Elaborate

your answer.

3. How did Taiwan and South Korea suffer from this trade war as well?

4. How did the WTO’s Good Trade Barometer worsen the situation?

5. Why did Marro state that export-oriented countries could no longer rely on traditional

economic growth drivers?

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Unit 8

Issues on International Business

Read the following text carefully.

How to Address Differences in Ethical Standards and International Businesses by David Ingram

Ethical decision-making can be more challenging for international businesses than

local operations. Culture-driven codes of ethics vary between countries, making it difficult for managers to adhere to a strict code of ethics in each market. The textbook ethical dilemma for international businesspeople occurs when a manager must decide whether to commit an act that is unacceptable in the home country, but expected and necessary in the host country. Because of this, international business owners must know how to address differences in ethical standards around the world.

1. Keep the unique ethical climate of each market in mind when crafting your code of ethics to ensure that it is relevant to the international arena. Make adherence to the code a priority among executives and management to set an example for the rest of the organization. Post the code of ethics in high-traffic areas at the home office, branch offices and foreign subsidiaries. Ask managers to justify their ethical decisions in foreign markets according to the code of ethics to ensure that managers take it seriously. According to business-ethics.org, it is important to include international employees in the process of creating your ethics program. This will help to make your ethics programs as relevant as possible in foreign markets.

2. Follow local customs and traditions at your discretion. Decide on a case-by-case basis which local customs to follow and which to avoid when it comes to victimless issues. Use your code of ethics when dealing with humanitarian and environmental issues, such as child labor or deforestation, and use your discretion in issues such as bribery or wage considerations. You may, for example, decide to offer cash gifts to government officials in a country where there is no other reasonable way to gain a foothold in the market, but you may decide not to enter a country if raw materials must be gained through suppliers who use indentured labor.

3. Apply your standards equally in all markets, and among all subsidiaries. Stick to your standards, whatever they are. If you have a policy of following your home country's ethical standards around the world, be prepared to turn down opportunities in markets with unfavorable ethical climates. Respond courteously and respectfully if you do have to turn down an opportunity. Do not act superior or derisive when turning down unethical opportunities; simply explain that your company's code of ethics forbids you to engage in that type of behavior, and that you would like to keep the business relationship intact for future opportunities. If your policy is to take local customs into consideration when making ethical decisions, do not shun a country immediately because of differences from your home country. Make sure that all managers and decision-makers understand your commitment to ethical standards.

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4. Make company-wide ethics training a regular activity, in addition to administering comprehensive ethics training programs for new hires. Use training sessions to highlight actual areas of concern in your organization, citing specific examples as often as possible.

Define these phrases.

1. culture-driven codes of ethics

2. international employees

3. humanitarian and environmental issues

4. bribery or wage considerations

5. raw materials

6. indentured labor

7. markets with unfavorable ethical climates

8. company-wide ethics training

9. keep the business relationship intact for future opportunities

10. follow local customs and traditions at your discretion

Now, answer these questions and elaborate your answers.

1. Why is ethical decision-making for international business more challenging?

2. What ethical dilemma does an international manager usually face?

3. Why should adherence to the code of ethics be a priority among the executives and

management of an international company?

4. What does this statement, “Follow local customs and traditions at your discretion”,

mean? How is it true?

5. Why is it necessary to managers to respond courteously and respectfully if they have to

turn down an opportunity?

25

TOEIC WORDLIST (by frequency)

901 blueprint 941 popcorn 981 drawback

902 bug 942 pottery 982 dull

903 cautious 943 professionally 983 economically

904 circuit 944 publicize 984 evenly

905 clap 945 ray 985 excellence

906 commerce 946 redecorate 986 exclusively

907 convey 947 refinery 987 farewell

908 cord 948 refresh 988 fatigue

909 counselor 949 refundable 989 fiscal

910 debit 950 reimbursement 990 fleet

911 delicate 951 reliability 991 flour

912 dependence 952 reluctant 992 fog

913 distraction 953 sewer 993 formally

914 downsize 954 skate 994 gram

915 elephant 955 skateboard 995 handbook

916 enthusiasm 956 sleepy 996 headphone

917 enthusiast 957 tailor 997 heater

918 evident 958 termination 998 helmet

919 flexibility 959 theft 999 hiker

920 flextime 960 thunderstorm 1000 homeless

921 fortunately 961 transmission 1001 lighter

922 freighter 962 transmit 1002 loudly

923 generator 963 unused 1003 loyalty

924 hallway 964 waive 1004 microwave

925 hamburger 965 Yen 1005 misidentify

926 hazard 966 activate 1006 neat

927 homeowner 967 additionally 1007 nomination

928 imperative 968 affirmative 1008 officially

929 inflate 969 baker 1009 outfit

930 insert 970 brainstorm 1010 pastry

931 lecturer 971 cage 1011 personalize

932 meaningful 972 cinema 1012 poorly

933 memorize 973 collaboration 1013 prestigious

934 merchant 974 condominium 1014 purser

935 modification 975 consecutive 1015 reassure

936 occupant 976 cordless 1016 resume

937 overcharge 977 deluxe 1017 reunion

938 oversee 978 desirable 1018 revolutionize

939 petition 979 discrepancy 1019 seafood

940 pillow 980 dispatch 1020 signify

26

1021 slot 1061 honestly 1101 unpaid

1022 steer 1062 housekeep 1102 volleyball

1023 sue 1063 hurricane 1103 wheelchair

1024 superb 1064 hygiene 1104 whoever

1025 traditionally 1065 integral 1105 wool

1026 tremendous 1066 interactive 1106 wrinkle

1027 underway 1067 interfere 1107 accuracy

1028 unpleasant 1068 kilogram 1108 anyhow

1029 violin 1069 layoff 1109 appetizer

1030 ward 1070 lightweight 1110 arc

1031 worthwhile 1071 merit 1111 audition

1032 adapter 1072 necklace 1112 backpack

1033 advisable 1073 needy 1113 ballroom

1034 archive 1074 overpay 1114 beneficial

1035 artistic 1075 pamphlet 1115 biography

1036 assurance 1076 partial 1116 bound

1037 athletic 1077 penalize 1117 broom

1038 attire 1078 pollute 1118 cheeseburger

1039 auditor 1079 prescribe 1119 chilly

1040 bankruptcy 1080 probable 1120 circus

1041 bulk 1081 prominent 1121 compliment

1042 butter 1082 rainfall 1122 consignment

1043 centimeter 1083 relocation 1123 continental

1044 circulate 1084 residence 1124 copyright

1045 comb 1085 retrieve 1125 countryside

1046 comfortably 1086 rider 1126 demolish

1047 compliance 1087 rubber 1127 departmental

1048 contraction 1088 rug 1128 desperate

1049 cookbook 1089 salespeople 1129 devastate

1050 cushion 1090 sharply 1130 diagnostic

1051 dose 1091 similarity 1131 diagram

1052 drum 1092 someday 1132 diamond

1053 embed 1093 spectator 1133 disable

1054 evacuate 1094 stereo 1134 disgust

1055 expedite 1095 storeroom 1135 donut

1056 extinguisher 1096 subsidize 1136 doorman

1057 familiarity 1097 suspicious 1137 electronically

1058 flaw 1098 tasty 1138 elevate

1059 fluctuate 1099 terrific 1139 engagement

1060 fluent 1100 underground 1140 enrollment

27

1141 euro 1181 salon 1221 explorer

1142 forbid 1182 satellite 1222 factual

1143 fork 1183 scenery 1223 fixture

1144 foster 1184 serial 1224 footwear

1145 getaway 1185 sew 1225 genre

1146 gossip 1186 sketch 1226 gymnasium

1147 hacker 1187 smartphone 1227 hereby

1148 hardworking 1188 soar 1228 hesitation

1149 impatient 1189 stimulus 1229 homemade

1150 indirect 1190 stockbroker 1230 hospitality

1151 interpreter 1191 tablecloth 1231 incoming

1152 intersection 1192 thirsty 1232 induction

1153 irrelevant 1193 thrill 1233 inspiration

1154 jeans 1194 tile 1234 intently

1155 journalism 1195 toiletry 1235 mower

1156 letterhead 1196 trademark 1236 nutrition

1157 lifeguard 1197 tropical 1237 restatement

1158 modem 1198 tuna 1238 sedan

1159 monument 1199 unemployed 1239 sunscreen

1160 mosquito 1200 validate 1240 wellness

1161 obligate 1201 vanilla 1241 workbook

1162 oblige 1202 willingness 1242 bookcase

1163 occurrence 1203 wristwatch 1243 cleanliness

1164 operational 1204 abide 1244 contestant

1165 outage 1205 actively 1245 ethics

1166 overcrowd 1206 allergy 1246 healthful

1167 paralegal 1207 apprehensive 1247 inefficient

1168 partially 1208 automotive 1248 liter

1169 pepper 1209 bacteria 1249 recession

1170 permanently 1210 broaden 1250 timeline

1171 plow 1211 bulb 1251 unreliable

1172 query 1212 by-law 1252 acclaim

1173 railway 1213 cheer 1253 chronic

1174 raincoat 1214 complication 1254 deteriorate

1175 reconsider 1215 considerate 1255 resemble

1176 redesign 1216 daytime 1256 unauthorize

1177 rehearsal 1217 decoration 1257 violate

1178 relaxation 1218 discard 1258 unplug

1179 repetition 1219 drastically 1259 videoconference

1180 retreat 1220 erase

28

Ideas for using the TOEIC® Word List

Write the translation next to each word. Cover the columns and test yourself!

Consult a reliable dictionary for the meaning in English and the usage in sentences.

Write each word you don’t know on a small card. Write the translation on the back.

Carry these “flash cards” with you and test yourself regularly throughout the day.

Make sentences using each word. Learning words in context is very effective.

Choose the most useful words. Then use a dictionary to make a list of related words.