Vous êtes sur la page 1sur 8

lingua house

Innovation in Learning

TM

BUSINESS ISSUES

The financial crisis


Lesson code: DLIU-CXQB-E58X-V UPPER INTERMEDIATE +

1 Warm-up
How has your company been affected by the global economic crisis?

2 Key words
Complete the sentences below:
bailout interest rates bargaining position mortgage downturn recession freefall reluctant

1. The country's economy is less successful. There is an economic 2. Business activity has declined for two consecutive quarters. We are officially in a

. .

3. Many firms are interested in hiring him so he can negotiate high salaries with potential employers. He . is in a strong 4. Most people take out a 5. Housing prices are in 6. The chairman is 7. The central bank lowered its from the bank in order to buy their first home. - flats and houses are rapidly and continuously losing value. to hire new staff due to his company's financial difficulties. by 2% in order to stimulate the economy.

8. After asking for financial help from the government due to huge losses, the bank received a of $100 billion.

3 Find the information


Now read the article about how the global financial crisis was affecting the British economy in 2008 and find the information below: 1. The number of people who were forecasted to be out of work by 2009 2. The inflation rate in September. 3. The average pay rise. 4. The number of approved first-time mortgages in August. 5. The percentage below asking price of house prices in 2007. 6. The amount of money spent by the British government to help the economic downturn. 7. The losses to Britain's biggest pension schemes since the summer of 2007.
LE

Go to www.linguahouse.com and enter Lesson code: DLIU-CXQB-E58X-V


c Linguahouse.com

P H OT

OC

PI
O

AB

Learn faster, forget less! Review this lesson with the Expemo memorization system.

1/6

The financial crisis


A A A A

lingua house
Innovation in Learning

TM

BUSINESS ISSUES

The Financial Crisis: Now the real problems begin


The economic downturn is really starting to bite in households up and down Britain.Sunday, 19 October 2008
1 You've read about the worldwide economic crisis and its complex elements. You've anxiously clicked on to websites for updates, and watched economic reports on the television screen. Now it's going to start coming a lot closer to home maybe even your own. Here is how the different sectors of Britain's economy are being affected. 2 Jobs Unemployment is at its highest level for nearly a decade, with a thousand people losing their jobs every day. By Christmas the number without jobs is expected to top two million. David Kuo, financial expert at the money website Fool.co.uk, said: "Job losses are unavoidable because the economy is shrinking. By next year it is likely to reach three million, which will mean one in 12 people out of work." 3 Pay Despite last month's inflation rate being the highest for 16 years at 5.3 per cent, the average pay rise this year was 3.4 per cent, the lowest for five years. Mick McAteer of the Financial Inclusion Centre said: "Although inflation is higher than expected, it's difficult to see wages reflecting that. Employees in the private sector will find it hard to be in a strong bargaining position because of the expected rise in unemployment." 4 Mortgages Only 15,600 first-time mortgages were approved in August, down 55 per cent from last year, according to the Council of Mortgage Lenders (CML). For those without a deposit of 10 per cent or more it is nearly impossible. Ray Boulger of John Charcol mortgage brokers said: "People won't be able to find a mortgage of more than 90 per cent now, and as long as property values keep falling that will stay the same." 5 Homes Houses are selling at an average of 9 per cent below asking price, according to the Royal Institute of Chartered Surveyors, and the volume of sales earlier this year was virtually half that of a year ago. But some estate agents are confident the market will have shown signs of recovery by early next year. "We're certainly at the beginning of the end of the freefall in house prices," said Chris Wood, National Association of Estate Agents 6 Shopping Latest figures from the British Retail Consortium (BRC) show sales falling more sharply than at any other time in the past five months. The organisation predicts retail conditions will remain tough until well into next year at least. A BRC spokesman said: "Customers are short of spare cash and reluctant to spend what money they have got, and those conditions show no signs of changing in the near future." 7 Savings and investments Falls in stocks and shares hit savings and investments hard. The market will remain volatile until Christmas, say analysts, and is unlikely to start recovering until early next year. "We are at a level now where people will be able to make respectable gains over the long term, although it will be painful in the short term," said Gavin Aldon of the Share Centre. "In the immediate future we will see a substantial fall in interest rates." 8 Taxes As fewer people buy houses and unemployment continues to rise, the Government will be getting less money from taxes. And it will have to recoup the 50bn spent on the bailout from somewhere." 9 Pensions Britain's biggest pension schemes lost 45bn in value since the summer. Experts warn that recovery will not happen overnight. "There are two important things to grasp about the impact on pensions," said Nigel Peaple of the National Association of Pension Funds. "First, if you are already drawing your pension you will be unaffected by the market falls. Second, pension funds are all about long-term investing."

Go to www.linguahouse.com and enter Lesson code: DLIU-CXQB-E58X-V


c Linguahouse.com

P H OT

OC

PI
O

AB

Learn faster, forget less! Review this lesson with the Expemo memorization system.

2/6

LE

The financial crisis


A A A A

lingua house
Innovation in Learning

TM

BUSINESS ISSUES

4 Checking understanding
Explain how the following people in Britain are being affected by the crisis according to the article: 1. employees 4. shoppers 2. first-time home buyers 5. investors 6. the government 3. home owners 7. pensioners

5 Find the words


Find a word or phrase in the article which means... 1. in a worried and nervous way (adverb, P1) 2. become higher than (verb, P2) 3. a gradual, continuous increase in prices (noun, P3) 4. the amount of money someone wants when they sell something, especially a building or a piece of land (2-word noun, P5) 5. likely to change suddenly or unexpectedly (adjective, P7) 6. increases in money(plural noun, P7) 7. get back what you have spent or lost (verb, P8) 8. understand something difficult (verb, P9)

6 Future prediction and speculation


Various structures and verb forms are used in English to speculate about and predict the future. Look at the following sentences and structures from the text and match them to the correct category below. 1. By Christmas the number without jobs is expected to top two million. 2. By next year it is likely to reach three million 3. The organisation predicts retail conditions will remain tough until well into next year at least. 4. The market will remain volatile until Christmas 5. But eventually these prices are going to go back up again. 6. ... as long as property values keep falling, that will stay the same. a. 1st conditional (if/unless/as long as etc. + present, will/could + infinitive) b. be going to + infinitive c. be + expected to + infinitive d. be + likely/unlikely to + infinitive e. will + infinitive f. prediction verb (e.g. warn, forecast, etc.) + (that) + subject + will/could + infinitive

Go to www.linguahouse.com and enter Lesson code: DLIU-CXQB-E58X-V


c Linguahouse.com

P H OT

OC

PI
O

AB

Learn faster, forget less! Review this lesson with the Expemo memorization system.

3/6

LE

The financial crisis


A A A A

lingua house
Innovation in Learning

TM

BUSINESS ISSUES

Now match the following sentences from the text with the correct rule below: 1. ... the market will have shown signs of recovery by early next year. 2. As fewer people buy houses and unemployment continues to rise, the Government will be getting less money from taxes. a. We use the future continuous to say that something will be in progress at time in the future. b. We use the future perfect to say that something will be complete before a specific time in the future. Complete the sentences below with a suitable word or structure from this exercise: 1. As long as housing prices continue to fall, it property for the asking price. 2. Experts that next year become more difficult for us to sell our be a difficult year.

3. China to continue its strong economic growth. It overtaken the USA by 2017. 4. The country's standard of living to improve as its economy grows. 5. Next month, Andrew experience he 6. "What do you think you somewhere hot and sunny." to start looking for a new job. However, because of his lack of to be offered a very high salary. doing in ten years' time?" "Hopefully, I living to start by the end

7. The construction of the new shopping and entertainment complex to create many new jobs. of next year. It 8. Scientists years' time. that global warning

become a very serious problem in forty to achieve a

9. By this time next year, Jack very impressive result.

completed his studies. He

7 Predicting the immediate future


Look at the following sentences. They all contain phrases for talking about things that are going to happen very soon.

We are on the verge of an economic crisis. Paul's manager is on the point of giving him the sack. We are close to finalising the new deal. The president is about to make a speech to the nation. Scientists are on the brink of an important new discovery.

Go to www.linguahouse.com and enter Lesson code: DLIU-CXQB-E58X-V


c Linguahouse.com

P H OT

OC

PI
O

AB

Learn faster, forget less! Review this lesson with the Expemo memorization system.

4/6

LE

The financial crisis


A A A A

lingua house
Innovation in Learning

TM

BUSINESS ISSUES

For each of the situations below, predict the immediate future using the phrases from this exercise. Use a different phrase each time. Example: Natalie has been under a lot of stress recently. She is likely to have a nervous breakdown very soon. Natalie is on the brink of a nervous breakdown. 1. The Yangtze river dolphin, one of the rarest mammals in the world, is going to become extinct very soon due to overfishing. 2. The political leaders are likely to agree very soon on a new economic strategy to deal with the current crisis. 3. Scientists are likely to discover a cure for the disease in the very near future. 4. The election is almost over. She is in the lead and will very soon become the country's first female president. 5. The negotiations were successful. We will soon sign a very profitable new contract. 6. The financial preparations are finally over. We will become a public company very soon. 7. After a long and difficult marriage, the couple will be divorced very soon. 8. Are we going to have a global energy crisis very soon? 9. A new film is going to be released in the cinema very soon. 10. It is nearly the end of the match. Our team is likely to become the world champions very soon.

8 Predicting certain future


Look again at the sentences in the box. Compare them to the sentences below and put the underlined phrases in order of certainty.

By Christmas the number without jobs is expected to top two million. The market is unlikely to start recovering until early next year. By next year it is likely to reach three million.

Julia is very talented. She is bound to have a successful career. The criminal was found guilty of robbing a bank. He is certain to go to prison.

It will definitely happen:

1.is certain to

It will definitely or almost definitely happen: 2. It will very probably happen: It will probably happen: It will probably not happen: 3. 4. 5.
AB

Learn faster, forget less! Review this lesson with the Expemo memorization system.
Go to www.linguahouse.com and enter Lesson code: DLIU-CXQB-E58X-V
c Linguahouse.com

5/6
P H OT
OC

PI
O

LE

The financial crisis


A A A A

lingua house
Innovation in Learning

TM

BUSINESS ISSUES

9 Speaking
In pairs, discuss the following: 1. three things you will be doing this time next year 2. three things you will have done by 2015 3. one certain, one likely and one unlikely future prediction about your country 4. three things you think are going to happen very soon

10 Talking point
Was your country affected by the crisis in a similar way to Britain in 2008? What kind of predictions were made? Have they come true?

11 Self-study review
If you are subscribed to the Expemo review system, go to www.linguahouse.com, enter Lesson code: DLIU-CXQB-E58X-V, add the lesson to your knowledge collection and click `Start My Review'. If you are not yet subscribed, go to www.linguahouse.com and click `Join now'. Remember to review your flashcards regularly if you want the lesson material to stay fresh in your memory. If you have a large knowledge collection, try to review them every day for at least 15-20 minutes.

Go to www.linguahouse.com and enter Lesson code: DLIU-CXQB-E58X-V


c Linguahouse.com

P H OT

OC

PI
O

AB

Learn faster, forget less! Review this lesson with the Expemo memorization system.

6/6

LE

The financial crisis - Key


A A A A

lingua house
Innovation in Learning

TM

BUSINESS ISSUES

1- Warm-up Encourage a short discussion. Possible effects of the crisis might include the implementation of cost-cutting measures, restructuring, a slowdown in financial growth, etc. If the students' companies have not been affected, have them explain why not. Alternatively, for students who are not in work, ask how the crisis is affecting businesses in general. 2- Key words

1. downturn 5. freefall
3- Find the information

2. recession 6. reluctant

3. bargaining position 7. interest rates

4. mortgage 8. bailout

1. 3 million 5. 9 per cent


4- Checking understanding

2. 5.3 per cent 6. 50 bn

3. 3.4 per cent 7. 45bn

4. 15,600

1. 2. 3. 4. 5.

Employees' pay rises are lower than normal, and it is not easy for them to negotiate better salaries. It is nearly impossible to take out a mortgage with less than a 10% deposit. Homes are more difficult to sell, and are sold at an average of 9% below asking price. Shoppers are short of cash and reluctant to spend. In the short term investors will not be able to profit their shares. In the long-run, however, they will be able to earn decent returns. 6. The government will be getting less money from taxes and will need to finance the bailout. 7. Pensioners already drawing their pensions will be unaffected by the crisis.

5- Find the words

1. anxiously 5. volatile

2. top 6. gains

3. inflation 7. recoup

4. asking price 8. grasp

6- Future prediction and speculation

1. c 1. b 2. a 1. 2. 3. 4. 5. 6. 7. 8. 9.

2. d

3. f

4. e

5. b

6. a

Possible answers:

will warn/predict/forecast; will/could is expected/likely; will have is expected/likely is going to;is unlikely 'll be; 'll be is expected/likely; is going/expected/likely predict/forecast/warn; will/could will have; is likely/expected
LE

Go to www.linguahouse.com and enter Lesson code: DLIU-CXQB-E58X-V


c Linguahouse.com

P H OT

OC

PI
O

AB

Learn faster, forget less! Review this lesson with the Expemo memorization system.

The financial crisis - Key


A A A A

lingua house
Innovation in Learning

TM

BUSINESS ISSUES

7- Predicting the immediate future Draw attention to how each structure is used: `on the verge/point/brink of + -ing/noun', `close to + -ing', `about to + infinitive'. Encourage the students to change key verbs to nouns or the gerund form where necessary. Possible answers:

1. The Yangtze river dolphin is on the verge of extinction/becoming extinct. 2. The political leaders are close to agreeing on a new economic strategy to deal with the current crisis. 3. Scientists are on the brink of discovering a cure for the disease. 4. She is on the point of becoming the country's first female president. 5. We are close to signing a very profitable new contract. 6. We are on the verge of becoming a public company. 7. After a long and difficult marriage, the couple are on the point of divorce. 8. Are we on the verge of a global energy crisis? 9. A new film is about to be released in the cinema. 10. Our team is on the point of becoming world champions.
8- Predicting certain future

2. is bound to
9- Speaking

3. is expected to

4. is likely to

5. is unlikely to

Encourage the use of language from this lesson.

Go to www.linguahouse.com and enter Lesson code: DLIU-CXQB-E58X-V


c Linguahouse.com

P H OT

OC

PI
O

AB

Learn faster, forget less! Review this lesson with the Expemo memorization system.

ii

LE