THE ACADEMY OF ECONOMIC STUDIES

THE CHAIR OF APPLIED MODERN LANGUAGES

Aliona IXARI Anastasia ROMANOVA

Nadejda GSCA Galina KOSTIUCIK

ENGLISH FOR ECONOMIC STUDIES II

Editura ASEM
Chiinu, 2010
CZU 811.111:338(075.8)
E 56

Lucrarea a fost aprobat i recomandat pentru editare la edinele catedrei Limbi

Moderne Aplicate (proces-verbal nr. 11 din 02.06.2010) i Comisiei metodice a facultii
Finane (proces-verbal nr. 9 din 15.06.2010).

Refereni: conf.univ.dr. D. Rusu

conf.univ.dr. E. Ruga

Descrierea CIP a Camerei Naionale a Crii

English for economic studies : (note de curs) / Olga Calina, Nadejda Gsca ; Acad. de
Studii Econ. din Moldova, Catedra Lb. Moderne Aplicate, Fac.Finante. - Ch. : ASEM,
2010. - ISBN 978-9975-75-530-6.
[Pt.] 2-a / Aliona Ixari, Anastasia Romanova, Nadejda Gsca , Galina Kostiucik [et al.]. -
2010. - 86 p. - Bibliogr.: p.84-85 (30 tit.).
ISBN 978-9975-75-531-3.
250 ex.
811.111:338(075.8)
E 56

Authors contribution:
Anastasia ROMANOVA Unit I
Aliona IXARI - Unit II, III, V
Nadejda GSCA Unit IV
Galina KOSTIUCIK Unit VI

ISBN 978-9975-75-531-3

Departamentul Editorial-Poligrafic al ASEM

2
 CONTENTS

Foreword. 4
Unit I - Management
Lesson 1 Defining Management 5
Lesson 2 Levels and Areas of Management..10
Lesson 3 The General Manager 14
Lesson 4 Traits and Characteristics of a Successful Manager..18
Unit II - Marketing
Lesson 1 Defining Marketing ... 26
Lesson 2 Developing Marketing Strategies ...... 32
Unit III - Advertising
Lesson 1 How Companies Advertise ..38
Lesson 2 Advertising Media .. 44
Unit IV - Inflation and Unemployment
Lesson 1 Inflation .. 52
Lesson 2 Unemployment 56
Unit V - Business Law
Lesson 1 Functions and Classification of Law... 63
Lesson 2 Contract Law .. 68
Unit VI - Computers Today
Lesson 1 The Importance of Computers..74
Lesson 2 Computer Viruses .... 78

References..84

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 FOREWORD

English for Economic Studies II is intended for both students following a Business Course at
economic faculties and those who are interested in this subject area.
This book is aimed at enhancing students mastery of English for Specific Purposes in a variety
of topics such as Management, Marketing, Advertising, Unemployment, Inflation, Business Law and
Computers. It is divided into six self-contained units and each unit comprises a set of texts. These units
develop and introduce new concepts and terms widely used in different areas of Economic Studies and
Business English. The texts are given with the view to raise the students interest and to offer them
direct insight into current economic practice. Each topic provides students with basic vocabulary both
in Romanian and Russian. According to the students level of linguistic knowledge each unit
comprises different activities such as comprehension activities, translation, individual work, pair-work,
group-work, case study, simulation, role-play, problematization. The wide range of activities will help
students both to enrich their economic awareness, to reinforce the specific knowledge acquired
previously and to develop their analytical skills and critical thinking.

The Authors

CUVNT NAINTE
Prezenta lucrare este elaborat n conformitate cu curriculumul universitar la disciplina
Limba englez II i este destinat celor ce posed limba englez i doresc s progreseze n acest
domeniu. Ea constituie un instrument util pentru instituiile de nvmnt economic i contribuie la
dezvoltarea capacitii de comunicare scris i oral a studentului.
Materialul de studiu este mprit n 6 capitole, fiecare tratnd un anumit domeniu de interes
precum: management, marketing, publicitate, drept economic, aspecte sociale ca: omajul i inflaia,
lumea calculatoarelor. El este urmat de un set de exerciii, menite s-l determine pe student s aplice
cunotinele dobndite.
Metodele didactice, care stau la baza lucrrii, sunt diverse: lucrul n echip, studiul de caz, joc
de rol, exerciii ce in de vocabular, gramatic, traducere etc. Acestea permit ca leciile s fie mai
atractive i interesante.
Autorii

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 UNIT I MANAGEMENT

LESSON 1 DEFINING MANAGEMENT

Learning objectives
Understand the notion of management
Know the main management functions
Comprehend the interaction of management functions

Throughout the years, the role of a manager has changed. Years ago, managers were thought
of as people who were "the boss." While that might still be true today, many managers view
themselves as leaders rather than as people who tell subordinates what to do. The role of a manager is
comprehensive and often very complex. Not everyone wants to be a manager, nor should everyone
consider being a manager.
Some would define management as an art, while others would define it as a science.
Whether management is an art or a science isn't what is most important. Management is a process that
is used to accomplish organizational goals; that is, a process that is used to achieve what an
organization wants to achieve. An organization could be a business, a school, a city, a group of
volunteers, or any governmental entity. Managers are the people to whom this management task is
assigned, and it is generally thought that they achieve the desired goals through the key functions of
(1) goal setting and planning, (2) organizing, (3) leading and motivating and (4) controlling.

I. Goal Setting and Planning

A goal is an end state that the organization is expected to achieve. Goal setting, then, is the
process of developing a set of goals. Every organization has goals of several types.
The most fundamental type of goal is the organization's purpose, which is the reason for the
organization's existence. Texaco Inc.'s purpose is to earn a profit for its owners. Houston Community
College System's purpose is to provide an education for local citizens. The purpose of the Secret
Service is to protect the life of the president. The organization's mission is the means by which it is to
fulfill its purpose. Apple Computer attempts to fulfill its purpose by manufacturing computers,
whereas Ford Motor Company fulfills the same purpose (making a profit) by manufacturing cars.
Finally, an objective is a specific statement detailing what the organization intends to accomplish as its
goes about its mission. For McDonald's, one objective might be that all customers will be served
within two minutes of their arrival.
Goals can deal with a variety of factors, such as sales, company growth, costs, customer
satisfaction, and employee morale. They can also span various periods of time. The goals developed
for these different levels must be consistent with one another. However, it is likely that some conflict
will arise. A production department, for example, may have a goal of minimizing costs. One way to do
this is to produce only one type of product and offer no "frills". Marketing, on the other hand, may
have a goal of maximizing sales. And one way to implement this goal is to offer prospective
customers a wide range of products with many options available. As part of his or her own goal
setting, the manager who is ultimately responsible for both departments must achieve some sort of
balance between such competing or conflicting goals. This balancing process is called optimization.
The optimization of conflicting goals requires insight and ability.
Once goals have been set for the organization, managers must develop plans for achieving
them. A plan is an outline of the actions by which the organization intends to accomplish its goals. The
processes involved in developing plans are referred as planning. Just as it has several goals, the
organization should develop several types of plans.

5
 An organization's strategy is its broadest set of plans and is developed as a guide for major
policy setting and decision making. A firm's strategy defines what business the company is in or wants
to be in and the kind of company it is or wants to be.

II. Organizing the Enterprise

After goal setting and planning, the second major function of the manager is organization.
Organizing is the grouping of resources and activities to accomplish some end result in an efficient and
effective manner. Consider the case of an inventor who creates a new product and goes into business
to sell it. At first, he will probably do everything himself - purchase raw materials, make the product,
advertise it, sell it, and keep his business records up to date. Eventually, as his business grows, he will
find that he needs help. To begin with, he might hire a professional sales representative and a part-time
bookkeeper. Later he might need to hire full-time sales personnel, other people to assist with
production, and an accountant. As he hires each new person, he must decide what that person will do,
to whom that person will report, and generally how that person can best take part in the organization's
activities.

III. Leading and Motivating

Leading and motivating are critical activities. Leading and motivating functions are concerned
with the human resources within the organization. Leading is the process of influencing people to
work toward a common goal. Motivating is the process of providing reasons for people to work in the
best interests of the organization. Together, leading and motivating are often referred to as directing.
Obviously, different people do things for different reasons - that is, they have different
motivations. Some are primarily interested in earning as much money as they can. Others may be
spurred on by opportunities to get ahead in an organization. Part of the manager's job, then, is to
determine what things motivate subordinates and to try to provide those things in a way that
encourages effective performance.

IV. Controlling Ongoing Activities

Controlling is the process of evaluating and regulating ongoing activities to ensure that goals
are achieved. Managerial control involves both close monitoring of the progress of the organization as
it works towards its goals, and the regulating and adjusting required to keep it on course.
The control function includes three steps. The first is setting standards, or specific goals to
which performance can be compared. The second step is measuring actual performance and
comparing it with the standard. And the third step is taking corrective action as necessary. The results
of this third step may affect the setting of standards.
As we see, a number of management functions must be performed if any organization is to
succeed. Some seem to be most important when a new enterprise is first formed or when something is
obviously wrong. Others seem to be essentially day-to-day activities. In truth, however, all are part of
the ongoing process of management.

VOCABULARY NOTES
English Romanian Russian
means (n) mijloc, cale
to go about a reiei
morale (n) stare moral
to span time a lua timp
be consistent with a corespunde cu
frills (n.pl.) adugri
insight (n) nelegere, ptrundere
6
versus (prep) contra
to be sought-after a se bucura de succes
outline (n) schi
to threaten a amenina
to promote a promova
to occur a surveni
bookkeeper (n) socotitor
to assist with a ajuta ,
to be spurred on a fi motivat
ongoing (adj) care continu
to accomplish a goala realiza un obiectiv
policy (n) linie de conduit, politic ,
to achieve a goal a atinge un scop
to perform a efectua ,
to set a goal a stabili un obiectiv
personnel (n) cadru, colectiv
to get ahead a obine succes ,
to adjust a acomoda, a regla ,

Exercise 1
Answer the following questions.
1. Would you define management as an art or as a science?
2. What are the main functions of management?
3. What are the main words that characterize the function of goal setting and planning?
4. What is the purpose and the mission of a neighborhood restaurant? The Academy of
Economic Studies of Moldova? What might be the objectives for these organizations?
5. What is the difference between a strategy and a policy? What do they have in common?
6. What and whom does a manager organize?
7. Why are leadership and motivation necessary in a business?
8. What does controlling as function involve?

Exercise 2
Decide if the statements are True or False.

1. Together, leading and motivating are often referred to as planning.

2. Controlling is the process of evaluating and regulating ongoing activities to ensure that
goals are achieved.
3. The leading and motivating functions are concerned with the material resources within
the organization.
4. The most fundamental type of goal is the organization's mission, which is the reason for
the organization's existence.
5. The objective of the Secret Service is to protect the life of the president.
6. An organization's strategy is its broadest set of plans and is developed as a guide for
major policy setting and decision-making.
7. Obviously, different people do things for the same reasons - that is, they have the same
motivations.
8. Part of the manager's job, then, is to determine what things motivate subordinates and to
try to provide those things in a way that encourages effective performance.

7
Exercise 3
Give synonyms to the following words.

objective to motivate
personnel ongoing
to occur fundamental
to manage to perform
to assist outline

Exercise 4
Complete the sentences with the words given in the box below.

manager organize
managing organization
management organizational
managerial
1. Can you learn how to be a , or are you born one?
2. The company became a world-wide in just twenty years.
3. In Britain the Chief Executive Officer (CEO) is called the. director.
4. An ...... chart shows the structure of the entire company.
5. The firm went bankrupt because of bad..
6. I'd like you to .. those files in alphabetical order, please.
7. It was the most difficultdecision she had ever had to make.

Exercise 5
Choose the words with similar meaning from the two groups and arrange them in pairs.

agreement, authority, decision, circumstance, extent, finance, implementation, product, staff,

training, adequate, chief.
power, condition, treaty, main, article, teaching, personnel, solution, money, corresponding,
length, fulfilment.

Exercise 6
Fill in the blanks with the correct prepositions.

1. The leading and motivating functions are concerned .... the human resources within the
organization. 2. However, if profit has increased only 1 percent after three months, some
corrective action would be needed to get the firm. track. 3. Some are primarily
interested..earning as much money as they can. 4. Later he might need to hire full-time sales
personnel, other people to assist..production, and an accountant. 5. An objective is a specific
statement detailing what the organization intends to accomplish as its goesits mission. 6. When
faced.the marketing-versus-production conflict we have just described, most managers would
probably not adopt either viewpoint completely. 7. The goals developed for these different levels must
be consistentone another. 8. A firm's strategy defines what business the company is ...... or wants
to be in and the kind of company it is or wants to be. 9. Others may be spurred. by opportunities
to get ahead in an organization. 10. The particular action that is required depends ....... the reason for
the low increase in profit.

8
Exercise 7
Match the words with their definitions.

1. goal a. the processes involved in developing plans

2. goal setting b. a general guide for action in a situation that occurs repeatedly
3. purpose c. the process of evaluating and regulating ongoing activities to ensure
that goals are achieved
4. mission d. the means by which an organization is to fulfill its purpose
5. objective e. a specific statement detailing what the organization intends to
accomplish as its goes about its mission
6. plan f. the combined processes of leading and motivating
7. planning g. an end state that the organization is expected to achieve
8. strategy h. the broadest set of plans and is developed as a guide for major
policy setting and decision-making
9. tactical plan i. the process of influencing people to work toward a common goal
10. policy j. the process of developing a set of goals
11. standard operating k. a plan that outlines the steps to be taken in a situation that arises
procedure again and again
12. organizing l. the grouping of resources and activities to accomplish some end
result in an efficient and effective manner
13. leading m. a smaller-scale plan developed to implement a strategy
14. motivating n. the process of providing reasons for people to work in the best
interests of the organization
15. directing o. an outline of the actions by which the organization intends to
accomplish its goals
16. controlling p. the reason for the organization's existence

Exercise 8
Read the following definitions and give the correct term.

1. the object of one's efforts

2. a group of people working together
3. a number of people or things gathered, placed or acting together, or naturally associated
4. the control and decision making in a business or similar organization
5. purpose, intention, something intended
6. a thing aimed at or wished for
7. person elected by the members (shareholders) to control for them the day-to-day
management of a business
8. a piece of work that has to be done, especially hard or unpleasant
9. all the workers employed in a business

Exercise 9
Fill in the gaps with suitable words given in the box.
against; behaviour; contacts; communicate; decide; delegating; implementation; long-term;
management; measuring; objectives; set; select; suppliers; tactical.

9
 Managers have to identify and ...(1) the objectives for their company. They are involved in ...(2),
strategic planning, as well as in the drawing up of short-term, ...(3) plans. Managers must organize the
company, ...(4) on allocation and use of the company's resources. They .. .(5) and train the staff that
should be able to suitably carry out the tasks of the organization. In the ...(6) of their programme they
must command, delegate, motivate and ...(7) effectively with all the levels of their company. It has
been pointed out that good relations at work, among workers and between workers and ...(8)
favourably influence output, the quality of work and motivation. The feeling of belonging to a group
has a positive impact on the ...(9) of employees. Successful managers always involve their staff in
performing important tasks,... (10) them some activities, this leading to improved results of the
company. The control activity means ...(11) the performance of their staff, setting obtained results
...(12) objectives - the management by ...(13) technique is but one example in this respect. Managers
also have to establish and make ...(14) with the outside world, they represent their organization in its
relation with customers and ...(15), government and other parties.

LESSON 2 LEVELS AND AREAS OF MANAGEMENT

Learning objectives
Understand the main management levels
Understand the main management areas
Comprehend the responsibilities of managers of different stages and areas
Managers perform various functions. According to the functions assigned to them managers
can de divided into levels and areas.
Levels of management
Top Managers
A top manager is an upper-level executive who guides and controls the overall fortunes of the
organization. Top managers constitute a small group. In terms of planning, they are generally
responsible for interpreting the organization's purpose and developing its mission. They also
determine the firm's strategy and define its major policies. It takes years of hard work and
determination, as well as talent and no small share of good luck, to reach the ranks of top
management in large companies. Common titles associated with top managers are president, vice
president, chief executive officer (CEO), and chief operating officer (COO).
Middle Managers
A middle manager is a manager who implements the strategy and major policies handed
down from the top level of the organization. Middle managers develop tactical plans and standard
operating procedures, and they coordinate and supervise the activities of lower-level managers. Titles
at the middle-management level include division manager, department head, plant manager, and
operations manager.
Lower-Level Managers
A lower-level manager is a manager who coordinates and supervises the activities of
operating employees. Lower-level managers spend most of their time working with and motivating
employees, answering questions, and solving day-to-day problems. Most lower-level managers are
former operating employees who, owing to their hard work and potential, were promoted into
management. Many of today's middle and top managers began their careers on this lowest
management level. Common titles for lower-level managers include office manager, supervisor, and
foreman.
Areas of Management
The most common areas of management are: finance, operations, marketing, human
resources, and administration.
Financial Managers
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 A financial manager is a manager whose primary responsibility is the organization's financial
resources. Accounting and investment are specialized areas within financial management. Because
financing affects the operation of the entire firm, many of the presidents of this country's largest
companies are people who got their "basic training" as financial managers.
Operations Managers
An operations manager is a manager who creates and manages the systems that convert
resources into goods and services. Traditionally, operations management has been equated with
manufacturing - the production of goods. However, in recent years many of the techniques and
procedures of operations management have been applied to the production of services and to a variety
of nonbusiness activities. Like financial management, operations management has produced a good
percentage of today's company presidents.
Marketing Managers
A marketing manager is a manager responsible for facilitating the exchange of products
between the organization and its customers or clients. Specific areas within marketing are marketing
research, advertising, promotion, sales and distribution. Traditionally, operations management has
been equated with manufacturing - the production of goods.
Human Resources Managers
A human resources manager is a person charged with managing the organization's formal
human resources programs. He or she engages in human resources planning; designs systems for
hiring, training, and appraising the performance of employees; and ensures that the organization
follows government regulations concerning employment practices. Because human resources
management is a relatively new area of specialization in many organizations, there are not many top
managers with this kind of background. However, this situation should change with the passage of
time.
Administrative managers
An administrative manager is a manager who is not associated with any specific functional
area but who provides overall administrative guidance and leadership. A hospital administrator is a
good example of an administrative manager. He or she does not specialize in operations, finance,
marketing or personnel management but instead coordinates the activities of specialized managers in
all these areas. In many respects, many top managers are really administrative managers.

VOCABULARY NOTES

English Romanian Russian

to convert into a transforma n
advertising (n) publicitate
to appraise a aprecia, a evalua
passage of time cu trecerea timpului
guidance (n) conducere, dirijare
in many respects n multe privine
to reach the ranks of a atinge un post de ,
title (n) titlu
background (n) calificaie, experien ,
acumulat
to engage a angaja
foreman(n) Mmmaistru, ef de atelier ,
to be equated with a fi echivalat cu
formal (adj) oficial ,
owing to datorit

11
supervisor(n) ef, controlor ,
to hand down a transmite ,
top manager manager de top -,
middle manager manager de nivel mediu
lower-level manager de nivel inferior
manager
department head ef de secie

Exercise 1
Answer the following questions.

1. According to what criteria are managers divided?

2. What is the difference between top, middle and low-level managers?
3. Is it necessary to divide managers according to their area of activity?
4. What are the main areas of managers activity?
5. What are the responsibilities of each kind of managers?

Exercise 2

Production Human Resources/Personnel

Finance Research and Development (R&D)
Sales and Marketing
Read these sentences and decide in which of
the departments mentioned above we works.

a. 'Well, we deal with the workforce needs of the firm: selection and recruitment of staff, pay,
training, and so on.'
b. 'We listen to customers and identify their needs. We're responsible for establishing sales plans
and targets for the different sales forces. We also deal with advertising.'
c. 'We work on new products and improve old ones. We have to keep up to date with what
is going on in the outside world and have close contact with Marketing and Production.'
d. 'We're responsible for the manufacturing of our products and for trying to find ways of
improving quality. We deal with suppliers and make sure that we have enough components in
stock.'
e. 'Our department is concerned with the day-to-day running of the money side of the company.
We have to estimate costs and prices, deal with the accounts, and produce budgets and cash flow
forecasts.'

Exercise 3
Match the words with their definitions.

1. top manager a. a manager who creates and manages the systems that convert
resources into goods and services.
2. middle manager b. a manager responsible for facilitating the exchange of products
between the organization and its customers or clients.
3. lower-level manager c. a manager who coordinates and supervises the activities of
operating employees.

12
4. financial manager d. a person charged with managing the organization's formal human
resources programs.
5. operations manager e. an upper-level executive who guides and controls the overall
fortunes of the organization.
6. marketing manager f. a manager who implements the strategy and major policies
handed down from the top level of the organization.
7. human resources g. a manager whose primary responsibility is the organization's
manager financial resources.
8. administrative manager h. a manager who is not associated with any specific functional area
but who provides overall administrative guidance and leadership.

Exercise 4
Find the definitions of the following titles. Place the correct letter of the title next to the
definition.
a. Executive vice president
b. Division management
c. Group vice president
d. Senior vice president
e. CEO (chief executive officer)
f. Corporate planning
g. Operations management

_______________ 1. Person with total responsibility for all decision making in the
corporation.
_______________ 2. High executive officer with a title sometimes felt to have special prestige.
_______________ 3. Administration of a company branch or section.
_______________ 4. Aspect of management including systematic consideration of
planning, problem solving, forecasting, and decision-making.
_______________ 5. Vice president in charge of one part of the company.
_______________ 6. A vice president with general decision-making responsibility directly
under the president.
_______________ 7. The systematic work of forecasting and taking into account corporate
responsibilities.

Exercise 5
Fill in the blanks with the correct prepositions.

1. The foreman is.charge the workers in his section. 2. The production manager
reports.the managing director. She is responsiblethe smooth running of production.
3.Janet works.computers. She deals.. customer support. 4. The personnel
officer is responsible.the managing director. 5. many respects, many top managers are
really administrative managers. 6. A human resources manager is a person charged.. managing
the organization's formal human resources programs. 7. Traditionally, operations management has
been equated manufacturing - the production of goods. 8. Common titles
associatedtop managers are president, vice president, chief executive officer (CEO), and
chief operating officer (COO). 9. A middle manager is a manager who implements the strategy and
major policies handed.. the top level of the organization. 10. Many of today's middle and top
managers began their careers.this lowest management level.

13
Exercise 6
Which of the following qualities are more likely to characterize today's top managers? Discuss in
small groups.

charismatic
efficient
thrilling
disciplined
visionary
pragmatic
glamorous looks
business looks
intelligent
genius
good organizer

Exercise 7
An administrative manager can face many difficult situations. What you would do if:

The meeting is scheduled for 9:00 a.m. and only half of the staff is present.
One individual is dominating the meeting, not allowing other people to speak.
On arriving at the designated place, participants find that the room is already occupied.
The complete agenda has not been covered but the allotted time has expired.
Because of a malfunction of the copy machine, you can not distribute the agenda for the
upcoming meeting.

LESSON 3 THE GENERAL MANAGER

Learning objectives
Understand the notion of general management
Know the main responsibilities of a general manager
Comprehend the role of general management
A general manager has broad, overall responsibility for a business or organization. Whereas a
manager may be responsible for one functional area, the general manager is responsible for all areas.
General managers manage through subordinate manager. However, a general manager may
have individuals reporting to him/her who are not managers.
A general manager has the power to hire, fire, or promote employees.
A general manager is responsible for higher level planning than a manager. A general
manager is often responsible for the overall strategic planning and direction of the company or
organization and leaves the day-to-day management of the various functions to the managers.
General management decision making requires the coordination of all aspects of business into
an integrated management program. In other words, general managers are concerned with strategy for-
mulation and strategy implementation. This means a continual assessment of what business to be in
and how one will do business both in general and very specific terms. The functional areas of business
finance, marketing, production and human resources are essential for undertaking general
management problems. The general manager must relate financial issues to a proposed marketing pro-
gram, changes in techniques in production to human resources implications, and so on.
14
 The meaning of general management varies by circumstances. In a small one-person business,
the chief decision maker has to be an all-round general manager capable of longer-term planning as
well as daily "fire fighting" since there is no specialized staff to delegate these responsibilities to. In
larger firms, the general management tasks are essentially the same, though a little more complicated.
However, there are usually several people who share the general management workload. Even the
titles used to describe the individuals responsible for general management vary from company to
company: president, managing director, vice-president, administration, and so on. Here, the title
general manager will refer to an individual who has overall responsibility for a business or major unit
of business.
What are the responsibilities of a general manager? Usually they include the following:
1. Long-term planning for new products, production / operation processes, new markets,
financial flexibility, and organizational changes.
2. Finding and training competent subordinates. The general manager's goal would be to
delegate as much responsibility and authority as possible to subordinates in finance, marketing,
production, and human resources in order to be free for the major decisions concerning the overall
company.
3. Coordination. The general manager's goal would be to ensure that the various activities of the
company reinforce one another, rather than work at cross-purposes. The general manager would act as
a liaison, ensuring that coordination is sought and achieved among the various functional areas of the
business.
4. Decision making. The general manager will make decisions that subordinates cannot make,
either because of disagreements or because they lack a sufficiently broad perspective on the issues that
need to be considered.
In short, the general manager must understand all functional areas of business and be
especially competent in human resources management. As one can see, the general manager is
concerned with strategic making (longer-term directions for the business) and operational decision
making (shorter- term specific actions to accomplish shorter-term goals). The general manager
delegates, coordinates, and facilitates decisions to the extent possible, and where necessary makes the
"big" decisions affecting company welfare. To perform this demanding role adequately, the general
manager must be able to appraise the company and its environment thoroughly and objectively.
The general manager position is one that requires a combination of skills, experience and
education. A successful general manager will have superior leadership skills, work well with a team
and have the ability to work independently with little or no supervision. The candidate must have
superior decision-making skills, problem-solving skills and conflict-management abilities. He must
have a thorough knowledge of the company, its culture and its products and services. He must also be
able to work will all levels of management and have superior training and delegation abilities.
Successful candidates should have a minimum of five years management experience and a bachelor's
or masters degree in a related field of study.
The size and field of a company determine the salary of a general manager. In USA, as upper
management, the position usually pays at least $45,000 annually. However, some large companies pay
a general manager of operations more. A general manager with a graduate degree can make a six-
figure salary at a large company. Many general managers of operations receive additional earnings in
the form of stock options, bonuses and benefits such as health and life insurance. Some jobs also have
additional perks such as expense accounts and club memberships.

15
VOCABULARY NOTES

English Romanian Russian

assessment(n) evaluare
implication(n) implicaie ,
workload(n) volumul de munc ,
to reinforce a consolida
overall(adj) general
to ensure a garanta ,
lack(n) lips, neajuns ,
welfare(n) bunstare, prosperitate
to appraise a evalua
liaison(n) legtura
to be concerned witha fi preocupat de
sought(adj) cutat, necesar
to the extent n msur
demanding role rol
thoroughly (adv) detaliat, atent
subordinate(adj) subaltern

Exercise 1
Answer the following questions.
1. Why is the title of general manager given this name?
2. How does the meaning of general management vary by circumstances?
3. What are the responsibilities of a general manager?
4. Why should the general manager be able to appraise the company and its environment
objectively?

Exercise 2
Choose the best endings to the following statements according to the text.
1. In a small one-person business the chief decision maker has to delegate daily "fire fighting" to....
a) the specialized staff
b) himself
c) the vice-president
2. The title general manager refers to an individual who has ....
a) little responsibility
b) overall responsibility
c) partial responsibility
3. The general manager's goal is to delegate as much responsibility and authority as possible to ...
a) subordinates
16
 b) the board of directors
c) the owner of the company
4. The general manager makes decisions that subordinates cannot make because they lack ...
a) enough responsibility
b) experience
c) a broad perspective on the issues
5. The general manager must be free for....
a) the daily routine
b) the major decisions
c) the presentation purposes
6. The general manager must understand ....
a) all functional areas
b) some functional areas
c) only human resources management

Exercise 3
Complete the sentences with the words given in the box below.

responsibility, strategy, long-term, subordinates, manager, liaison, management, perspective,

activities, to appraise

1. General managers are concerned with ... formulation and implementation.

2. In a small one-person business, the chief decision maker has to be a general....
3. The general manager is an individual who has ... for a business.
4. The responsibilities of a general manager usually include ... planning for new products, etc.
5. The general manager must find and train competent....
6. The general manager is a ... among the various functional areas of the business.
7. The general manager must be especially competent in human resources ....
8. The general manager must be able......... the company objectively.
9. Sometimes subordinates disagree with the chief because they lack a broad ....
10. He must coordinate the various ... of the company.

Exercise 4
Form all possible word combinations using the words from columns A and B.

Column A Column B
decision manager
capable making
delegate responsibilities
overall planning
long-term workload
financial flexibility
train subordinates
search liaison
facilitate authority
ensure agreement
appraise finance

17
Exercise 5
Fill in the blanks with prepositions.

1.Manager must be capable ... long-term planning. 2. The titles of the individuals responsible ...
general management vary from company to company. 3. ... short, the general manager must
understand all functional areas of business. 4. The general manager is concerned ... strategic making
and operational decision making. 5. To survive, every business must meet each of these goals ... some
extent. 6. A business must place emphasis ... each of the five goals. 7. Profitability refers to the
generation of revenues ... excess of the expenses associated with obtaining it. 8. A businessman may
wish to invest little money... his firm and finance his operation mainly with debt. 9. Many of financial
disasters resulted ... neglect of the stability goal of sound financial management. 10. Efficient use of
assets has an impact ... profitability, stability , liquidity and the ability of the enterprise to grow. 11.
Manager must know what numbers to look ... and how to interpret them. 12. Managers must be aware
... their needs.

Exercise 6
Complete the unfinished questions in column A that are answered in column B.

Column A Column B
What... ? The coordination of all aspects of business into an integrated program.
Where ... ? In a small one-person business.
Where ... ? In larger firms.
How many ... ? Four.
Where ... ? In human resources.

Exercise 7
Make up your own sentences using the following words and word combinations.

general manager, coordination, strategy formulation, all aspects of business, strategy imple-
mentation, finance, marketing, production, human resources, tasks, to be responsible for, to make
decisions.

LESSON 4 TRAITS AND CHARACTERISTICS OF A SUCCESSFUL MANAGER

Learning objectives
Understand the necessity of specific characteristics for a successful manager
Know the main characteristics of a successful manager
Comprehend what communication skills, human skills, computer skills, time-management
skills and technical skills mean

Numerous studies have been made of business managers over the years. Many look at traits
and characteristics that appear common to most people who have their own businesses. Other studies
focus on characteristics that seem to appear frequently in successful managers.
First, consider those characteristics that seem to distinguish the person who successfully leads
the business. Of course, not all of these characteristics appear in every effective business manager, but
the following seem to be most predominate.
The characteristics that appear most frequently among "successful" business managers include
communication skills, human skills, computer skills, time-management skills, and technical skills.

18
 Communication Skills
Communication skills fall into the broad categories of oral and written skills, both of which
managers use in many different ways. It is necessary for a manager to orally explain processes and
give direction to workers. It is also necessary for managers to give verbal praise to workers. Managers
are also expected to conduct meetings and give talks to groups of people.
An important part of the oral communication process is listening. Managers are expected to
listen to their supervisors and to their workers. A manager must hear recommendations and
complaints on a regular basis and must be willing to follow through on what is heard. A manager who
doesn't listen is not a good communicator.
Managers are also expected to write reports, letters, memos, and policy statements. All of
these must be written in such a way that the recipient can interpret and understand what is being said.
This means that managers must write clearly and concisely. Good writing requires good grammar and
composition skills.
Human Skills
Relating to other people is vital in order to be a good manager. Workers come in about every
temperament that can be imagined. It takes a manager with the right human skills to manage this
variety of workers effectively. Diversity in the workplace is commonplace. The manager must
understand different personality types and cultures to be able to supervise these workers. Human skills
cannot be learned in a classroom; they are best learned by working with people. Gaining an
understanding of personality types can be learned from books, but practice in dealing with diverse
groups is the most meaningful preparation.
Computer Skills
Technology changes so rapidly it is often difficult to keep up with the changes. It is necessary
for managers to have computer skills in order to keep up with these rapid changes. Many of the
processes that occur in offices, manufacturing plants, warehouses, and other work environments
depend on computers and thus necessitate managers and workers who can skillfully use the
technology. Although computers can cause headaches, at the same time they have simplified many of
the tasks that are performed in the workplace.
Time-Management Skills
Because the typical manager is a very busy person, it is important that time be managed
effectively. This requires an understanding of how to allocate time to different projects and activities.
A manager's time is often interrupted by telephone calls, problems with workers, meetings, others who
just want to visit, and other seemingly uncontrollable factors. It is up to the manager to learn how to
manage time so that work can be completed most efficiently. Good time-management skills can be
learned, but managers must be willing to prioritize activities, delegate, deal with interruptions,
organize work, and perform other acts that will make them better managers.
Technical Skills
Different from computer skills, technical skills are more closely related to the tasks that are
performed by workers. A manager must know what the workers who are being supervised are doing
on their jobs or assistance cannot be provided to them. For example, a manager who is supervising
accountants needs to know the accounting processes; a manager who is supervising a machinist must
know how to operate the equipment; and a manager who supervises the construction of a home must
know the sequence of operations and how to perform them.
If you possess these traits to some degree or other it doesn't mean you will be successful, only
that you will very likely start your own business. Some of these characteristics in excess may actually
hamper you if you are not careful.

19
VOCABULARY NOTES

English Romanian Russian

trait(n) trstur ,
to distinguish a distinge
to fall into a se ncadra n
to predominate a predomina
to give praise to a luda
to give talks to a conduce o discuie
to complaint on a se plnge de
memo(n) aviz, anun
to focus on a se concentra pe
meaningful(adj) semnificativ ,
concisely (adv) laconic
to gain an understanding a nelege
to keep up with a reui, a ine pasul cu ,
warehouse(n) depozit
to hamper a mpiedica

Exercise 1
Answer the following questions.
1. Should managers have specific characteristics ?
2. What are the skills that managers need to possess?
3. What do communication skills involve? Time-management skills? Computer skills?
Technical skills?

Exercise 2
Fill in the blanks with the correct prepositions.
1. All managers need to make use ................. diagnostic skills, but these skills are probably used
most by top managers. 2.. The term "Need for Achievement is an important factor .. success.
3. An interpersonal skill is the ability to deal effectively other people, both inside and outside the
organization. 4. Lower level managers (and, ...... a lesser extent, middle managers) need the
technical skills that are relevant........ ................... the activities they manage. 6. For example, a
manager assigned ...... a new position may be confronted ........ a wide variety of problems that all
need attention. 7. You are right...... some degree.

Exercise 3
Managers can use some professional words. Match them with their definitions.

constraint, attributes, counseling, deficiency, esprit, feedback, follow-up, kaizen,

benchmarking, brainstorming, loyalty, trait

20
 1. Any element or factor that prevents a person from reaching a higher lever of performance with
respect to her goal.
2. Characteristics or qualities or properties.
3. Providing basic, technical, and sometimes professional assistance to employees in order to
help them with personal and work related problems.
4. Failure to meet a set performance standard.
5. The soul and state of mind of an organization. It is the overall consciousness of the
organization that a person identifies with and feels a part of.
6. The flow of information back to the learner so that actual performance can be compared with
planned performance.
7. Monitoring of job, task, or project progress to see that operations are performed on schedule.
8. The Japanese term for improvement. It involves both workers and managers.
9. The process of measuring the organization's products, services, cost, procedures, etc. against
competitors or other organizations that display a "best in class" record.
10. A technique for teams that is used to generate ideas on a subject. Each person on the team is
asked to think creatively and write down as many ideas as possible. After the writing session,
the ideas are discussed by the team.
11. The intangible bond based on a legitimate obligation; it entails the correct ordering of our
obligations and commitments. Loyalty demands commitment to the organization and is a
precondition for trust, cooperation, teamwork, and camaraderie.
12. A distinguishing quality or characteristic of a person.

Exercise 4
Fill in the gaps with the words given in the box.

leader, staff , likely, achieve, difficult, can, must, have, qualities, supervisors

Leadership is needed at all levels in an organization. It is ...(1) , however, that the leadership
...(2) required by a supervisor or manager are not the same as those required by the CEO of a
company. It is, therefore, ... (3) to define leadership satisfactorily.
A typical definition is that the ...(4) 'provides direction and influences others to ...(5) common
goals. This ...(6) be true in the case of ...(7) and managers, but is it a good definition of the leader of an
organization? A chief executive ...(8) indeed give directions, but that's more to it than that. They ...(9)
to create a sense of excitement and convince the ...(10) that they know where the business is going.

Exercise 5
Discuss in small groups.
A. Some researchers identify the following qualities of a good manager:

A good manager should be competent.

A good manager should be able to deal with people, to talk to them about their
jobs, problems, the future.
A good manager should be adaptable to the situation.
A good manager is one who can persuade people that his way is right. It is
necessary to make people accept his decisions and follow his leadership.
A good manager should be firm with his people. That's how they will come to
respect him.
A good manager should be physically fit. In the age of strains and pressures only the
fittest can survive, mentally competent and physically fit.
21
 Which of them do you consider crucial? Argue your conclusions.
B. Consultants give the following tips to help managers increase quality and productivity of an
organizations.

Create constancy of purpose for improving product or service.

Stop dependency on inspection to achieve quality
End the practice of awarding business on price alone - minimize cost by working with a
single vendor.
Constantly improve every process for planning, production, and service.
Institute training on the job.
Adopt and institute leadership.
Drive out fear.
Break down barriers between staff areas.
Eliminate slogans, exhortations, and targets for the work force.
Eliminate numerical quotas and goals for the workforce and management.
Remove barriers that rob people of pride in workmanship and eliminate the annual
rating or merit system.
Institute a vigorous program of education and self-improvement for everyone.
Put everyone in the organization to work to accomplish the transformation.
Which of them do you agree? Dont agree? Why?

Exercise 6
Quiz
Are you a good manager?
Answer the following questions and check up your score.
1. When you are talking to someone, do you try to put yourself in the other person's
shoes?
(Yes -5, No -0)
2. Are you annoyed by people dressed extravagant?
(Yes -0, No -5)
3. Can you discuss your personal secret problems with other people?
(Yes -5, No -0)
4. Do you react immediately if somebody dont show enough respect to you?
(Yes -5, No -0)
5. Do you often become defensive when you are being criticized?
6. (Yes -5, No -0)
7. Do you like to achieve any special results to demonstrate your abilities to others?
(Yes -5, No -0)
8. Could you sacrifice everything to achieve outstanding results?
(Yes -5, No -0)
9. Do you always follow your agenda?
(Yes -0, No -5)
10. Do you want to keep the circle of your friends unchangeable?
(Yes -0, No -5)
11. Do you like to change interior of your house and move furniture?
(Yes -5, No -0)
12. Do you like to find new methods of solving old problems?
(Yes -5, No -0)
22
 13. Do you often find it difficult to express your opinions when others don't share them?
(Yes -5, No -0)
14. Do you like to prove that your boss is not right?
(Yes -5, No -0)
35-65.
You have many qualities necessary to become a good manager. You can influence people, lead them
and instruct. You are quite communicative person. You have talent to make other people do what you
want. But you risk becoming too assertive. You can easily turn into fanatic leader.
30-less
Unfortunately you are often right, but not able to persuade other people and to make them accept your
point of view. In your opinion life should be well- organized and predictable, discipline is key word
for your. You dont like to reveal your feelings and because of this people often misunderstand you.
You should improve your managerial abilities.

Exercise 7
Work in pairs and discuss the following issue.
Rate yourself on each of the four key management skills (use the scale of 1 to 5, with 5 being the
highest.) Based on your ratings, explain why you would or wouldn't hire yourself for a lower- level
management position.

Exercise 8
Comment on the following quotes of successful businessmen.
I have no Napoleonic dream. I'm just hard-working and pragmatic.
(Roman Abramovich)
You have to have doubts. I have collaborators I work with. I listen and then I decide. That's how it
works.
(Giorgio Armani)
People are definitely a companys greatest asset. It doesn't make any difference whether the product is
cars or cosmetics. A company is only as good as the people it keeps.
(Mary Kay Ash)
Your most unhappy customers are your greatest source of learning.
(Bill Gates)
The England team should be managed by an English manager.
(David Beckham)
Today, a skilled manager makes more than the owner. And owners fight each other to get the skilled
managers.
(Mikhail Khodorkovsky)

Exercise 9
CASE STUDY
SLIM GYMS owns and operates six health and fitness clubs in Manhattan, New York.
The clubs aim to appeal to people of all ages and income groups.
All the clubs have a large gymnasium, with the latest equipment, an aerobics studio, a
solarium, a swimming pool, sun decks, a cafe, bar and clubroom. There are always several fitness

23
instructor; on hand to advise people and provide them with personalised fitness programmes. A wide
range of aerobic and relaxation classes run throughout the day and during the evening. The clubs try
to create a friendly atmosphere, organising numerous social activities to bring members together.
Three of the clubs are located in areas where large numbers of Spanish, Chinese and Italians live.
Slim Gyms recently advertised for a General Manager.

You are directors of Slim Gyms. Study the file cards on the four short-listed candidates. Hold
a meeting to discuss the strengths and weaknesses of each person. Try to agree on who seems to be
the best candidate for the job.

Candidate 1
Name: Isabella Rosetti
Age: 35
Marital Status: Single
Education: Princeton University - Master's degree in Business Administration (MBA)
Experience: Advertising agency for the last eight years. Important position liaising with clients and
managing a team of 10 people. Previously worked as Sales Manager in a department store (Chinatown
area).
Outstanding achievement: Got a contract with a major advertiser
Skills: Fluent Italian, judo expert, paints.
Personality/appearance: Well dressed and self-confident. Says she is usually successful when she
wants to be.Thinks women are better managers than men: They listen more and use their intuition to
solve problems.'
Comments: Positive reference, but employer suggested she sometimes took days off work with no
good reason. Several good ideas for increasing revenue, e.g. by setting up beauty centres in our clubs.
Didn't mention the cost of doing this!

Candidate 2
Name: Bob Wills Age: 40
Education: Park High School
Experience: Twenty years in US army Physical Fitness Instructor. Travelled all over the world. Left
army three years ago. Has taken courses in marketing, management and computing. Over the last two
years has run a fitness centre in Lower Manhattan very successfully.
Outstanding achievement: Two decorations for bravery.
Skills: Speaks Spanish fluently (his girlfriend is Puerto Rican). Is a successful disc jockey in a
downtown club.
Personality/appearance: Correctly dressed in a dark suit, but has tattoos. Sociable, with a lot of friends.
Enjoys parties and dancing.
Comments: Believes you should always stick to the rules.Values honesty and reliability. Can be
quick-tempered if people are not doing their best. Very enthusiastic with many good ideas.

Candidate 3
Name: Michael Bolen Age: 36
Marital Status: Married, with three children
Education: Columbia University - Master's degree in Business Administration (MBA)
Experience: Four years with international sports goods manufacturer - Marketing Director. Previous
experience with a variety of firms (sales, administration). Wants to work for a smaller organisation.
Outstanding achievement: Successful product launch in previous job.

24
Skills: Numerate and good with computers. Only a few words of Spanish.
Personality/appearance: Forceful, determined, with strong views. Likes to 'keep his distance' from
people until he knows them well. According to the letter of reference,'Some women find him too
assertive and cold.'
Comments: Unhappy in present position. He has often changed jobs.

Candidate 4
Handwriting sample:
Name: Stephanie Grant
Marital Status: married, no children
Education: New York University - BSc in Business Administration
Experience: Former swimming champion. Competed at Olympic Games. For last six years, highly
successful presenter (children and sports programmes).
Outstanding achievement: Voted Top Sports Personality on a cable TV channel four years ago.
Skills: Exceptional sportswoman.
Personality/appearance: Beautiful, clever and successful. Good sense of humour. On television,
handles people well. Presents an image of a caring, sympathetic person.
Comments: 'She'll do anything to set what she wants,' wrote one journalist. At 24, she gave up
competitive swimming, following rumours of drug-taking.

25
 UNIT II MARKETING

LESSON 1 DEFINING MARKETING

Learning objectives
Know the role of marketing
Understand what marketing concept is and the way it is implemented
Comprehend the importance of market research and identify its sources

Marketing begins and ends with the customer. Many people consider marketing to be
promotion, advertising and all the selling techniques used to get someone to buy a product. However
marketing is much more.
Marketing is not just advertising or public relations, it is how you establish your businesses'
name and reputation. A strong marketing strategy includes market research, setting objectives and
goals, as well as communicating to customers through advertising. Think of your marketing strategy
as a pie, with slices of advertising, customer support, distribution, market research, product pricing,
and a sales strategy.
Marketing is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and organizational
objectives.
The marketing concept is a business philosophy that involves the entire organization in the
process of satisfying customers needs while achieving the organizations goals.
To implement a marketing concept, a firm must first obtain information about its present and
potential customers. The firm must determine not only what customers needs are but also how well
those needs are being satisfied by products currently on the market both its own products and those
of competitors. It must ascertain how its products might be improved and what opinions customers
have of the firm and its marketing efforts.
The firm must then use this information to pinpoint the specific needs and potential customers
toward which it will direct its marketing activities and resources. Next, the firm must mobilize its
marketing resources to:
1. provide a product that will satisfy its customers;
2. price the product at a level that is acceptable to buyers and that will yield a profit;
3. promote the product so that potential customers will be aware of its existence and its ability to
satisfy their needs;
4. ensure that the product is distributed so that it is available to customers where and when
needed.
Finally, the firm must again obtain marketing information this time regarding the effectiveness
of its efforts. Can the product be improved? Is it being promoted and distributed efficiently? Is the
price too high? The firm must be ready to modify any or all of its marketing activities on the basis of
this feedback.
The process of systematically gathering, recording, and analyzing data concerning a particular
marketing problem is defined as market /marketing research. Most companies collect and analyze
information about the size of a potential market, about consumers reactions to particular product or
service features, and so on.
There are two types of market research; primary market research and secondary market
research.
Primary Market Research is first hand information from current and potential customers. It is
more expensive and time consuming to perform than secondary market research, however the
26
information it offers can be much more specific and valuable. The sources of primary market research
include:
Market Research Surveys. Surveys by phone, mail or in person are used to assess the potential
success of a product or service.
Market Research Focus Groups. A Focus Group is a group of people (usually 6-10) who
gather around to talk about a particular product, service, and problems they have and more.
A focus group can help you gain valuable insight about potential customers, by discovering
their likes, dislikes and problems.
Market Research Individual Interviews. Instead of conducting a group interview (focus group)
you can also conduct individual interviews.
Marketing researchers sometimes forget that an incredible amount of information is collected and
published regularly by existing sources both inside and outside the organization. Such information
collected for another purpose, and already available, is referred to as secondary source. So, secondary
market research is the information someone else has gathered and includes:
Reports/ Studies
Local newspapers and business magazines. Many local newspapers and business related
magazines offer demographic data.
Library. In the reference section of the library you will find financial data and statistics.
Market Research Statistics. There are many websites that offer statistics for small market
research.
Trade associations. There is a trade association for just about any industry which offers an
opportunity to network with other professionals in the industry and have access to market
research they conducted.
Market Research can be an expensive and time consuming task depending on the chosen methods.
However the information obtained from it can be very valuable to any business. The company can
decide to hire a market research firm or do its own market research.

VOCABULARY NOTES

English Romanian Russian

to establish a stabili
market research studiere/ cercetare a pieei, studiu ,
de pia
pie (n) plcint
slice (n) bucat, felie
marketing concept noiunea de marketing
exchange (n) schimb
to ascertain a constata, a se convinge de
to pinpoint a indica cu precizie
to yield a aduce profit , ()
to be aware of a fi contient de
available (adj.) accesibil, la ndemn ,

recording(n) nregistrare ,
primary market research cercetare primar a pieii
secondary market cercetare secundar a pieii
research
feature (n) trstur, caracteristic ,
,
27
first hand (obinut) direct (de la surs), fr
intermediari
survey (n) anchet, cercetare
to assess a evalua, a aprecia, a estima
to gather a (se) aduna
to gain an insight a-i da seama de esen

Exercise 1
Answer the following questions.
1. How would you define the term marketing?
2. What is a marketing concept?
3. How is the marketing concept implemented?
4. Why is market research used?
5. By whom is market research carried out?
6. What types of market research do you know?
7. What sources does primary market research comprise?
8. What do you understand by secondary source?

Exercise 2
Marketing is very much like buying a Christmas present for a family member. If you have a reputation
for buying good, useful, interesting presents, people will look forward to your gifts and will try to
please you in return. Exactly the same is true for marketing. Ultimately, it is about meeting peoples
needs, and therefore the study of consumers and their needs is crucial for the marketing.
Match the steps you take when buying a present with the respective steps in marketing a product.

Buying a present Marketing

1. Decide who you are buying for. a. Launch the product.

2. Decide how much to spend usually based
on how much you expect them to spend on
you!
3. Think about the persons interest or needs.
4. Look around for whats available within the
price range, bearing in mind what the person
would like.
5. Buy the present.
6. Wrap the present.
7. Have it delivered/take it round.
8. Watch the persons face when they open it!
9. Decide whether the present was really what
the person wanted.
b. Arrange a suitable distribution method.
c. Decide which features can be included
within the price the consumer is prepared
to pay.
d. Decide what price the consumer is
prepared to pay.
e. Carry out research to determine whether
the product could be improved for next
time.
f. Think about the consumers interest or
needs.
g. Identify the target market.
h. Package the product.
i. Get feedback from the customers after
purchase.

28
Exercise 3
Fill in the blanks with the words in the box.

A. Marketing

goals government profit needs promoting

concept techniques features to give goods

Marketing is the process of planning, designing, pricing, (1) ..................... and distributing
ideas, (2) ...................... and services, in order to satisfy customer needs, so as to make a
(3) .....................
Companies point out how the special characteristics or (4) ...................... of their products and
services possess particular benefits that satisfy the (5) ...................... of the people who buy them.
Non-profit organizations have other, social (6) ....................., such as persuading people not to
smoke, or (7) ................... money to people in poor countries, but these organizations also use the
(8) .......................... of marketing.
In some places, even organizations such as (9) ......................... departments are starting to talk
about, or at least think about their activities in terms of the marketing (10) .........................

B. Market research

ideas telephone researchers original

designing surveys focus

The (1).................... concept is the basic idea for something.

In (2) ...................... products and services, market research finding out what people want is of
course very important. This may involve questionnaires or (3) ......................, with questions about
what people buy and why, perhaps with interviews in the street or by (4) .........................
There may be consumer panels and (5) ...................... groups, where ordinary people meet to discuss
product (6) ................. informally.
Perhaps the (7) .................... will make sales forecasts, estimates of how many products will be sold.

Exercise 4
Place the following sources of market research in the correct part of the table.

surveys in person, studies, individual interviews, library, statistics, focus groups, trade
associations, reports, surveys by mail, local newspapers, business magazines

Primary market research Secondary market research

29
Exercise 5
Supply antonyms and use them in word combinations.
to begin aware
avoidable primary
particular to satisfy
expensive to forget
to gain to like

Exercise 6
Give synonyms for the following words and use them in your own examples.
to consider to market
concept to ascertain
to be aware research
to assess insight -
to gather feature
to focus on

Exercise 7
Choose the right variant.
1. Marketing ______________ tend to give the word product a very broad meaning, using it to refer
to anything capable of satisfying a need or want.
a) theory b) theorists c) theoretical
2. The more information you have about your ________________ market, the better able you will
be to develop a successful marketing plan.
a) target b) main c) segment
3. Information that makes up the social profiles of the people in your target market is called
______________ information.
a) democratic b) demographic c) social
4. If you have _______________ your customers and listed their expectations, you can design your
product or service around their requirements.
a) seen b) observed c) identified
5. When you are planning your business consider how the whole transaction _____________ the
customers needs.
a) meets b) copes c) helps
6. The importance of pricing cannot be _________________ as incorrect pricing can often result in
the failure of a business.
a) estimated b) overestimated c) underestimated
7. Marketing practice tends to be seen as a ______________ industry, which includes advertising,
distribution and selling.
a) recreational b) creative c) creational
8. Market orientation implies that the company ______________ its activities and products on
consumer demands.
a) focuses b) encompasses c) includes
9. Do not forget ______________ the effectiveness of your marketing strategies.
a) to excess b) to compress c) to assess
10. Information you need to know about competitors includes their strengths and ____________ and
what makes them successful.
a) weeks b) worthiness c) weaknesses
30
Exercise 8
Match the words with their definitions.
concept to ascertain
to focus to gather
research to promote
to yield marketing
to assess to exchange
data insight
1. To give and receive in return something of the same type or equal value.
2. Serious and detailed study of a subject that is aimed at learning new facts, testing ideas, etc.
3. To produce, or provide, especially as a result of work or effort.
4. To discover, to make certain.
5. A thought, idea, or principle; notion.
6. To judge the quality, importance, or worth of; evaluate.
7. The branch of business concerned with advertising, publicity, etc.
8. The power of using ones mind to see or understand the true nature of a situation.
9. To direct ones attention to something.
10. To gain or obtain information, qualities, etc.
11. Information in a form that can be processed by and stored in a computer system.
12. To bring goods to public notice in order to encourage people to buy.

Exercise 9
Fill in the blanks with the following prepositions. Some of the prepositions are used twice.
with (2) about at
from (2) out on
through (2) between (2) for
before of (2) to (2)
1. When the needs of consumers are satisfied .................... the practice of the marketing concept, the
economy runs more efficiently than when firms put their own concerns .................... those of
consumers.
2. Once a product has been produced, the distance ...................... its point of manufacture and the
consumers must be reduced greatly so that satisfaction can be realized.
3. Marketing must begin .................... a base of good information in order to learn as much as
possible about the wants and needs ................. the market.
4. Marketing research is gathering, recording and analyzing facts .................. any problem facing
marketers. It is usually associated .................... the survey process.
5. Communication must take place ....................... the marketer and potential buyer before a
transaction can be made.
6. The benefits and functions of a product result .................. the marketers decisions.
7. Product development is one ............... the greatest risks ..................... marketers.
8. Marketers identify and distinguish their products ....................... the use of brands and trademarks.
9. Physical distribution involves the range of activities that move the right amount of products
.................. the right place ................ the right time.
10. Many companies rely heavily ................. sales promotions to call attention ................ their
products.
11. The personal interview is the most expensive survey method because researchers must hire, train,
and supervise interviewers to go ............ and actually talk ................ respondents.
31
 LESSON 2 DEVELOPING MARKETING STRATEGIES

Learning objectives
Know what markets are and how they are classified
Understand the role of marketing strategy and market segmentation
Identify the elements of the marketing mix
Comprehend the benefits of marketing activities

Before delving too deep into the study of marketing, it is worth pausing to consider the
different types of markets that exist.
A market is a group of individuals, organizations, or both who have needs for products in a given
category and who have the ability, willingness and authority to purchase such products.
Markets are classified as consumer, industrial, or reseller markets.
Consumer markets consist of purchasers and/or individual household members who intend to
consume or benefit from the purchased products and who do not buy products to make a profit.
Industrial markets are grouped broadly into producer, governmental and institutional categories.
These markets purchase specific kinds of products for use either in day-to-day operations or in making
other products for profit. Producer markets consist of individuals and business organizations that
intend to make a profit by buying certain products to use in the manufacture of other products.
Governmental markets buy goods and services to maintain internal operations and to provide citizens
with such products as highways, education, water, energy and national defence. Institutional markets
include churches, private schools and hospitals, charitable organizations, and foundations.
Reseller markets consist of intermediaries such as wholesalers and retailers who buy finished
products and sell them for a profit.
A marketing strategy is a plan that will enable an organization to make the best use of its
resources and advantages to meet its objectives. Developing a marketing strategy involves selecting
and analyzing a target market and creating and maintaining a marketing mix that will satisfy that
market. It consists of (1) the selection of a target market and (2) the creation and maintenance of an
appropriate marketing mix.
Identifying potential customers for your business, product or service can be difficult as people
are constantly changing, but if you know your target audience you can better learn how to market to
them.
The first step in identifying your target market is understanding what your products/services
have to offer to a group of people or businesses. To do this, identify the features and benefits of your
product or service. Your target customers are those who are most likely to buy from you. Selecting
target markets is part of the process of market segmentation.
Market segmentation is the process of dividing a market into segments and directing a
marketing mix at a particular segment or segments rather than at the total market. Consumers within
segments tend to have similarities that hold them together. These similarities can be based on personal
characteristics, buying behaviour, etc. Most marketers try to appeal to only some segments of the
consuming public and to develop different marketing mixes that best match each segments wants and
needs.
The marketing mix is probably the most famous marketing term. Once the basic offer, e.g. a
product concept, has been established, the company has to think about the marketing mix, that is, all
the various elements of a marketing program, their integration, and the amount of effort that a
company can expend on them in order to influence the target market. The best classification of these
elements is the 4 Ps: product, place, promotion and price, elements which are the basic, tactical
components of a marketing plan.

32
 The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs,
milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements
contained in it. So for a sweet cake add more sugar!
The product aspect of the marketing mix includes decisions about the design of the product,
brand name, packaging, warranties, and the like.
Place in a marketing mix includes such factors as distribution channels, locations of points of sale,
transport, inventory size etc.
Promotion groups together advertising, publicity, sales promotion, and personal selling, while
price includes the basic list price, discounts, the length of the payment period, possible credit terms,
and so on. It is the job of the product manager or a brand manager to look for ways to increase sales by
changing the marketing mix.
The four Ps are a useful summary of the marketing mix, the activities that should be combined
successfully in order to sell.
Marketing serves a useful purpose. Some of the benefits of marketing activities include the following:
- Development of new or improved products. Marketing research discovers consumers
changing needs and wants, and translates them into new or modified products and services.
- Creation of time, place, and possession utility. Marketing provides goods and services where
and when customers want them. It also provides a great deal of information (concerning such
things as product contents, use, and repair) that is valuable to purchasers.
- Creation of jobs. The jobs provided by retailers, wholesalers, transportation companies and
thousands of advertising agencies are directly related to marketing.
- Improved standard of living. Finally, by creating and delivering an immense variety of goods
and services, marketing improves the standard of living.
VOCABULARY NOTES
English Romanian Russian
to delve into a studia amnunit
willingness (n) bunvoin
consumer market pia de consum
household (n) familie, gospodrie, casnic , ,
industrial market pia industrial/de mrfuri industriale
broadly (adv) n linii mari
producer market pia de producere
governmental market pia de stat, vnzare de mrfuri i
servicii ctre instituiile publice/de stat
highway (n) drum naional, magistral
institutional market pia instituional
reseller market pia a vnztorilor, intermediari
marketing strategy strategie de pia (a firmelor mari)
to enable a da posibilitatea de a, a permite s ,
marketing mix mix de marketing (termen general care
cuprinde diversele elemente ale
procesului de marketing)
target market pia int
market segmentation segmentare a pieei
to match a potrivi
to alter a schimba, a modifica
warranty (n) garanie
utility (n) avantaj, utilitate

33
Exercise 1
Answer the following questions.
1. What do you understand by the term market?
2. How are markets classified?
3. What does the consumer market consist of?
4. What categories are industrial markets grouped into?
5. Who do reseller markets include?
6. Why is marketing strategy used?
7. How can a target market be identified?
8. Why is market segmentation necessary?
9. What elements make up the marketing mix?
10. What useful purpose does marketing serve?
Exercise 2
Companies and Markets If a company:

enters
penetrates it starts selling there for the first time.
abandons
gets out of
leaves it stops selling there.
dominates a market it is the most important company selling there.
corners
monopolizes it is the only company there.
drives another
company out of it makes the other company leave the market,
perhaps because it can no longer compete.
Use the correct form of the words in brackets to complete the sentences.
1. European films do not export well: European movies barely ............................
(abandon/corner/penetrate) the US market.
2. In the 1970s, Kodak ........................(corner/enter/leave) the instant photography market,
until then ........................ (abandon/dominate/penetrate) by Polaroid.
3. The Hunt brothers tried to fix silver prices and to ......................... (corner/enter/leave) the
silver market, ........................... (enter/drive out/monopolize) all competitors.
4. In the 1940s, MGM ......................... (abandon/get out of/monopolize) the market on film
musicals. But by the late 1950s, Warner Bros had also started buying film rights to musicals.
Exercise 3
Market is often used in these combinations:
growth In the late 1990s, Internet use was doubling every 100
days. Market growth was incredible.
segment Women are particularly interesting target for the Volvo
V70. They are an important market segment for Volvo.
segmentation The Softco software company divides the software market
market into large companies, small companies, home office users,
and leisure users. This is its market segmentation.
share Among UK supermarkets, Tesco sells more than any of
the other chains. It has the highest market share.
leader Tesco is the market leader among UK supermarkets as it
sells more than any other chains.
34
Replace the underlined expressions with expressions given in the above given table. You may need
to add a verb in the correct form.

Im Kale and Im marketing manager for Crazy Cola in a country called Newmarket. In this market,
we (1) sell more than any other cola. In fact, we (2) have 55 percent of the market. (3) Sales are
increasing at seven to eight percent per year. There are two main (4) groups of users: those who drink
it in cafes, bars and restaurants, and those who buy it to drink at home. Of course, many users belong
to both groups, but this is our (5) way of dividing our consumers.

Exercise 4
Use the words and expressions in the box to fill in the gaps in the following sentences describing the
Four Ps.

A.
target market competing advantage distribution
marketing research product promotion

The Four Ps are:

(1) ..........................: The product management aspect of marketing deals with the specifications of the
actual good or service, and how it relates to the end-users needs and wants.
Pricing: This refers to the process of setting a price for a product, including discounts.
(2) ...........................: This includes advertising, sales promotion, publicity, and personal selling, and
refers to the various methods of promoting the product, brand or company.
Placement or (3) ........................... refers to how the product gets to the customer; for example,
point of sale placement or retailing.
These four elements are often referred to as the marketing mix. For a marketing plan to be
successful, the mix of the four Ps must reflect the wants and desires of the consumers in the (4)
....................... Trying to convince a market segment to buy something they dont want is extremely
expensive and seldom successful.
Marketers depend on (5) ......................... to determine what consumers want and what they are
willing to pay for. Marketers hope that this process will give them a sustainable (6)..................................

B.

selecting to determine selling develops strength

suitable costs objectives potential mix

A target market is a group of persons for whom a firm (1) ......................... and maintains a marketing
mix (2) .......................... for the specific needs and preferences of that group. In (3) ........................ a
target market, marketing managers examine (4) ........................... markets for their possible effects on
the firms sales, (5) .............., and profits. The managers attempt (6) .............................. whether the
organization has the resources to produce a marketing (7) .................... that meets the needs of a
particular target market and whether satisfying those needs is consistent with the firms overall (8)
.......................... They also analyze the (9) ....................... and number of competitors already (10)
.................... in a potential target market.

35
Exercise 5
Word combinations with price
boom a good period for sellers, when prices are rising quickly
controls government efforts to limit price increases
cut a reduction in price
hike an increase in price
price war when competing companies reduce prices in response to
each other
leader a company that is the first to reduce or increase prices
tag label attached to goods, showing the price; also means price

Complete the sentences with the appropriate form of the words from the above table.

1. A price ....................... by Mills may indicate the start of price increases by other producers.
2. Britains house price .................... has gone beyond London, with properties in Kent now
worth 25 percent more than a year ago.
3. Consumers will get price ................... of eight percent off phone bills from May.
4. When President Perez ended price ..................., electricity, phone and transport costs went up.
5. Petron is a price ....................; its usually the first to offer lower prices.
6. The project had many design problems, pushing up the price ................. for each helicopter
from $11 million to $ 26 million.
7. There is a price ................. between Easyjet and KLM on the London to Amsterdam route.

Exercise 6
Look at the price list given below. Are the statements that follow true or false?

All prices are in euros

Model List price Our price Competing product
Adagio 11,541 9,999 10,500
Brio 13, 349 12,999 12,896
Capricioso 15, 742 14,999 13,987
Delicioso 16, 908 15,999 14,442
1. The pricing policy is to sell below list prices.
2. The Adagio is low-priced, and is cheaper than the competition.
3. The mid-priced models are the Brio and the Capricioso.
4. This retailer charges 16,908 euros for the Delisioso.
5. The Delicioso is the highest-priced model.
6. The Delicioso is cheaper than the competition.
7. All models are sold at discount.

Exercise 7
Put the components of the marketing mix listed in the jumbled order in the box below in the right
position in the chart (under Product, Place, Price or Promotion).
retailers size credit guarantees advertising
design discounts department stores payment period
wholesalers features personal selling colour
list prices publicity packaging quality mail order
location name coupons
36
PRODUCT PLACE PRICE PROMOTION

Exercise 8
Work in small groups. Think of a product known to you and find out (a) the features (colour, design)
of it, (b) the price of the product, (c) how it is promoted, (d) the places where it is sold. Prepare a short
presentation of the marketing mix for this product for the rest of the class. Discuss whether the
strategies the company you selected uses for the product could be improved and offer suggestions.
Exercise 9
Discuss on the following questions.
1. Can a poor product be made successful by clever marketing techniques? Can you think of any
examples?
2. Are there price wars or government price controls in your country?
3. Give three examples of brands to which you are loyal (i.e. which you buy without giving it a
moments thought). Why are you loyal to them?
4. Are there any products for which you have no brand preference or loyalty but are what
marketers call a brand-switcher?
5. Can you think of any product for which the name of the brand is totally unimportant, so that
you do not even notice it? Give an example of a product line (a group of related products
made by the same company). Think of clothes, cosmetics, food, and so on.
Exercise 10
Is a career in marketing suitable for you? Do the following quiz to find out. Look for the keys at the
end of it.

Answer yes or no to the following questions (by ticking the right box) YES NO
1. Will you be happy working in an office?
2. Are you ambitious?
3. Are you fairly shy?
4. Do you have good communication skills?
5. Are you interested in modern culture?
6. Is job security important to you?
7. Are you willing to move frequently from one job to the next?
8. Is earning a lot of money important to you?
9. Are you keen to get your opinions across to others?
10. Do you have a high standard of literacy?
11. Do you like working in teams?
12. Do you like working with people?
13. Does criticism upset you?
14. Are you looking for a formalized career structure?
Key to the quiz:
If you answered yes to questions 1, 2, 4, 5, 7, 9, 10, 11 and 12, you are showing many of the
attitudes essential for work in marketing. If you answered yes to questions 3, 6, 8, 13 and 14 then
this may not be the industry for you.

37
 Unit III ADVERTISING

LESSON 1 HOW COMPANIES ADVERTISE

Learning objectives
Understand the nature and scope of advertising
Know the main rules used in planning an advertisement
Comprehend how companies approach the question of advertising
Understand how marketers measure the effectiveness of advertising

Advertising is the promotion of a companys products and services carried out primarily to drive sales
of the products and services but also to build a brand identity and communicate changes or new
products /services to the customers. Advertising has become an essential element of the corporate
world and hence companies allot a considerable amount of revenues as their advertising budget. There
are several reasons for advertising, some of which are as follows:
Increasing the sales of the product/service
Creating and maintaining a brand identity or brand image.
Communicating a change in the existing product line.
Introduction of a new product or service.
Increasing the value of the brand or the company.
There are four rules which serve as a sound guide when planning advertising and these should be
examined before any form of advertising is prepared.
1. Aim
What is the primary purpose of this advertisement? Is it to inform, sell, or improve the firm's
image?
2. Target
Who is the target? From which sector of the public are you trying to achieve response, for
example; the investor, the pensioner, the career mother, the teenager?
3. Media
Bearing the aim and target in mind, which of the media available is the most suitable -
brochure, press, television, radio etc?
4. Competitors
How are your competitors approaching their advertising needs? Are they successful? Can
you improve on their approach and beat them in competition?
Once an advertisement has been planned and created it is important to test its effectiveness before
publication. If it does not satisfy all the following well-tried principles then start again.
Does it catch the eye?
Does it arouse interest?
Does it create desire?
Does it lead to action?

The providers of goods and services use paid advertising. Depending on its purpose and message,
advertising may be classified into three groups. Selective advertising promotes specific brands of
products and services. Institutional advertising is image-building advertising for a firm and
primary-demand advertising is industry (rather than brand) advertising.
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
38
agencies. These are likely to have more resources, and are more knowledgeable about all aspects of
advertising and advertising media than a single company.
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 BrE - adverts or ads; AmE - 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.
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 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.
Perhaps one of the most difficult problems facing marketers is that assessing the effectiveness of
their advertising. That is why marketers use pretests (before the advertising is transmitted to the target
market) and posttests (when the ads have been implemented). Posttests are especially useful in
providing information for the development of future advertising.
Advertising has been acclaimed for helping to raise our standard of living by communicating
about products that can and do satisfy our wants and needs. Advertising also encourages competition,
which stimulates the economy. It helps to improve the quality of products since marketers who use
advertising must constantly find better ways to differentiate their products, and this is usually
accomplished through improvements.
VOCABULARY NOTES
English Romanian Russian
advertising (n) publicitate, reclam
to allot a aloca
sound (adj.) logic, clar, corect ,
advertisement (n) anun cu caracter publicitar, reclam
to arouse interest a strni interes
selective reclam selectiv (orientat spre un
advertising consumator anumit)
institutional publicitate instituional (a unei firme
advertising menit s sporeasc prestigiul acesteia)
knowledgeable bine informat, versat ,
(adj.)
statement (n) relatare, specificare ,
brief (n) rezumat
,
prior to (prep) anterior, nainte de ,
thereby ( adv) astfel, n acest mod
to disregard a ignora
exposure (n) expunere, prezentare
to face a nfrunta
to acclaim a aclama, a aplauda ,
39
Exercise 1
Answer the following questions.

1.What is the scope of advertising?

2.What key rules should be kept in mind when planning an advertisement?
3.In what cases is an advertisement considered to be efficient?
4.Why do most companies use advertising agencies?
5.When a company hires an advertising agency, what are the roles of both parties?
6.How do companies decide how much to spend on advertising?
7.Why does advertising become ineffective after a certain point?
8.What for are pretests and posttests used?
9.What is the impact of advertising on people and economy?

Exercise 2
Choose the right variant.

1. Ads can be imaginative and can use humour, cartoons and slogans but these devices must not be
______________ or deceptive.
a) leading b) mislead c) misleading
2. Advertising is often placed by an advertising agency on ____________ of a company or other
organization.
a) half b) behalf c) behalves
3. Non-profit organizations are not typical advertising clients, and may ____________ on public
service announcements.
a) apply b) rely c) supply
4. While advertising can be seen as necessary for economic ____________, it is not without social
costs.
a) growth b) loaf c) upgrade
5. Advertising is increasingly invading public _____________, such as schools, which some critics
argue is a form of child exploitation.
a) views b) scenario c) spaces
6. Mobile displays are used for various situations in metropolitan areas ____________ the world.
a) trough b) throughout c) thorough
7. Advertising techniques can be used to inform, educate and motivate the public about non-
commercial ____________, such as AIDS, political ideology etc.
a) issues b) valuables c) aims
8. Marketers need _______________ goals that can guide them in developing their total advertising
program.
a) specialized b) specialty c) specific
9. An advertising _____________ can be focused on the product, on the institution, or on some
public service.
a) message b) massage c) messy
10. Dont ______________ your time trying to convince him. He has already decided to hire another
advertising agency.
a) throw b) waste c) make

Exercise 3
Give synonyms to the following words and make up 5 questions with either of the words or their
synonyms.

40
to advertise knowledgeable
to allot brief
to acclaim statement
to bear in mind to disregard
prior to to expose
sound (adj.) to improve

Exercise 4
Give the corresponding noun, adjective or verb. Use them in your own word combinations.

verb noun adjective

advertisement
to value
knowledgeable
exposure
comparative
to avoid
creative
to maintain
desire
approach

Exercise 5
Which of the following claims do you agree with?

1. Advertising is essential for business, especially for launching new consumer products.
2. A large reduction of advertising would decrease sales.
3. Advertising often persuades people to buy things they do not need.
4. Advertising often persuades people to buy things they do not want.
5. Advertising lowers the publics taste.
6. Advertising raises prices.
7. Advertising does not present a true picture of products.
8. Advertising has a bad influence on children.

In a well-known survey, the Harvard Business Review asked 2,700 senior business managers whether
they agreed with these statements. The survey produced some unexpected results. Which of the
following percentages do you think go with which of the statements above?

41% 49% 51% 57% 60% 72% 85% 90%

After matching up these figures and statements, look at the true figures. The numbers of respondents
who agreed with the statements were as follows:
1) 90% 2) 72% 3) 85% 4) 51% 5) 41% 6) 49% 7) 60% 8) 57%

Many people are shocked by the figures for statements 3, 4 and 7, especially as people in the
advertising business generally argue that the amount of persuasion will ever make people purchase
something they do not want, and that consumers are adequately protected from misleading advertising
(ads that give false information).

41
After reading the opinions expressed in the Harvard Business Review survey, do you want to revise
the opinions you expressed above? Comment on the choices you made.

Exercise 6
Match the terms with their definitions.

publicity personal selling

advertisement competitor
selective advertising brand
advertising target
brand loyalty institutional advertising
1. A paid, nonpersonal message communicated to a select audience through a mass medium.
2. Personal communication aimed at informing customers and persuading them to buy a firms
products. It is more expensive to reach one person through this method than through advertising,
but it provides immediate feedback and is often more persuasive.
3. Person, team, firm, product, etc., competing with another or others.
4. A nonpersonal message delivered in news-story form through a mass medium, free of charge.
5. A class of goods which is the product of a particular company or producer.
6. Advertising designed to enhance a firms image or reputation.
7. Support by consumers of a particular brand.
8. A limited group, area, etc., at which something is specially directed.
9. Something used for advertising things, such as a notice on a wall or in a newspaper, or a short film
shown on television.
10. Advertising that is used to sell a particular brand of product.

Exercise 7
Fill in the blanks with the prepositions in the box. Some of them are used more than once.
on (3) in (2) of (3) into among by for (2) from
at through with (2) toward about
1. Communication (1) .................... consumers is accomplished (2) ................... advertising,
salespeople, brochures, and many other means.
2. Personal selling is individual-to-individual communication which often results (3) ............ a
purchase, while advertising usually only arouses interest and desire without the immediate
purchase. The value (4) ............... personal selling as a promotional activity depends (5) ...............
the product being offered and the market involved.
3. Primary demand advertising attempts to build demand (6) ............. an entire class of products. It
promotes new products (7) ............. the introductory stage of the life cycle.
4. Selective demand advertising is aimed (8) .............. promoting a specific individual brand of
product. Instead (9) .............. stimulating exchanges for all competitors brands, selective demand
advertising attempts to obtain a larger share of the market (10) .............. a given brand.
5. Most often, advertising focuses (11) ............... the product.
6. Most advertising that we are familiar (12) ................ is a consumer oriented. Such advertising can
be divided (13) ............... two broad types: national and local. National advertising is sponsored
(14) ................. manufacturers, whereas local advertising is directed (15) ................... consumers by
retailers.
7. Effective advertising does not usually result (16) ................ blind luck. It demands a well-defined
process that is based (17) ................ the marketers knowledge and understanding (18) ..............
consumers.
42
8. Some marketers use advertising simply to maintain brand loyalty (19) .............. consumers.
9. Advertisers also attempt to increase sales by informing and persuading the market (20) ...................
new issues for an existing product, thus increasing consumption of that product or brand.

Exercise 8
I. Take a look at the following pictures and then answer the questions:

1. What was your reaction when looking at the pictures? Did they catch your eye?
2. Would you use these images in an advertisement? If your answer was yes what kind of
product would you advertise by using the images? Do you think that the advertisements
would be effective? Why?

II. In your opinion, what makes a good advertisement? Try to make a list of qualities
advertisements should have. Would you include in the list the terms in the following box?

shocking controversial
disconcerting outraging
surprising offensive
disturbing

43
Exercise 9
Take a look at the two pairs of ads. As you will notice, they advertise the same brand. Discuss the
following points.

1. Which of the ads do you like best?

2. Which do you think is more recent?
3. What is the slogan? What is the message they convey?
4. Outline similarities/differences between the ads.
5. Discuss whether these advertisements meet their target.

LESSON 2 ADVERTISING MEDIA

Learning objectives
Distinguish between different types of advertising
Learn about the major advertising media
Advertising is a form of communication that typically attempts to persuade potential customers to
purchase or to consume more of a particular brand of product or service. There are many ways to
spread an advertising message. A good ad campaign incorporates several advertising media to get
maximum success. The advertising media are the various forms of communication through which
advertising reaches its audience. They include:
Print Advertising Newspapers, Magazines, Brochures and Fliers
The print media has always been a popular advertising medium. Advertising products via newspapers
or magazines is a common practice. In addition to this, the print media also offers options like
promotional brochures and fliers for advertising purposes. Often the newspapers and the magazines
sell the advertising space according to the area occupied by the advertisement, the position of the
advertisement (front page/middle page), as well as the readership of the publications. For instance an
44
advertisement in a relatively new and less popular newspaper would cost far less than placing an
advertisement in a popular newspaper with a high readership.

Outdoor Advertising Billboards, Kiosks, Tradeshows and Events

Outdoor advertising is also a very popular form of advertising, which makes use of several tools and
techniques to attract the customers outdoors. The most common examples of outdoor advertising are
billboards, kiosks, and also several events and tradeshows organized by the company. The billboard
advertising is very popular however it has to be really terse and catchy in order to grab the attention of
the passersby. The kiosks make for an effective advertising tool to promote the companys products.
The company can organize trade fairs, or even exhibitions for advertising their products. If not this,
the company can organize several events that are closely associated with their field. For instance a
company that manufactures sports utilities can
sponsor a sports tournament to advertise its products.
Digital signage is a newer method of advertising that is growing in popularity. Digital signage is
where monitors/plasma TVs are placed in strategic locations and display advertisements directed at
their targeted customer. Digital signage can deliver messages in the form of text and digital video. You
can find digital signage in such places as sports arenas, retail stores, department stores, malls, schools
etc.

Broadcast Advertising Television, Radio and the Internet

Broadcast advertising is a very popular advertising medium that is constituted of several branches like
television, radio or the Internet. Television advertisements have been very popular ever since they have
been introduced. The cost of television advertising often depends on the duration of the advertisement,
the time of broadcast and of course the popularity of the television channel on which the advertisement
is going to be broadcasted.
Infomercials are another form of television advertising. They describe, display, and often demonstrate
products and their features, and commonly have testimonials from consumers and industry
professionals. There are two types of infomercials: long form infomercials have a time length of 30
minutes and short form infomercials are 30 seconds to 2 minutes long.
The radio might have lost its charm owing to the new age media however it remains to be the choice
of small-scale advertisers.
Online advertising consists of small ads, text ads, video ads, and reciprocal linking to other websites.
Businesses also have their own websites as an advertising tool. The effectiveness of online advertising
depends on how many people actually view the advertisement. Online advertising does not have any
time restraints and can be viewed day and night throughout the world.
E-mail has proven to be a popular medium for direct marketers, mainly because of its relatively low
cost but also because customer responses can be generated rapidly. However, when performed
without permission, or used to send inappropriate messages, the result is e-mail spam, which most
Internet users and administrators consider an abuse of network resources.

Covert Advertising Advertising in Movies

Covert advertising is a unique kind of advertising in which a product or a particular brand is
incorporated in some entertainment and media channels like movies, television shows or even sports.
There is no commercial in the entertainment but the brand or the product is subtly (or sometimes
evidently) showcased in the entertainment show. Some of the famous examples for this sort of
advertising have to be the appearance of brand Nokia which is displayed on Tom Cruises phone in
the movie Minority Report, or the use of Cadillac cars in the movie Matrix Reloaded.

45
 Celebrity Advertising

This type of advertising focuses upon using celebrity power, fame, money, popularity to gain
recognition for their products and promote specific stores or products. Advertisers often advertise their
products, for example, when celebrities share their favourite products or wear clothes by specific
brands or designers. Celebrities are often involved in advertising campaigns such as television or print
adverts to advertise specific or general products.

It is important to note that advertising is a powerful marketing tool - but advertising alone cannot
guarantee success. Market research, product or service features and benefits, price, after sales service
and other promotional tools are all critical elements in ensuring that customers needs are identified
and satisfied profitably.

VOCABULARY NOTES

English Romanian Russian

to attempt a ncerca
to persuade a convinge
to spread a rspndi, a propaga
print advertising publicitate n pres
readership (n) cititori
for instance de exemplu
outdoor advertising publicitate, reclam stradal
billboard (n) panou pentru afiarea reclamelor n locu ,
ri publice (de-a lungul strzilor,
pe cldiri etc.), panou de afiaj
tool (n) mijloc
terse (adj.) clar, concis
catchy (adj.) atrgtor
to grab a apuca, a nfca
to make for a face posibil
trade fair trg comercial -
broadcast advertising publicitate radio
to broadcast a difuza, a transmite
infomercial (n) reclam informativ
testimonial (n) declaraie
charm (n) farmec ,
owing to (prep) datorit, n urma ,
restraint (n) constrngere, limitare, restricie
inappropriate (adj.) neadecvat, nepotrivit ,

covert advertising publicitate ascuns
subtly (adv) (n mod) subtil
to showcase a prezenta
to focus upon a se concentra asupra

fame (n) faim, renume
to gain recognition a obine/ctiga recunoatere/renume

46
Exercise 1
Answer the following questions.
1. In what way are potential customers persuaded to buy more of a good or service?
2. What is print advertising based on?
3. What are outdoor advertising tools?
4. How is digital signage used?
5. What is broadcast advertising constituted of?
6. What is the difference between a TV advertisement and an infomercial?
7. Why is online advertising popular and efficient in carrying out a message?
8. What is meant by covert advertising?
9. Why are celebrities involved in advertising campaigns?
10. Is advertising sufficient for identifying and satisfying customers needs?

Exercise 2
Fill in the blanks with the words given in the box.
promotion thorough message to deal sale
selling salespeople orders methods
motivated
Personal selling is the most adaptable of all promotion (1) ....................... because the person
who is presenting the (2) ....................... can modify it to suit the individual buyer. However, personal
(3) .. is also the most expensive (4) .. method.
Most successful (5) . are able to communicate with people on a one-to-one
basis and are strongly (6) .. They have a (7) knowledge of the
products they offer for (8) .. And they are willing and able (9) . with the details
involved in handling and processing (10) .

Exercise 3
Supply antonyms and form word combinations.
outdoor to include
popular common
typical charm
success terse
restraint subtly
rapidly powerful
to satisfy

Exercise 4
Promotional activities
Promotion (uncountable) is all the activities supporting the sale of a product, including advertising. A
promotion (countable) describes:
a special offer such as a discount or reduced a free gift: given with the product.
price.
a free sample: a small amount of the product competitions with prizes.
to try or taste.
Supermarkets and airlines give loyalty cards to customers: the more you spend, the more points you
get, and you can exchange these points for free goods or flights.

47
Cross-promotion is where you buy one product, and you are recommended to buy another product
that may go with it.

Match the sentence (1-3) to the correct words (a-c).

1. Many supermarkets run competitions and offers a special offer

to encourage people to buy from them.
2. For example, yesterday I bought two kilos of b promotions
oranges for half the usual price.
3. I also bought some coffee, which came with a c free gift
free mug.

Exercise 5
Place the following tools and techniques of advertising media in the correct part of the table.

cinema and television adverts; the backs of event tickets and supermarket receipts; taxicab doors;
newspapers; subway platforms and trains; musical stage shows; bus stop benches; stickers on apples
in supermarkets; billboards; web popups; shopping cart handles; printed flyers; web banners; human
billboards; magazines; sides of buses; yellow pages; radio adverts; shopping carts; posters; town criers

print advertising outdoor advertising broadcast advertising

Exercise 6
a) Identify these different advertising media.

---------------------------- ---------------------- -------------------- -------------

----------------- ---------------------- ------------------------ ------------------------

48
------------------------ ----------------- -------------------- ---------------------------

---------------------- ----------------------- ---------------

b) Classify them according to how much you think each of these advertising media costs,
going from the most expensive to the cheapest.

Exercise 7
Translate into English.
A.
1. Doar marii ageni publicitari i pot permite clipuri TV pentru a-i promova produsele.
2. De ce nu a fost expus noul nostru produs n slile de expoziie?
3. Noi nu facem publicitate doar cu scopul de a-l informa pe consumator.
4. tii ct ne cost apariia numelui nostru pe acele panouri de afiaj?
5. Ar trebui s publicai un anun n ziare.
6. Publicitatea stradal include: panouri, expoziii, diverse evenimente, ct i trguri.
7. Este o strategie de succes s atragi celebritile n campanii de publicitate.
8. Publicitatea online nu este att de costisitoare ca publicitatea TV.
9. Acelai design va aprea pe prospecte, afie i brouri.
10. Agenii publicitari consum mult timp i energie ncercnd s afle dac rezultatul eforturilor
lor este sau nu eficient.
B.
1. ,
.
2. ;
.
- .
3.
.
4. - , ,
, -
, , .
5. , -
,
.
49
 6.

.

Exercise 8
Discuss on the following questions.
1. What advertisements and promotional activities does your school use?
2. What advertising campaigns are famous in your country?
3. Which advertising media influence you most? Why?
4. Do you believe that various government and private agencies should scrutinize advertising for
false or deceptive claims or offers? Explain your position.

Exercise 9
Write a script for a commercial to be played on a popular English-language radio station, advertising
either a well-known product exported by your country, or some form of travel to your country.
Remember that you have to persuade and inform, and are not supposed to say anything misleading or
untruthful although of course in this case you are free to invent the name of the company, the details
of its service, and so on. You may use music and sound effects if you have access to them. If not,
merely indicate what you would use in addition to a voice or voices.

Exercise 10
Career Choice: Advertising
Do the following quiz to see whether a career in advertising is suitable for you. Try to imagine how
you would react in the following situations, and then choose one of the variants given for each
question. After you have completed the quiz, use the chart at the end to see what your score is.
1. During a job interview, you are asked to sing a song. Do you:
a. take a deep breath and launch into a rousing chorus of, Ill tell you what I want what I
really, really want.........
b. refuse. This is a job interview, not an audition for the chorus line
c. ask what the interviewer wants you to sing
d. leave?
2. You have to give a presentation to a client. Do you:
a. wait until the last minute to prepare because youre so busy
b. spend a lot of time preparing before the day
c. think that preparation is for wimps
d. go sick and let somebody else do it?
3. Do you think team work is:
a. a chance for other people to steal your glory
b. a waste of time- few people really work well in teams
c. a necessary evil it must be seen to be done
d. essential in a busy work place?
4. You walk into a party where you dont know any of the other guests. Do you:
a. seek out other Billy No-mates and stand next to him
b. look for the liveliest group of people in the room and introduce yourself
c. stare out of the window
d. refuse all invitations to parties except those held by your closest friends?
5. Your boss asks you to think outside the box. Do you:
a. go and work in the garden
50
 b. look for a new angle on a problem
c. ask which software program you should be using
c. berate him/her for using unintelligible jargon?
6. A client tells you your marketing ideas are unsuitable. Do you:
a. tell them that they are wrong you are the expert
b. burst into tears
c. ask them to explain what they dont like about your suggestions
d. switch off while they talk clients can be such a pain?
7. Your boss asks you to work through the night to complete a piece of work. Do you:
a. refuse? On your salary there is no way you will stay after 5.30 p.m.
b. agree and get on with it
c. ask how much its worth for you to stay
d. agree but make sure that everybody knows how much you are put upon?
8. You think people who care about their appearance are:
a. sad. Havent they anything better to do?
b. shallow. No amount of money will detract from their personality defects.
c. sensible. What you see reflects what you get
d. lucky. You have no time to make yourself look smart.
9. When you are out with a group of people do you:
a. find it hard to get your viewpoint across because nobody listens to you
b. tend to dominate the conversation
c. try to make sure that everybody gets an equal chance to share their opinions
d. clam up. You hate social occasions?
10. Which of the following would you find it easy to be enthusiastic about:
a. engine oil
b. a new car design
c. fish fingers
d. soft drinks

Key to the quiz:

Give yourself the following points.

1 a. 3 1 b. 1 1 c. 2 1 d. 0
2 a. 2 2 b. 3 2 c. 1 2 d. 0
3 a. 1 3 b. 0 3 c. 2 3 d. 3
4 a. 2 4 b. 3 4 c. 1 4 d. 0
5 a. 0 5 b. 3 5 c. 1 5 d. 2
6 a. 2 6 b. 0 6 c. 3 6 d. 1
7 a. 0 7 b. 3 7 c. 2 7 d. 1
8 a. 1 8 b. 0 8 c. 3 8 d. 2
9 a. 1 9 b. 2 9 c. 3 9 d. 0
10 a. 3 10 b. 3 10 c. 3 10 d. 3

The higher you score the better! If you have 30-39 points, then you definitely have the attitudes and
bare-faced nerve that will help you to stand out from the crowd when you apply for jobs. 24-30 points
suggest that you stand a good chance of succeeding in this industry. Less than 24 a career in
advertising may not be so suitable for you.

51
 UNIT IV INFLATION AND UNEMPLOYMENT

LESSON 1 INFLATION

Learning objectives
Explain how economists measure inflation
Identify the different types and causes of inflation
Describe how inflation affects the economy

Inflation is a sustained rise in the general price level or a fall in the purchasing power of money.
Economists have several instruments for measuring inflation.
One tool for gauging inflation is the consumer price index (CPI), a measure of changes in
the prices of goods and services commonly purchased by consumers. A consumer price index
measures a price change for a constant market basket of goods and services from one period to
the next within the same area (city, region or nation). It is a price index determined by
measuring the price of a standard group of goods meant to represent the typical market basket
of a typical urban consumer. The CPI can be used to index (i.e., adjust for the effect of
inflation on the real value of money: the medium of exchange) wages, salaries, pensions, and
regulated or contracted prices.
The CPI shows the level of inflation experienced by consumers, but producers also experience
inflation. The tool that gauges that kind of inflation is the producer price index (PPI), a
measure of changes in wholesale prices. The PPI reflects the prices producers receive for their
goods rather than the prices consumers pay. The difference between consumer prices and
producer prices lies in all the additional fees consumers pay, such as sales taxes or shipping
charges.
Because producers tend to encounter inflation before consumers, PPI tends to lead CPI as an
indicator of inflation. Economists use CPI and PPI to calculate the inflation rate, the rate of change in
prices over a set period of time.
Types of Inflation

The different types of inflation are defined according to the degree or level of the inflation rate.
Rates below 1 percent are negligible, and those between 1 and 3 percent are moderate. If a moderate
rate continues over a period of time, the result is creeping inflation. A rapid increase in price level is
known as galloping inflation. If galloping inflation gets out of hand, the result is hyperinflation-a
rapid, uncontrolled rate of inflation in excess of 50 percent per month. One of the most dramatic
episodes of hyperinflation happened in Germany in 1922 and 1923. At the height of the crisis, prices
rose at a rate of about 322 percent per month. Deflation, a decrease in the general price level, happens
more rarely. The Great Depression of the 1930s in the United States was marked by deflation.
Economists generally distinguish between two kinds of inflation, each with a different cause.
When the inflationary forces are on the demand side of the economy, the result is demand-
pull inflation, a situation where total demand is rising faster than the production of goods and
services. The creation of excess money is the main reason for demand-pull inflation.
When the forces that lead to inflation originate on the supply side of the economy, the result is
cost-push inflation, a situation where increases in production costs push up prices. Cost-push
inflation is often the result of supply shocks-sharp increase in prices of raw materials or
energy. For example, in 1973 and 1974, many members of the Organization of Petroleum
Exporting Countries (OPEC) limited the amount of oil they sold to the United States and other

52
 Western countries. The resulting rapid rise in the price of oil led to cost-push inflation. Wages
are a large part of the production costs for many goods, so rising wages can lead to cost-push
inflation.
The Impact of Inflation

Decreasing value of money and other monetary items over time. Senior citizens living on
a fixed retirement income-as well as anyone else with a fixed income-are especially
vulnerable to the decreasing value of money through inflation.
Increasing interest rates. As prices increase, interest rates also tend to increase. Lenders raise
their interest rates to ensure they earn money on their loans despite inflation. Higher interest
rates mean that borrowing money becomes more expensive.
Decreasing real returns on savings. Inflation also has a significant effect on savings. People
who save at a fixed interest rate get a lower rate of return on their savings. While the interest
paid on savings tends to increase during inflationary times, the difference between the rate of
return and the rate of inflation still leaves them at a disadvantage. Inflation can discourage
savings, leading more people to make purchases today rather than saving for tomorrow.
Inflation has also some positive effects that include a mitigation of economic recessions, and
debt relief by reducing the real level of debt.

VOCABULARY NOTES

English Romanian Russian

to gauge a msura, a aprecia ,
consumer price index indicele preurilor de consum ,

producer price index indicele preurilor de productor ,

shipping charges taxele de transport
to encounter a se confrunta cu, a ntlni, a se ,
ciocni
inflation rate rata inflaiei ,

creeping inflation inflaie insinuat
galloping inflation inflaie galopant
to get out of hand a scpa de sub control
hyperinflation (n) hiperinflaie
deflation (n) deflaie
demand-pull inflation inflaia cauzat de cererea nalt ,

cost-push inflation inflaia cauzat de creterea ,
costurilor de producie
mitigation (n) alinare, micorare ,

debt relief scutire de datorii ,

53
Exercise 1
Answer the following questions.

1. What is inflation?
2. How do we measure inflation?
3. What is the definition of consumer price index? What does CPI measure?
4. How would you name the kind of inflation experienced by producers? What does PPI reflect?
5. What do economists use CPI and PPI for?
6. How would you define hyperinflation?
7. What is the definition of the word deflation in the text?
8. In what cases can we mention demand-pull inflation?
9. What causes cost-push inflation?
8. Which are the negative effects of inflation?
9. Which are the positive effects of inflation?

Exercise 2
Mark the statements with TRUE or FALSE.

1. Economists have one instrument for measuring inflation.

2. The CPI can be used to index wages, salaries, pensions, and regulated or contracted prices.
3. The CPI shows the level of inflation experienced by producers, but consumers also experience
inflation.
4. PPI is a measure of changes in wholesale prices.
5. CPI and PPI are used to calculate the inflation rate, the rate of change in prices over a set
period of time.
6. Hyperinflation is a rapid, controlled rate of inflation in excess of 30% per month.
7. The Great Depression of 1930s in the United States was marked by deflation.
8. Supply shock is the main reason for demand-pull inflation.
9. The creation of excess money can lead to cost-push inflation.
10. Higher interest rates mean that borrowing money becomes cheaper.
11. Inflation can discourage savings, leading more people to make purchases today rather than
saving for tomorrow.
12. Positive effects of inflation include a debt relief and mitigation of economic recessions.

Exercise 3
Find in the text synonyms (1-5) and antonyms (6-10) to the following:

1. continuous 6. rural
2. to estimate 7. essential
3. to undergo 8. floating
4. hurtable 9. strengthening
5. extenuation 10. to stimulate, to encourage

Exercise 4
Match the words with their definitions.
inflation rate, inflation, producer price index, consumer price index, deflation, cost-push inflation,
hyperinflation, demand-pull inflation
1. A situation where total demand is rising faster than the production of goods and services.

54
2. A sustained rise in the general price level or a fall in the purchasing power of money.
3. A situation where increases in production costs push up prices.
4. A rapid, uncontrolled rate of inflation in excess of 50 percent per month.
5. A measure of changes in wholesale prices.
6. The rate of change in prices over a set period of time.
7. A measure of changes in the prices of goods and services commonly purchased by consumers.
8. A decrease in the general price level.

Exercise 5
Fill in the blanks with the words given at the end of the exercise.
Economists use the term(1)to denote an ongoing rise in the general level of
prices (2)..in units of money. The magnitude of inflation the (3)is
usually reported as the annualized percentage growth of some broad index of money prices. With
U.S. dollar prices (4), a one-dollar bill buys less each year. Inflation thus means an
(5).fall in the overall (6)power of the monetary unit.
Since 1950 at least eighteen countries have experienced episodes of (7), in which
the CPI inflation rate has soared above 50 percent per month. In recent years, Japan has
experienced negative inflation, or (8), of around 1 percent per year, as
measured by the Japanese CPI.
Although economies on silver and (9).standards sometimes
(10)........inflation, inflation rates in such economies (11)exceeded 2 percent
per year, and the overall experience over the centuries was inflation of close to zero. Economies
on (12).standards, which all economies have today, have displayed much more
inflation.
inflation rate, purchasing, ongoing, gold, deflation, inflation, quoted, hyperinflation, rising,
paper-money, experienced, seldom.
Exercise 6
Insert prepositions.
1. One tool .. gauging inflation is the consumer price index (CPI), a measure of
changes the prices of goods and services commonly purchased . consumers.
2. The difference between consumer prices and producer prices lies .. all the additional
fees consumers pay, such as sales taxes or shipping charges.
3. If galloping inflation gets .. hand, the result is hyperinflation-a rapid,
uncontrolled rate of inflation in excess of 50 percent .. month.
4. When the inflationary forces are . the demand side . the economy, the
result is demand-pull inflation.
5. Cost-push inflation is a situation where increases production costs push prices.
6. Lenders raise their interest rates to ensure they earn money .. their loans despite
inflation.

Exercise 7
Translate into English.
A
1. Hiperinflaia reprezint creterea preurilor de peste 50% pe lun.
2. Deflaia caracterizeaz situaia n care pe termen lung, oferta de bunuri i servicii este mai
mare dect cererea, avnd loc scderea preurilor.

55
 3. Fenomenul nu poate fi controlat n totalitate, i n acelai timp nu este dezavantajos pentru
toat lumea.
4. Creterea masei monetare, nsoit de creterea produciei, poate conduce la creterea ratei
dobnzii, de aici la creterea cererii pentru investiii i implicit la creterea preurilor.

B
1. - , ,
.
2. O ,
, .
3. ,
, .
4.
.

Exercise 8
Discuss on the following questions.

1. Why would producers tend to experience inflation before consumers?

2. How does the creation of excess money cause a demand-pull inflation?
3. If the price of milk goes up, is that inflation? Why or why not?
4. What type of inflation would result if bad weather hit farmers hard over a long stretch of time?
5. Imagine that union leaders are meeting with the owners of a steel manufacturer to negotiate a
new five-year contract for union employees. Explain how both sides of the union-
management negotiation team must take the unpredictability of future inflation into account?
6. If you were a business owner, what decisions might you make on news of a steady rise in
inflation?
7. How can you characterize the inflation rate in the Republic of Moldova?

Exercise 9
Writing About Economics.

According to opinion polls, most Americans feel inflation is a more serious problem than
unemployment. Write a paragraph stating your view on which is more serious. Use convincing
reasons and examples.

LESSON 2 UNEMPLOYMENT

Learning objectives
Explain how economists measure unemployment
Identify the different types of unemployment
Discuss the impact that unemployment has on the economy and on individuals

Unemployment occurs when a person is available and willing to work but currently without
work. Economists use unemployment figures to judge the performance of the economy. The measure
they use most is the unemployment rate, the percentage of the labor force that is jobless and actively
looking for work.
The civilian labor force is made up of people over the age of 16 who are employed or actively
looking and available for work. It does not include people in the military or those in schools, prisons,
56
or other institutions. To determine the unemployment rate, the U.S. Bureau of Labor Statistics (BLS)
surveys the labor force in 60,000 households each month. Workers over the age of 16 who are not
working but are able to work and who have looked for work sometime during the previous four weeks
are considered unemployed. The BLS then divides the number of unemployed persons by the total
number of workers in the civilian labor force to arrive at the unemployment rate. The unemployment
rate does not account for discouraged workers who have stopped looking for work. Nor does it count
the underemployed, those who work part-time when they want full-time employment or those who
work at a job below their skill level. These include recently laidoff workers who may be in a
temporary, lower-paying job.
Despite its name, full employment does not mean a zero unemployment rate. Instead, it means a
level of unemployment in which none of the unemployment is caused by decreased economic activity.
Even in a healthy economy there is always some level of unemployment. Sometimes people become
unemployed when they relocate or when they leave one job to try to find another job that suits them
better. Sometimes the available jobs do not match up with the skills of the available workers.
Economists generally agree that an unemployment rate of 4 to 6 percent indicates full employment in
the United States.
Economists pay attention not only to the unemployment statistics, but also to the reasons for
unemployment. Economists recognize four types of unemployment:
Frictional unemployment, temporary unemployment experienced by people changing jobs.
The frictionally unemployed might include a parent who has spent time at home raising
children and decides to move back into the work force; a magazine designer who leaves his
job to seek work as a designer at a book publisher; or a recent college graduate who is looking
for her first full-time job. Economists consider frictional unemployment normal and not a
threat to economic stability.
Seasonal unemployment, unemployment linked to seasonal work. Demand for construction
workers, for example, typically falls in the winter months when construction activities are
more difficult. Tourism peaks at certain times of the year, and different regions have different
tourist seasons.
Structural unemployment, a situation where jobs exist but workers looking for work do not
have the necessary skills for these jobs. A dynamic economy will often create structural
unemployment as businesses become more efficient and require fewer workers to create the
same amount of output. New technology can replace human workers or require workers to
retrain. A change in consumer demand-from compact discs to computer music files, for
example-can shift the type of workers needed. Offshore outsourcing, when jobs once held by
Americans are staffed overseas, is another cause of structural unemployment.
Cyclical unemployment, unemployment caused by a part of the business cycle with
decreased economic activity. Workers who lose their jobs during a recession can have trouble
finding new jobs because the economy as a whole is scaling back, and the demand for labor
declines. When the economy picks up again, many workers are again able to find jobs.

The Impact of Unemployment

Although some unemployment is unavoidable, excessive or persistent, unemployment hurts

the economy in several ways. It reduces efficiency; it hurts the least economically secure; and it
damages workers self-confidence.
Efficiency. Unemployment is inefficient. It wastes human resources, one of the key factors of
economic growth.
Inequality. Unemployment does not follow equal opportunity rules. In an economic
slowdown, those with the least experience lose their jobs first-usually minorities and the

57
 young. Also, with fewer jobs available, people on the lower rungs of the employment ladder
have less opportunity to advance.
Discouraged Workers. People who are unemployed-or underemployed-for long periods of
time may begin to lose faith in their abilities to get a job that suits their skills. Potentially
productive workers may give up their search for work. If they are underemployed, they may
not be motivated to do their best work.

VOCABULARY NOTES

English Romanian Russian

unemployment (n) omaj
unemployment rate rata omajului ()

jobless (adj) omer
labor force fora de munc
household (n) gospodrie, menaj
underemployed (adj) ncadrat parial
laid-off (adj) concediat temporar
full employment ocuparea complet a forei de
munc
to suit, to match up a (se) potrivi ,
frictional unemployment omaj fricional ,

to seek work a cuta de lucru
seasonal unemployment omaj sezonier
to peak a atinge la maxim ,

structural unemployment omaj structural
to staff a recruta, a angaja
overseas (adv) de peste hotare
offshore outsourcing delegarea funciilor a experilor
strini

cyclical unemployment omaj ciclic
to scale back a reduce, a micora ,
to pick up a restabili, a restaura ,
rung (n) treapt
ladder (n) scar
discouraged (adj) descurajat ,

Exercise 1
Answer the following questions.

1. When does unemployment occur?

2. What measures do economists use to judge the performance of the economy?
3. What is civilian labor force?
4. How is the unemployment rate determined?
5. What is full employment?

58
6. What is the percentage of unemployment rate which indicates full employment in the United
States?
7. What types of unemployment do economists recognize?
8. What is the impact of unemployment?

Exercise 2
Mark the statements with TRUE or FALSE.

1. Economists use employment figures to judge the performance of the economy.

2. The civilian labor force includes people in the military or those in schools, prisons, or other
institutions.
3. Workers over the age of 16 who are not working but are able to work and who have looked
for work sometime during the previous four weeks are considered unemployed.
4. Underemployed are those who work full-time when they want part-time employment.
5. Full employment means a zero unemployment rate.
6. There is no unemployment in a healthy economy.
7. Frictional unemployment is experienced by people changing jobs.
8. A dynamic economy will often create structural unemployment as businesses become more
efficient and require fewer workers to create the same amount of output.
9. Cyclical unemployment is caused by a part of the business cycle with decreased economic
activity.
10. Unemployment hurts the most economically secure, damages workers self-confidence and
reduces efficiency.

Exercise 3
Find in the text synonyms (1-7) and antonyms (8-14) to the following:

1. unemployed 8. part-time
2. part-timer 9. permanent
3. to account for 10. to scale back
4. cause 11. growth
5. recession 12. unsteadiness
6. intimidation, menace 13. inefficiency
7. disappointed 14. to be reasoned, to be enthusiastic

Exercise 4
Match the words with their definitions.

civilian labor force, unemployment rate, unemployment, frictional unemployment,

underemployed, seasonal unemployment, cyclical unemployment, full unemployment, structural
unemployment

1. People who work part-time when they want full-time employment or those who work at a job
below their skill level.
2. A situation when a person is available and willing to work but currently without work.
3. Unemployment linked to seasonal work
4. People over the age of 16 who are employed or actively looking and available for work It does
not include people in the military or those in schools, prisons, or other institutions.
5. Temporary unemployment experienced by people changing jobs.

59
6. A level of unemployment in which none of the unemployment is caused by decreased
economic activity.
7. A situation where jobs exist but workers looking for work do not have the necessary skills for
these jobs.
8. The percentage of the labor force that is jobless and actively looking for work
9. Unemployment caused by a part of the business cycle with decreased economic activity.

Exercise 5
Fill in the blanks with the words given at the end of the exercise.

Unemployment and poverty are the two major (1)that are facing the world
economy at present. Unemployment leads to financial (2).and reduces the
overall purchasing (3)of a nation. This in turn results in poverty followed by
increasing (4).of debt. Poverty implies a financial condition where people are
unable to maintain the minimum (5). Lack of (6).opportunities and
the consequential income disparity bring about mass poverty in most of the developing and
underdeveloped economies of the world.
When a capitalist economy undergoes some dynamic (7)...in its organizational
structure, it results in (8)unemployment. This type of (9)..may also
emerge if the lack of aggregate demand continues for a substantially long period of time. In case
of (10)unemployment, workers are (11).unemployed.
Economic reforms, changes in the industrial policy and better (12)of available
resources are expected to (13)the problem of unemployment and poverty that
results from it.

burden, changes, challenges, reduce, unemployment, employment, frictional, crisis, capacity,

standard of living, structural, utilization, temporarily

Exercise 6
Decide which of the four types of unemployment each scenario describes.

Because of reduced demand, an appliance company temporarily closes one of its

factories and lays off workers
In September, a part-time student at the University of Central Florida in Orlando loses
his job at a theme park.
A newspaper journalist leaves her job to make a switch into television journalism. She
has been looking for a new job for several months.
A local travel agency has to close down because of the widespread availability of
direct online booking options.

Exercise 7
Translate into English.

(A)
1. omajul sezonier este determinat de fluctuaiile cererii forei de munc.
2. omajul fricional este cea mai rspndit form de omaj, i este determinat de
persoanele care se gsesc n tranziie ntre slujbe.
3. omajul structural apare n urma unui dezechilibru ntre structura ofertei i a cererii de
munc.

60
 4. omajul deghizat cuprinde acele persoane nregistrate ca omeri, dar care n realitate
lucreaz fr contract de munc, beneficiind de toate drepturile legale ale unui omer.

(B)
1. C
, .
2.
.
3. ,
.
4. -
, ,
.

Exercise 8
Discuss on the following questions.

1. Explain why the unemployment rate is based on a countrys civilian labor force, not its
entire population.
2. If you owned a clothing factory, how would a high rate of unemployment affect your
business?
3. Unemployment insurance provides money to workers who have lost their jobs through no
fault of their own. In most states, the insurance is funded entirely by employers. What else
might business and government do to help unemployed workers?
4. Young people are two to three times more likely than older people to be unemployed.
Why is this?
5. Think about the type of career you hope to have when you are finished with your
education. Do you think it is more likely or less likely than others to be affected by each of
the various types of unemployment? Explain each of your answers.

Exercise 9
Read the following text and answer the questions.

Offshore Outsourcing: Scourge or Boon?

Many American workers fear losing their jobs to offshore outsourcing-the contracting of work
to suppliers in other countries. But the likelihood of offshore outsourcing varies widely from
one occupation to the next. According to a report issued by the McKinsey Global Institute in
2005, about 11 percent of all service jobs in the United States have the potential to be
outsourced to another country. Jobs in information technology, engineering, and accounting
are much more likely to be outsourced than jobs in health care, retail sales, and other fields that
require direct personal interaction.
The offshore outsourcing trend has created some structural unemployment, as laid-off workers
seek new jobs. But ultimately, it should make the U.S. economy more efficient. The firms that
save money by outsourcing will be more competitive. As these businesses grow, they will hire
more U.S. workers.
For some U.S. workers, outsourcing may offer unique opportunities. India has been so
successful in securing business outsourced by other countries that it has a shortage of qualified
labor. Because many jobs outsourced to India require workers to be fluent in English or

61
European languages, one study predicts that 120,000 Europeans, Americans, and Australians
will be working in India by 2010.

Questions:
1. Explain how outsourcing might change the American Economy.
2. What career do you want to pursue? Explain whether it has the potential to be outsourced.

Exercise 10
Writing about Economics.

In 1889, Jane Addams founded the Hull House Association in Chicago to help newly arrived
immigrants adjust to the challenges of city life. In 1910, she wrote that of all the aspects of
social misery nothing is so heartbreaking as unemployment. Write a paragraph explaining the
impact of unemployment on immigrants.

62
 UNIT V BUSINESS LAW

LESSON 1 FUNCTIONS AND CLASSIFICATION OF LAW

Learning objectives
Comprehend the functions of law
Understand how law is classified
Since earliest times societies have set up rules of conduct for their members. These may have
been customs or practices rather than formal rules of law, but they had the same effect as law. Today
law affects almost everything we do. Because of this, it is important to understand our legal rights and
privileges, as well as our responsibilities to other people and to society as whole.
Law can be defined as an enforceable set of rules for controlling the conduct of individuals
and groups in a society. Just as there are rules that one must follow in playing a game, so are there
rules that must be followed in living with other people in a society whether it is a neighbourhood, a
town, a city, a state, a nation, or the entire world.
Most people tend to take law for granted and think of it in a very narrow sense- how it relates
to them personally. People, for example, associate law with the police preventing them from doing
what they want to do.
Law, however, has many important functions and they include:
protection of the individual
protection of society
protection of property
and promotion of worthwhile social objectives
Law serves to protect the rights of each individual and to regulate conduct between persons in a
society. It provides stability, allowing people to develop their own interests without infringing on the
rights of others. While people individually need protection and stability, the group as a whole needs
the same things.
Many laws that are designed to protect society help to make our cities and towns safe places to
live and work. For example, society needs protection from thieves, muggers, murderers, vandals, and
others who violate all individuals rights when they commit harmful acts.
Our society places much value on the importance of property and the need to protect it. Our laws
protect property in many ways. Those who destroy or damage property may be punished or may have
to compensate the injured party.
Law is not limited to regulating conduct between individuals or between individuals and their
society. It may also be used as a positive force to promote worthwhile social goals. The system was
established to aid the aged, the poor, and the disabled.
Promoting good health and educational opportunities is another example of the use of law to
promote worthwhile objectives. Grants are given each year for extensive medical research, treatment
programs and immunization. Many students receive government scholarships to study in this country
and in other countries. Many states help pay for the high cost of education by giving tax deductions for
educational expenses.
There are many different types of laws and ways to classify them. One of the primary means of
classification is that of civil law and criminal law.
Civil law establishes rules that protect the rights and property of individuals from harm by other
individuals. Every person under civil law has a legal duty not to interfere with the rights of others or to

63
 damage the property of others. Civil law includes rules concerning contracts, divorces, automobile
accidents, business ownership and many other activities.
Criminal law establishes rules that protect society from the harmful acts of individuals and
maintain peace and order. A person who violates these rules commits a crime and is subject to
punishment.
Business law (sometimes known as commercial law) is the body of law that governs business
and commercial transactions. It encompasses the law governing contracts, sales, commercial paper,
agency and employment law, business organizations, insurance, wills and estate planning, and
consumer and creditor protection. Business law may include issues such as starting, selling, or buying
a small business, managing a business, dealing with employees, or dealing with contracts, among
others. It is often considered to be a branch of civil law and deals with issues of both private law and
public law.
Public law is the body of law that deals with the relationships between individuals or businesses
and society. The violation of a public law is called a crime. Among the crimes that can affect a
business are the following:
burglary, robbery and theft;
unauthorized taking of money or property by an employee, agent, or trustee;
forgery, or the false signing or changing of a legal document with the intent to alter the
liability of another person;
the use of the mails to cheat an individual or business etc.
Private law is the body of law that governs the relationships between two or more individuals or
businesses. A violation of a private law (which is in essence, a violation of anothers rights) is called a
tort.
The purpose of private law is to provide a remedy for the party that is injured by a tort. In most
cases, the remedy is monetary damages to compensate the injured party and punish the person
committing the tort.
In general terms, private law is the area of law in a society that affects the relationships between
individuals or groups without the intervention of the state or government. Public law involves
interrelations between the state and the general population, whereas private law involves interactions
between private citizens.
Law is constantly changing to reflect changes in society. When new products or machines are
developed, new laws are often needed to govern their use. Today we live in a time when rapidly
changing technology brings many changes to our lives, so law too will change to reflect the needs and
concerns of the people who are governed by law.

VOCABULARY NOTES

English Romanian Russian

to set up a nfiina, a ntemeia ,
practices (n) practici, aciuni ,
law (n) lege, drept , ,
enforceable (adj.) executoriu, realizabil ,

conduct (n) purtare, comportare
neighborhood (n) cartier, district ,
to violate the law a nclca legea
common law drept comun, legea nescris
remedy (n) despgubire, mijloc de
compensaie sau de ndreptare
64
worthwhile (adj.) important, care merit, valoros ,
to infringe on a right a leza, a nclca drepturile altora
thief (n) ho, tlhar, huligan ,
mugger (n) rufctor, bandit ,
vandal (n) maniac, barbar, vandal ,
harmful (adj.) duntor, periculos, primejdios ,
injured party partea pgubit, lezat, afectat
subject to (adj.) n dependen, cu condiia, n
concordan
disabled (n) invalid, infirm
grant (n) alocaie, donaie ,
medical research cercetare, examinare medical
scholarship (n) burs
civil law drept civil
to damage the property of others a deteriora, a strica proprietatea
altora
to bring a lawsuit a intenta un proces civil
criminal law dreptul penal
to convict of a crime a condamna pentru svrirea
unei crime
punishment (n) pedeaps
business law drept comercial ,
,

to encompass a cuprinde
will (n) testament
public law drept public ,

burglary (n) furt cu spargere
robbery (n) furt, jaf ,
trustee (n) mandatar, tutore, administrator ,
to govern a administra, a reglementa ,
private law drept privat
tort (n) delict, infraciune civil
Exercise 1
Answer the following questions.
1. How did law develop from earliest times?
2. What do people associate law with?
3. What are the main functions of law?
4. What was one of the major reasons that law developed?
5. In what way is law used to promote important social goals?
6. How is law classified?
7. What do you understand by business law?
8. What is the difference between private law and public law?
9. Why must laws be flexible and subject to change?
10. In the presence of several people, you accused your attorney of being incompetent and stated
that the attorney did not know much about the law. The attorney brought an action in court

65
 against you for injury to her reputation. What do you think is this a civil matter or a criminal
matter?

Exercise 2
Fill in the blanks with the words given in the box.

The most important (1). on law as we know it today were Roman law and the
English common law.

Prior to the Romans, most law was (2)... Decisions were made by (3)..
or juries without a written record being made. These were passed on by word of mouth throughout the
generations. The (4) developed the concept of the need for written codes of
(5).. that everyone could know and (6).. These laws were to be so
complete that they would guide almost every (7) . of life.
The second great (8) on the development of law was that of the English. Over many
centuries England developed a body and a (9).. of law known as common law.
(10). law refers to the unwritten law or body of legal decisions decided by English
courts over a period of many years, based on (11).. of the people. A judge and a
(12). tried cases and made decisions based on prior rulings known as precedents. Each
(13). produced a new oral law that served as a basis for deciding later cases. After
many years these rules (14) so numerous that they were eventually put in writing so
that anyone could be (15).. with them.

judges common understand influences case system familiar

influence Romans customs oral became law jury
aspect

Exercise 3
Give synonyms for the following words and make up 5 sentences using either the words or their
synonyms.
law, function, conduct, duty, to violate (the law), to protect, safe (adj.), burglary, to damage, crime

Exercise 4
Decide whether the sentences are true or false.
1. Most people tend to take law for granted.
2. While people individually need protection and stability, the group as a whole does not need
the same things.
3. The violation of a private law is called a crime.
4. The Social Security system was established to aid the aged, the poor and the disabled.
5. Grants are given once in four years for extensive medical research and treatment programs.
6. Law affects everything we do.
7. One of the major reasons that law developed was to protect the individual.
8. The society does not place much value on the protection of property.
9. Forgery is not considered a crime that can affect a business transaction.
10. A person who violates a law is subject to punishment.

66
Exercise 5
Match the words with their definitions.

crime law
to convict robbery
grant will
lawsuit trustee
tort to encompass

1. Money given by the state for a particular purpose, such as to a university or to a student during
a period of study.
2. A rule developed by a society to govern the conduct of, and relationship among, its members.
3. A matter brought to a court of law for decision by a private person or company, not by the
police or state.
4. To prove or declare that someone is guilty of a crime after a trial in a court.
5. A wrongful but not criminal act that can be dealt with in a civil court of law.
6. An offence which is punishable by law.
7. The crime of taking someone elses property.
8. To include or be concerned with a wide range of activities, ideas, subjects etc.
9. An official statement of the way someone wants their property to be shared out after they die.
10. A member of a group appointed to control the affair of a company, college or other
organization.

Exercise 6
Translate from Romanian or Russian into English.

(A) 1. Dreptul modern este mai complex dect justiia natural. 2. Conceptul echitii face parte
integrant din dreptul englez. 3. Avocaii joac un rol important n societatea actual. 4. Ador dreptul,
mai cu seam dreptul comercial. 5. Studenii la drept de astzi sunt avocaii de mine. 8. Judectorul a
fost constrns s-i pronune verdictul dup modelul unui caz care fusese deja judecat. 10.Dac nu s-ar
respecta conveniile constituiei, viaa politic ar deveni imposibil. 11.Conveniile sunt, n general,
recunoscute ca fiind vitale pentru buna funcionare a guvernului. 12. Proiectul de lege actual va fi fr
ndoial modificat. 13. Sper c va fi necesar mult timp nainte de a recurge la o astfel de msur.

(B) ,
.
.
, .
. ,
, . ,
.
, ,
.

Exercise 7
Discuss on the following questions.

1. How does business law affect your life? (give examples)

2. Is the President in your country elected by the Parliament or by the whole electorate?
Who can run for the office of President of the Republic of Moldova?
67
 How long can one and the same person hold the office of the President in this country?
How often do Presidential elections take place?

3. Should the Parliaments sessions be open to the public and mass media?
4. Do you feel that the law is always just?

Exercise 8
Legal Activities

a. List some laws that have had an effect on your life or the lives of those you know (for example,
the compulsory education law requiring that you be in school until a certain age). What would
your life and the lives of others be like without these laws?
b. What rules have your parents made to govern your actions? Do you feel that these rules are fair
and have made things run more smoothly in your house?
c. Using a recent newspaper or magazine, find an article describing a situation in which a
persons (or persons) rights have been violated. Based on what you have learned, determine
the function of law that has been violated and whether the offense was civil or criminal.

Exercise 9
Find two or more articles describing a recent court case that involved two or more businesses.

a) State the exact nature of the issue/issues involved in the case.

b) Describe how these issues were resolved.
c) State whether the resolution seems fair, and justify your answer.

LESSON 2 CONTRACT LAW

Learning objectives
Know what contract law is
Learn the essential elements of contract law

Contract law is perhaps the most important area of business law, because contracts are so
much a part of doing business. Every business person should understand what a valid contract is and
how it is fulfilled or violated.
When you take your car to a garage for repairs, enroll in a business school, rent an apartment,
take clothes to the cleaners you make an agreement.
A contract is a legally binding agreement between two or more competent persons. Each
person, or party, obtains certain rights and assumes certain obligations that will be enforced in a
court of law.
Contracts are often simple and easy to understand, as, for example, buying a pair of jeans or
ordering a hamburger. Other contracts, such as buying a car or a house, are more complicated.
A contract is a legally enforceable agreement between two or more parties who promise
to do, or not to do, a particular thing. The parties to a contract may be individuals or businesses. An
implied contract is an agreement that results from the actions of the parties rather than from specific
promises. For example, a person who orders dinner at a local restaurant assumes that the food will be
served within a reasonable time and will be fit to eat. The restaurant owner, for his or her part, assumes
that the customer will pay for the meal.

68
 Most contracts are more explicit and formal than that between a restaurant and its customers:
an express contract is one in which the parties involved have made oral or written promises about the
terms of their agreement.
Four essential elements must be present to create a valid contract. These elements are:

(1) offer and acceptance

(2) consideration
(3) competent parties and
(4) legal purpose.

The initial step toward forming a contract is a process called offer and acceptance. The person
who makes an offer is called the offeror. The person to whom the offer is made is called offeree. When
the offeree accepts an offer, the first requirement of a valid contract has been satisfied.
Consideration is something of value given by each party to bind the agreement. Consideration
may be money or property such as a watch or a car. Consideration may also consist of doing
something you are not legally bound to do, refraining from doing something you have a legal right to
do, or promising to do or not to do something.
Competent parties are those people who have the legal and mental ability to enter into binding
contracts. Some parties, however, lack the ability in the eyes of the law to enter into contracts freely.
These people may legally avoid (cancel) contracts made with others and demand the return of the
consideration paid. Among those not considered competent are: minors (persons under 18 years of
age); persons under the influence of drugs or alcohol; insane persons; and, in some states, convicts and
aliens.
Legal purpose means that the contract must not be against the law. The courts will not enforce
a contract if the parties knowingly enter into an illegal agreement and then demand performance. This
is true even when all the other elements of a contract are present. A contract that interferes with the
proper administration of justice is one example of an illegal contract.
Although contracts may be oral, it is safer to commit them to writing. A written contract is
visible evidence of its terms, whereas an oral contract is subject to the memories and interpretations of
the parties involved. Businesses generally draw up all contractual agreements in writing so that
differences can be settled readily if a dispute develops.
A written contract must contain the names of the parties involved and their signatures, the
purpose of the contract, and all terms and conditions to which the parties have agreed. Changes to a
written contract should be made in writing and should be initialed by all parties. They should be
written directly on the original contract or attached to it.
If all elements are present, a contract has been created. If any one element is missing, a
contract does not exist and the agreement is not enforceable against either party by a court of law. If
either party does not carry out his or her part of the contract, that person may be sued for breach of
contract. Breach of contract is the failure to carry out ones part of the agreement.
Most individuals and firms enter into a contract because they expect to live up to its terms.
Very few end up in court. When they do, it is usually because one or more of the parties did not
understand all the conditions of the agreement. Thus it is imperative to know what you are signing
before you sign it. If there is any doubt, get legal help! Once a contract is signed, it is very difficult
and often very costly- to void.

VOCABULARY NOTES

English Romanian Russian

contract law drept contractual
valid (adj.) valabil, n vigoare ,
69
legally binding obligatoriu legal ()
enforced (adj.) forat, silit
court of law (n) tribunal, curte de justiie
enforceable agreement acord executoriu o
implied contract contract implicit / tacit ,

formal contract contract formal / conform cerinelor ,
legale
express contract contract expres / ncheiat n mod
expres (
)
acceptance (n) accept, acceptare, aprobare ,
consideration (n) plat, compensaie, premiu , ,

competent party parte competent ,
legal purpose scop legal ()
offeror (n) ofertant ,
offeree (n) persoan creia i se face o ofert ,

to refrain from a se reine de la, a se abine
to enter into a contract a ncheia un contract
insane (n) dement, nebun
convict condamnat, deinut ,
alien (n) strin, din alt ar
knowingly (adv.) contient, intenionat ,
to draw up a ntocmi
to initial a parafa, a aproba ,
to sue a intenta un proces, a da n judecat
breach of contract nerespectare/nclcare a unui ,
contract

Exercise 1
Answer the following questions.

1. What has contract law in common with business law?

2. How is the term contract defined?
3. In what situations are implied and express contracts used?
4. What makes a contract valid?
5. What is the role of the offeror and offeree in contract formation?
6. What does consideration consist of in order to bind an agreement?
7. Who can be considered as competent and incompetent parties to a contract?
8. What does legal purpose mean?
9. Why is it advisable to commit contracts to writing?
10. What elements should a written contract contain?
11. When can a party be sued for breach of contract?

70
Exercise 2
Fill in the blanks with the words given in the box.

acceptance out-of-court enforceable performance promise

services cancel transactions terminated offer
person legal exist

A contract is an agreement that is (1) ........................... by law. Modern business could not
(2) ..................... without such contracts. Most business (3) .......................... involve commitments to
furnish goods, (4) ........................, or real property; these commitments are usually in the form of
contracts.
The use of the contract in business affairs ensures, to some extent, the (5) ..............................
of an agreement. Sometimes, however, a party that breaks a contract may be persuaded to make an (6)
.............................. settlement, thus saving the expense of (7) ......................... proceedings.
A contract arises when an (8) ..................... to make a contract is accepted. An offer contains
a (9) ........................ (for example, "I will pay $1,000") and a request for something in return (a person's
car). The (10) ................................. consists of an assent by the party to whom the offer is made,
showing that the (11) ...................... agrees to the terms offered.
The offer may be (12) ............................... in a number of ways. For example, the party making
the offer may (13) ...................... it (a revocation), or the party to whom the offer is made may reject it.

Exercise 3
Give antonyms for:
formal contract, competent, to violate the law, to protect, authorized, offeror, to contain, to agree, to
accept, private

Exercise 4
Give synonyms for the following words and make up word phrases.
valid, agreement, terms of agreement, to offer, consideration, competent, to enforce, to draw up, to
sue, breach of contract,

Exercise 5
Read the sample of the contract given below and answer the following questions.
1. Who are the parties to the contract?
2. What is their legal address?
3. What is the purpose of this contract?
4. What is promised as consideration for the fulfilment of contractual obligations?
5. Is this contract valid? Why?

CONTRACT FOR PERSONAL SERVICES

OF MUSICIANS

This agreement, made on February 1, 20--, between DUKE- JUPITER ROCK GROUP,
associated with Pelican Productions, 3700 East Avenue, Rochester, New York, and JEFFERSON
HIGH SCHOOL STUDENT GOVERNMENT, LOCATED AT 620 Tremont Avenue, Dayton,
Ohio.

71
 DUKE- JUPITER ROCK GROUP, consisting of five (5) musicians, promises (agrees) to
perform in concert at JEFFERSON HIGH SCHOOL (gymnasium) on Saturday, April 18, 20from
8:00 p.m. until 11:00 p.m.

In consideration of the foregoing promise, STUDENT GOVERNMENT promises (agrees) to

pay DUKE- JUPITER ROCK GROUP the sum of one thousand dollars ($1.000) in cash or by
certified check upon completion of the performance.

__________________ ___________________
(Employers Signature) (Entertainers Signature)
__________________ ___________________
( Name-printed) (Name- printed)
__________________ ___________________
( Address) ( Address)
__________________ ___________________
( Phone Number) ( Phone Number)

Exercise 6
Form other words of the same root and state their part of speech.
to accept, to enforce, to consider, to understand, to expect, to agree, to contain, to offer, to assume, to
mean

Exercise 7
Fill in the blanks with the correct prepositions. Some of them are used twice.
over, by (2), into, from, under, to, before, out, for, of (2), upon, within, in (2)
1. Minors can enter contracts, but can void them in most cases .. they reach
majority age.
2. To be enforceable, some agreements must be writing.
3. The situations in which an agreement must be in writing can differ . state
.. state.
4. Domestic laws are the laws which are applicable the boundaries of our nation.
5. The major source .. the international laws is the treaties, signed the
various nations and all these regulations bind the parties concerned with the different deals.
6. . the business world, disputes can arise .. contracts, and one party (or
both) may accuse the other of breaking his or her obligations . the agreement.
7. Depending the subject matter . the agreement (sale of goods) a
contract may be governed . one of two types of the state law.
8. Courts and formal lawsuits are not the only option . people and businesses involved
in contract disputes.
9. It makes sense to set the circumstances under which the parties can terminate the
contract.

Exercise 8
Make up as many questions as possible for each sentence.
1. Most businesspersons enter into contracts more frequently than they may realize.
2. The term party can mean an individual person, company or corporation.
72
 3. Since earliest times societies have set up rules of conduct for their members.
4. Over many centuries England developed a body and a system of law known as common law.

Exercise 9
Draw up a standard contract for a company that sells and installs burglar alarm systems in homes. The
average cost of the alarm system, including installation, is $750. Include everything required for a
valid contract.

Exercise 10
Case Study

Home Improvements: The need for a Contract

The success of any remodelling project depends on two factors: (1) the choice of the right contractor
and (2) a detailed, written contract that describes what the contractor is going to do. If either of these
two factors is ignored, disaster can strike. Take the case of Sandra and Mike Jackson. After the arrival
of their second child, the Jacksons needed more space in their two-bedroom home. Besides, they had
always wanted to convert their garage into a bedroom. They looked in the home section of the
Houston Chronicle and found the name of the contractor. The contractor came out and gave them an
estimate. Because the contractor was anxious to start work immediately, the Jacksons did not insist on
a written contract. Thats when their problems started. According to the Jacksons, the contractor
would not listen to their ideas and refused to make the changes that would turn the space into an ideal
bedroom. Finally, after thirteen months, the job was finished. Six months later, the glass door the
contractor had installed began to leak both air and water. The Jacksons called the contractor. To their
surprise, they found that he had declared bankruptcy and was out of the home-remodelling business.
According to consumer advocates, the Jacksons made two mistakes. First, they should have
been more careful when choosing a contractor. Most experts suggest that before you talk to any
contractor, you crystallize your dreams into concrete plans that a contractor can understand. Then
choose a contractor who belongs to either the National Association of Home Builders or the National
Association of the Remodelling Industry. You should always talk to more than one contractor and get
more than one bid. Ask each contractor for a list of customers you can call to see if they were satisfied
with the contractors work. Above all, dont let a contractor pressure you to sign a contract
prematurely.
Second, the Jacksons should have insisted on a written contract. The contract should describe
exactly what the contractor is going to do, all the materials that will be used, the complete financial
terms of the agreement, the starting and completion dates, and any other conditions that are relevant to
the remodelling project. All special requests, oral promises, or conditions that you have should be
included in the written contract. While most experts recommend including an arbitration clause in the
contract to resolve any disputes, the best way to avoid problems is to get answers to questions before
signing anything.

Questions:

1. The success of any remodelling project depends on two factors: (1) the choice of the right
contractor and (2) a detailed written contract that describes what the contractor is going to
do. Why are these two factors important?
2. Assuming the Jacksons had insisted on written contract before the contractor began work,
what type of information should have been included in the contract? Why?

73
 UNIT VI COMPUTERS TODAY

LESSON 1 THE IMPORTANCE OF COMPUTERS

Learning objectives
Distinguish the areas of usage of computers
Understand the basic job of computers
Recognize the main types of computers

Computers in Business. Computers are so fundamental to our modern society that, without them,
our economy would grind to a halt. Every year, businesses and governments process more than 400
billion transactions and the number is growing by 100 billion transactions annually. In the last few
decades, computers have radically altered business practices all around the world.
Whether or not you work in an office, the way businesses use computers affects you every
day. You are faced with computer-stored information about yourself every time you go to the bank,
renew a subscription, or buy something by mail. Even when you buy groceries and gasoline, you are
interacting with computers. From automatic tellers to credit cards, computers are part of the way we
live.
Education. In the last ten years, small computers have sparked a revolution in education.
Everyone from preschool children to senior citizens can now put computers to work for their own
intellectual benefit. Youll find them in classrooms, museums and libraries, and theyre rapidly
becoming as essential to the learning process as are books, paper and pens.
In the classrooms, students can develop science projects and prepare reports using computer
technology. At museums of natural history, they can touch a computer screen to learn the latest
theories concerning how the earth has evolved or why dinosaurs became extinct. And in libraries,
students can search a computer database for articles relating to their own fields of interest.
Teachers are especially excited about the computer as an interactive learning tool. Unlike a
recorded television show, computer-aided education [CAE] programs can prompt viewers for
feedback and respond in appropriate ways.
Science. Scientists use computers to develop theories, to collect and test data, and to exchange
information electronically with colleagues around the world. Researchers can access databases in
distant locations all without going any farther than the closest computer.
It's also possible to simulate complex events with computers. Scientists can use powerful
computers to generate detailed studies of how earthquakes affect buildings or pollution affects weather
patterns. Sophisticated software allows intricate molecules to be designed, diagrammed, and
manipulated with a computer.
It would be impossible to explore outer space without computers. Satellites and space probes
have beamed back to Earth a wealth of information concerning our solar system and the cosmos.
Computers at Home. You may be using computers in your home every day without realizing
what you are. Most televisions contain small computers that automatically fine-tune the image, select
the brightness, and correct the color tones. Many electrical appliances such as washing machines,
microwave ovens, dishwashers, and sewing machines-also use small computers to help them run more
efficiently.
The environment of the home itself can be controlled and maintained by computers. A
prototype intelligent house in Japan contains dozens of hidden sensors that feed information about
temperature, humidity, airflow, and carbon dioxide levels to a central computer.
The word "computer" comes from a Latin word which means, "to count". A computer is a
machine with a complex network of electronic circuits that operate switches. The switches are capable
74
of being in one of two possible states, that is, on and off. The machine is capable of storing and
manipulating numbers, letters and characters. The basic idea of the computer is that we can make the
machine do what we want by inputting signals that turn certain switches on and turn others off.
The basic job of computers is the processing of information. For this reason, computers can be
defined as devices which accept information in the form of instructions called a program and in the
form of characters called data, perform mathematical and/or logical operations on the information and
then supply the results of these operations. The program which tells the computers what to do, and the
data, which provide the information needed to solve the problem are kept inside the computer in a
place called memory. The computer input device reads the information into the computer. Some of the
most common methods of inputting information are to use punched cards, magnetic tape, disks and
terminals. For outputting information two common devices are used. They are: the printer, which
prints the information on paper and the display screen, which shows the results on a TV-like screen.
There are different kinds of computers. Some do only one job over and over again. These are
special-purpose computers. But there are some computers that can do many different jobs. They are
called general-purpose computers. The latter solve the most difficult problems of science. They
answer questions about rockets and planes, bridges and ships long before these things are even built.
Computers help space programs, business and industry, medicine and education. They are powerful
tools, which help to change our life and the world around us. We should mention some special
purpose uses, e.g. the computers in phones, cars, appliances.

VOCABULARY NOTES

English Romanian Russian

to grind to a halt a duce spre stopare
to process (v) a prelucra
to alter (v) a se modifica
to affect (v) a afecta, a influena , ,
extinct (adj.) uitat, mort
to evolve (v) a se dezvolta, a evolua ,
to prompt (v) a stimula, a ndemna , ,
feedback (n) reacie, conexiune invers
to access database a accesa baza de date
distant (adj.) ndeprtat
to simulate (v) a imita, a lua nfiarea de.. ,
to generate (v) a genera, a produce ,
intricate (adj.) complicat, ncurcat ,
to spark (v) a strni, a cauza
electrical appliances dispozitive electrice
electronic circuit ircuit electronic ,
switch(n) ntreruptor, comutator ,
to magnetize(v) a magnetiza ,
tiny (adj.) micu, mrunt ,
metal core corp metallic
to input signal a introduce semnal
to turn on a porni
to turn off a opri
device (n) mecanism, aparat, dispozitiv , ,
terminal (n) terminus, final , ,

75
Exercise 1
Answer the following questions.
1. How do the computers affect our everyday life?
2. In what way can we compare computers to books, papers?
3. Why are the teachers especially excited about the computers?
4. How can scientists use computers?
5. How can we use computers at home?
6. What does the word computer mean?
7. What kind of machine is the computer?
8. What is the basic job of the computer?
9. What are the most common methods of inputting information?
10. There are different kinds of computers, arent there?
Exercise 2
Give synonyms for:
transaction (n), appropriate (adj.), to alter (v) complex (adj.), essential (adj.), to affect (v)
respond (n), punched (adj.)
Exercise 3
Decide whether the statements are True or False.
1. Computers have slightly altered business practices all around the world.
2. The way businesses use computers affects you every day.
3. Everyone can put computers to work for their own intellectual benefit.
4. Teachers are seldom excited about the computers as an interactive learning tool.
5. The word computer comes from a Greek word which means to count.
6. The basic job of computers is the processing of information.
7. The program reads the information in the computer.
8. The printer and the display screen are used for outputting information.
Exercise 4
Fill in the blanks with the right prepositions from the list below.
( in, through, without, by, with, beyond, on, for, to)
1. The data is sent ______the computer________ wires which link the sensors ______ the
computer
2. Things which are taken _______ granted are often _____ the ability of the disabled.
3. Smart houses should bring more comfort to handicapped people _____ the near future.
4. The neighbors have fitted their house ____ a monitoring system.
5. _____2020, most appliances will be able to operate _______human assistance.
Exercise 5
Match each of the following terms to the phrase that is the most closely related.
user; computer literacy; keyboard; data processing; information; documentation; data;
computer; robotics; reliability; speed; volume; frequency; password; accuracy.
1. How often a specific data item is requested and used during processing.
2. The computers ability to perform computations without error.
3. The total quantity of data involved in processing.
4. The use of computer controlled robots to perform industrial tasks.
5. Someone who does not necessarily have much technical knowledge about computers but
who makes decisions based on information processed by the computer.
76
 6. Raw, unevaluated facts.
7. A basic understanding of what a computer is and how it can be used as a resource.
8. A coded entry which permits a user to gain access to computers.
9. The computers ability to process data in fractions of a second.
10. The computers ability to repeatedly perform difficult processing tasks and field accurate
results under poor conditions.
11. Equipment made up of combination of electronic and electromechanical components that
uses software to process data.
12. Explain to users how to use software.
13. Most common input device.
14. Processing of data into information.
15. The product of data processing.
Exercise 6
Translate into English.
(A)
1. Baza noastr de date este reactualizat n permanen.
2. Multe cadre de conducere i nscriu n prezent adresa e-mail pe crile de vizit.
3. Datorit mesageriei electronice, preul pentru distan este inclus n abonament.
4. ntr-un viitor foarte apropiat computerele vor avea comand vocal.
5. Dac mi-ai fi ascultat sfaturile, n-ai fi cumprat aceste dou programe.
6. Cu ct progreseaz tehnologia, cu att computerele devin mai mici i mai ieftine.
(B)
1. ,
.
2. , , ,
.
3. , ,
.
4. ,
, , , .
5. , .
6. , , , , ,
.
Exercise 7
Insert the missing words in the right places.
The so-called smart card is an ordinary ___________ credit card with an ___________
microprocessor plus a computer ___________chip. It can be used as an identity card, or
___________,for access to medical records and even for ____________ for telephone calls, train
and bus __________ and satellite ____________ programs. Being charged (like a battery) with
____________ they can be used for __________ at shops. They can be used by students paying
for ___________. The card can be ___________ at an automatic telling machine. With the aid of
a personal ___________ number (PIN), details of all transactions stored in the memory can be
viewed at any terminal.

embedded, paying, plastic, passport, fare, money, identity, photocopies, recharged, memory,
television, purchases.

77
Exercise 8
Discussion questions.

1. Do computers create or eliminate jobs?

2. Determine what types of computers are being used in our academy. Are
microcomputers being used? Minicomputers? Mainframes? All types? What are they
being used for?
3. Look in the Job Opportunities section of a newspaper to see if many jobs require
applicants to be familiar with using computers. What types of experience are
required?
4. Most people interact with a computer several times a day. Write a short report about
how computers (all types) are being used around you. For example, have you ever
used an automated teller machine? A supermarket scanner? Clothing price tag
scanner? Describe why you think a computer is used.

LESSON 2 COMPUTER VIRUSES

Learning objectives
Understand what a virus is
Distinguish the two basic forms of viruses
Be aware of measures of safeguarding against virus infection

A virus is a program designed by a computer programmer (malicious hacker) to do a certain

unwanted function. The virus program can be simply annoying like displaying a happy face on the
user's screen at a certain time and date. It can also be very destructive and damage your computer's
programs and files causing the computer to stop working.
The reasons why hackers create viruses are open for speculation. The most quoted reason is
simply to see if it can be done.
Viruses take two basic forms. One is a boot sector virus which infects the section of a disk that is first
read by the computer. This type of virus infects the boot or master section of any disks that it comes in
contact with. The second is a program virus that infects other programs when the infected program is
run or executed. Some viruses infect both and others change themselves are (polymorphic) depending
on the programs they encounter.
Viruses can cause a great deal of damage to the computers they infect and can cost a lot of
time and money to correct. Computer viruses have been around for a long time, even before
computers became widely used and they will likely remain with us forever. For that reason computer
users will always need ways to protect themselves from virus programs. The main, common feature of
a virus is that it is contagious! Their sole purpose is to spread and infect other computers.
A computer gets a virus from an infected file. The virus might attach itself to a game, a
program (either shareware and commercial) or a file downloaded from a bulletin board or the Internet.
You cannot get a virus from a plain email message or from a simple text file! That is because
the virus needs to be 'run' or executed before it can take effect. This usually happens when the user
tries to open an infected program, accesses an infected disk or opens a file with an infected macro or
script attached to it. A plain email message is made up of text which does not execute or run when
opened.
Modern email programs provide the ability to allow users to format email messages with
HTML and attach scripts to them for various purposes and it is possible for a malicious hacker to
attempt to spread a virus by building a virus script into an HTML type of email message.
78
When you are accepting software or scripts on Internet sites or reading mail from unknown senders it
is best not to run a program from that site or sender without checking it with an anti-virus program
first.
Protect yourself. You can take safeguards against virus infection. The first thing is to get an
anti-virus program. Most reputable companies that create virus protection programs release an
evaluation copy that a Internet user can download for free and use for a certain amount of time. This
anti-virus program will be able to check your computer for viruses and repair damage or delete files
that are infected with viruses. You may have to replace infected files that cannot be repaired.
The second thing you can do is purchase a copy of the program. The reason for this is that
viruses are constantly being created. When you purchase an anti-virus program you are also
purchasing periodical updates which keep your anti-virus program up-to-date and able to deal with
new viruses as they are encountered. Commercial virus programs also allow the user to customize
when and how the program will check the computer for viruses. You will need to renew this updating
service periodically.
If you find that your computer has been infected with a virus use an anti-virus program to
clean your computer and make sure to check all the disks that you use. This includes all the hard
drives on your computer(s) and all your floppy disks and CDs as well as any media that you save
information on. Remember that the virus can easily re-infect your computer from one infected file!
If you have to reload your computer programs, use the original program disks. You may want
to check your original disks before reinstalling the software. If your original disks are infected contact
the distributor to get replacements.
Always take the time to ensure that your computer is properly protected. Spending money on a good
virus checking program could save you hundreds of dollars and lots of time later.
A discussion of viruses would not be complete without mentioning hoaxes. Malicious people
without programming skills will send out fake virus warnings causing people to take unnecessary
measures which often cause your computer harm. One example tries to get the unsuspecting computer
user to delete an important system file by warning them that it is a virus. A legitimate virus warning
will provide a link to a website operated by an anti-virus company with more information about that
virus. Don't forward a virus warning until you have checked out whether it is legitimate.

VOCABULARY NOTES

English Romanian Russian

malicious (adj.) ru, rutcios ,
hacker persoan fascinat de folosirea calc. pt. a a
ptrunde n mod neautorizat n sist. altor
utilizatori, sprgtor (de coduri)
annoying insuportabil ,
to smash (v) a distruge, a nimici, a sfrma ,
realm (n) domeniu ,
boot sector virus virus de sector de iniializare, ncrcare
to encounter (v) a ntlni, a ntmpina, a da de.. ,
to lodge (v) a plasa, a bga ,
rechargeable (adj.) rencrcat, rearjabil
shareware soft cu perioad de prob gratuit, shareware
shareware
commercial software programe soft comercializate, aflate n
comer
to download (v) a ncrca (un fiier) din reea ,

79
bulletin board system sistem de avizier electronic (BBS)

evaluation (n) evaluare, exprimare n cifre , ,

to delete (v) a terge, a suprima , ,
safeguard (n) protecie, securitate , ,

evaluation (n) evaluare ,
to encounter (v) a se ntlni, a se ntmpina, a da de.. ,
to customize (v) a modifica, a construi la comand ,
hoaxes (n) arlatanie, pcleal ,
fake (adj.) simulant, fals ,

Exercise 1
Answer the following questions.

1. What is a virus?
2. Are viruses destructive for the computer?
3. What are the reasons for creating viruses?
4. What are the forms that viruses take?
5. Can a virus damage computer hardware?
6. How can you protect against viruses?
7. Where does a computer get a virus from?
8. Can we take safeguards against virus infection?
9. What are the two ways of safeguarding?
10. What will you do if your original disk is infected?
11. How to make sure that our computer is properly protected?
12. What are hoaxes?

Exercise 2
Complete the table.

verb adjective noun

designed
destructive
intent
to infect
to fail
to lodge
rechargeable
building
modification

80
 Exercise 3
Link each statement in the first column with a purpose in second column.

1. Application programs are designed for a) to produce detailed graphics.

general use
2. Custom programs are written for the user
3. A program library is often kept in backing
store
4. A word processor justifies each line of text
5. A high resolution monitor is used
6. A graphics terminal includes a light-pen
7. A computer is often leased rather than
bought
8. The functions of programmers are
9. The keyboard of a computer is used
10. Dual-density characters are introduced
b) to provide easy access to a range of
programs.
c) so the user can draw on the screen.
d) to prepare, test and document computer
programs.
e) so they can be used in many different
situations.
f) as an economy measure.
g) to distinguish diverse values or features.
h) to suit a particular situation.
i) to input data.
j) to form a straight edge.

Exercise 4
Ask questions based on the following sentences.

Viruses (or logic bombs) if not detected paralyze an international network. They bring a
nuclear plant to a halt or even freeze communications between aircraft and the air - traffic control
tower. If such viruses were not detected the results would be catastrophic.

Exercise 5
Make new words adding a prefix from the left-hand column to each of the words in the right-
hand column.

1. nano a) byte
2. giga b) second
3. micro c) put
4. out d) computer
5. in (negative) e) conductor
6. bi f) directional
7. semi g) routine
8. sub h) efficient

Exercise 6
Match the following terms to the phrase that is the most closely related.

a) card reader d) scanner g) cursor

b) mouse e) portable terminal h) keyboard
c) input controls f) fax machine

1. ____________ a machine that can copy a printed page into computers memory.

81
2. _____________ this appears on the video display to mark where the next character will be
positioned after it is typed in.
3. ____________ electromechanical component designed to create special standardized
electronic codes when a key is pressed.
4. _____________ Type of scanner that reads text and graphics and transmits them over
telephone lines.
5. _____________ Hardware device that reads the holes in punched cards and transfers the
appropriate signals as input to the computer.
6. ______________ Hand-held input device that is rolled across the desktop to move the cursor
on the screen.
7. ______________ A user can carry this to hook up to a central computer from a remote
location.
8. ______________ Safeguards used to ensure that data has been accurately input to the
computer system.

Exercise 7
Translate the sentences into English.

(A)
1. Dac dorim s modificm aspectul diagramei (amplasarea, dimensiunea, culorile etc.) este
necesar de a trece n regimul Design View.
2. Piraii informaticii pot face prpd / crea confuzie n sistemul informatic al unei firme.
3. Viruii pot paraliza o ntreag reea dac nu sunt detectai la timp.

(B)
1.
.
2. , ,
.
3. ,
, .

Exercise 8
Read the text and discuss it with your partners.

Cashless shopping, or electronic funds transfer at point of sale (EFTPOS), becomes now the
commonest form of retail trade. There are already 63,000 establishments with 132,000 terminals in
France, and the other major European countries are not far behind.
It works like this: a customer goes into a shop to buy goods, and when it comes to payment, he or she
draws a plastic card through an electronic terminal and then enters a code number known only to him
or her. Details of the transaction and the code are then sent by a telecommunications network to a
central computer which checks that the card is neither out of order nor stolen. Funds are then
transferred electronically from the customers bank account to the shopkeepers.

Your task:
There are obviously advantages and disadvantages in this new method of payment and you are invited
to complete the tables shown here.

82
 For Against

From the customers point of view:

1. 1.
2. 2.
3. 3.
From the retailers point of view:
1. 1.
2. 2.
3. 3.
From a banks point of view:
1. 1.
2. 2.
3. 3.

83
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n redacia autorilor
Redactor tehnic: Feofan Belicov

Semnat pentru tipar 08.07.10

Coli editoriale 9,9. Coli de autor 5,14.
Coli de tipar 10,5. Tirajul 250 ex.

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