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
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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. […]
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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.
20
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?
23
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.