PRACTICE TESTS FOR THE LINGUA EXAMINATION (Business English)

Author: Emilia Plcintar

CONTENTS To the Candidate 1. Professional Communication 2. Management 3. Business Meetings 4. Professional Presentations 5. Recruitment 6. Marketing 7. Advertising 8. Finance and Accounting 9. Banking 10. Insurance 11. International Trade 12. Information Technology in Business 13. Business Travel 14. Business Ethics 15. Intercultural Awareness Writing Reference Answer Key 2 3 9 15 20 24 28 32 36 42 50 54 59 64 69 73 78 100

TO THE CANDIDATE
The idea of this collection of tests originates in the questions asked by many final-year students about the structure and content of the LINGUA graduation exam in English, which is a prerequisite for the BA exam proper. The book is therefore grounded realistically in the requirements of this exam and is targeted principally at students in Economics and Business Administration, International Relations and European Studies, Management of European Institutions, and Public Administration of BabeBolyai University. The LINGUA exam for language proficiency is made up of the written and the oral components. In the interview, you will have to speak about two topics, each of which is marked with 6 points. For the first speaking task, you have to make a personal comment on a business-related situation or a more general issue. Examples of this question could be: What government service would you like to see improved in Romania? or Supposing you wanted to set up your own business, what aspects would you consider in your business plan? or Should the state subsidise higher education / the arts? For this first topic, you are given some thinking time to prepare a very brief answer that should address exactly the points in the question. The second subject is related to one of the themes included herein. This time, you will have to respond spontaneously to the examiners specific questions. For example, if you pick the subject Management, the examiner may ask you: What are the key tasks of managers? or Mention some attributes of an effective manager. The exam paper comprises four sections, and the different types of question that may be included in each section are described below. Listening (6 points) - Note making and blank filling: Complete the notes with an appropriate word or short phrase. - Multiple-choice questions: Decide which of the choices (A, B, C or D) is the correct answer. - True/False statements: Are these statements true or false, according to the recording? There is a sample listening task in Test 15. Reading (6 points) - Gapped text: Choose the best sentence from the list to complete each gap in the text. - Multiple-choice questions: Answer the questions by choosing the appropriate answer (A, B, C or D). - True / False statements: Decide whether the following statements are true or false, according to the text. Use of English (30 items 6 points) All these four task types are included. - Open-vocabulary cloze: For each blank, think of the word that best fits in the context. - Multiple-choice vocabulary cloze: Decide which of the options (A, B, C or D) best completes each gap. - Error correction: For each sentence, find the underlined part (A, B, C or D) that contains a mistake. - Word formation/derivation: Use the word given in CAPITALS at the end of each gapped line to derive a word that fits in the space. Writing (6 points) tasks may include the production of formal letters for various purposes, memos, reports or essays. The two main aspects taken into account in the assessment of your answer are use of language (accuracy of language, range of vocabulary and structure), and task achievement (inclusion of all the points given in the input, logical transition between ideas, and appropriate register). Tests 1 and 2 contain a sample writing task each.

The 18 theme-based tests in this new edition are designed with a double purpose in mind, namely to familiarise you with the exam format and to provide you with thematic content and vocabulary for the interview. The extensive writing reference section attached to the collection is intended to help you with the special characteristics of the various text types you are asked to produce. Good luck!

TEST 1 PROFESSIONAL COMMUNICATION

INTRODUCTION To communicate is to convey a message (information, thoughts or feelings) so that it is satisfactorily received and understood by the receiver. Professional communication covers the use of written and spoken language in work-related contexts, between professionals, as representatives of an institution, or between professionals and lay persons, both parties being interested in fulfilling their practical tasks and goals. It follows that institutional communication is primarily purpose oriented. That is why whatever communication task is undertaken, asking the following six questions before we start will give our communication a better chance of success and make the task easier: - Why? (purpose) Why am I communicating? What am I hoping to achieve? - Who? (audience) Who exactly is my audience (personality, age, status)? What do they need to know? How are they likely to react to my message? - Where and When? The answers to these questions will help us find answers to - What? (content) What exactly do I want to say? What do I need to say? What do they need to know? What information can I omit? What information must I include in order be clear, concise, correct, and complete? - How? What tone and style should I engage to sound courteous and constructive? Business communication comprises four areas of competencies: (i) oral interpersonal skills, (ii) business writing skills, (iii) basic English skills, and (iv) other business communication abilities. The skills involved in effective business communication are specified in this table. Oral interpersonal skills - analyse the audience before, during, and after the interaction - listen effectively - maintain eye contact - use voice effectively and strategically for emphasis - establish rapport with the audience - use appropriate body actions in interpersonal communication - ask appropriate questions and give appropriate responses - use appropriate register conversational or formal - present information objectively - organise presentations, conduct and participate in meetings, interviews, and negotiations - use audio-visual aids professionally Basic English skills - spell and punctuate documents correctly - use correct grammar - use appropriate/correct business vocabulary Writing skills - write well clearly, concisely, correctly, completely - write naturally and on the readers level - organise info into effective sentences and paragraphs - provide effective transition between ideas - use subordination and emphasis techniques - write persuasively - use psychological factors in writing positive words, you concept, service attitude, goodwill - select an indirect or direct approach based on the situation - use jargon in appropriate situations - write routine letters order, acknowledgement, inquiry, etc. - write special types of letter sales, applications, complaints/grievances, business proposals, etc. - word process/compose at the keyboard Other business communication skills - apply ethics, and values in business situations to determine sociable responsible actions - understand personal values and show sensitivity to the values of others - assess own needs and behaviour - use principles of time management to organise work efficiently - locate outside sources of information to improve knowledge and skills - collect, classify, and analyse information about business situations - use creative thinking in developing solutions; select effective solutions - exhibit leadership by influencing and persuading

- know the importance of feedback in the communication cycle - apply knowledge of intercultural differences to communication situations Oral versus written communication The most evident differences between speech and writing derive from the fact that they use different channels of communication. In general, by comparison with spoken style, written style is - less colloquial, with less slang, fewer shortened forms, interjections, etc.; - more correct, in terms of grammar and syntax; - more concentrated, with fewer fillers and roundabout ways of expressing things; - more complete, with more complex sentences including subordinate clauses; - less complex, with no non-verbal signals (tone of voice, gestures, facial expression) to help in the interpretation of the message. Writing also involves the following elements that are not relevant to spoken style: spelling, abbreviations, punctuation, visual and tactile elements, such as neatness, signals for emphasis and reference, paper quality, use of colour and design, etc., which are important in establishing a professional and congenial look. Oral business communications include interviews, presentations, negotiations, and meetings, while written communications comprise letters, proposals, reports, memos, faxes, emails, questionnaires, CVs, etc.

READING Read this extract from How to Steer Clear of Pitfalls in Cross-Cultural Negotiation by Andrew Rosembaum. Decide whether the following statements (1-6) are true (T) or false (F). 1) 2) 3) 4) 5) 6) The negotiation discussion between Henry and Hiroshi came to a deadlock because the negotiators had different expectations of the negotiation process. A negotiation between an American and a Japanese manager may be a long process because the Japanese manager is less resolute than his American counterpart. It is crucial for the first stage of the negotiation that the partners engage the problem-solving style with caution. Experts say that some cultures some cultures follow a certain protocol in the initial stage of a negotiation in order to develop some rapport with the partner. Western negotiators engage a more indirect and expressive communicative style than Asians negotiators. The author contends that while our partners culture cannot possibly be avoided, we should ultimately adapt to the specific communicative style of each negotiating partner. Tips for Avoiding Misunderstandings when Negotiating Cross-Border Deals
by Andrew Rosenbaum

Henry in Los Angeles and Hiroshi in Tokyo both like Armani suits, baseball, Mozart, and good Bordeaux. But Henry recently spoke for days with Hiroshi, his potential business partner, and yet the barriers between them were never broachedand the deal didnt get inked. The problem had to do with different conceptions of the negotiation process itself and misinterpretations of the others behavior. For Henry, negotiation is about pushing through a deal, period. When Henry didnt think their discussion was moving forward as quickly as he thought it should, his arguments became increasingly forceful. Because Hiroshi read this as disrespect, the negotiation essentially ended days before their talks did. Although globalized communications and marketing have made the world smaller in many ways, deep differences between cultures remain. Despite similar tastes, Henry and Hiroshi each approach negotiation in a way heavily conditioned by his national culture. Because they sat down at the table without understanding the others assumptions about the negotiation process, all they ended up with was an impasse.

Negotiation is always a delicate business, requiring determination and diplomacy in equal measure. But finessing a cross-cultural negotiation is a particular challenge. Here are some tips that can help you put together a deal with a foreign partner. Understand expectations Your negotiating partners expectations of the negotiation may well be very different from yours. Like you, he will want to succeed, but success may not mean the same thing to him and his co-nationals as it does to you. Decision-making styles may be different, too. American managers usually make decisions by themselves, while Japanese managers tend to make decisions by consensus, a practice that can add time to the negotiation process. Americans place a high value on flexibility, whereas once a Japanese manager has reached a decision, he believes it is shameful to change it, says Tokyo-based management consultant Mitsugu Iwashita, director of the Intercultural and Business Communication Center. Understanding these underlying attitudes helps you see what your potential partners priorities are, and you can then adapt your strategy accordingly. Establish common ground and choose your style Find anything that will allow your foreign colleague to share something with you. This can help you get past people problemsego wars, saving face, and so onwhich is a good tactic because these problems can crop up where you may least expect them. Now the real work can begin. Youll need to choose which of the two classic negotiating styles youll adopt: contentious or problem-solving. The contentious negotiator, a tough, demanding guy who makes few compromises, can be a great success given the right conditions. He either wins or loses, but never comes to a conditional agreement. The problem-solving negotiator takes a broader view, attempting to get as much as he can without handing out a deal breaker. He establishes common ground wherever he can find it and approaches negotiations on a step-by-step basis. While one has to be careful about generalizing across cultures, experts agree that a problemsolving approach to cross-cultural negotiations is prudent. (Indeed, many would say its the right choice for almost any negotiation.) The problem-solving approach helps to avoid blunders, says Elaine Winters, co-author of Cultural Issues in Business Communication. But there are limits to this approach. In many cultures, negotiation is ritualized, especially in its early stages. It is obviously important to learn these negotiating rituals for a given culture, even if your foreign partner turns out not to require them. Germans, for example, often need to spend a large part of the initial negotiations in number crunching. All the facts and figures must be agreed upon, and woe betide* the negotiator who makes a mistake! This German trait is not really about number crunching, however; it is a confidence-building ritual in which two potential partners run through a series of routine checks just to display trustworthiness. So the problem-solving approach, which would try to find common ground quickly, could prove threatening for the ritual negotiators. When confronted with cultural differences in negotiating styles, we need to be aware of the potentially adverse effects of a flexible, mixed style, says Willem Mastenbroek, director of the Holland Consulting Group (Amsterdam) and professor of organizational culture and communication at the Free University of Amsterdam. If it is not understood, people may perceive it as smooth and suave behavior and resent it. Because they are not able to counter it with equal flexibility, they may feel clumsy and awkward, in some way even inferior. It may also become difficult for them to believe in the sincerity of the other side. They may see it as an effort to lure them into a game defined by established groups which will put them at a disadvantage. Manage the negotiation Lets assume that you have passed successfully through the initial stages of the negotiation and that you have agreed upon common ground with your prospective partner. The game of tactics now broadens. It is at this stage, in which the actual issues go back and forth between participants, that your awareness of negotiating behavior typical to your potential partners culture can be put to use.

Italian negotiators, for example, will often try to push through this stage quite quickly, repeatedly insisting on their terms to tire out their opponents. Knowing this, a foreign negotiator may find a good tactic is to display no great hurry to dealchange the subject, digress, etc. On the other hand, Chinese negotiators usually make one offer after another at this point to test the limits of a possible deal. According to Winters, nonverbal communication in negotiations with a Chinese businessman can be quite important. He may say little in response to your questions, and expect you to garner what you need to know from his gestures and from the context of whatever he does say. More demonstrative Western cultures can find this conduct very difficult to work with, but the application here of patience and deductive reasoning can take you a long way. Most Europeans wont break off discussions unless they are deeply offended, but Asian negotiators are often happy to drop the project if they are uncomfortable with some aspect of the negotiations. If this happens, try to backtrack and fix the problem. But in focusing on your potential partners culture, dont lose sight of him as an individual. Its always best to learn as much as you can about his personality and communication style. Persona lize negotiation methods and approaches, Winters says. Dont ignore culture (impossible anyway!), try to treat it as background; focus on the capabilities of the specific individuals at the table. This is frequently successful because a new, mutually agreed-upon culture is being created just for this effort.
(http://www.mce.be/knowledge/315/46) *woe betide (used in making threats) there will be trouble for

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. Confused messages cause operational chaos. If we dont listen to our people and our customers, and __1__ not sensitive to their feelings and expectations, theres not __2__ hope for constructive dialogue. In __3__ case, more than 60% of our time __4__ spent communicating. The need __5__ good communications is a classic motherhood statement! Perhaps the first clue for improvement is to understand __6__ the sender-receiver relationship. Theres an ancient riddle __7__ goes Is there sound in the forest if a tree crashes down but no one is present to hear __8__? Certainly there are measurable sound waves but there is no meaningful sound __9__ a listener. Take the case of a finance director casually referring to debt/equity ratios and discounted cash flows when talking to junior managers. The words are clearly expressed but no meaning is conveyed __10__ they are outside the vocabulary of the listeners. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. The essence of good communications is the __11__ of meaning. The language must be __12__ and the receiver switched on. Positive listening is crucial. Too many managers are __13__ anxiously waiting to make their own brilliant __14__ that they dont hear what is said to them. The sender receiver __15__ is also influenced by __16__ of trust. If I have no trust in you as a person I may __17__ what you communicate, no matter how well that is __18__ technically. Confusion often __19__ because of dissonance between body language and words. A scowling expression with friendly words __20__ the clarity of communication. 11 12 13 14 15 16 A A A A A A change conceivable so participation connection layers B B B B B B shift apprehensive much control correlation levels C C C C C C transaction comprehensible too contribution association heights D D D D D D exchange comprehensive such part relationship planes

17 18 19 20

A A A A

refuse done rises imparts

B B B B

reject made raises impairs

C C C C

resist told arises impacts

D D D D

refute said arouses impeaches

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) It is essential (A) to get feedback to know if messages (B) are both received and understood. Most actors prefer the immediate response from a live audience (C) to performing before a camera. We tend to be preoccupied with sending messages (D) as clear and as well as we can. 22) Commendable though that (A) it is, the same creativity (B) should have been addressed to finding out if (C) the desired change or response to the message (D) has taken place. 23) Systematic questions, (A) careful listening and observation have (B) its part. A genuine open door policy (C) encourages feedback. Small group briefings (D) remove misunderstandings and generate common purpose. 24) That is true (A) for our own staff and (B) equally true for our customers. (C) Overzealous sellings may lead to the neglect of listening to (D) customer dissatisfactions and new needs. 25) The communication gap (A) is often only recognised when a customer is lost. In both cases, (B) the most successful communication style is participative rather than commanding and directive. We have this quality problem with product A. What (C) we can do together to overcome it? gives everyone a chance (D) to openly communicate their views and experience. When an action plan follows, everyone owns it. Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the space. The most important influence of communications within an organisation is that of information technology. Computers, telecommunications, graphics and more combine to produce radically new communications __26__. CAPABLE Speed, relevance, __27__ and exciting visual presentation ACCESS are typical __28__. If there is a down side it is the reduction of COME one-to-one human contact. __29__ success will go to companies COMPETE who understand how to reshape their organisation to these new communications and information developments and yet retain the __30__ of human interchange, with all its rich and subtle STRONG potential for understanding and motivation. (http://www.mce.be/knowledge/315/46) WRITING
Write a letter to be sent to a number of local employm ent agencies informing them about your companys one day courses and self-help training packs on business communication skills. The list of business communication competencies in the introduction above and the following extracts from recent newspaper articles will give you some ideas. Make up any further appropriate details. (See suggested solution in the Answer Key section.) According to a survey published yesterday, recent school-leavers are worse at spelling than any age group educated since the war.

Many young people are ruling themselves out of the labour market through their poor spelling. The unemployed are 50% more likely to make mistakes than those in work. Under the slogan Language is Power, the Ministry of Education and Research has initiated a nd funded the Be a Better Communicator campaign, which aims to emphasise the link between communication skills and job prospects.

TEST 2 MANAGEMENT
INTRODUCTION Management refers to the process of leading and directing all or part of an organisation, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible). One can also think of management functionally, as the action of measuring a quantity on a regular basis and of adjusting some initial plan, and as the actions taken to reach ones intended goal. Peter Drucker, the minence grise of management theory, speaks about five main tasks of a manager: - to set objectives - to organise the activities by delegating responsibilities among employees - to motivate and communicate - to measure the performance of employees - to develop people Modern management as a discipline began as a branch of economics in the 19th century. Classical economists such as Adam Smith and John Stuart Mill provided a theoretical background to resource allocation, production, and pricing issues. About the same time, innovators like Eli Whitney, James Watt, and Matthew Boulton developed technical production elements such as standardisation, quality control procedures, cost accounting, interchangeability of parts, and work planning. By the middle of the 19th century, Robert Owen, Henry Poor, and M. Laughlin introduced the human element with theories of worker training, motivation, organisational structure and span of control. The first comprehensive theories of management appeared around 1920 when Henri Fayol and Alexander Church described the various branches of management and their inter-relationships. In the early 20th century, Ordwat Tead, Walter Scott and J. Mooney applied the principles of psychology to management, while other writers, such as Elton Mayo, Mary Parker Follett, Chester Barnard, and Max Weber approached the phenomenon of management from a sociological perspective. In 1946, Peter Drucker wrote Concept of the Corporation, a book on applied management. He went on to write 32 books, many in the same vein. Some of the more recent developments include the theory of constraints, reengineering, and various information-technology driven theories, such as software development. The theory of constraints approach describes management decision-making as a continuous cycle of the following three basic questions: What to change? To what to change? How to make the change happen? Towards the end of the 20th century, management came to consist of a number of separate branches, including: Human resource management Operations or production management Strategic management (see below) Marketing management Financial management Information Technology management In the 21st century, we find it increasingly difficult to subdivide management into categories in this way, as more and more processes simultaneously involve several categories. Strategic management is the process of specifying an organisations objectives, developing policies and plans to achieve these objectives (i.e. strategy formulation), and allocating resources so as to implement the plans (i.e. strategy implementation). It is the highest level of managerial activity, usually performed by the companys Chief Executive Officer (CEO) and executive team. It provides overall direction to the whole enterprise. Strategy formulation involves (i) doing a situation analysis, (ii) setting objectives, and (iii) suggesting a strategic plan in line with the situation assessment. Strategy implementation includes (i) allocating sufficient resources, (ii) establishing a chain of command, (iii) assigning responsibility of specific tasks or processes to individuals or groups, (iv) managing the process of monitoring results, and (v) making adjustments to the process as necessary. An organisations strategy must be appropriate for its resources, circumstances, and objectives. The process involves matching the companies strategic advantages to the business environment the organisation faces. One objective of an overall corporate strategy is to put the organisation into a position to carry out its mission effectively and efficiently. A good corporate strategy should integrate an organisations goals, policies, and action sequences / tactics into a cohesive whole.
(adapted from http://en.wikipedia.org/wiki/Management)

READING Read the article about the importance of interpersonal skills in management. The topic sentence (i.e. the sentence that introduces the main idea/thought) in each paragraph has been removed. Choose from the list (A-N) the best sentence to fill each of the blanks (1-12). There is one extra sentence, which does not belong in any gap. There is an example at the beginning (0 J). A B C At its core, this dimension is about forging connections with groups of people through visual and verbal imagery. Individuals who score high in this dimension need to see and interact with other people very frequently to feel satisfied. While people who score high in influence can be found in any function and any industry, weve discovered that individuals with deal-intensive roles in financial services and sales tend to stand out in this dimension. Its important to note that the four relational dimensions are not discrete types. Although relational creativity in business is most commonly used for persuading customers to buy and investors to invest, it is different from the influence dimension. This is the dimension many people first think of when they think people person. Weve analyzed psychological tests of more than 7,000 business professionals, and our findings challenge the limited traditional notion of who people people are. Clearly, people people are not interchangeable. Consider Alicia DiGiavonni, the internal medicine unit manager at a Boston-area HMO. The truth, however, is much more nuanced than that. Most of us dont have much occasion to interact with people who stand out in this dimension, although chances are we have coworkers with this strength that we don't know about because it has no outlet in their daily jobs. Professionals who earn a high score in this dimension enjoy developing and extending their sphere of interpersonal influence. The skill of resolving conflict in a department or company (as a leader, a manager and a visionary) is invaluable in maintaining work processes, meeting deadlines, staying profitable and, ultimately, keeping morale in check. The difference between individuals who score high in team leadership and those who do so in the influence dimension is their interest in managing people. Leveraging Your Teams Interpersonal Skills
by Timothy Butler and James Waldroop

D E F G H I J K

L M

What does it really mean to be good with people? This Harvard Business Review excerpt examines the relational aspect of business. Most executives assume they know who their people people are. Theyre the team players, the ones who know whats going on in their colleagues personal lives, the ones who can smooth over interpersonal conflicts. Theyre usually found in human resources or sales. [___0 J___] Interpersonal savvy is critical in almost every area of business, not just sales and HR. In fact, it comprises aptitudes that are more varied than a lot of people might think. Recently, weve co nducted extensive research on the people side of doing business - what we call the relational factor. After more than eighteen years of studying how the deeply embedded life interests of business professionals develop into career roles, we know that individuals do their best work when it most closely matches their underlying interests. Managers, therefore, can boost productivity by using their employees relational interests and skills to guide personnel choices, project assignments, and career development. [___1___] Using factor analysis, a method of statistical analysis, we have identified four distinct dimensions of relational work: influence, interpersonal facilitation, relational creativity, and team

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leadership. In this article, well explain each component and show how knowledge of all four can help managers hire the right employees, make the best work assignments, reward performance, and promote career development (others and their own).

The four dimensions

To maximize the interpersonal capacity of your organization, you must understand all four areas of relational work - because when you match employees interests and skills to their responsibilities, everybody gains. Influence [___2___] They take pleasure in persuasion, negotiation, and the power of holding valuable information and ideas. This dimension of relational work is all about changing the point of view or the behavior of others. An old expression, He could talk a dog off a meat truck, aptly describes high scorers here. Whether to a customer or to a colleague - and whether they're talking about a product, a service, or an idea - these people live to sell. Think of the manager in your firm who is always able to get more resources for his projects than anyone else can. Or picture that former boss of yours who could always get people fired up for the next challenge, regardless of how tired they were from the last one.

[___3___] Jeffrey Manning (all names of people cited as examples in this article are pseudonyms), for instance, the managing partner of a very successful venture capital firm, was running his own fund at age thirty-one. Some would argue that his success was a function of good timing - he entered the world of high-technology investing in the mid-1990s - but those who have done business with him have a different explanation: Jeff is a natural at deal-intensive finance. He's a born networker. Whether he's on the golf course or at the annual dinner for a prominent charitable organization, his talent for meeting people and inspiring their confidence is indisputable. Jeff is not a salesperson, nor is he a team-focused manager. He's an alliance builder and negotiator. He can locate and gather key players to participate in deals that optimize value for all parties involved.
Interpersonal facilitation [___4___] Individuals with high scores here are keenly attuned to the interpersonal aspects of a work situation. They intuitively focus on others experiences and usually work quietly behind the scenes to keep their colleagues committed and engaged so that projects don't get derailed. They naturally ask themselves questions like What group will work together best to get this job done? and Why is Joe being overcritical in meetings and underperforming in general? and What sort of assignment d oes Miriam need to grow and feel more competent? These types of issues rarely show up in reports, but as every seasoned manager knows, handling them effectively is essential to organizational success.

[___5___] She has an MBA and is a focused, task-oriented operating manager, but her success comes from her effectiveness as the organization's unofficial psychologist. Alicia has done more in the way of counseling, conflict resolution, coaching, and informal personality assessment than many of the therapists who work in the mental health unit. Staff members frequently confide in her when there is disabling friction within a work team, when they need career advice, or when theyre struggling with personal issues. She is an expert at recognizing hidden agendas at meetings and identifying the problems that workers are reluctant to share with senior managers. She knows which combinations of people on a project team would yield great synergy and which would be disastrous. On countless occasions, Alicia has kept projects on track through skillful, behind-the-scenes interventions.
Relational Creativity [___6___] This is the relational work being done when an advertising account team conceives of a campaign, when a marketing brand manager develops a strategy to reach a particular consumer segment, when a speechwriter crafts the presidents next address, and when a senior manager

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develops a motivational theme that will focus and inspire her employees.

[___7__] Professionals skilled in influence convince others on a person-to-person basis, whereas people talented at relational creativity use images and words to arouse emotions and create relationships with groups. This dimension is not a measure of creativity in generalonly in the interpersonal realm. Someone whos creative in an analytical area of business work (such as designing new investment instruments) can still have low interest in relational creativity; similarly, an artist (such as a composer or a painter) can lack skill in this domain.
[___8___] For an example of someone with outstanding skills in relational creativity, look at Diane Weiss, a senior editor for a major magazine. Whether the question is which illustration to use, how best to express data graphically, what title to give an article, or what image to put on the cover, Diane is the one to ask: She has an unerring sense of what will pull readers in. But she is not known for her easy management style or her ability to "read" people. In fact, even her most ardent fans will agree that she can be exceedingly difficult to work with. For understanding the masses, though, Diane is as good as you can get. She is a bona fide people person - with the emphasis on the plural. Team leadership [___9___] Conversely, the more time they spend in front of a computer screen, the worse they feel and perform. Professionals with a high level of interest in team leadership love managing high-energy teams in busy service environments and enjoy working both with the team and with the customer. Their ideal job might be overseeing a busy resort or a retail store. [___10___] High scorers in team leadership always want to work through a group. Theyre the embodiment of the player-coach role. People who score high in influence are interested in the outcome of an interaction the closed deal - whereas those scoring high in team leadership focus more on the interpersonal and managerial processes. Compare the managing director of mergers and acquisitions at an investment bank (excelling in influence) with the sales manager at a large automobile dealership (strong in team leadership). Not all team leaders - even effective ones - have high scores in this dimension, however. It is quite possible for team leaders in areas such as production, research and development, and information technology to show little interest in this particular relational skill. But we consistently see high scores here for leaders of teams that have a strong customer focus. [] [___11___] A person can have great interest and skill in two or more of these areas or in none of them. And scoring high in more dimensions isnt necessarily better; some are irrelevant or even detrimental to certain types of work. Above, weve offered examples of people who are stars in one dimension, but some of them score high in other areas as well. [___12___] Put Diane where you should have Alicia, and the results will be disastrous. Thats why its so important to align your employees relational talents with their job responsibilities. Keep the four dimensions in mind when youre hiring new employees, assigning tasks, rewarding employees for their contributions, and developing the people in your organization, including yourself.
(from Understanding People People, Harvard Business Review, June 2004 http://hbswk.hbs.edu/item.jhtml?id=4187&t=leadership&noseek=one)

USE OF ENGLISH

Questions 1-10

For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. Managing conflict is __1__ learning to ride a bicycle its easy when you get __2__ help balancing, and practice, practice, practice! The difficulty most of us run __3__ is that we expect __4__ to be good conflict managers without having learned the skills, then we __5__ mad at ourselves for doing the same thing over and over __6__, getting the same predictable results. We react habitually because we dont know any __7__ way. We didnt take conflict management in school __8__ with science and math. Our role models may not have __9__ great skills either, so we end up dealing with conflict the way our parents __10__, or vowing to take the opposite approach.

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Questions 11-20

For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. In other words, we muddle __11__, doing the best we can, getting the same __12__ results, not understanding why we get caught and not having __13__ to do it differently. Its important to understand this so we dont become frustrated with ourselves, and expect __14__ change. Good conflict management is a learned __15__. In many instances it goes against our basic __16__ of flight or fight. First we need to __17__ the pain conflict brings into our life and be willing to let go of ineffective habits and knee-jerk reactions. Then we can concentrate on applying new behaviors. Often when we decide to change ourselves, we want others to change as well, so its important to __18__ a live and let live approach.

One of the best arenas for practicing conflict management is in our relationships with others, particularly those were __19__ to, because thats where we __20__ into the most difficulty. Below are Seven Strategies for Success, which I find very useful.
11 12 13 14 15 16 17 18 19 20 A A A A A A A A A A along sad means direct skill behaviour acknowledge improve most intimate get B B B B B B B B B B through hopeless devices urgent craft reaction declare produce nearest are C C C C C C C C C C in grievous tools instant knowledge attitude approve develop fondest come D D D D D D D D D D about woeful utensils current experience approach adopt grow closest go

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) (A) Notice your body language and tone of voice. Are you projecting (B) what do you intend to? Listen, and then listen again. Listen (C) with your eyes and ears. Listen to what the person (D) is not saying. 22) Listen with your heart. (A) Lets go of the inner judge - that part of you (B) that criticizes and attacks. Banish your fault-finder by taking a deep breath and (C) substituting a positive thought instead. This process is never ending, so youll have (D) plenty of opportunities to practice! 23) Deal (A) with the present situation only (B) no passed examples to score points! Ask yourself: Do I want (C) to be right or happy? Then decide. After all, youre the one (D) who gets to live with the consequences of your choice. 24) (A) Omit words like NEVER, SHOULD and ALWAYS (B) from your communication. These words (C) tend to escalating conflicts. (D) Take full responsibility for the communication. 25) This means doing whatever (A) it is necessary to ensure that (B) you are creating an inclusive dialogue (C) in which each person (D) feels seen, heard and understood. Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the space.

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Youve __26__ no doubt, that these strategies are all for you, and not NOTE the other person. Thats because youre the one reading this article, so if you want change, be the change you want to see happen! When we use these tools, the Strategies for Success, we get to understand and appreciate our human differences, which in turn __27__ VITAL and __28__ our relationships. STRONG As the __29__ goes, what goes around comes around, so give SAY the very best of yourself and be prepared to receive the best from others. __30__ practicing! JOY (from Managing Conflict by Angela Jackson, http://www.mce.be/knowledge/316/46) WRITING Describe the characteristics of an exceptional manager by examining someone whom you have observed or with whom you have worked. Illustrate how his or her management style has influenced you. (See suggested solution in the Answer Key section.)

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TEST 3 BUSINESS MEETINGS INTRODUCTION

Meetings are an essential tool of management and supervision. Although some people feel that meetings are a waste of time, when they are at their best, they are a place where people can be creative together, and where everyones perspective, knowledge and experience can be integrated. Meetings can be an important part of a process of coming up with innovative solutions to problems and new and better ways of doing things. To make every meting pay off it is essential that everyone play their role conscientiously. Thus, the responsibilities of the Chair are to decide the item of business to be discussed; define the limits of discussion; keep people to the point and ensure that one person speaks at a time; try to be as impartial as possible and at all costs avoid arguing with members; make sure the rest of the group understand what is going on. In a problem-solving context, the Chair should identify the subject/problem, state it clearly and repeat it at intervals, if necessary; exchange and develop ideas; get the evidence and interpret it before getting ideas for the solution to the problem; evaluate the alternative by identifying the range of choices available; predict the consequences of each (time, cost, resources, political considerations); select a course of action, preferably by consensus and make sure everyone knows what their responsibilities are. To stimulate discussion, the Chair should phrase questions to avoid yes or no answers; keep questions brief and straightforward; use simple words; use questions directly related to the topic; use questions that cover a single point. Participants in a meeting are expected to resist negative feelings about meetings and develop an attitude of open-mindedness and consideration for others. They should ensure that they are properly prepared and informed on the topic, as the quality of a meeting depends on the quality of information possessed by the group members. The characteristics of an effective meeting participant are: a consideration of the other people involved; a recognition that interaction must be a flexible two-way process; an awareness of communication barriers and a desire to overcome them; an ability to think logically and analytically; an ability and desire to speak clearly, to the point and in a language adapted to others; a sense of proper timing in terms of when and how to speak; a desire to co-operate and conciliate in order to achieve group goals; an understanding of the need for attentive listening. The secretary or minutes writer has the duty to obtain the materials from previous minutes or new sources; draft the agenda to a logical order of priorities; agree with the chairperson; circulate notice of meeting and agenda; write the minutes (an official written record of what is said at a meeting and what decisions are taken there).
(adapted from D. Nickson and S. Siddons Business Communications and N. Stanton Mastering Communication)

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READING Read the article about the use of video in meetings. Choose the best sentence from the list below (AH) to fill each gap (1-6). There is one sentence that you do not need. There is an example at the beginning (0 - A). A B C D E F G H Say your company is having a big meeting focusing on soft quarterly results. A short video can be worth a thousand PowerPoint slides at your next meeting. But with video you can take everyone in the meeting to places they couldnt otherwise go. The video can reinforce key points made over a multi-day meeting or leave one or two resonant images in the minds of the audience. It doesnt matter whether you want to explain how to fill out a form, show how to operate a machine, or detail the benefits of a product. Let the professionals do it; there are seasoned video production teams in most towns of any size. A brief word or two from an expert, a customer, or someone at your company could present a point of view or deliver a message that would be difficult to do otherwise. Visual aids such as Microsofts PowerPoint too often merely increase the audiences fatigue. Lights, Camera, Presentation! Liven Up Boring Meetings with Video by Robert M. Goodman Theres something uniquely powerful about the moving image: the combination of sound and action grips an audience like nothing else can. Todays technology means that this power can reach beyond TV and movie audiences right into the conference room. Think of how a speaker tells a joke to warm up an audience. A video can do this even better. [___0 A___] Show a video that highlights the companys real or perceived foibles* to begin a discussion about how to improve the companys performance. Visual metaphors are a great way to motivate or inspire. If teamwork is a theme of your meeting, try playing a short video in which a team of mountain climbers conquers a mountain. Or show a video that demonstrates how an Indy 500 pit crew contributes to the drivers success. Putting together a compelling video is easier than you might think. Whats more, its quite affordable. Heres how to make video work for you. Set the stage Open the meeting with a video program that sets the tone for the rest of the proceedings. This visual and aural medium excels at evoking an emotional response from an audience. After watching the program, everyone will be in the same frame of mind, and the business of the meeting can flow forward from this shared moment. Eliminate barriers Most of us have seen the earth from the moon, penguins on an Antarctic beach, and the colossal figures on Easter Island - on television. Gaining access to a high-tech clean room, seeing your companys secure servers, or having a birds-eye view of company headquarters is equally beyond the reach of most people. [___1___] If it would help everyone understand the situation, show them the inside of the factory or a news report about unrest in a faraway country that will have an impact on your company's performance. Video also allows you to bring people into your meeting who would be unavailable because of budgetary or time constraints. [___2___] This may be the best approach to enhance credibility, deflect anger, or tout an accomplishment. Video provides the advantage of being able to select the right person rather than just whoever happens to be available at the time to make the presentation.

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Provide the best view Video gives everyone at the meeting the best view of the subject at hand. [___ 3___] Everyone shares the same view and has equal access to the information. A moving picture is worth more than a thousand words. A camera can peer into an electron microscope, hover over a vat of molten steel, or go under a cars engine to reveal carefully composed images that convey meaning quickly. Its easy to focus the audiences attention by isolating a particular area on screen to help them see what you want th em to see. Video can demonstrate behaviors you wish others to model. A carefully edited version of a sales call can teach more in minutes than hours of mentoring may accomplish. The demonstration remains consistent no matter how many times the video is played.

An added benefit of video is that copies of the program can be made available to the audience so they can watch it again later for reinforcement.
Alternate channels An unbroken procession of speakers can be tiring. [___4___] Break up that succession of speakers with a short video that has movement, color, and music. Its an opportunity to change the mood, switch subjects, or inject some fun. In a minute or two, you can have your audience laughing, speculating on the future, or visiting the plush resort your company has selected as an incentive for its top performers. Sum everything up

Too many meetings drag to a close; end your meeting with color and action. By closing the meeting with a video, you can motivate the audience to sell more, seek success, or solve challenges. [___5___] A common way to build camaraderie over multi-day sales meetings is to tape the attendees participating in the different events. Try this with your team.
At the close of your meeting, show the final program and distribute copies. Not only will the video commemorate a shared experience; more importantly, it will further cement the participants sense of community and their commitment to meeting common goals.

What does it cost? Plan to spend anywhere from $1,000 to $2,000 per minute of finished video depending on how many bells and whistles you want. [___6___] To find a good one, inquire at local TV stations. Most contract with independent teams on a regular basis, and will know who the reliable ones are.
(http://hbsworkingknowledge.hbs.edu/item.jhtml?id=3331&t=career_effectiveness&noseek=one) *foible weakness, failing, fault, imperfection

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. If you think you and your colleagues __1__ attending more meetings than ever __2__, its probably not your imagination. In the old command-and-control days, people __3__ not need to gather in meeting rooms that __4__. But as the workplace __5__ become more collaborative and democratic, experts say, organizations have needed __6__ meetings to share information, receive peoples input, and make group decisions. __7__, mergers and alliances have increased the need __8__ more interorganization meetings in __9__ to those taking place __10__ companies. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct.

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But while meetings at their best can make crucial contributions to your companys success, __ 11__ in mind that meetings at their worst represent not only a lost __12__ but also wasted money. Time is __13__; when one factors in the hours employees fritter __14__ at meetings instead of using the time to complete work at their desks and in the field, companies are wasting enormous amounts of money. The Web site EffectiveMeetings.com, operated by the Calgary-based SMART Technologies, offers a meetings cost calculator that can help you determine the cost of meetings based on a set of __15__. For example, the typical weekly management team meeting can cost a work group $390 each time it assembles - or more than $20,000 a year - assuming that the group consists of five members averaging $70,000 a year in salary and that the meetings last about two hours. Add to that dollar amount the __16__ taken by the accumulated stress and discontent of staffers who return from backto-back-to-back meetings to an avalanche of messages and a deferred to-do list that __17__ by the day. I have clients telling me they are completely overwhelmed by this meeting mania happening at many companies, says Peggy Klaus, a consultant in Berkeley, Calif. In this new meeting culture, managers sometimes feel they have to hear everyones __18__ before they make a decision. But it can become such a time drain that its ridiculous. Below are some practical ideas for managers __19__ on having meetings that enhance, rather than __20__, their organizations success. 11 12 13 14 15 16 17 18 19 20 A A A A A A A A A A have event defined away varieties toil rises knowledge intended hinder B B B B B B B B B B hold possibility finite off variations damage grows experience intense delay C C C C C C C C C C put opportunity definite up variables loss mounts testimony intent resist D D D D D D D D D D keep time definitive down classes toll increases input intensive hold

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. Dont always have a meeting 21) (A) The solution to an unproductive meeting might be (B) as simple as not having it. As experts explain, meeting mania is fueled (C) in large parts by the use of meetings to take care of business better handled (D) by other means.

22) Before calling the troops together yet again, managers (A) should have asked themselves whether the purpose of the meeting might be fulfilled (B) some other way. If the point is to share information - which is all too frequently the case in organizations (C) plagued by bad meetings - e-mail, memos, and informal conversations (D) will probably work better.
23) The best reason (A) to have a meeting is that you really need interaction between the people (B) who are attending. You need people to share (C) opinions and knowledges, and build a common integrated thought-line about the issue at hand. Then a meeting (D) if done well - is perfect for that. 24) In a few cases, information sharing might also be a legitimate purpose (A) for scheduling a meeting but only (B) if you need the immediate spontaneous give-and-take thats possible when (C) everyone are together in real time. Otherwise, e-mail or voicemail (D) will probably suffice.

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25) Before calling a meeting, (A) youve really got to ask yourself, What is the point? (B) What it is that, when youre done, you (C) want people to do or think or feel? Ask yourself: (D) Do I really have to have this meeting? Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the space. Spend time to save time Terrence, the communications director of a health services company, grumbles about all the meetings he attends. Yet when the senior management team made a decision on his turf, Terrence was furious about not being invited to the meeting at which the matter was discussed. His behavior is not as __26__ as it may appear. Terrences problem with meetings is that most he attends are inefficient, unfocused time drains. Worse yet is that the meetings where the companys real business gets accomplished are not managed with __27__ skill to ensure that the right players are there. Terrence from the example above would not have missed the one meeting he did care aboutand where his presence would have been most __28__if his company better prepared for and communicated about meetings. Even if the presidents executive assistant had forgotten to invite Terrence, if she had __29__ circulated the agenda in advance to all managers, Terrence would have known what was coming. Then he could have lobbied to join the meeting, or at least sent an e-mail to his boss with the vital information. Dont discuss Discussion is no longer good enough. Time-starved staffs need more than directionless chatter or meant-to-impress progress reports. __30__ meetings depend on clearly defined objectives toward which people can work and against which they can measure progress. If Im organizing a meeting, I want to get beyond discuss, Streibel says. Maybe discuss and decide. Or discuss and build a plan, or discuss and identify key barriers to success. CONSIST

SUFFICE

BENEFIT ROUTINE

PRODUCE

(adapted from http://hbsworkingknowledge.hbs.edu/item.jhtml?id=3507&t=career_effectiveness)

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TEST 4 PROFESSIONAL PRESENTATIONS

INTRODUCTION A presentation is a talk, usually to a group of people, in which information is given. Presentations may have various purposes: to inform or describe, to instruct or explain, to persuade, convince or inspire, to entertain or amuse. The purpose of a presentation will determine the speakers approach to it. For example, if your objective is to influence the audiences beliefs, attitudes or behaviour, you must appeal to logic or emotion by engaging a formal, apparently objective style for credibility or an informal, personal style for congeniality, respectively. Similarly, you must structure your talk by argument and back up your utterances with facts or engage vocabulary designed for vividness, interest, and engagement of emotions, respectively. To give an effective presentation, you need to go through the following processes: setting your objectives researching your audience choosing the structure of your talk preparing your script preparing any visual aids rehearsing the presentation warming up your voice delivering the presentation dealing with the audiences questions following up the presentation

If you want your audience to go away with a clear understanding of what has been presented and a clear direction to follow, you need to prioritise your information and structure your talk carefully. Thus, in the opening stage, announce the subject and your objectives; tell the audience who you are (i.e. name, title, contact information); describe the background to the presentation; mention what your conclusions will be; show that you understand the audiences concerns; mention the benefits for the audience; set the scene for the talk; grab their attention; set their expectations (i.e. how long the presentation will last, when you will deal with their questions); encourage them to listen actively. The middle part should back up all the claims you made at the start, clarify your message and develop your arguments. You should try to link each of the points you are making so that your presentation moves smoothly from one point to the next. Use visual aids to help the audience understand abstract concepts, to reinforce important and exact information, to link several ideas or compare information. In the concluding stage, summarise the most important points of your talk; remind the audience of the benefits that your solution, product, options, conclusions will bring to them; launch a call to action; ask for questions and answer them where appropriately; tell them how to contact you if they need to. Good presenters prepare the end of their presentations on a high, by using an anecdote o r asking for a decision or presenting a final benefit.
(adapted from D. Nickson, S. Siddons, Business Communications; N. Stanton, Mastering Communication

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READING Read the article about presentations. Choose the best sentence from the list below (A-H) to fill each gap (1-6). There is one sentence that you do not need. There is an example at the beginning (0 - C).
A B C D E F G H You should check that view well in advance of the presentation. If they plainly stated that they want to sell an idea or a product to the audience or that they were there to convince them that this is their best choice? Everything you do during that presentation is some form of manipulation. The chances that they will act as you want them to will then increase dramatically. Not if you are open about it. A good way to do this is to bring in a few supporters. Maybe even further, in some cases you may not want your audience to realise that you are manipulating them. But in the final analysis, its the information a show imparts t hat matters most to those putting their money down to attend.

Presenting Is Manipulating! Are You Ready for It? by Eric van de Graaff Any presentation should be seen as what it really is, a fully orchestrated activity aimed at manipulating the attitude and actions of the audience towards your own objective. [___0 C___] The most successful presentations bring to the audience exactly what they are expecting from it. First they focus the audiences attention, then they address what they will find important and finally, they clearly state what the presenter wants the audience to do once the presentation and interaction is over. From my own experience as trainer and coach, my message to you is: tell your audience what you expect as soon as possible. [___1___] Presenting is manipulation When you present a message to an audience, you want to manipulate. You want to create a visible change in their behaviour. You want them to say yes to your proposal, buy your product or endorse it. This is not only true for commercial presentations but in almost all other circumstances too. [___2___] You may want them to feel that they have made up their own minds. State the conclusion at the beginning! I have met many presenters who want to keep their objectives hidden. Sometimes they are so well hidden that the audience couldnt comply with them even if they wanted to! These presenters dont jump for joy at the first signs of agreement. They refuse to show their cards, and they don't ask for the business. But what would happen if they were simply open about what they wanted? [___3___] Why not explain your own expectations at the beginning of your presentation so that everyone knows where you stand? If the expectations are bold, you may well already get some feedback on where the audience stands in relation to your expectations by means of non-verbal behaviour, e.g., nodding or shaking of heads. This tells you where you will meet opposition and where to look for support. You should then find out more specifically what their opinions are, what they think about the subject at hand and what it would take to convince them of your own viewpoint. Next, you should suggest that you address their specific concerns and discuss the advantages of your product, so that they can judge for themselves. Once you have the audiences agreement on this course of action, the presentation is simple. You have found some support and the discussion is open. You are able to concentrate on the needs of your audience and less so on manipulating them. Again, chances are that your audience will react as you want them to. Create your own audience! In some cases, you may be able to optimise the outcome of your presentation by balancing the audience. [___4___] Suggest a few supportive questions to them so that they can start the interaction,

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if needed. But select these people carefully, look for the people that you really want to influence, and assess their opinion. Find out what it would take to convince them, and make sure you give them lots of attention. The amount of attention alone will shape their willingness to listen to your message. They may be your first point of support from the wider audience. Use your supporters to convince those who are in doubt! Many people ask me, but what if someone airs a negative opinion about my product? Thats where you need to be prepared. Never react to the opinion yourself and certainly dont ask the overt opposition to address the issue. Ask an influential member of the group to give their view - preferably a person with positive experience of your product and a positive attitude towards your presentation objectives. This is the best way to manipulate the others. [___5___] Is it misleading? [___6___] Stating that your presentation is your best chance to manipulate the audience and that you intend to take advantage of that may seem like an odd thing to do. But think about it. is it really?
(http://www.mce.be/knowledge/90/26)

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. Do your knees feel like Gumbys when you have to get up and speak in front of a group? Do you feel like the next words __1__ of your mouth are going to be the dumbest words __2__ uttered by a human? If you said yes to either of the questions above, you have a full-blown __3__ of stage fright. Everyone, even experienced speakers, __4__ some anxiety when speaking in front of a group of people. This is perfectly normal. The __5__ way to deal with this anxiety is to first acknowledge that this fear is perfectly normal and you are __6__ alone. To reduce your fear, you need to __7__ sure you properly and thoroughly prepare __8__ before you speak. Proper preparation and rehearsal can help to reduce this fear by about 75%. Proper breathing techniques can further reduce this fear by __9__ 15%. Your mental state accounts __10__ the remaining 10%. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. __11__ are just a few suggestions you should use to __12__ your speaking anxiety. The first and __13__ important of all is preparation. I like to think of it as the 9 Ps: Prior Proper Preparation Prevents Poor Performance of the Person Putting __14__ the Presentation. __15__ will relax you more than to know your are __16__ prepared. Here are 10 steps you can __17__ to reduce your speech anxiety. Know the room - become familiar with the place in which you will speak. Arrive __18__ and walk around the room including the speaking area. Stand at the lectern, speak __19__ the microphone. Walk around where the audience will be __20__ and from there to the place where you will be speaking. 11 12 13 14 15 16 17 18 19 20 A A A A A A A A A A Down overcome very up Nothing fairly take before at sat B B B B B B B B B B Below overlook most out Something accurately do soon over seated C C C C C C C C C C Next override more on Anything reasonably learn quickly into settled D D D D D D D D D D Following oversee utmost in Everything properly go early on placed

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 Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) Know the audience (A) If possible, greet some of the audience (B) as they arrive and chat with them. (C) It is easiest to speak to a group of friends (D) than to a group of strangers. 22) Know your material - If you are not familiar with your material or (A) are uncomfortable with it, your nervousness (B) will increase. Practice your speech or presentation and (C) revise it until you (D) will present it with ease. 23) Learn how to relax - You can ease tension (A) by doing exercises. (B) Sit comfortable with your back straight. (C) Breathe in slowly, hold your breath for 4 to 5 seconds, and then slowly exhale. To relax your facial muscles, (D) open your mouth and eyes widely, then close them tightly. 24) Visualize yourself speaking - Imagine yourself walking confidently to the lectern (A) as the audience applauds. Imagine yourself speaking, (B) your voice loud, clear and assured. When you (C) will visualize yourself as successful, you will be successful. Realize people want you to succeed - All audiences want speakers to be interesting, stimulating, informative and entertaining. They want you (D) to succeed not fail. 25) Dont apologize for being nervous - Most of the time your nervousness (A) does not show at all. If you dont say anything about it, (B) nobody will notice. If you mention your nervousness or apologize for any problems you think you have with your speech, youll only be calling attention to it. (C) Had you remained silent, your listeners (D) may not notice at all. Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the space. Concentrate on your message - not the audience. Your nervous feelings will dissipate if you focus your __26__ away from your anxieties and concentrate on your message and your audience, not yourself. Turn nervousness into positive energy - the same nervous energy that causes stage fright can be an asset to you. Harness it, and transform it into __27__ and enthusiasm. Gain experience - Experience builds __28__, which is the key to __29__ speaking. Most beginning speakers find their anxieties decrease after each speech they give. If the fear of public speaking causes you to prepare more, then the fear of speaking serves as its own best antidote. Remember, He who fails to prepare is preparing for __30__ - so Prepare, Prepare, Prepare!

ATTEND

VITAL CONFIDE EFFECT

FAIL

(adapted from http://www.mce.be/knowledge/89/26)

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TEST 5 RECRUITMENT INTRODUCTION

Recruitment communications include writing job advertisements, CVs or rsums, letters of application, and attending interviews, whether as interviewers or interviewees. An employer may choose to advertise a job / position / vacancy / post through one of the following job advertising media: (i) in-house magazines and notice boards; (ii) the situations vacant or appointments page of professional trade or technical newspapers or magazines, and national or local newspapers, (iii) job centres, or (iv) school and university careers office. The job ad(vertisement) should be concise but comprehensive enough to give an accurate job description (e.g. job title, area of business activity, size and type of organisation, main duties and responsibilities, salary, benefits, opportunities for training, career development, etc.) and candidate specification (e.g. qualifications and experience, other skills and special aptitudes, required and preferred / desirable). A job ad may also include advice on how to apply, to whom and by what date. A CV or rsum (AE) is a form of advertising designed to help you get an interview. So your objective is to call the recruiters attention to your best features and to downplay your disadvantages, without distorting the facts. In the CV, a job candidate provides details about their education and training, qualifications, work record / experience, as well as some information about additional interests and skills that are relevant to the targeted job. In the U.S., there are three types of rsum: chronological, functional and targeted. To capture the employers attention immediately, a candidate should choose the best rsu m format depending on their background and goals. The chronological format highlights the job titles, dates and places of employment in reverse order, by presenting them as headings under which responsibilities and achievements are listed, giving more detailed information about the most recent positions. This organisational plan is recommended to those applicants who have an impressive employment history that shows growth, making the job objective a natural step in their career path. The functional rsum presents the candidates experience under areas of competence with the work history listed very concisely in subordinate sections. This format gives applicants the freedom to prioritise their accomplishments by impact rather than by chronology and is most useful for candidates who are changing careers or are just entering the job market or have gaps in their work history. The targeted rsum focuses on the abilities and achievements that are relevant to the specific job target. Education and employers are mentioned in subordinate sections, as they are considered to have little importance for that particular position. This organisational pattern is best suited for those who have a clear idea of what they want to do and can do. The European Union CV format requires information that will result in a more complex portrait of the candidates in terms of their specialisation, capacity to adjust to multicultural environments, linguistic competence, etc. It comprises the following sections: work experience, education and training, personal skills and competencies (not necessarily covered by formal certificates and diplomas), mother tongue, other languages, social skills and competencies, organisational skills and competencies, technical skills and competencies, and artistic skills and competencies. This format requires not only a description of those competencies but also an indication of how they were acquired. The main purpose of the job application letter / cover letter is to advertise your strengths and assets in a way that would interest employers in interviewing you (see Writing Reference for guidelines and samples). As for the style of the application letter, use formal language, state facts confidently, not arrogantly, be honest, but stress good points, show eagerness, not desperation, to get the job, and be courteous. A job interview has two purposes: to establish basic trust with the interviewer and to give the interviewer a few clear ideas about what you can do for the company. Achieving these goals takes some planning and advance work. At the most fundamental level, you need to inform yourself about the organisation (e.g. its history, geographical location, general methods of doing business, reputation, etc.) and anticipate questions that might be asked (factual as well as trap questions). Finally, be prepared to ask the interviewer some specific questions, such as Are you preparing a new product launch? What would constitute success in this job? Can you give me an example of a previous success? How was the employee rewarded? Can you give me an example of a significant failure someone on the team has experienced? What happened? Was the employee punished? What are the opportunities for career development in your company?

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In an interview, the stakes are very high. Your answers should illustrate the good job you will be able to do for the company if you are hired and, at the same time, have an emotional subtext that shows you to be a loyal, trustworthy, and hard working employee. (adapted from http://esl.about.com/library/weekly/aa120797.htm)

READING The concluding sentences in the paragraphs of the following article about Internet recruiting have been removed. Choose the best sentence from the list below (A-I) to fill each gap (1-7). There is one sentence that you do not need. There is an example at the beginning (0 - F). A B C A strong employee communications program that emphasizes the economic and social advantages to working at the company is essential. An internal on-line system may be the best way to satisfy employees desires for new challenges. On-line job services give workers unprecedented access to free information, and that information has shifted some of the power to employees in the employee-employer relationship. Online recruiting will save you time and money, but Wharton School professor Peter Cappelli warns that you must recruit strategically and not forget the human touch. The system automatically alerts managers superiors after openings are posted. If they are good at what they do, recruiters will find them. And once an employee starts looking, its often too late to patch things up. Once youve determined which employees have been contacted or are actively looking, you can make efforts to retain them. With so many organizations recruiting on-line, employees can receive numerous job offers. How the Web Changes Recruiting by Peter Capelli Internet recruiting is, of course, a two-edged sword. If its much easier for you to hire experienced workers, it is also much easier for competitors to hire away your own people. Employees can forget the advice that they need to market themselves, to develop their own brands in order to advance their careers. [___0 F___] Many employers are out there ready to snap up your workers, and everything moves quickly in the on-line world. As if that werent enough of a problem, the proliferation of on -line information about pay and benefits is making retention even more difficult, since compensation is a key reason that employees leave their jobs. Using resources like the salary surveys by Robert Half International posted on Monster.com, people can quickly compare their own salaries against those offered elsewhere. [___1___] Company loyalty can also suffer because of the sheer number of choices available through the Internet. Psychologist Charles OReilly at Stanford University and his colleagues have demonstrated that having more job choices decreases employees commitment to their current jobs. [___2___] But companies can reverse the destabilizing effects of on-line recruitment. First, managers must be more careful than ever to avoid situations that might make employees think about leaving. With the Internet only a click away, theres no longer any time for an irate employee to cool off. A worker can post a rsum on a job board in minutes and be contacted by potential employers within a day. [___3___] At the same time, companies should help employees make sense of on-line salary information, especially its limitations. Such data typically ignore stock options, for instance, and cant help an employee measure which jobs have the best advancement prospects. Sometimes employees are wooed away to new jobs because they dont see how good their existing situations are. [___4___] Should you prevent your employees from being contacted by on-line recruiters? Some employers try. Cigna has changed the email addresses of its IT employees to make it harder for recruiters to get to them. Other companies use software to make sure there are no links from employee

D E F G H I

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home pages to a company intranet through a firewall. Still others set up software that alerts human resources if employees receive email from on-line recruiters. Hewett Associates is one of many employers that check to see whether employees have rsums posted on job boards. [___5___] But a more promising approach, especially for large companies with many openings is to preempt on-line hiring by building an internal on-line job network. Most companies, even if they make quick offers to outside candidates, still find it difficult to move internal candidates around or make timely counteroffers. As a result, many employees find its easier to land a job with a different company than get a new job at the old one. To make matters worse, on-line recruiting, which makes it cheap and easy to hire experienced employees, encourages outside hiring at the expense of internal development and placement. [___6___] Nortel Networks, for example, has contracted with Monster.com to create its own job board, Job Shop. I want to make it drop-dead easy to find your next opportunity internally, says Brian Reilly, director of internal mobility. The goal is to provide an internal version of whats available in the outside market, thereby redistributing talent within Nortels growing business and preventing employees from leaving for competitors. Any employee can post a rsum on Job Shop without alerting his superior, and any manager can post a job opening. [___7___]
(http://hbsworkingknowledge.hbs.edu/item.jhtml?id=2330&t=innovation)

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. Searching for a job is __1__ of the most important things that professionals __2__, and they are doing it much __3__ frequently. The changing employer/employee contract, the lack of __4__ security, the increasing pace of change in the workplace, advances in technology, globalization, and even the quest __5__ a better work/life balance __6__ all creating significant movement in the marketplace for jobs. Another prominent factor has __7__ the overall strength of the U.S. economy __8__ the recession in the early 1990s. People are changing jobs because of the opportunities that __9__ been created and, for some, because of the fear that they will miss __10__ on opportunities now available. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. Although the job search is a crucially important __11__ for most professionals, it is also one of the most __12__, misunderstood, and mishandled activities, even by otherwise intelligent, accomplished people. The good news is that you can __13__ better at it. Let me start with a simple but powerful, and I hope empowering, concept, namely that there is only one answer to almost all job-search questions: It depends. Searching for a job is an art, not a science; there are few absolutes. Everything depends on the individual and the situation. This __14__ has been demonstrated repeatedly to me in working with thousands of job __15__ at widely varying employment levels __16__ the past decade. Although the job search is an art, there are __17__ search methodologies and __18__; most are applications of common sense. They often reflect the Golden Rule - doing unto others as you would have them do unto you. You also need to consider how any job-search action you take __19__ be perceived at the receiving __20__. 11 12 13 14 15 16 17 A A A A A A A phenomenon feared be point pursuers since efficient B B B B B B B procedure afraid make issue finders over efficacious C C C C C C C process frightened do topic seekers for practical D D D D D D D operation fearful get problem lookers in effective

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18 19 20

A plans A would A end

B approaches B must B part

C attitudes C might C terminus

D programmes D should D point

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) A few years ago, a friend of mine found a book on this topic (A) that was published in 1937. The book (B) did not mention faxing your resume, having it scanned in, or (C) surf the Internet for jobs, but most of its advice (D) was still valid sixty years later. 22) People often have problems (A) applying search methods because of the emotional component (B) is involved. It is hard to be objective when your life, career, and future (C) seem to be at stake. Some job seekers overlook, or (D) dont seem to fully appreciate, that the search process is both an intellectual and an emotional one. 23) The job search is also (A) a marketing and sales process, and most job seekers are not experienced with, or comfortable in, those disciplines. And even those (B) who are experienced in these areas people (C) who find it easy to market a specific product or service - often have difficulty (D) to apply these disciplines to their own search. 24) (A) There are no magic bullets in the search process. Determination, effort, patience, perseverance, timing, and luck all can play key roles in your eventual success. Many job seekers hope to find one or two things they can do (B) to guarantee getting a job or their dream job. There are no guarantees, (C) unless you will start or buy a business. You will have a job, but only (D) if your business prospers. 25) (A) Anything you do in the job search, no matter how many sources recommend it, will make a good impression (B) on some and not on others. It is highly unlikely that you can do the right thing for everyone (C) you encountered in your search. Your goal is to impress those people you might want to work for or with, who might lead you to a job or offer other help in your search. Be yourself in the job search, but be sure (D) it is your best possible self. Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the space. Adapt all job-search advice to your own personality, style, and approach. Ignore advice that does not work for you, but dont avoid the tougher tasks in job search, such as contacting strangers or near strangers. The real __26__ of the it depends concept APPLY comes in how you understand and apply the ideas and techniques found in how-to-books, articles, Internet sites, and job-search resources, as well as those suggested by friends, network contacts, career __27__, and outplacement consultants. The bottom line in COUNSEL the job search is that most people find jobs through friends, relatives, colleagues, classmates, and other __28__ (by networking). ACQUAINT It was true in the past, is true now, and will be for the __29__ SEE future, despite the __30__ belief of some that searching for a job APPEAR over the Internet is fundamentally changing the search process. Networking is not the only way to find a job, but statistically it is by far the most effective technique. And the higher you go in organizations, the more important it becomes.
(http://hbsworkingknowledge.hbs.edu/item.jhtml?id=1462&t=career_effectiveness&noseek=one)

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TEST 6 MARKETING
INTRODUCTION Marketing is the craft of linking the producers (or potential producers) of a product or service with customers, both existing and potential. Contrary to the popular conception, marketing is not just about promotion. It can be divided into the following four sections, often called The Four Ps: Product (management) dealing with the specifications of the actual product or service and how it relates to the end-users needs and wants Pricing setting a price for a product, including discounts Promotion promoting the product, brand, or company through advertising, publicity, word of mouth, and personal selling Place or distribution getting the product to the customer (point of sale placement / retailing)

These four elements are often referred to as the marketing mix. A fifth P, which is sometimes added, is packaging, i.e. all the materials used to protect and present a product before it is sold. A marketer* will use these variables to craft a marketing plan. For a marketing plan to be successful, the mix of the four Ps must reflect the wants and desires of the consumers in the target market. Marketers depend on marketing research to determine what consumers want and what they are willing to pay for. They hope that this process will give them a sustainable competitive advantage*. Marketing management is the practical application of this process.
(adapted from http://en.wikipedia.org/wiki/Marketing)

*marketer - (a) someone who works in the area of marketing; (b) an organisation that sells particular goods or services *competitive advantage an aspect of a product or service provided by a company to its customers that gives that company an advantage over its competitors

READING Read the following text about multichannel customer care. Choose the best sentence from the list below (A-G) to fill each gap (1-5). There is one sentence that you do not need. There is an example at the beginning (0 - D). A B C D E F G The company has now expanded its channels to include specialty retail stores and an ecommerce Web site. As J. Jills multichannel strategy continues to evolve, EDS will provide J. Jill with an enterprise-wide view of its customers behavior across marketing channels. By aligning the right people, processes and technology, EDS can help you achieve maximum efficiency, strengthen relationships and succeed in todays digital economy. Buyers expect premium service regardless of whether they interact with sellers by phone, email or in person. Customer relationship management is becoming an issue of channel management, continues Hayes. EDS was a key partner in helping us achieve this level of performance. This requires a better understanding of our customers and their behaviors across all three channels. EDS - Serving Multichannel Customers for the J. Jill Group

The emergence of the Internet as an additional sales and marketing channel has added another layer of complexity to the challenge of managing customer relationships. [___0 D___] Companies must be able to gather and analyze customer information from multiple touchpoints. 28

This is the age of the multichannel customer, says John Hayes, president, J . Jill Direct, the catalog and Web division of The J. Jill Group (Nasdaq: JILL). The J. Jill Group is a leading specialty retailer of high-quality womens apparel, accessories and footwear that markets its products through catalogs, stores and an e-commerce Web site. [___1___] For example, we knew we had multiple customer segments with varying profitability. This provided us an opportunity to improve overall profitability by marketing through additional channels. But to do it effectively as well as to maximize profits for each of our customers we would need to manage both the marketing channels and sales channels.
For many years, J. Jill marketed its products which are designed to appeal to active, affluent women age 35 and older exclusively through direct mail catalogs. However, in 1999 the company shifted from being a catalog-only company with multiple catalog titles to being a single-brand specialty retailer with multiple distribution channels. [___2___] There are currently about 30 retail stores nationwide, and the company has announced plans to open another 17 this year. We believe that the combination of mail, mall and Web is the most powerful formula in specialty retailing today, Hayes says. Our goal is to enhance J. Jills brand identit y by developing strong relationships with our customers that foster loyalty and increase repeat purchases. [___3___] Rather than try to manage its customer interaction data in-house, J. Jill outsourced its CRM needs to EDS, a recognized global leader in providing e-business and information technology services to 9,000 business and government clients in 55 countries around the world. EDS quickly helped the company identify unprofitable customer segments, eliminate duplicate mailings and optimize the catalog contact strategy, and reduce the number of catalog titles mailed from four to two while improving profitability. [___4___] EDS will use sophisticated techniques such as segment profiling; predictive modeling using behavioral and demographic information; affinity modeling; and lifetime customer value analysis. Executive-level reports will continue to be generated and improve in an effort to identify the interaction of the channels employed by J. Jill. The results have been nothing short of extraordinary, says Hayes. We recorded revenues of more than $246 million in 2000 up from $136 million in 1997 and experienced a 510% increase in e-commerce sales over 1999. We greatly improved the quality and integrity of our database and the customer information it contains, and maximized our contact strategy. [___5___]
(from FORBES, July 23, 2001)

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. For every prominent Internet marketing success story (e.g. Amazon, Dell, e-Bay or Yahoo), __1__ are dozens or __2__ hundreds of organisations that __3__ failed in their efforts to build effective marketing and sales capabilities on the Internet. There are many potentially valuable lessons in __4__ successes and failures, including the fundamental importance of recognising that the Internet brings yet __5__ set of tools and a further degree of complexity __6__ the vast and sophisticated marketing and sales toolbox that many companies __7__ employ. Internet marketing successes, including __8__ just mentioned, have relied heavily on other, __9__ traditional marketing and sales channels: brand advertising in broadcast media, demand generation and promotional communications in print media, direct mail and email channels, and sales and service support __10__ field sales, telesales and business partners. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct.

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There is a __11__ business aphorism that marketing is the __12__ of the whole organisation. This aphorism is equally __13__ for Internet marketing. Companies that have achieved the greatest successes also have defined and __14__ Internet marketing strategies from a cross-functional perspective and leveraged the __15__ of multiple marketing and sales channels. In these companies, customer-facing marketing, sales and service activities have not __16__ been automated or moved to the Internet. __17__, they firstly have been freshly re-designed to provide greater __18__, reliability, responsiveness and service quality to customers, and, secondly, to provide improved transaction economics to the company. Such a re-design, of course, suggests that the company has already gained a __19__ understanding of customers buying behaviours and their channel __20__. 11 12 13 14 15 16 17 18 19 20 A A A A A A A A A A worn-out responsibility authentic deployed force actually Mostly significance meticulous preferences B B B B B B B B B B well-worn obligation true undertaken intensity practically Instead price clear favourites C C C C C C C C C C outworn commitment fair involved strength absolutely Alternatively value pure tendencies D D D D D D D D D D well-kept liability actual spread validity simply Rather worth thorough inclinations

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) The Internet (A) has been an integrated element of the marketing mix, not an isolated or standalone marketing activity. Moreover, the Internet (B) has been deployed as both an enabling channel that provides support and leverage to (C) others selling channels as well as an end-to-end channel (D) that transacts or closes deals. 22) (A) In both instances, (B) throughout the sales cycle, from learning, to shopping, to closing the deal and gaining (C) post-sale support, customers benefit from (D) greater choice and conveniences. 23) And, companies gain (A) by shifting low-complexity marketing and sales tasks (B) to lower-cost channels, (C) while freeing the capacity of high-cost marketing and channels (D) to targeting and pursuing higher-value opportunities. 24) And, finally, the companys (A) re-designed Internet marketing strategy (B) driving the design and (C) deployment of Internet and CRM capabilities and the selection and implementation of (D) underlying technologies. Not vice versa. 25) Years of management research and (A) practical experiences have demonstrated that changing customers buying behaviours and motivating them (B) to accept and adopt innovations, like Internet marketing, can be difficult and costly. The most successful Internet marketing companies have recognised that integrating new e-channel capabilities (C) with traditional marketing and sales channels can accelerate the innovation process (D) for customers and themselves.
(from Internet Marketing: Lessons for Success by Gordon Swartz http://www.insightexec.com/cgibin/item.cgi?id=130983&d=pndpr&h=pnhpr&f=pnfpr)

Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the space. Dr Gordon Swartz has more that 20 years of high-level __26__ and marketing consulting experience and has been vice president of SELL

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MarketBridge since 1998. Swartzs areas of __27__ include rapid deployment of teleweb technologies, marketing and sales __28__ systems, design and management of complex channel systems, sales and marketing performance __29__, database marketing and __30__ modeling.

EXPERT AUTOMATE MEASURE QUANTITY

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TEST 7 ADVERTISING INTRODUCTION

Advertising is one component of the promotional mix, which also includes publicity / public relations, personal selling and sales promotion. Advertising is the most visible industry of our days. It comprises any paid form of impersonal presentation of products, services or ideas through various media. Below are the main categories of advertising media and the corresponding advertising products. Print media: direct mailing (advertising materials sent by post to peoples homes) advertorial (advert + editorial a positive article written about a company that buys advertising space in a publication) leaflet (a folded piece of paper advertising a product, service or company) brochure (a small magazine containing information about a product or service) Broadcast media commercial (radio or TV advertisement) informecial (a long commercial that gives a lot of information about a product) jingle (a short tune that is easy to remember, often with words, used for radio or TV ads) teaser (a very short TV ad that prepares the viewer for a longer ad that appears later) Point of sale / point of purchase advertising freebie (something given away free, like a pen, key ring, T-shirt, sticker, bag, etc. with the logo or name of a company or product) window display (arranging products in a shop window for public view) aisle interrupter (a sign that juts into the aisle from the shelf) glorifier (a small stage that elevates a product above other products) Outdoor media billboard (BE: hoarding) (a large board on which paper adverts are stuck, especially at the side of the road) neon board / sign (the name of a company or product in neon or other bright lights) skywriting (the use of special smoke released from an aircraft to write words in the sky) poster (a large printed ad that appears on a wall) spectacular (a lighted board, where illuminated moving adverts are run in succession) transport advertising (signs on taxis, trams, buses, trains, etc.) The Internets World Wide Web

READING Read the following text about the role of greed in advertising. Choose the best sentence from the list below (A-H) to fill each gap (1-6). There is one sentence that you do not need. There is an example at the beginning (0 - ). A B C D E F Although these products have a reduced emphasis on the individual amassing property, they still show the possible effects on the individual who doesnt take advantage of the offers. If an ad can make a product, or more usually a service, appear that it will help the individual get a bigger piece of the pie, then it will attract attention and generate sales. A person dominated by greed will often ignore the harm their actions can cause others. They then sing the praises of the product or service that showed them how to get out of their ruts and into their Rolls Royces. Advertisers often attempt to associate their product with desirable things, in order to make it seem more desirable. However, personal enjoyment is a factor that often comes into play as people decide what they want to do: how much effort do I want to expend to accomplish something?

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G H

The greed of American farmers has allowed them to grow food for the world, since the more they produce, the more money they make. It also reduces the dissonance some people may feel when the greedy impulse runs up against the social disapproval of greed. Greed by Richard F. Taflinger

Greed, no matter what anybody says, is a part of the human psychological make-up. Everybody wants more. Thus, as an advertising tool, greed (or acquisition of property, to make it sound better) works well. [___0 B___] Bank, financial service and broker, franchiser, magazine subscription service, state lottery, etc., ads, and memory improvement, grade improvement, and make a fortune in real estate informecials all depend on convincing people that what they sell will make possible the purchaser getting more. How does advertising convince people that they can get more if the customer buys the product? By making vague promises. Please note that the ads never state unequivocally that the purchase of the product or service will result in an increase in material goods. What the ad promises is a chance, a possibility. The most common approach is the testimonial. In this type of ad, someone who has purchased the product or service tells the audience how rich they have gotten. They will often explain how they were in dead end or low paying jobs (the better to relate to the targeted audience of these products). [___1___] They also emphasize how easy it was to get so rich using the product. The acquisition of property, unless you inherit it, is often extremely hard work. The examination of problems and solutions, the discovery and evaluation of new and effective approaches and techniques, the wheeling and dealing involved requires 26 hours a day and gallons of skull sweat (ask any successful executive). [___2___] The easier something is to do, the more likely someone will be willing to do it: watching TV is easier than reading a book, driving your own car is easier than taking mass transit, going home and relaxing at the end of an 8- or 9-hour day is easier than working 16 to 20 hours a day. Thus, the ads emphasize the ease with which it is possible for someone to amass a fortune using the product. Other ads, such as those for business machines, computers, and phone systems, show how their products provide greater speed, convenience, and/or savings than their competitors products. [___3___] The so-called slice of death commercials use this approach: they show how a person may possibly be demoted or even lose her job if she chooses the wrong product that produced by a competitor of the commercials sponsor. Note that all these ads depend on the concept, not of taking resources from another individual, but of providing a competitive edge: the products are available to all you were simply smart enough to take advantage of the offer. This approach can increase sales by making potential purchasers wish to get their edge before someone else can beat them to it. [___ 4___] By making it appear that the product purchaser wins, but no individual loses (wiping out your corporate competition is socially acceptable), then there is no social stigma to acquiring a larger piece of the pie. The thing to bear in mind is that greed is good. That is, its good for the individual, but perhaps not for the society in which that individual lives. Unrestrained greed in an individual can lead to callousness, arrogance, and even megalomania. [___5___] Sweatshops, unsafe working conditions and destruction of livelihoods are all consequences of people whose personal greed overcame their social consciences. However, even a society that bans individual greed can suffer. It is greed that makes people want to do things since they will be rewarded for their efforts. Remove that reward, and you remove the incentive to work. The Soviet Union provided an example of this: the collective farms provided no individual incentive to strive, and thus produced an insufficient supply of food. The individual-owned and run truck farms, however, with the possibility of selling their produce and keeping the proceeds, grew a far greater harvest per acre than the collective farms. [___6___]

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Unrestrained greed is detrimental to society; unrestrained disapproval of greed is detrimental to society. Advertising that takes advantage of this biologically favorable impulse in people attempts to avoid both.
(from Taking Advantage http://www.wsu.edu:8080/~taflinge/advant.html)

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. In __1__ attempts to find fresh advertising techniques, agencies and marketing companies __ 2__ harnessing new technology. For example, a recent controversy in London concerned proposals to install talking ads in bus stops, __3__ a sensor would register the arrival of a passenger and the ad __4__ begin to play. Some supermarkets now come equipped __5__ screens that run ads and sense where you are in the supermarket, directing __6__ to special offers. __7__ seriously, perhaps, the Internet offers a new field for advertisers, with virtual ads and home shopping. British Telecom __ 8__ just launched a trial of interactive TV in two English towns, and a major aspect of __9__ is the socalled Adland, __10__ interactive advertising service. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. . Only one answer is correct. As trade barriers come __11__ on the American continent and in the old world, where central and eastern European countries are queuing up to join the European Union, there is a worldwide trend towards the freeing of international trade and the strengthening of supranational companies. Advertisers have to adapt to this, creating brands and campaigns that __12__ be successful the world over with a minimum of adaptation from country to country. This is obviously true for brands like Coca-Cola, and can be seen in ads like The United Colours of Benetton, which tries to make a __13__ out of multiethnicity and create a global __14__ for its products. Yet globalization is not the only answer an apparently __15__ trend is also __16__ ground. One way for advertisers to get more for their money is to focus more __17__ on smaller, emerging groups of consumers - defined by their ethnic origins, sexual preferences or purchasing habits. Consumers buying patterns can be tracked by following purchases made by credit card, so helping firms identify our individual product preferences; each of us can then receive direct mail advertising for the kind of product we have already shown a preference __18__. This will lead more and more to niche marketing focusing on small groups or even individuals, and so to a __19__ away from big campaigns and towards direct marketing backed up by __20__ databases.
(adapted from SPEAK UP, February 1996)

11 12 13 14 15 16 17 18 19 20

A down A will A merit A agenda A controversial A gaining A peculiarly A for A change A comprehensive

B off B may B virtue B strategy B contrasting B increasing B specially B to B swing B general

C up C can C virtuosity C program C contradictory C getting C particularly C of C movement C overall

D apart D must D profit D platform D adverse D earning D specifically D in D transition D comprehensible

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 Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. PARIS (Reuters), August 13, 2004 21) Actress Charlize Theron (A) has signed a contract with Christian Dior to be the face of (B) its best-selling perfume Jadore, pitting her (C) against fellow Oscar winner Nicole Kidman, (D) who will launch a similar campaign for Chanel. 22) Theron (A) is due to star in (B) print and television advertisements for Jadore (C) is starting in this fall, a spokeswoman for Parfums Christian Dior (D) said Friday. 23) She (A) could not have provided details of the contract, but (B) trade publication Womens Wear Daily quoted Friday industry sources (C) as saying the South African actress (D) had signed a threeyear deal worth between $3 million and $5 million. 24) Theron (A) won this years Oscar for Best Actress (B) for her performance as serial killer Aileen Wuornos in Monster, a role which required her to put on weight and (C) wearing heavy make-up that rendered her (D) almost unrecognizable. 25) The former model is (A) the latest celebrity to sign (B) an advertising deal with a major fashion label, a trend (C) whose industry watchers say reflects public fascination with (D) the lifestyles of the rich and famous. Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the space. Hilary Swank, another Oscar __26__, headlines underwear ads for Calvin Klein, while Scarlett Johansson, Diane Kruger and Chloe Sevigny star in Louis Vuittons fall campaign. Kidman earlier this year signed a contract reported to be worth millions to become the face of Chanels __27__ No. 5 perfume. The advertisements were shot by fellow Australian Baz Luhrmann, who directed Kidman in the hit musical Moulin Rouge. The Dior campaign starring Theron was a __28__ between photographer Nick Knight and rebel British designer John Galliano, who has __29__ the image of the label with extravagant and __30__ catwalk. WIN

LEGEND

COLLABORATE REVOLUTION PROVOKE

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TEST 8 FINANCE AND ACCOUNTING

INTRODUCTION Financial management is broadly about the administration of finances to secure a positive cash flow, whether it is at the individual or the corporate levels. Management of personal finances involves adapting expenses to the financial resources of an individual. Individuals who own surplus money or have access to funding may choose to invest it to cover the impact of taxation and/or inflation or to spend it on discretionary items. They need to make those financial decisions that will benefit them in the long run and help them meet their financial goals. At the corporate/organisational level, financial management refers to financial planning and financial control. The former seeks to identify and assess the resources available and plan the size and timing of expenditures. The latter involves supervising cash flow that is, the inflow and outflow of funds in relation to the budget. The main task of corporate finance management is to attain the goals set by a company for a given period of time. Efficient financial management ensures that investments generate returns so that a companys resources are increased. Financial managers are expected to be able to (1) interpret financial reports (see below), (2) improve the allocation of working capital within business operations, (3) review and fine tune financial budgeting, and revenue and cost forecasting, (4) evaluate the funding options for business expansion, including both long and short term financing, (5) review the financial health of the company or business, and (6) apply critical financial decision making techniques to assess whether to proceed with an investment. Financial accounting is concerned with keeping track of a companys financial transacti ons, that is, recording, summarising and presenting them in financial reports or financial statements. These statements are considered external, as they are at the disposal of various stakeholders, such as owners, stockholders, customers, suppliers, employees and so forth. As a rule, the financial documents of publicly traded companies are widely circulated so that competitors, investment analysts and labour organizations can access the information. Below is the description of the financial documents generated by financial accounting. (1) The income statement (BE: Profit and loss account) reports on a companys profitability during a specified period of time; it covers revenues, expenses, gains and losses. (2) The balance sheet displays what a company owns and owes by reporting its assets*, liabilities* and stockholders equity* at a specified date, commonly the last day of an accounting period. (3) The statement of cash flows explains the change in a companys cash during a time interval in terms of operating activities, investing activities and financing activities. (4) The statement of stockholders/shareholders/owners equity lists such items as net income, other comprehensive income, dividends, stock repurchase and the exercise of stock options. Given that external financial statements need to be credible, transparent and comparable, financial accounting follows some rules, now officially called International Financial Reporting Standards (IFRS). These international common standards are based on such fundamental accounting concepts as cost principle, matching principle, full disclosure, going concern, conservatism, relevance and reliability.
*assets what a company uses to operate its business; any possession that has value or the power to earn money, such as cash, accounts receivable, inventory, prepaid insurance, buildings, land, and equipment *liabilities (pl.) obligations due at the date of the balance sheet; payable items like notes, accounts, wages, interest, etc. *stockholders equity the difference between the amount of assets and the amount of liabilities; the amount of money invested into a business plus any retained earnings

READING This article describes the financial crisis of 2008. Some sentences have been removed from the text. Choose from the list (A-P) the best sentence to fill each blank (1-14). There is one extra sentence that does not belong in any gap. There is an example at the beginning (0 H ). A B There were competing theories on how so many pillars of finance in the U.S. crumbled so quickly. The two periods of hard times had little else in common, however; the Depression started in the manufacturing sector, while the current crisis had its origins in the financial sector.

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D E F G H

I J K L M N O P

Japan and China largely avoided that pitfall, but their export-oriented manufacturers suffered as recessions in their major markets the U.S. and Europe cut deep into demand for their products. Credit Suisse declined an offer of government aid and, going the way of Barclays, raised funds instead from the government of Qatar and private investors. A week later the Swiss National Bank cut its benchmark rate to a range of 01%. It began with mortgage dealers who issued mortgages with terms unfavourable to borrowers, who were often families that did not qualify for ordinary home loans. Even in China, car sales growth turned negative. Share prices plunged throughout the world the Dow Jones Industrial Average in the U.S. lost 33.8% of its value in 2008 and by the end of the year, a deep recession had enveloped most of the globe. It was doubtful that the worldwide economic picture would grow brighter anytime soon. What began as insurance, however, turned quickly into speculation as financial institutions bought or sold credit default swaps on assets that they did not own. Barclays, telling the government thanks but no thanks, instead accepted $11.7 billion from wealthy investors in Qatar and Abu Dhabi, U.A.E. Compounding the damage, exporters could not find loans in the West to finance their sales. Mortgage lenders did not merely hold the loans, content to receive a monthly check from the mortgage holder. The most spectacular troubles broke out in the far corners of Europe. Another 7% of homeowners with a mortgage were at least one month past due on their payments, up from 5.6% a year earlier. The G-20s deliberations were necessarily tentative in light of the U.S. presidential transition in progress. The Financial Crisis of 2008: Year In Review 2008
by Joel Havemann

In 2008 the world economy faced its most dangerous crisis since the Great Depression of the 1930s. The contagion, which began in 2007 when sky-high home prices in the United States finally turned decisively downward, spread quickly, first to the entire U.S. financial sector and then to financial markets overseas. The casualties in the United States included a) the entire investment banking industry, b) the biggest insurance company, c) the two enterprises chartered by the government to facilitate mortgage lending, d) the largest mortgage lender, e) the largest savings and loan, and f) two of the largest commercial banks. The carnage was not limited to the financial sector, however, as companies that normally rely on credit suffered heavily. The American auto industry, which pleaded for a federal bailout, found itself at the edge of an abyss. Still more ominously, banks, trusting no one to pay them back, simply stopped making the loans that most businesses need to regulate their cash flows and without which they cannot do business. [___0 H___] In December the National Bureau of Economic Research, the private group recognized as the official arbiter of such things, determined that a recession had begun in the United States in December 2007, which made this already the third longest recession in the U.S. since World War II. Each in its own way, economies abroad marched to the American drummer. By the end of the year, Germany, Japan, and China were locked in recession, as were many smaller countries. Many in Europe paid the price for having dabbled in American real estate securities. [___1___] Lessdeveloped countries likewise lost markets abroad, and their foreign investment, on which they had depended for growth capital, withered. With none of the biggest economies prospering, there was no obvious engine to pull the world out of its recession, and both government and private economists predicted a rough recovery. Origins How did a crisis in the American housing market threaten to drag down the entire global economy? [___2___] Some of these so-called subprime mortgages carried low teaser interest rates in the early

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years that ballooned to double-digit rates in later years. Some included prepayment penalties that made it prohibitively expensive to refinance. These features were easy to miss for first-time home buyers, many of them unsophisticated in such matters, who were beguiled by the prospect that, no matter what their income or their ability to make a down payment, they could own a home. [___3___] Frequently they sold these loans to a bank or to Fannie Mae or Freddie Mac, two government-chartered institutions created to buy up mortgages and provide mortgage lenders with more money to lend. Fannie Mae and Freddie Mac might then sell the mortgages to investment banks that would bundle them with hundreds or thousands of others into a mortgage -backed security that would provide an income stream comprising the sum of all of the monthly mortgage payments. Then the security would be sliced into perhaps 1,000 smaller pieces that would be sold to investors, often misidentified as low-risk investments. The insurance industry got into the game by trading in credit default swaps in effect, insurance policies stipulating that, in return for a fee, the insurers would assume any losses caused by mortgage-holder defaults. [___4___] As early as 2003, Warren Buffett, the renowned American investor and CEO of Berkshire Hathaway, called them financial weapons of mass destruction. About $900 billion in credit was insured by these derivatives in 2001, but the total soared to an astounding $62 trillion by the beginning of 2008. As long as housing prices kept rising, everyone profited. Mortgage holders with inadequate sources of regular income could borrow against their rising home equity. The agencies that rank securities according to their safety (which are paid by the issuers of those securities, not by the buyers) generally rated mortgage-backed securities relatively safe they were not. When the housing bubble burst, more and more mortgage holders defaulted on their loans. At the end of September, about 3% of home loans were in the foreclosure process, an increase of 76% in just a year. [___5___] By 2008 the mild slump in housing prices that had begun in 2006 had become a free fall in some places. What ensued was a crisis in confidence: a classic case of what happens in a market economy when the players from giant companies to individual investors do not trust one another or the institutions that they have built. . International Repercussions Although the financial crisis wore a distinct Made in the U.S.A. label, it did not stop at the waters edge. The U.K. government provided $88 billion to buy banks completely or partially and promised to guarantee $438 billion in bank loans. The government began buying up to $64 billion worth of shares in the Royal Bank of Scotland and Lloyds TSB Group after brokering Lloyds purchase of the troubled HBOS bank group. The U.K. governments hefty stake in the countrys banking system raised the spectre of an active role in the boardrooms. [___6___] Variations played out all through Europe. The governments of the three Benelux countries Belgium, The Netherlands, and Luxembourg initially bought a 49% share in Fortis NV within their respective countries for $16.6 billion, though Belgium later sold most of its shares and The Netherlands nationalized the banks Dutch holdings. Germanys federal government rescued a series of state-owned banks and approved a $10.9 billion recapitalization of Commerzbank. In the banking centre of Switzerland, the government took a 9% ownership stake in UBS. [___7___] [___8___] In Greece street riots in December reflected, among other things, anger with economic stagnation. Iceland found itself essentially bankrupt, with Hungary and Latvia moving in the same direction. Icelands three largest banks, privatized in the early 1990s, had grown too large for their own good, with assets worth 10 times the entire countrys annual economic output. When the global crisis reached Iceland in October, the three banks collapsed under their own weight. The national government managed to take over their domestic branches, but it could not afford their foreign ones. As in the U.S., the financial crisis spilled into Europes overall economy. Germanys economic output, the largest in Europe, contracted at annual rates of 0.4% in the second quarter and 0.5% in the third quarter. Output in the 15 euro zone countries shrank by 0.2% in each of the second and third quarters, marking the first recession since the euros debut in 1999. In an atmosphere that bordered on panic, governments throughout Europe adopted policies aimed at keeping the recession short and shallow. On monetary policy, the central banks of Europe coordinated their interest-rate reductions. On December 4 the European Central Bank, the steward of

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monetary policy for the euro zone, engineered simultaneous rate cuts with the Bank of England and Swedens Riksbank. [___9___] On fiscal policy, European governments for the most part scrambled to approve public-spending programs designed to pump money into the economy. The EU drew up a list of $258 billion worth of public spending that it hoped would be adopted by its 27 member countries. The French government said that it would spend $33 billion over the next two years. Most other countries followed suit, though Germany hung back as Chancellor Angela Merkel argued for fiscal restraint. Asias major economies were swept up by the financial crisis, even though most of them suffered only indirect blows. Japans and Chinas export-oriented industries suffered from consumer retrenchment in the U.S. and Europe. [___10___] Japan hit the skids in the second quarter of 2008 with a 3.7% contraction at an annual rate, followed by 0.5% in the third quarter. Its all-important exports plunged 27% in November from 12 months earlier. The government announced a $250 billion package of fiscal stimulus in December on top of $50 billion earlier in the year. Unlike so many others, Chinas economy continued to grow but not at the double-digit rates of recent years. Exports were actually lower in November than in the same month a year earlier, quite a change from Octobers 19% increase. The government prepared a two-year $586 billion economic stimulus plan, and the central bank repeatedly cut interest rates. The U.S., Europe, and Asia had this in common car makers were at the head of the line of industries pleading for help. The U.S. Senate turned down $14 billion in emergency loans; the car companies got into this mess, senators argued, and it was up to them to get out of it. President Bush, rather than risk the demise of General Motors (GM) and Chrysler, tapped the $700 billion financial sector bailout fund to provide $17 billion in loans enough to keep the two companies afloat until safely after the Obama administration took over in early 2009. In addition, the Treasury invested in a $5 billion equity position with GMAC, GMs financing company, and loaned it another $1 billion. In Europe, Audi, BMW, Daimler, GM, Peugeot, and Renault announced production cuts, but European government officials were reluctant to aid a particular industry for fear that others would soon be on their doorstep. [___11___] As elsewhere, the industry held out its tin cup, but the government left it empty. The pressures of the financial crisis seemed to be forging more new alliances. Officials from Washington to Beijing coordinated interest rate cuts and fiscal stimulus packages. Top officials from China, Japan, and South Korea longtime adversaries met in China and promised a cooperative response to the crisis. Top-level representatives of the Group of 20 (G-20) a combination of the worlds richest countries and some of its fastest-growing met in Washington in November to lay the groundwork for global collaboration. [___12___] By years end, all of the worlds major economies were in recession or struggling to stay out of one. In the final four months of 2008, the U.S. lost nearly two million jobs. The unemployment rate shot up to 7.2% in December from its recent low of 4.4% in March 2007, and it was almost certain to continue rising into 2009. Economic output shrank by 0.5% in the third quarter, and announced layoffs and severe cutbacks in consumer spending suggested that the fourth quarter saw a sharper contraction. [___13___] Forecast after forecast showed lethargic global economic growth for at least 2009. Virtually no country, developing or industrial, has escaped the impact of the widening crisis, the World Bank reported in a typical year-end assessment. It forecast an increase in global economic output of just 0.9% in 2009, the most tepid growth rate since records became available in 1970. Measured by its impact on global economic output, the recession that had engulfed the world by the end of 2008 figured to be sharper than any other since the Great Depression. [___14___] Perhaps a more apt comparison could be found in the Panic of 1873. Then, as in 2008, a real estate boom (in Paris, Berlin, and Vienna, rather than in the U.S.) went sour, loosing a cascade of misfortune. The ensuing collapse lasted four years.
(selected from Encyclopaedia Britannica Online http://www.britannica.com/EBchecked/topic/1484264/Financial-Crisis-of-2008)

USE OF ENGLISH The four excerpts below are selected from the official communiqu issued at the close of the G20 Leaders Summit on Financial Markets and the World Economy held in London on 2 April 2009. Questions 1-10

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For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. We, the Leaders of the Group of Twenty, met in London on 2 April 2009. We face the greatest challenge __1__ the world economy in modern times; a crisis which __2__ deepened since we __3__ met, which affects the lives of women, men, and children in every country, and which all countries must join __4__ to resolve. A global crisis requires a global solution. We start from the belief that prosperity is indivisible; that growth, to be sustained, __5__ to be shared; and that __6__ global plan for recovery __7__ have at its heart the needs and jobs of hardworking families, not just in developed countries but in emerging markets and the poorest countries of the world too; and must reflect the interests, not just of todays population, but of future generations too. We believe that the __8__ sure foundation for sustainable globalisation and rising prosperity __9__ all is an open world economy __10__ on market principles, effective regulation, and strong global institutions. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. Restoring growth and jobs We are __11__ an unprecedented and concerted fiscal expansion, which will save or create millions of jobs which would __12__ have been destroyed, and that will, by the end of next year, __13__ to $5 trillion, raise output by 4 per cent, and accelerate the transition to a green economy. We are committed to __14__ the scale of sustained fiscal effort necessary to restore growth. Our central banks have also taken exceptional action. Interest rates have been cut aggressively in most countries, and our central banks have __15__ to maintain expansionary policies for as long as needed and to use the full range of monetary policy instruments, including unconventional instruments, __16__ with price stability. Our actions to restore growth cannot be effective until we restore domestic lending and international capital flows. We have __17__ significant and comprehensive support to our banking systems to provide liquidity, recapitalise financial institutions, and address __18__ the problem of __19__ assets. We are committed to take all necessary actions to restore the normal flow of credit through the financial system and ensure the __20__ of systemically important institutions, implementing our policies in line with the agreed G20 framework for restoring lending and repairing the financial sector. 11 12 13 14 15 16 17 18 19 20 A A A A A A A A A A venture else amount release vouched reasonable provided conclusively injured soundness B B B B B B B B B B undertaking contrarily total deliver bound relevant fulfilled finally marred wisdom C C C C C C C C C C guarantee otherwise make perform assured consistent accommodated decisively viciated health D D D D D D D D D D engage differently average fulfill pledged uniform supplied precisely impaired merit

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) (A) Taken together, these actions will constitute the largest fiscal and monetary stimulus and (B) the more comprehensive support programme for the financial sector in modern times. Acting together strengthens the impact and (C) the exceptional policy actions announced so far must be implemented without delay. Today, (D)we have further agreed over $1 trillion of additional resources for the world economy through our international financial institutions and trade finance.

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22) Last month the IMF estimated that (A) world growth in real terms would resume and rise to over 2 percent by the end of 2010. We are confident that the actions we have agreed today, and (B) our unshakeable commitment to work together to restore growth and jobs, while preserving long-term fiscal sustainability, will accelerate the return to trend growth. We commit today (C) to taking whatever action is necessary to secure that outcome, and (D) we call on the IMF to assess regularly the actions taken and the global actions required. 23) (A) We are resolved to ensure long-term fiscal sustainability and price stability and (B) will put in places credible exit strategies from the measures (C) that need to be taken now to support the financial sector and restore global demands. We are convinced that by implementing our agreed policies we will limit the longer-term costs to our economies, (D) thereby reducing the scale of the fiscal consolidation necessary over the longer term. 24) We will conduct all our economic policies cooperatively and responsibly (A) with regards to the impact on other countries and (B) will refrain from competitive devaluation of our currencies and promote a stable and (C) well-functioning international monetary system. We will support, now and in the future, the candid, even-handed, and independent IMF surveillance of our economies and financial sectors, of the impact of our policies on others, and (D) of risks facing the global economy. (25) Major failures in the financial sector and in financial regulation and supervision (A) were fundamental causes of the crisis. Confidence will not be restored (B) until we will rebuild trust in our financial system. We will take action to build (C) a stronger, more globally consistent, supervisory and regulatory framework for the future financial sector, which will support (D) sustainable global growth and serve the needs of business and citizens. Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the blank space. We each agree to ensure our domestic regulatory systems are strong. But we also agree to establish the much greater __26__ and systematic cooperation between countries, and the framework of __27__ agreed high standards, that a global financial system requires. __28__ regulation and supervision must promote propriety, integrity and transparency; guard against risk across the financial system; dampen rather than amplify the financial and economic cycle; reduce reliance on __29__ risky sources of financing; and __30__ excessive risk-taking. Regulators and supervisors must protect consumers and investors, support market discipline, avoid adverse impacts on other countries, reduce the scope for regulatory arbitrage, support competition and dynamism, and keep pace with innovation in the marketplace.

CONSIST NATION STRENGTH

APPROPRIATE COURAGE

(http://www.wcoomd.org/files/1.%20Public%20files/PDFandDocuments/Highlights/G20_Final_London_Communique.pdf)

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TEST 9 BANKING
INTRODUCTION The banking industry comprises two types of financial institutions: monetary authorities (central banks or reserve banks) and wholesale or retail providers of banking services. Central banks (1) set the monetary policy within their respective countries or a group of member states (see the European Central Bank), (2) supervise the banking system to ensure that banks and financial institutions do not behave recklessly or fraudulently, (3) control on the governments behalf the amount of money in the country, (4) fix interest rates and influence interest rates other banks charge, (5) act as lenders of last resort to commercial banks in the event of liquidity crises, (6) manage the national debt on the governments behalf by borrowing or repaying money and paying interest due, (7) hold the countrys reserves of gold and foreign currency and (8) issue coins and bank notes. Wholesale banks are engaged in high-value transactions, as they provide services to large or mid-sized companies, real estate developers and investors and other financial institutions or institutional clients, such as pension funds and government entities. Wholesale banking services include underwriting*, market-making*, consultancy, investment management and assistance with mergers and acquisitions. Retail banking products, typically offered by commercial banks, serve the ordinary banking needs of the public. They include such transactions as savings and current/checking accounts, mortgages, personal loans and overdrafts, lines of credit, debit cards, credit cards, storage of valuables, exchange facilities, payment of regular bills according to customers instructions, investment advice, insurance products, etc. Online/Internet banking allows customers to perform financial transactions on a secure website administered by their bank. More and more bank customers are discovering that it is more expedient to do the following online: (1) check account balances, (2) perform an account to account transfer, (3) track recent account activity, (4) authorize electronic bill payments, (5) request copies of past statements*, (6) issue stop payment requests, (7) apply for loans and (8) request and receive product and service information.
*underwriting assuming the risk of buying a part or entire new issue of bonds or shares from its issuer for reselling it to the public at a higher price *market-making buying or selling securities at publicly quoted prices *statement a periodic report prepared by a bank for each client; it lists deposits, withdrawals, cheques paid, interest earned and service charges or penalties incurred on an acocunt; it shows the cumulative effect of these transactions on the account s balance up to the date the report was released.

READING Below is an interview with Harvard Business School professor David A. Moss, author of A Concise Guide to Macroeconomics: What Managers, Executives, and Students Need to Know, by Sean Silverthorne, editor-in-chief of HBS Working Knowledge, about how important it is for executives and corporate managers to understand macroeconomics. The questions are jumbled while the answers are given in the original order. Match the questions (111) to the appropriate answers (A-K). A Macroeconomic View of the Current Economy by Sean Silverthorne
25 January 2010

If they didnt understand it already, executives and corporate managers have learned one huge lesson over the past couple of years: macroeconomics matters. Interest rates. Exchange rates. Trade deficits. The Gross Domestic Product. Inflation. All of these can affect a companys bottom line by influencing the cost and availability of money, goods, and services. Macroeconomic forces can conspire to make business more difficult, but they can also present opportunities to executives who know how to, for example, read a country's national income accounts and balance of payments. For explanations on how the economic system works and what history teaches us, business readers might turn to A Concise Guide to Macroeconomics: What Managers, Executives, and Students

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Need to Know, by Harvard Business School professor David A. Moss, who holds graduate degrees from Yale in economics and history. The book, which grew out of background notes Moss wrote for his MBA students, is a nontechnical, accessible explanation of broad concepts such as output, money, and expectations as well as more specific ones ranging from real exchange rates to total factor productivity. Moss also includes numerous tools for interpreting big-picture economic developments. We asked Moss to talk about the book and some of the events now taking place on the macroeconomic horizon. 1 2 3 4 5 6 7 8 9 10 What is the current account deficit, and why is it important? The second pillar of macroeconomics is money. What's a good way to think about foreign direct investment in the United States? Are we selling too much of our core assets to foreign investors? As a field of academic study, where do you think macroeconomists have made the most progress? What will executives and other business readers learn from the book? In your own field of research, what are you working on these days? You mentioned that you can't predict exchange rates. But are there rules of thumb managers can practice when thinking about exchange rates and how to play them? Whats the definition of macroeconomics? Your book centers on the three pillars of macroeconomics: output, money, and expectations. Can you talk generally why these are important to understand? The Federal Reserve Board and its chairman, Ben Bernanke, have tremendous influence on the business environment, particularly on interest rates. If youre a manager and interest rates affect your business, how do you think about this? And what about expectations? Why are expectations the third pillar?

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A: It involves thinking about the economy as a whole. Micro is about firms and individual actors and how they behave; macro is about aggregate performance of the economy: overall GDP, trade surplus or deficit, inflation. In principle, we should be able to get rid of the (macro/micro) distinction because all micro behavior all the firms and individuals add up to the aggregate economy. But it turns out that were not there yet. Theres still a great deal we dont fully understand. We see patterns at the macro level that are sometimes hard to disaggregate and pinpoint exactly where they came from at the micro level. So as a result, we separate macro and micro. Someday, if we ever figured everything out, these things would come together. That's true in many areas of study. B: One of the most important things is theyre going to be able to read the Financial Times, the Wall Street Journal, and The Economist much more effectively than they could before. Those publications integrate macroeconomics with what we know about business and markets, often in the very same articles. Without some background in macroeconomics, much of that goes past the reader. What exactly does it mean that the real interest rate has moved, or the real exchange rate has moved this way or that? There are different types of productivity labor productivity, capital productivity, and total factor productivity. Which is the right one to look at in a particular context? Theres a lot of information out there particularly in the business press. If these arent familiar terms, and if one doesnt have a way of putting it all together, then you cant process all of this information as effectively as possible. I think another thing readers will learn is that they can look at big developments at the macro level and start to think about what they mean how these developments might come back and affect their bottom line. Lets take exchange rates. Exchange rates fluctuate widely, and anybody who tells you they know what the exchange rate is going to be tomorrow either has godlike powers or is putting you on. But there are patterns over time. For example, countries that are running large and ongoing current account deficits tend to see their currencies depreciate over time. This doesnt mean that the currency of a country running consistent current account deficits is going to depreciate tomorrow or next week

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or even next month. But over time, you expect it to depreciate. So if youre a business manager, you probably want to be fairly well hedged against this possibility, either by making use of certain financial instruments or by carefully spreading out your real investments across various countries. C: Ill mention several. First, as I just suggested, it makes sense to look at a countrys current account deficit or surplus. For countries that are running large current account surpluses, like China and Japan, you'd expect their currency to appreciate over sustained periods of time. I cant say for sure that Japans currency is going to appreciate over time, but in all likelihood, it will. I would be very surprised if Chinas doesnt appreciate over time. Another thing you want to look at is inflation. If a country has a higher inflation rate than its trading partners, you should expect that its currency is likely to depreciate over time as well. Maybe I can put this in some perspective. Over the long term, a main driver of a country's exchange rate is probably its current account deficit or surplus. In the medium term, you probably want to look at inflation rates. But at the day-to-day level, changes in short-term interest rates seem to be a key driver. For example, if the European Central Bank suddenly (and unexpectedly) raises its key short-term interest rate tomorrow, youre probably going to see the euro appreciate, almost immediately. If the central bank of the United States the Fed unexpectedly lowers its interest rate, the dollar may well depreciate a bit that same day. You tend to see these very quick fluctuations associated with interest-rate changes. But over the longer term, the current account balance is probably far more important. D: The current account deficit just means that you (as a country) are consuming, or spending, more than you actually produce. Think about a household. If you earn $100,000 a year and spend $106,000, you're going to have to borrow $6,000 (or draw down your assets) to make up the difference. The same is true for a country. Between business spending, government spending, and consumer spending consumer spending being the biggest the United States consistently spends more than 100 percent of its GDP (as high as 106 percent in 2005 and 2006). But of course we produce only 100 percent of GDP, so we need to borrow the difference. How do we do that? Well, we ask the Japanese, the Chinese, and some others for their goods, and they give them to us. And then they lend us the money to buy them. We are both borrowing literally borrowing in financial terms from, particularly, the Asians and getting their goods (imports). Someday, theyre going to want us to repay, which means theyre going to have a claim on our output. And someday, were probably going to have to run a current account surplus, where were producing more than we spend, and were shipping off the rest (the surplus) to our current creditors. E: When you think about these three things, output should be in big letters, and the other ones in smaller letters. Output is really the center of macroeconomics, and the key measure is the GDP, that is, total aggregate output, the market value of all final goods and services produced. In a sense, all that you (as a country) have is the total output that you produce in a year your GDP. Sometimes people think if everyone owned lots of stocks and bonds, we could all retire happy, regardless of the GDP. But if the nations total output in future years is not sufficiently large, then all those stocks and bonds are going to end up being worth a lot less than expected. Total output is the key to how much we can consume, not little pieces of paper called stocks and bonds. As a result, economists worry a lot about how a country can increase its GDP growth rate, how higher growth of output can be achieved over the long term, and how we can make sure that in the short term total output isn't unduly volatile (with unsustainable booms and busts). F: In some sense money is just another asset, but it turns out to be a rather special asset. One of the reasons it is special is that there seems to be a relationsh ip between peoples holdings of that particular asset and their current consumption or spending. And thats because money is an asset that you can use to buy things, right now. Its the ultimate form of liquidity. But another thing thats important about money is that its supply is largely controlled by the government. Depending on which type of money supply you look at, the government has either a complete monopoly or a partial one.

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By their control over the money supply, central bankers can essentially set interest rates, especially short-term interest rates. And thats the basis of monetary policy. Its because of that control over the money supply either increasing or decreasing the money supply the government can set short-term interest rates. And that short-term interest rate is what central bankers use to try to control inflation and moderate the business cycle. G: Expectations are extremely interesting because they represent a connection between the present and the future. Current decisions are affected by what people expect the future to bring. For example, business managers set the prices of their products at least in part based on expectations. More broadly, if people expect the price of a good (say, wheat) is going to be higher in the future, then the price is going to start rising today. Although expectations of all sorts are important, one particular set of expectations about the state of the overall economy and one's own future income is especially important from a macroeconomic perspective. If people believe the economy is going to falter, even if their reasons are wrong, in the short term the economy may well falter. If consumers believe that theyll soon be in economic trouble, they will reduce their consumption and start scaling back on purchases. And what are businesses going to do? If they see people reducing their consumption (or even just planning to reduce their consumption), business managers may decide to scale back on their own operations, so as not to produce a lot of output that no ones going to buy. Firms will start laying off workers. And then, of course, the negative expectation becomes self-fulfilling. You can even get stuck there for a long time in a recession. Thats why in some cases you need either a very aggressive monetary policy or large-scale deficit spending, which is what weve seen this past year. Both aggressive monetary easing (lower interest rates) and large-scale deficit spending send the signal that demand will increase, and thus both aim to break the cycle of negative expectations about the economy. H: Look, this is a political decision, and its above my pay grade. There may be some strategic assets that we (as Americans) dont want to sell to foreigners. Congress is going to have to decide which ones those are. It may be that we don't want to sell certain elements of our media to foreigners, or perhaps certain strategic assets that are important for building critical military equipment. One can be too cautious about reliance on foreigners. In the early 19th century, the British thought their grain supply was strategic, and they protected it aggressively. Eventually, however, with the repeal of the Corn Laws, the British decided to move toward free trade in wheat. It was a controversial move. Skeptics feared that other countries that supplied wheat to Britain could use it as a weapon, by threatening to starve Britain. But it turned out that nothing of the sort ever happened, and Britain was almost certainly better off after it repealed its Corn Laws. The broader thing to think about with regard to foreign investors buying assets in the United States is that if we as a country are going to spend more than we produce if were going to run a current account deficit year after year, then theres in fact no alternative to foreigners buying our assets, either debt or equity. As I said, if youre earning $100,000 and youre spending $106,000, youre going to have to borrow or draw down your assets to make up the difference. So thats what were doing as a country. The problem is not fundamentally that foreigners are buying too many American assets, but that Americans are spending too much. The right way to fix this, of course, is by increasing the American savings rate. Up until the economic crisis, household savings were essentially zero, business was saving in the vicinity of 15 percent (through retained earnings), and the government was dissaving (because of its budget deficit) by a few percent of GDP each year. Once the crisis struck, household savings rose, and government dissaving (deficits) rose by about the same amount. Over the long term, well need to find a way to save more across the board. Well need to increase our national savings rate quite substantially. Thats ultimately the only way were going to turn around our current account deficit and ultimately stimulate the kind of growth longer term that wed all like to see. So what does that mean? We need to figure out how to encourage households to increase their savings, especially once the recession is clearly behind us. I think that will have to be front and center.

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Also, once the recession is over, well definitely need to get our budget deficits under control most likely by controlling spending and raising taxes. Well certainly need to prepare for the retirement of the baby boomers. I: Its worth putting yourself in the shoes of Ben Bernanke and trying to imagine how he thinks about it. Thats going to be helpful in assessing what he might do. As a central banker, Mr. Bernanke has to worry about a number of different things: inflation, unemployment, GDP growth, exchange rates, the stability of the financial system, and so on. In more normal economic times, he would likely focus mainly on maintaining a low and stable rate of inflation perhaps around 2 percent. He has written and spoken in the past about his belief in inflation-targeting. The basic idea is that if the central bank manages to keep inflation within the target range (again, around 2 percent), then everything else will tend to fall into place: low unemployment, relatively stable GDP growth, and so on. So, once the financial crisis and the recession are well behind us, probably the best way to predict how Bernanke will set interest rates is by looking at where inflation is headed. If inflation is rising above the 2 percent level, hes likely to push the short-term interest rate upward, in order to contain inflation. If inflation is falling below the 2 percent level, hes likely to push the short-term interest rate downward. That would be the best way to predict what hes going to do in normal times. Of course, these havent been exactly normal times. With the financial system in serious jeopardy and unemployment surging, Mr. Bernanke put aside inflation-targeting and used just about every weapon in his arsenal to save the economy from collapse. He lowered the federal funds rate to just about zero the lowest ever and he developed and employed all sorts of unconventional tools to help stabilize things, including asset purchase programs, large-scale financial guarantees, and direct lending to nonbank financial institutions. My own view is that while he inevitably made all sorts of mistakes (especially in the lead-up to the crisis), his extraordinary actions in the heat of the crisis may well have saved us from a complete financial collapse and a far worse macroeconomic crisis. Once the biggest dangers are behind us, Mr. Bernanke will have to figure out how to get things back to normal. His aggressive stimulation of the economy could easily prove inflationary if he doesnt bring rates back up in time. But it will be a delicate balancing act if unemployment remains unusually high. Eventually, if all goes well, we'll get back to standard inflation-targeting, and monetary policy will become far more predictable again. But for the time being at least, the Federal Reserve remains in uncharted waters. J: Theres a lot that macroeconomists dont know. But I think in monetary policy theyve made a good deal of progress. Had we had the same level of knowledge today that we had in the early 1930s, we might have faced a second Great Depression. Bernanke, of course, was a careful student of the Great Depression; he understood it quite well, particularly from a monetary standpoint. The level of monetary understanding is much better than it was in the past. And that reduces our odds of falling into another Great Depression. Again, it doesnt eliminate those odds, but it reduces them. Macroeconomists deserve a lot of credit for that. That said, excessively low interest rates during the boom years may well have helped to cause the crisis. So monetary policy, while much better than in the past, is still nowhere near perfect. For example, we still know very little about how to prevent a bubble from becoming a problem in the first place. K: Well, I'm working on a number of things. Ive spent a great deal of time over the past year thinking about financial regulation and what it should look like, and Ive been talking with lawmakers in Washington about this quite a bit. Ive also launched a new second-year course at Harvard Business School on financial history. I started creating the course long before the financial crisis hit, but its definitely been fascinating to teach about past financial booms and busts about the history of financial innovation, financial growth and excess, and financial regulation at this particular moment.

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Financial history has truly come alive over the past couple of years. My hope is that we can use that history the long history of financial markets and institutions in figuring out how to prevent another financial crisis going forward. Thats where much of my work has been focused these days.
(http://hbswk.hbs.edu/item/6332.html)

USE OF ENGLISH The four excerpts are from the review by Hans-Joachim Voth (Department of Economics, Massachusetts Institute of Technology) of the volume The History of the Bundesbank: Lessons for the European Central Bank (2000), edited by Jakob de Haan. Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. Few institutions vanish at the height of their powers and reputation. The Bundesbank, however, was one that __1__. In the early 1990s, Financial Times journalist David Marsh argued that it __2__ replaced the Wehrmacht as Germanys best-known and __3__ feared institution. The Bundesbanks demise as a policy-making institution marks a sharp discontinuity in the continents post-war economic history. On January 1, 1999, with the introduction of the Euro, the baton for setting interest __4__ in Europe passed to the European Central Bank (ECB). A number of volumes have consequently tried to capitalize on a bit of early nostalgia a massive edited volume, put __5__ by the bank itself, on Fifty Years of the Deutsche Mark (Oxford University Press, 1999), most prominently amongst __6__. The volume edited by Jakob de Haan is the result of a workshop at the Germany Institute in Amsterdam in April 1998. While this is a fine contribution to contemporary debate on monetary policy, containing many valuable pieces of scholarship, one thing must be clarified at the outset this is not a history of the Bundesbank, let __7__ the history of the Bundesbank. The contributors provide a number of comparisons between the ECB and the Bundesbank, and examine Bundesbank policy in the recent past with a __8__ to deriving lessons for ECB policy. This is a thoroughly worthwhile exercise, and it is a pity that the publisher or the editor __9__ decided to shun truth in advertising by picking __10__ an embarrassingly grandiose title (perhaps to justify the obscenely high price?). Readers interested in an historical account of the German central bank's policy should turn to the Fifty Years of the Deutsche Mark mentioned above. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. What, then, are the lessons that the ECB should learn from the Bundesbank? In terms of its institutional setup, the similarities are __11__. As Sylvester Eijffinger shows in his detailed and eloquent contribution, the Bundesbank and the ECB achieve almost identical scores for independence. In terms of transparency and __12__, however, both do worse than the Fed, the Bank of England, and the Banque de France. Neither publishes minutes of its meetings. Also, in terms of policy instruments, the long shadow of the Bundesbank clearly influenced the ECB. Minimum reserve requirements __13__ prominently in the banks arsenal of policy instruments, and money growth targeting (while not as central as with the Bundesbank) plays an unusually large role. Eijffinger argues that, __14__ these numerous similarities, the ECB may have a hard time earning a reputation on par with the Bundesbank. This is because legal independence is not enough to guarantee de facto autonomy in setting interest rate policy cultural and social factors play an important role as well. This concern is echoed in Otmar Issings concluding comments, too. Acquiring a reputation requires __15__ a bit of pain in hard times, or so Eijffinger argues. The true test will only come when politicians and central bankers start to argue. From the perspective of 2001, many of these __16__ seem prescient. Also, the simple day-to-day management of central bank policy turned __17__ to be more of a challenge for the ECB than many had expected. From the regular gaffes of its president Duisenberg to the general and __18__ skepticism about the common currency in foreign exchange markets, the ECB has had a hard time filling the Bundesbanks boots. Recent Italian attempts to tinker with the so-called stability pact

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(that limits member states deficits) reinforces the importance of Eijffingers __19__ about the importance that legal independence __20__ not be enough. 11 12 13 14 15 16 17 18 19 20 A A A A A A A A A A manifest accountability emphasise opposite imposing clarifications out rising meaning may B B B B B B B B B B memorable obligation participate against inflicting caveats up deepening matter can C C C C C C C C C C striking reliability boast despite applying qualifications in mounting orientation need D shocking D liability D feature D unlike D delivering D notices D on D ascending D point D should

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) Given that inflation today throughout Europe (with the possible exceptions of Ireland, Spain, and Portugal) (A) is still relatively low, why worry? Karl-Heinz Tdter and Gerhard Ziebarth, two economists at the Bundesbank, argue that only dead inflation is good inflation. Even low inflation of around two percent is, (B) in his view, clearly dominated by price-stability. According to their calculations, these benefits (C) are exclusively driven by consumption timing effects. Gross benefits might be (D) as large as two percent of GDP, and the net effect could still amount to 1.4 percent. 22) These results are for Germany, and (A) it is somewhat disappointing that in a volume that aims to derive lessons for the ECB, no attempt is made to examine if the same results (B) hold for the Euro area. Perhaps more worryingly, two standard objections to a policy of zero inflation that this increases wage rigidity, and increases the likelihood of monetary policy being trapped because nominal interest rates cannot fall below zero (C) is dismissed too lightly. In a simple technical sense, the paper also (D) falls short of the standards now common in the debate about monetary policy rules. 23) In many ways, Helge Bergers and Friedrich Schneiders article on Bundesbank behavior during political conflicts is (A) the most impressive contribution in this volume. It is very much part of a recent trend in the literature (B) to examine empirically how much of the Bundesbanks tough-guy rhetoric was justified, (C) given its actual behavior. Jordi Gal, Mark Gertler and Richard Clarida showed that, despite officially targeting money growth, the Bundesbank since 1973 largely behaved (D) as if it followed a modified Taylor-rule, targeting inflation and output. 24) Berger and Schneider examine if the Bundesbank really never blinked in the face of political adversity, (A) as common wisdom has it. Given that its independence could be taken away by parliament, this (B) would hardly be an optimal strategy. Berger and Schneider define policy conflicts as those cases when money growth provided a stimulus to the economy that was the opposite of the fiscal stimulus. By this definition, the federal government and the Bundesbank were pursuing contradictory policies (C) about every other year of the post-war period. Berger and Schneider find that, for a broad range of specifications and policy instruments, the Bundesbank proved more accommodating when the government in Bonn (D) tried to steer the economy in a different direction. 25) This is a very interesting finding that questions (A) one of the most persistent myth about the Bundesbank. However, some of the details of the estimation only (B) lend qualified support to this conclusion; other results are a little odd. Berger and Schneiders estimates of the reaction function, for example, imply that the Bundesbank (C) reacted only mildly and rarely significantly to increases in inflation, while targeting output very strongly. This (D) is at variance with the findings by Clarida,

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Gal and Gertler (European Economic Review 42, 1998), who demonstrated that the Bundesbank targeted inflation to a greater extent than the output gap. Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the blank space. Readers will fully appreciate the contribution by Berger and Schneider once they have read the literature overview by Philipp Maier and Jakob de Haan. There is a __26__ literature on the extent to which the Bundesbank really was independent. Empirically sound __27__ seems largely conspicuous by its absence, and much remains to be done until we know as much about direct and indirect political tinkering with __28__ policy in Europe as we do about the Fed. This edited volume contains good research __29__. Graduate students and researchers will find much that is of use, and some of the articles are important contributions in their own right. At the same time, crucial policy questions such as the possible adoption of inflation targeting by the ECB are never __30__ discussed, and it is difficult to claim that these seven essays represent an adequate history of the Bundesbank.

VOLUME ANALYSE MONEY SUMMARISE

FULL
(http://eh.net/bookreviews/library/0395)

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TEST 10 INSURANCE
INTRODUCTION
Insurance is the business of providing protection against financial aspects of risk, such as those to property, life and health. Very simply put, insurance is about managing risk. Insurance spreads risk accident, theft, natural disaster or illness from one person or group to a financial entity in exchange for payment made at certain intervals. Thus insurance companies sell insurance policies of all types in order to hedge the risk of possible future losses or damage. Various types of insurance include motor insurance, health insurance, life insurance, home insurance, travel insurance, personal property insurance, key man insurance*, rental insurance, etc. A motor insurance policy may include property, liability or third party and medical coverage. Property coverage insures damage to or theft of a vehicle; liability covers bodily injury or property damage that may occur as a result of the insureds actions, and medical coverage pays any fees necessary for bodily injurie s. A policy holder who suffers a loss will need to fill in a claim form in order to give the insurance company the details of the loss and how/when it happened. The aim of the insurance company is to indemnify the insured person. According to the indemnnity principle, a compensation claimant should not profit from an insurance policy but should only be compensated for the value lost, assuming that the damaged property is fully insured. The people involved in the insurance business are: (1) insurance brokers, who advise clients about different companies and their policies when you wish to take out an insurance policy; (2) underwriters, who assess the risk of enrolling an applicant for coverage or a policy and fixes rates and conditions of insurance contracts; (3) policy holders, the insured person who pays the premiums and has the right to claim under a policy; (4) loss adjusters, who are qualified to settle claims, that is, to value losses incurred and agree to pay the compensation; (5) third party, to whom a legal liability for compensation is owed for loss or injury resulting from a negigent act of someone who is insured; (6) actuaries, who specialise in statistics and calculates insurance risks and compensation by applying the mathematical laws of probability.
(selected and adapted from http://www.investopedia.com/features/industryhandbook/insurance.asp)

*key man/person insurance a type of corporate-owned insurance that insures an employer against the death or incapacitation of a so-called key employee, usually an executive

READING Read the information below about the current health care system in Romania. Choose the best sentence from the box below (A-I) to fill each gap (1-7). There is one sentence that you do not need. There is an example at the beginning (0-E).
A B C D The most important features of the health insurance contract are as follows: Pharmacists must sell the cheapest available drug, if only the generic name is on the prescription, and must mention potential substitutes. In accordance with the framework insurance contract, these treatments are fully covered for children aged less than 16. Health status in Romania is poor compared with the other European countries: average life expectancy is six years shorter than the EU average, and infant and maternal mortality are among the highest in the European Region. Yet despite this positive development in terms of revenue, at least half the users of the health services report making additional out-of-pocket payments. Contributions depend on income and are paid in even shares by the insured and the employer. If, on the other hand, the rationalization of the financing side corresponds to a continued deterioration, and not to improvements, in the allocation of spending, the main benefits of the reform are in doubt. Co-payments are required for drugs and allowed for other services. As part of this trend, the Government introduced partial reimbursement of prescription drugs for outpatient care in 1992.

E F G

H I

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Health Care Services in Romania Romania has seen a substantial change in the way its health-care sector is financed, namely, a shift towards the funding of health-care by means of an insurance system. The introduction of health insurance increased the amount of public funding available for that sector. [___0 E___] Moreover, although the budget has benefited from a surplus of revenue from the health sector, the quality of service is increasingly viewed as inadequate, and the system's performance is poor in terms of equal access. Public funding for health-care, a trend that compares favorably to other social services, should be interpreted against a history of tight control on sector expenditure and inputs until 1998. At 3.8% of GDP (1999), public expenditure on health in Romania remains among the lowest in the ECA region: the only countries with a lower share are those where tax collection has virtually collapsed. Resolving the imbalance created by the improvement in the funding of health-care following recent reforms, and the inefficient use of resources as indicated by the persistent low marks for services and the anecdotal evidence of large, private out-of-pocket payments is becoming an increasingly important part of reforming social service provision more generally. If the health sector can be made to respond to health-care needs more effectively and equitably after the introduction of an insurance system designed to enhance revenue performance, then lessons may emerge for other parts of the social service delivery systems. [___1___] The state budget was the only public source of health-care funding until 1991. The Ministry of Health, as well as other ministries with their own health service provider networks (e.g., Defense, Interior, and Transport) administered these funds. In the early 1990s the move towards diversifying the sources of funding gained support within Romania as a way of spreading the burden of allocating resources for the health sector. [___2___] The move was accompanied by the establishment of the Special Health Fund, also administered by the Ministry of Health and Family and based mainly on a two percent payroll tax, but also including revenues from small taxes on tobacco and alcohol sales, and advertising. In 1993, responsibility for funding material expenditure other than for drugs, as well as utilities and current maintenance, was transferred from the state to local budgets. The adoption of the Law on Social Health Insurance in 1997 initiated the transformation of the Romanian health-care system from a Semashko* state-financed model to an insurance-based system. Since the law came into force in 1998, earmarked payroll contributions have become the main source of health sector revenue. Key provisions of the law regulate health sector revenue generation and redistribution, as well as the allocation of funds. The 1997 law made insurance membership mandatory and linked it with employment. [___3___] Children and young people, disabled persons, and war veterans as well as dependents without income have free access to health insurance. For conscripted soldiers and people serving prison sentences, insurance contributions are paid from the budgets of the Ministry of Defense and Ministry of Justice. Health insurance covers ambulatory, inpatient, and dental care, including clinical preventive services and drugs. A framework contract, agreed upon annually by the National Health Insurance Fund (NHIF) and the College of Physicians and approved by the Cabinet, defines the benefits package, conditions for service delivery, and payment mechanisms. [___4___] Family physicians play a gatekeeper role. The framework contract sets the terms for health-care services using a variety of parameters. This contract is the basis of the contracts between the District Health Insurance Funds (DHIFs) and healthcare providers (hospital and their outpatient units, diagnosis and treatment centers, health centers, basic clinics, and medical offices). [___5___] Insurance benefits include medical services from the first day of sickness or the date of accident until the patient is fully recovered. Medical services include preventive health-care services, ambulatory health-care, hospital care, dentistry services, medical emergency services, complementary medical rehabilitation services, pre-, intra-and post-birth medical assistance, home-care nursing, drugs, health-care materials, and orthopedic devices. The insured are entitled to choose a family doctor for primary health-care services and, once referred by the family doctor, can have the choice of a specialist ambulatory care provider.

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Inpatient care includes full or partial hospitalization with medical examination and investigations, diagnosis, medical and/or surgical treatment, nursing, drugs, and health-care supplies, accommodation, and food. Health insurance covers 40 to 60 percent of the cost of dental care, taking into account previous use of prophylactic dental check-ups. [___6___] The Ministry of Health and Family and the NHIF, using recommendations from the College of Physicians and the College of Pharmacists, compile a list of prescription drugs on a yearly basis with reference prices. [___7___] The insured are entitled to prescription drugs; health-care materials needed to correct eyesight and hearing, and prostheses of the limbs are also either partially reimbursed by the insurance funds or free. Coverage of medical rehabilitation, home-care and transportation related to medical treatment and housekeeping support during illness or disability are also regulated by the framework insurance contract. Health insurance does not cover professional risks and diseases, certain high-tech health-care services, various dentistry services, curative health-care assistance in the workplace, and luxury accommodation services in hospital, all of which must be paid for directly by the patients or from other sources (employer, professional risk insurance, and private insurance). Health expenditure from public sources in Romania between 1990-1999 varied between 2.8 and 3.8 percent of GDP, equivalent to $28-58 per capita.
(abridged from http://www.factbook.net/countryreports/ro/Ro_HealthServices.htm)

*Semashko model/system a centrally-organised health care system itroduced in CEE/CIS countries after the Second World War and abolished in the early 1990s

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. Motor insurance includes automobile, truck, motorcycle, aircraft, boat, or any __1__ form of motorized transportation. It is perhaps the __2__ common type of insurance, and is required by law in many countries. Motor insurance covers the insured party __3__ financial loss that he __4__ incur to repair his vehicle or a third partys in the __5__ of an accident. In return for annual or semi-annual premiums, the insurance company is __6__ to pay any losses as described in the policy. __7__ a policy may include property, liability or third party, and medical coverage. Property coverage insures damage to or theft of a vehicle; liability covers bodily injury or property damage that may occur as a __8__ of the insureds actions, and medical coverage pays any fees necessary for bodily injuries, rehabilitation and in __9__ cases foregone wages and funeral costs. In many countries, all of __10__ types of automobile insurance are required of vehicle owners. In some countries, or states, only third party is required. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. This form of insurance protects workers from injuries and illnesses which __11__ them from doing their jobs. It __12__ pay for existing __13__ the policyholders may have such as __14__ bills, mortgages, utilities, and __15__. Workers compensation is __16__ in the US, and pays a worker his wages and medical expenses in the event of an injury on the job. Total permanent disability insurance __17__ the disabled employee with benefits for the rest of his or her life, or according to the __18__ specified in the policy. Companies can purchase a similar type of insurance, called disability overhead insurance. This pays for __19__ overhead costs of business __20__ the owners are not able to work.

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11 12 13 14 15 16 17 18 19 20

A A A A A A A A A A

avert must promises superior further mutual renders periods endless while

B B B B B B B B B B

forbid can involvements outstanding more ordinary allows categories ongoing as

C C C C C C C C C C

prevent may engagements important such regular provides terms unfinished for

D preclude D should D commitments D noticeable D alike D common D stipulates D statements D current D because

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) Most developed nations have government-funded health care, (A) which means that most or all citizens have access to medical facilities and treatment, (B) as well as health insurance. For example, the National Health Service (C) in United Kingdom pays for (D) citizens medical needs. 22) However, (A) in the US, there is no government-funded health policy (B) whether for insurance or treatment. As a result, US citizens and residents (C) must be insured or (D) risk to face astronomical medical bills, garnishing of wages, and bankruptcy. 23) Often, medical insurance (both health and dental) is included in (A) employee benefit packages in the US and other countries. Nevertheless, the issue of affordable health insurance and treatment in the US is (B) one of the most controversial and heated topic, as many (C) cannot afford either. If you live in a country without comprehensive national health care, then low cost health insurance (D) is a vital requirement. 24) Issuance of insurance by an insurance company (A) is not free affair. Rather the policy holder of insurance (B) is needed to pay a regular payment amount to the insurance company (C) till its maturity. This amount is either repaid (D) in entirety or in part to the insurance holder in case of occurrence of the hazard or casualty or loss. 25) But it has been observed that (A) many insurances are not claimed due to (B) non-occurrence of the risk and thus (C) the premiums paid by the policy holders (D) becomes the profit of the insurance company.
(adapted from http://www.economywatch.com/insurance)

Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the blank space. Credit insurance is taken by lenders who need __26__ against the people that have credit with them (borrow money). In the event of their __27__ to pay it back (usually due to unemployment, disability, or death), this insurance protects the lender. There are many kinds of insurance, and each of the major categories has dozens of __28__ and types. They differ depending on the markets, the understanding of risk and __29__ of historical data, government regulation and law, cultural __30__ and expectations, and more. COVER ABLE

VARY AVAIL PERCEIVE

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TEST 11 INTERNATIONAL TRADE

INTRODUCTION International trade is the exchange of goods and services between countries. Trading globally gives consumers and countries the opportunity to be exposed to products not available in their own countries. It provides countries with the opportunity for specialisation and therefore maximises their capacity to produce those products with which they have a comparative advantage. International trade leads to greater competition on the market and more competitive prices, that is, cheaper products. International trade not only results in increased efficiency but also stimulates foreign direct investment (FDI), by which foreign currency and know-how enter the country. As a result, employment levels are raised and the gross domestic product (GDP)* grows. By investing abroad companies gain global market share, enhance their potential for growth and ultimately gain higher revenues/profits. International economic transactions are facilitated by international financial payments, with central banks and private banks playing important roles. Imports and exports are accounted in a countrys balance of payments, international trade being one of the indicators showing how well an economic system is working. Foreign trade entrepreneurs should keep in mind that payments are often delayed and that before obtaining profits they may incur additional costs to hire specialised staff, adjust the product or packaging, create new promotional material, delegate personnel for travelling and secure licenses. Besides, operating overseas involves additional knowledge and skills in comparison with operating a domestic business. In addition to the challenge of discovering new markets or suppliers abroad, they are faced with such complex issues as financial and legal documentation, shipping, government regulations, licensing and property rights. Much of the modern history of international relations concerns efforts to promote free trade among nations. Different regional trade blocs* or free trade zones have been formed in the period of economic liberalisation in various parts of the world. These are designed to protect the interests of the member countries by encouraging trade activities across nations through tax, tariffs and trade agreements. Trading blocs have played a crucial role in the economic and political environment of the contemporary world.
*GDP measures the value of a countrys overall output of goods and services produced during a specified period, typically a fiscal year; if income from abroad is added, it is called gross national product (GNP). *Some examples of trade blocs are: NAFTA (North American Free Trade Agreement), EU (European Union), European Economic Area (EEA), European Free Trade Association (EFTA), ASEAN (Association of Southeast Asian Nations), MERCOSUR (Mercado Comun del Cono Sur), CEFTA (Central European Free Trade Agreement), SAARC (South Asian Association for Regional Cooperation), CEMAC (Economic and Monetary Community of Central Africa), East African Community (EAC) and CACM (Central American Common Market).

READING This article is a critical commentary on the WTOs perspective on the socio-economic impacts of free trade. Some topic sentences have been removed from the text. Choose from the list (A-K) the best sentence to fill each blank (1-9). There is one extra sentence that does not belong in any gap. There is an example at the beginning (0 C). A B C D E F G What Lamy did not mention is that this productivity growth has been measured as output per person, not output per hour of work. Lamy admitted that free trade can be dislocating: He said that the multilateral system that came into being with the WTO has brought transparency and predictability to international trade. Lamy apparently brushed off concerns about swelling global financial and trade imbalances as well as the social hardships associated with immigration driven by economic desperation. What free trade has done, however, through the facilitated movement of capital is accelerate the development of capitalist relations of production worldwide. Put simply, international trade has distributional consequences, producing relative winners and losers in each society, affecting these groups' foreign policy preferences. Lamy attributed the loss of U.S. manufacturing jobs primarily to productivity growth brought about by advances in technology.

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H I J K

Yes, there are large imbalances in the U.S. economy. Lamy ascribed health care costs as a secondary cause of keeping wages flat. The WTO has faced scathing criticism for the free trade policies that have accelerated globalization and the integration of a worldwide capitalist free market economy. Lamy continued, I personally believe that issue of immigration is there to stay. Free Trade and Distorted Development: A Critique of WTO Perspective by Sharat G. Lin

November 12, 2009

Evidence is persuasive that trade openness delivers efficiencies and generates wealth. If trade opening takes place under the right conditions, all countries can benefit from international exchange. This was the assessment of the Director General of the World Trade Organization (WTO), Pascal Lamy, speaking at the Stanford Institute for Economic Policy Research (SIEPR) and the Stanford Center for International Development (SCID) on 27 October 2008. [___0 C___] All of the models suggest that the gains to developing countries will be larger the more they open their markets to trade. Citing specific cases, he said, since opening their economies, Asian giants like China and India have together lifted more than 440 million people out of poverty, an economic success which, I think, we all can agree is without any precedent. While trade has been an engine of aggregate economic growth in the BRICs (Brazil, Russia, India, China) and similar emerging countries, Lamy did not consider the unmitigated displacement of traditional sectors in these economies and the uneven development that has led to an alarming rise in income inequality both socially and geographically within each country. With the 153 members of the WTO at all levels of development, and 30 more queuing for membership, Lamy acknowledged that the WTO framework is no one size fits all paradigm. He continued, We acknowledge that the poorest are simply not equipped to take on the obligations of the rich. Lamy argued that a 30-fold growth in international trade in real terms over the past 60 years was made possible by progressive reductions in tariffs. In 1947-48 before the GATT negotiations, average tariffs in the industrial world were around 20 to 30 per cent and trade was constrained by a myriad of quantitative restrictions. Eight successive rounds of negotiations succeeded in reducing average MFN tariffs on the imports of manufacturers to the 4 per cent today in industrial countries. [___1___] But Lamy did make an important distinction: trade opening is not synonymous with deregulation. The tariff reductions negotiated under the WTO framework involve complex rules and formulas that are transparent to all parties. The problem is not one of deregulation or opacity, but that the industrially developed countries have, until recently, dominated the negotiations because of the differential rules and preferential subsidies that they have long had in place, and owing to their postcolonial political weight. Fortunately, that is changing. Recent trade negotiating rounds have conceded important preferences and exemptions for poor countries. [___2___] The social alienation attributable to the production process is far more profound than the social alienation owing to competitive trade between structurally unequal economies. Once again, the legitimate concerns about economic justice must focus primarily on the relations of production, and secondarily on the relations of exchange. Job Losses [___3___] No doubt about it, trade opening has led to some job losses globally and in the U.S. He added, Some of the wage stagnation that has beset American workers is due to competition from lower-wage countries exporters. But he insisted, The role of trade has been rather small compared to other factors. Were trade the culprit for the declining manufacturing jobs, you would very likely have seen domestic manufacturing output decline as foreign products displaced local products on the marketplace. But this wasnt the case. U.S. manufacturing output rose to an all-time record last year [2007]. For the last two decades the Fed says real manufacturing output has risen more than 120 per cent. In fact, the U.S. Federal Reserve Bank reported that the period 1991-2000 witnessed a sustained cumulative manufacturing growth rate of over 50 per cent, led by the high-technology sector until free trade facilitated off-shoring of software development, manufacturing, and back office services to low-

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wage countries with qualified pools of talent. This was followed by a period of greatly reduced manufacturing growth. The index of U.S. industrial production rose about 7 per cent from 2000 to 2007, followed by a substantial decline in 2008. When a mean annual population growth rate of 0.9 per cent is taken into account, U.S. per capita industrial production was stagnant over the period 20002007, and experienced a net decline over the interval 2000-2008 during which free trade in North America under NAFTA and globally was in full swing. [___4___] According to Bob Lawrence at Harvard only about 10 per cent of job manufacturing losses in this decade are due to international trade. Other studies put this number at somewhere between 5 and 15 per cent. And in the U.S. until very recently productivity growth has been at an alltime high. The U.S. Bureau of Labor Statistics reports that non-farm business sector productivity rose at an annual rate of nearly 3 per cent for the decades 1950s and 1960s. Each year in the 1995-2000 average manufacturing productivity rose at 4 per cent. And though this rate has tapered off slightly since 2000, it is still with a rate of 3.7 per cent. Where more goods and services are being produced with fewer workers, job losses are inevitable. [___5___] With salaried employees being pushed to work longer hours in the economy in general, and the high-tech sector in particular, output per person has risen much faster than output per hour of work owing to advances in technology. Citing Lawrence again, Lamy acknowledged, the principal factor in keeping wages flat has been the sharp rise of the share going to the super-rich, the top one per cent of taxpayers, and the share that has gone to profits which were at near record levels until this year. [___6___] Labour costs for U.S. corporations have actually risen 25 per cent since 2000, but nearly the entire increase went to pay the higher bill for health insurance which is twice as expensive today as it was at the beginning of this decade. However, he added that WTO does not involve itself in the question of income inequality within a country's border, nor does it in the reduction of health costs. Policies aimed at trying to address job loss and stagnant wages through trade measures will not fix the problem of manufacturing job erosion and it could, on the contrary, lead to a deterioration of this most vibrant part of the U.S. economy today, he said. Free Trade, Global Imbalances, and Immigration In response to a question on the potential differential impact of free trade on national economies characterized by great differences in purchasing power parity, wage structures, and sectoral value added, resulting in enormous trade imbalances and immigration flows, Lamy said, The harsh reality is that opening trade reshuffles economic and social fabrics, and that creates political hardship. In whichever condition, the moment some of your constituencies are better off, others are worse off, you have a political problem. [___7___] There is a huge trade deficit. This has to be seen sort of globally. Very talented economists will tell you that the U.S. trade deficit is nothing [more] than the other [side of the] coin of the U.S. rate of saving. It has to be financed, and it is external finance that sort of matches the lack of domestic savings, he commented. And if you take the example of the U.S., and you look at this huge trade deficit with China, people see this as a U.S.-China issue. Whereas, they dont realize that a large part of this huge trade deficit (bilateral) is offset by a Chinese deficit with many Asian countries who produce goods which then go to China which then go to the U.S. Its the old example of the i-Pod which is shipped from China to the U.S. for $100 and you have $5 of Chinese added value in that. [___8___] Trade, no trade, big trade, trade deficit, trade surplus migrations in this planet occur for reasons which are of a sort of such a compelling nature that I wouldnt link them to trade. The only prescription I would make is that if you believe that migrations are sort of a hardship for many, making sure that goods and money flow freely is the right way to reduce the incentive to immigration. If trade or finance were to flow less than they flow today, then the constraint on people to move would probably be harder. [___9___] Yet it is the monumental debt and deficit burdens in the U.S. that are at the root of the global financial crisis. Furthermore, his argument implies that the undocumented migration from Mexico and Central America to the U.S. would occur regardless of free trade, which is not borne out by its historical correlation with NAFTA. The argument that the free flow of goods and capital will

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reduce the incentive to immigration applies only between two national economic structures that are qualitatively similar and whose intensive parameters are quantitatively similar. Under these conditions the free flow of goods and capital may tend to equalize conditions geographically between similar socio-economic frameworks. But between structurally very different economies, the free flow of goods and capital, but not people, introduces profound socio-economic distortions that impel distressed populations to migrate. Global policymakers need to understand not only the economics of aggregate growth, but the socio-economic impact of globalized flows on the distribution of income and on the welfare of human beings.
(http://www.globalpolicy.org/social-and-economic-policy/international-trade-and-development-1-57/general-analysis-oninternational-trade-and-development/47302.html)

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. __1__ the successor __2__ the General Agreement on Tariffs and Trade (GATT), the World Trade Organization (WTO) __3__ established to supervise and liberalize world trade. During negotiations ending in 1994, the original GATT and all changes to it introduced __ 4__ to the Uruguay Round of trade negotiations __5__ renamed GATT 1947. This earlier set of agreements was distinguished __6__ GATT 1994, __7__ comprises the modifications and clarifications negotiated __8__ the Uruguay Round (referred to as Understandings) plus a dozen __9__ multilateral agreements on merchandise trade. GATT 1994 became an integral __10__ of the agreement that established the WTO. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. Critics of the WTO, including many __11__ of economic globalization, have charged that the organization __12__ national sovereignty by promoting the interests of large multinational corporations and that the trade liberalization it encourages leads to environmental __13__ and declining living standards for low-skilled workers in developing countries. Some WTO members, especially developing countries, resisted __14__ to adopt rules that would __15__ for sanctions against countries that failed to meet strict environmental and labour standards, __16__ that the sanctions would __17__ to veiled protectionism. Despite these criticisms, however, WTO admission remained attractive for non-members, as __18__ by the increase __19__ membership after 1995. Most significantly, China entered the WTO in 2001, after years of accession negotiations, and many other countries were slated to join through accession in __20__ years. 11 12 13 14 15 16 17 18 19 20 A A A A A A A A A A challengers disobeys damages attempts grant differing amount presumed from coming B B B B B B B B B B competitors undermines loss efforts permit arguing equal certified in immediate C C C C C C C C C C opponents impairs harm trials allow quarreling mean manifested for succeeding D D D D D D D D D D rivals threatens damage struggles authorize debating total evidenced of next

(adapted from http://www.britannica.com/EBchecked/topic/291349/international-trade)

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph.

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21) American policymakers should beware (A) claims of globalizations axiomatic pacifying effects. Trade creates vested interests in peace, but (B) these interests affects policy only to the extent they wield political clout. In many of the states (C) whose behaviour we most wish to alter, such sectors internationalist, export-oriented, (D) reliant on global markets lack a privileged place at the political table. 22) Until and unless (A) these groups gain a greater voice within their own political system, attempts to rely on the presumed constraining effects of global trade carry (B) substantial greater risk than commonly thought. A few examples tell much. Quasi-democratic Russia is a state (C) whose principal exposure to global markets lies in oil, a commodity whose considerable strategic coercive power (D) the Putin regime freely invokes. 23) The oil sector (A) has effectively merged with the state, making (B) Russias deepening ties to the global economy a would-be weapon (C) rather then an avenue of restraint. Russian economic liberalization without political liberalization is unlikely to pay (D) the strong cooperative dividends many expect. 24) (A) China (A) will prove perhaps the ultimate test of the Pax Mercatoria. (B) The increasing international Chinas presence in the oil and raw materials extraction sectors (C) would seem to bode ill, given such sectors consistent history elsewhere (D) of urging state use of threats and force to secure these interests. 25) Much will come down to the relative political influence of export-oriented sectors (A) heavily reliable on foreign direct investment and easy access to the vast Western market versus (B) the political power of their sectoral opposites: uncompetitive state-owned enterprises, energy and mineral complexes with important holdings in the global periphery, and a Chinese military that increasingly has become (C) a de facto multi-sectoral economic-industrial conglomerate. Actions to bolster the former groups at the expense of the latter (D) would be effort well spent.
(from Does Globalization bring war or Peace? by P. R. Goldstone, Sept. 24, 2007, http://www.globalpolicy.org/social-and-economicpolicy/international-trade-and-development-1-57/general-analysis-on-international-trade-and-development/47297.html)

Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the blank space. Free trade zones in Romania are regulated by Law No. 84/1992. Customs control is __26__ only at the borders of free trade zones, which have to be __27__ delimited. Goods and other merchandise are admitted into free trade zones without restrictions as to country of origin or destination, provided that the import of such goods into Romania is not prohibited. Free trade zones are established by Government __28__, at the proposal of interested __29__ and local public administrations. They are managed by a Board of Directors, under the supervision of the Free Trade Zones Agency within the Ministry of Transport. According to the __30__ of Law No. 84/1992, land and buildings can be rented or concessioned to Romanian or foreign legal or natural persons for a maximum of 50 years. Foreign-owned firms have the same investment opportunities in free trade zones as Romanian entities. Currently, there are six free trade zones in Romania: Sulina, Constana-Sud, Brila, Galai, Curtici-Arad, Giurgiu. APPLY STRICT

DECIDE MINISTER

PROVIDE

(http://www.factbook.net/Freetradezone.htm)

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TEST 12 INFORMATION TECHNOLOGY IN BUSINESS

INTRODUCTION Information technology (IT) or information and communication technology (ICT) is the technology required for information processing, in particular the use of electronic computers and computer software to convert, store, protect, process, transmit, and retrieve information. The discipline of information technology governance deals primarily with the connection between business focus and IT management of an organisation. Business software is generally any software program that helps a business increase or measure productivity. Examples of business software are: accounting software, customer relationship management, human resources software, OFFICE applications suite, enterprise resource planning, and computer-mediated communication. Accounting software is used to record and process accounting transactions such as accounts payable*, accounts receivable*, payroll*, and trial balance*. It functions as an accounting information system. It may be developed in-house by the company or organisation using it, may be purchased from a third party, or may be a combination of a third-party application software package with local modifications. Some business accounting software is designed for specific business types to include features that are specific to that industry. OFFICE applications suite is used by typical clerical workers. Most office application suites include at least a word processor and a spreadsheet* element. In addition to these, the suite may contain a presentation program, a database management system and minor graphics and communications tools. Newer variations on the office applications suite include an e-mail client, a personal information manager or a graphics application suite. Customer relationship management (CRM) enables an organisation to improve customer service and customer relationships through the introduction of reliable processes and procedures for interacting with those customers. CRM software is made up of three components: operational for the basic business processes (marketing, sales, service) analytical for the analysis of customer behaviour cooperational for contact with customers (phone, e-mail, fax, web) The function of the Human Resource (HR) / Personnel department is to track innumerable data on each employee, from personal histories, skills, capabilities, and experiences to payroll records. To reduce the manual workload of these administrative activities, organisations utilise innovative Human Resource Management Systems, which integrate financial and human resource modules into one universal database. They are characteristically developed around four principal areas of HR functionalities: (i) payroll, (ii) time and labour management, (iii) benefits administration, and (iv) HR management. Enterprise resource planning (ERP) systems typically handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, and accounting for a company. Enterprise resource planning software can aid in the control of such business activities as sales, delivery, billing, production, inventory management, and human resource management. ERPs are often called back office systems indicating that customers and the general public are not directly involved. This is contrasted with front office systems like customer relationship management systems, which deal directly with the customer. Computer-mediated communication (CMC) is any form of communication between two or more individual people who interact and influence each other via separate computers. CMC most commonly refers to e-mail, video, audio or text conferencing, bulletin boards, list-servers, instant messaging, and multi-player video games.
(adapted from http://en.wikipedia.org)

*accounts payable creditors *accounts receivable debtors *payroll a list of employees with details about the amount of money that each is to be paid *trial balance a means of checking the correctness of a set of accounts by comparing the total of the debit balances with the total of the credit balances *spreadsheet a computer software for calculating what effect a change in one variable will have on the others, given a set of mathematical relationships between variable values

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READING Read the following text about the impact of the Internet on companies. Choose the best sentence from the list below (A-H) to fill each gap (1-6). There is one sentence that you do not need. There is an example at the beginning (0 - E). A B C D E F G H All these clearly have great potential to change the way companies work, yet we may not see those changes until well into the first decade of the twenty-first century - or even later. But such networks, and packaged software applications such as Enterprise resource planning (ERP), tend to be cumbersome and expensive, forcing companies to accommodate them. Only then will they be able to apply it to take good decisions, a task that grow harder as the flow of new information becomes ever more relentless. Some pure Internet plays will survive as viable businesses, but they will not be where the impact of Internet technologies is greatest. Nowhere is this judgement truer than with new technologies. Information technology has undoubtedly been wonderfully successful in many ways. It will be most striking, at least in the medium term, in companies providing services: financial, travel, medical, educational, consultancy. They will accentuate the need for talented and inventive people, who will have an even sharper idea of their financial worth on the world market for human capital. Making Your Company Ready for the Next Twenty-Five Years by Frances Cairncross, Management Editor at The Economist How will the Internet transform your company over the next twenty-five years? Subtly, but profoundly, argues Frances Cairncross in this excerpt from The Company of the Future. Most people overestimate the effects of change in the short term, underestimate them in the long term and fail to spot where change will be greatest. [___0E___] The Internet stock-market bubble*, like the bubble in railway stocks in the nineteenth century, reflected overestimates and misjudgments of the potential impact of new communications. And as with railways, the bubble burst, leaving lots of empty hands but an infrastructure that survivedand changed the world. There will be evolution, rather than revolution and it will take many years to work through. Recall that even though the telephone was first used commercially in the 1870s, telephone banking did not spring up until the 1980s. Consider that the Internet had been in commercial use for a mere seven years by the time recession struck. Profound change rarely comes fast.

Over the next quarter century, though, the Internet will help to transform companies, although the transformation may be too subtle for people to notice much while it happens. [___1___] Many manufacturing businesses will grow more like service industries: They will cater to the individual customer's tastes, for instance, and create a continuing relationship to ensure they get repeat purchases.
These changes will occur in established companies as they build the Internet into their existing processes. Largely gone is the view of the late 1990s, which saw the Internet as a free-standing technology and a basis for free-standing businesses; so has the thought that the Internet, in and of itself, may be a technology that generates lavish profits. [___2___] The main revolution will involve enabling established companies to do familiar tasks in new ways, and then to do new tasks in increasingly familiar ways. These changes may or may not prove profitablethey will certainly raise productivity and sharpen competitionbut companies will have no more choice over whether to deploy the Internet than they had over whether to deploy the telephone. Internet technologies will offer managers much more scope to define their company in the most efficient way; they will not, however, undertake that job on managers' behalf. The biggest changes will inevitably be those that go with the grain of what is already happening. Internet technologies will thus reinforce outsourcing, a trend that has been in progress for at least two

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decades. They will further reduce inventory, a move that began long ago with just-in-time lean production. They will bolster globalization, allowing companies to manage overseas operations and connect with foreign suppliers in more intricate ways. They will highlight the emphasis on the customer that so many companies strive to achieve. [___3___] They will enable the flat structures of modern businesses to operate more effectively and make them even less hierarchical. Indeed, one of the truly remarkable things about these technologies is the extent to which they reinforce trends already under way. This reflects the fact that many of the things they do are not entirely new: Proprietary electronic networks have long allowed large companies to do what smaller firms can now emulate. [___4___] By comparison, the Internet is flexible, accessible, inexpensive, and ubiquitous. And there is more to come. Some Internet technologies that promise profound changes are only in the early stages of application. They include peer-to-peer applications (variants of Napster); applications that rate the relevance of information by the frequency with which others use it (as Google, the search engine, does); or, indeed, XML and its variations, which allow seamless document exchange. [___5___] As this book has argued, the astonishing fall in the cost of communicating knowledge and information has the power to transform knowledge management. So has the development of new tools for collaboration, giving people new ways to share ideas and information. However, not only must access to knowledge be as free and open as possible but senior managers must decide how to filter and structure that knowledge. [___6___] If the center does not first impose structure, the true benefits of an open culture will be lost. Here, as in many other applications of Internet technologies, the center's power to set standards and structure grows more important, not less: the Internet may be a tool of democracy, but in knowledge management, effective democracy requires self-restraint.
(http://hbsworkingknowledge.hbs.edu/item.jhtml?id=2839&t=innovation)

USE OF ENGLISH

Questions 1-10

For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. In the future, Internet technologies will give companies new control __1__ their relations with their customers. The Internet will not __2__ widen reach, allowing companies to reach new markets; __3_ important, it will provide ways to deepen existing relationships. Here, as in many __4__ areas, the development of a culture of trust will __5__ the most to deepen the relationship. In __6__, companies will develop more sophisticated tools to identify their __7__ profitable customers, to retain them, and to sell them extra products. They will find subtle ways to price discriminate, for example, __8__ developing two familiar concepts, loyalty schemes and clubs. Given the importance of creativity and new ideas to corporate success, companies must work harder than __9__ to recruit and retain the right staff and to create a corporate culture that encourages loyalty and effective collaboration. With recruitment, as with customer management, identifying __ 10__ people likely to contribute most to corporate profitability and concentrate on retaining and developing them will be critical.

Questions 11-20

For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. One of the earliest and most visible __11__ of Internet technologies is on purchasing. Here, a __12__ new business model has __13__: the electronic exchange, which will __14__ several different forms, but will be built around a single standard that will __15__ different industries and different companies within an industry to __16__ freely with one another. In networks and in marketplaces, __17__ determined standards is one of the __18__ to realizing value. In purchasing within individual companies, central __19__ will also be essential if companies are to benefit __20__ savings and new suppliers. 11 A outcomes B results C effects D consequences

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12 13 14 15 16 17 18 19 20

A A A A A A A A A

genuinely aroused take consent function practising methods discipline of

B B B B B B B B B

factually risen grow concede transact applying ways regulation on

C C C C C C C C C

naturally raised receive allow operate employing means order from

D D D D D D D D D

legitimately arisen be admit exercise referring keys rule with

Questions 21-25

In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) (A) More far-reaching will be the impact on the management of supplier networks. Here, (B) the key will be the power of Internet technologies (C) to making information available simultaneously to many different points (D) in a system. 22) The transformation of the supply chain into an ecosystem will bring the biggest rewards when the whole production process (A) can become more modular, so that different stages (B) that once took place sequentially (C) could now occur simultaneously. That change will speed production, reduce output, and increase the flexibility with which companies can respond (D) to changing customer tastes.

23) In the past, the costs of transferring information (A) has been one of the main factors (B) determining the structure of the company. Now, that is (C) far less true, and the consequence is that companies can make decisions about (D) whether or not to outsource some process or to decentralize some authority in terms of the business case alone. 24) (A) The pressure to outsource will grow, partly because (B) it will leave companies free to concentrate on what they do best rather than on what they merely do well. They will grow, too, because talent (C) is scarcely: some of the brightest and best may choose to be free agents (D) rather than wage slaves. 25) However, when business (A) will be slack, employees may be less enthusiastic (B) about going it alone; and outsourcing (C) will have drawbacks when companies are keen (D) to keep direct control over their quality of service and the reputation of their brands. Questions 26-30

Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the space.

The benefits of Internet technologies depend not on their wizardry alone, which in coming years will seem __26__ ordinary and natural, just as the phone does now. Companies will reap the full benefits only if they have appropriate structures and cultures. Creating those calls for __27__ leadership. Leaders must be able to cope not only with change, __28__ and continuous, but also with the pressures on decision makers to digest a __29__ torrent of new dataa task that the next generation of managers will be better able to do. Leaders must be good at communicating both with the outside world and with their own people, and able to

REMARK

SKILL DISRUPT CEASE

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__30__ the sense of managing in a fishbowl, visible to all. They must be as adept at making business decisions as at managing public opinion and issues, such as the environment and corporate social responsibility. Running a big company will remain one of the worlds most complex and demanding tasks.

STAND

(http://hbsworkingknowledge.hbs.edu/item.jhtml?id=2839&t=innovation) *bubble unreasonable and excited buying of shares in a company that is financially weak, with the effect of raising the market price of the shares far higher than their true value

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TEST 13 BUSINESS TRAVEL

INTRODUCTION With business communities expanding across the globe, business travellers find an array of useful new services on the road. Hotels are better, remote communications are easier, better car rentals are available, and airlines and airports have improved. Here are some questions that one needs to consider when going on a business trip: Do I need a visa for my destination? Do I have my credit cards or the correct currency? Have I booked my hotel? How am I going to get to and from the airport? What is my schedule? What business documents do I need? What do I need to do when I get to my destination?

READING Read the article about female business travellers and decide whether the following statements (1-5) are true (T) or false (F). 1) Women business travellers are a consumer segment whose needs and expectations are distinct from mens. 2) Travel industry services should make a distinction between business travellers and tourists as they exclude each other. 3) According to Travel and Leisuress Begley, 50% of the business travellers who fly are men. 4) Compared to men, female hotel guests are more sensitive to the social and aesthetic environment in a hotel. 5) Female business travellers prefer more active and diversified ways of spending their free time than men. The Hidden Market of Female Travellers
by Martha Lagace

Women are a rising force among frequent business travellers. They also make a majority of decisions for their families personal trips. So can the travel business get in gear? Try this on for size: A female executive recently changing planes at one of the worlds busiest passenger airports, Hartsfield-Jackson Atlanta, suddenly realized shed forgotten to pack her extra pair of shoes. With luck she found a shoe store at the airport, but its selection was limited to mens footwear. When she asked where she could buy womens shoes, the clerk told her, Sorry, not anywhere here. Its a real experience and a metaphor for a larger quest that women as a segment of the travelling population frequently endure. Despite their numbers as a growing force in the marketplace, women business travellers are still often shoehorned into a model designed for men. Hotel rooms for business travellers offer downcast dcor and so-so amenities; the hotels social area may consist of a bar that is at best uninviting or at worst, vaguely creepy. In addition, women travellers often perceive that airline employees treat them more grudgingly than the guys. As a result, a valuable market is still waiting to be served; that goes double when one considers womens substantial role in organizing their families leisure vacations. So said five travel professionals who spoke at a panel session of the Harvard Business School Dynamic Women in Business Conference, held January 22. Laura Begley, style director for Travel & Leisure magazine, moderated the session, whose theme was Women Exploring the World.

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The two identifiable market segments business and recreational travellers are not even mutually exclusive, panellists agreed. There is a trend for incorporating family: taking a business trip and adding a family component, said Jenifer Ziegler, senior vice president of brand management for Holiday Inn Express. Any company that understands its female travellers experiences and wisdom is likely to succeed, everyone agreed. Rewards for the travel and hospitality industry overall will come when women occupy more senior management positions, added Kathy Stewart, a program director for Butterfield & Robinson, a company based in Canada that runs high-end, active trips. The more we talk about women as travellers, the more it will be clear that these positions need women, she said. Females are estimated to comprise 50 percent of frequent fliers, according to Travel & Leisures Begley. If a woman has a family, she may make 70 percent of all her familys personal travel decisions, Begley continued. Forty percent of business travellers today are women, while just thirty years ago female executives comprised only one percent. A glance around any airport or train station confirms that things have changed. What do women want compared to men? On the one hand, both genders expect the same high quality of service and efficiency. Peggy E. Stirling, vice president of the Safety, Security and Environmental division of American Airlines, said female travellers particularly women with children complain to American that flight attendants are not responsive enough to their needs compared to men. Flight attendants should be more responsive, Stirling said. We spend a lot of time with our flight attendants educating them about this issue. As professionals, we are obliged to meet all expectations, she continued. By and large, the airline industry has come a long way. American Airlines will be focusing on women and travel. Women who travel are clearly a rising population and all the statistics show it. As travellers, women do seem to distinguish themselves from men in several important ways, so it makes business sense to spend more to attract them, said the panellists. Holiday Inn Express (and the segment in which it competes) estimates that male guests make up 70 percent of all stays in its hotels, said Ziegler. But when her company conducts consumer research on how to enhance the guest experience in order to learn why customers would visit the hotel more often and spend more money, it found that women often provide the best insights. The men indicate that they are already quite satisfied with what theyre getting from the hotel, said Ziegler. But we know theres so much more we could do, so thats a little frustrating. Women respondents see a lot more opportunity in improving the guest experience. Hotels have been very much a male-designed experience, I would say. There are sports magazines in the lobby, et cetera. When we wanted to update all of our bathrooms, the men said the bathrooms were just fine. The women pointed out that we could do a much better job with the towels. Holiday Inn Express ended up overhauling 100,000 guest rooms, and now all the bathrooms have larger, white (with the sense of clean), fluffier, more absorbent towels. There are now better amenities with an upscale scent and quality. Men reported that they like these changes, too, and research indicates they would consider prolonging their stay. Zieglers parent company, InterContinental Hotels Group, recently launched a new brand that is more female-focused called Hotel Indigo. The first Hotel Indigo is in Atlanta . We didnt want to abandon men, but we wanted to give more attention to the things many women appreciate. So instead of enlarging the space of a guestroom, we enlarged the space of the bath area. We decided to bring some colour rather than stick with hotel beige and to rotate some of the designs regularly. And we have created a guest area where women can congregate and feel safe and comfortable. Instead of going to the hotel bar, maybe theyd like a place where they can grab a salad and a glass of wine; a place where they can do some business or read a book. Hotels can focus on some simple improvements like that, she said. Panellists acknowledged that a sense of personal security can be more important to women than men. In certain hotels, women business travellers may be offered the option of a room on a floor just for female executives. Travel & Leisure advises women travelling alone to never accept a room on the first floor of a hotel, nor one too close to (nor too far from) the elevator, added Begley. Among the leisure-travel crowd, we find that women solo travellers take comfort from going in a group, said Stewart. Women want to go to exotic places, they want to have exotic experiences,

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but they feel much more comfortable when theres a guide or an experienced person there to make them feel safe in a foreign country. With that caveat* in mind, women are even more adventurous than men in terms of the destinations they want to go to and the experiences they want to have, but they like to know there is a security backup, she continued. When her company designed women-only group trips, they were not big sellers. Mixed groups are much more popular, she said. Women want a fantastic experience and it doesnt matter who else is there. There might be women there, there might not. We say, Bring your partner, spouse, your children; or come by yourself, and youll all have a great time. There also seems to be a trend for learning while on vacations, Stewart said. Women express an interest in gaining new skills, such as how to mountain bike, ski, or kayak; or learning languages. Stewarts impression is that women in particular love how foreign travel enriches and expands their minds. Women also seem to enjoy getting closer to another culture by joining such activities as helping to build a bridge in Costa Rica or visiting an orphanage in Sri Lanka. Theres been astronomic growth in the area of such volunteer vacations, she said. When the panellists were asked where they prefer to journey in their downtime, everyone enthused about their favourite destinations, from South Africa to Thailand, Vietnam, France, and Italy. I definitely could go to Italy every year for the rest of my life, said Stewart. But where I would like to go is somewhere Ive never been before, and for me that would be South America.

When youre a business traveller, really try to take advantage of personal time in a foreign country, Ziegler advised the audience. Its hard because youre busy and have lots of work to do. But its so worth it.
(http://hbsworkingknowledge.hbs.edu/item.jhtml?id=4611&t=marketing)

*caveat a statement or warning intended to prevent misunderstanding

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. As airports improve, so __1__ the services available to business travellers. In 2000 AT&T rolled out a new generation of public phones __2__ combine voice calling with high-speed connectivity to the Internet, Web surfing and e-mail. The device is a travelling executives dream. __3__ it includes a full-size keyboard, a touch pad, speakers and a 12-inch video screen, travellers __4__ surf the Web or connect to their e-mail __5__ as they do from their desktop computer. The usage charge is just 25 cents per minute, __6__ a four-minute minimum. The phone accepts calling cards, credit cards and even one-, five-, ten- or twenty-dollar __7__. Travellers spend a lot of dwell time at airports __8__ they want to or not, says Jim Agliata, marketing director of the AT&T Public Markets division. We think theres a need and a demand to __9__ that time productive and a public phone that surfs the Web and does e-mail __10__ a terrific productivity tool. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. The AT7T WorldConnect service __11__ corporate executives to keep their wireless phone number while travelling to nearly 100 countries in Europe, Asia, Australia, Latin America and the Middle East. With a SIM card and an international phone, a travellers U.S. number, voice mail and call waiting also can travel. AT&T Wireless is also in the vanguard of __12__ the Internet and wireless phones. The AT&T Digital PocketNet service offers business travellers with Internet-ready phones access to a wide range of Web information: real-time flight data, flight reservations, frequent-flyer account updates, taxi and car-service reservations, __13__ and maps, and restaurant __14__ and reservations.

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The trend toward wireless travel tools, first evident with cell phones, then refined by personal digital assistants, is now __15__ back to portable computers, the mother of all high-tech business travel products. The new Compaq Evo family offers a wide range of computing products, but most __16__ is the Compaq Evo Notebook 400c. It incorporates Multiport, a(n) __17__ modular wireless data solution that __18__ travellers from the need for communication cables. The Multiport module itself is a mobile __19__ it integrates the wireless technology and the antenna into a single assembly, which then inserts and __20__ flush against the notebooks display panel. 11 12 13 14 15 16 17 18 19 20 A A A A A A A A A A empowers absorbing directions inspections reaching noticeable optional releases marvel matches B B B B B B B B B B sustains joining prescriptions reviews spreading distinct selective saves wonder fits C C C C C C C C C C enables blending directives re-examinations extending distinguishable voluntary discharges miracle goes D D D D D D D D D D approves merging orders criticisms enlarging notable free frees curiosity suits

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) This technology (A) not only offers (B) better performances and greater wireless coverage, it also contributes to the sleek, stylish look of the Evo Notebook N400c. (C) The unit weighs just 3.5 pounds and measures (D) less than an inch thick. 22) Within (A) that thin package, however, is (B) incredible mobile computing power: an Intel Pentium III 700 MHz processor, a bright 12.1-inch color display, a 20-gigabyte hard drive, 128 MB of memory and a unique, (C) full-sized keyboard. An optional mobile expansion (D) permits the addition of a floppy drive and CD, CD-RW and DVD drive. 23) (A) For all the emphases on new and (B) better technology tools, however, productive business travel (C) still rests on, well, (D) a place to rest. 24) There is an oversupply of (A) economy and limited-service hotels (B) in the most major cities around the U.S. but full-service and luxury hoteliers (C) are finding that there is a continuing strong demand for their product (D) from discerning business travelers. 25) (A) The rush to operate top-notch* properties (B) in key business destinations also (C) have led several grande dame hotels to embark (D) on aggressive renovations and restorations.
* top-notch of highest rank or quality; being one of the best possible

Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the space. In the end, __26__ of improvements on the ground, __27__ business travelers most need better airline service. Major carriers are sparing no __28__ to coddle executives willing to pay for premium-class service. Many of the worlds leading __29__ have eliminated REGARD CORPORATION SPEND CARRY

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international first class altogether and switched to a super business class service. Along with its ally KLM Royal Dutch, the U.S. airline Northwest has just completed its World Business Class service. It includes seats with sixty inches of legroom and a recline of 150 degrees. There have also been a host of service __30__, including pre-departure service and cocktail snacks, upgraded main meals and a new digital audio system.

GRADE
(adapted from FORBES, 23 July, 2001)

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TEST 14 BUSINES ETHICS

INTRODUCTION Generally speaking, ethics refer to moral rules or principles of behaviour governing a person or group. Business ethics are the branch of ethics that examines the various moral or ethical issues that can arise in a business setting and the special duties or obligations that apply to persons who are engaged in business activities. Todays heightened interest in the proper role of businesses in society has been promoted by increased sensitivity to ethical issues. Issues like environmental damage, improper treatment of workers, and faulty production leading to customers inconvenience or danger, are highlighted in the media. Government regulation regarding environmental and social issues has increased. Investors and investment fund managers have begun to make investment decisions based on social sustainability as well as pure economics. Consumers have become increasingly sensitive to the social performance of the companies from which they buy their goods and services. Some typical issues addressed in business ethics include: creative accounting* advertising deception black market sales bribery / kickbacks business intelligence and industrial espionage political contributions hostile take-overs fiduciary responsibility* shareholder rights issues insider trading* price fixing and price discrimination competitive misinformation discrimination, affirmative action* sexual harassment violation of employees rights illicit drug testing environmental issues, animal rights, pollution labour issues, such as union strikes and union busting infringement / breach of patent or copyright planned obsolescence*, product liability* and product defects
(adapted from http://en.wikipedia.org/wiki/Business_ethics)

*creative accounting (also window-dressing) the use of accounting policies and practices that make the figures appear better than they might otherwise *fiduciary esp. of a loan, backed by good faith instead of being backed by the security of valuable assets *insider trading unfair secret buying and selling of shares by company directors and high officials based on their special knowledge of the affairs of their companies, which other investors do not receive until later *affirmative action (also positive discrimination) the practice or principle of favouring people who are often treated unfairly, esp. because of their sex or race *planned obsolescence making a product with a feature that will become unfashionable or unusable in a short time, so that the person who bought the product will soon have to replace it *product liability the liability of manufacturers and traders to pay claims made against them for damages caused by faults in their products

READING
Read the article about differences in ethnic values across borders and decide whether the following statements (1-5) are true (T) or false (F).

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1) 2) 3) 4) 5)

Professor Paines interest in global cultural differences in business ethics originated in the questions asked by her American business students. The case studies included in professor Paines research project are representative of four continental cultures. Professor Paine selected both national companies and multinational corporations with a complex mission that surpasses the mere achievement of profits. The two case studies presented speak about religion as a primary cultural factor that shapes and influences work-related behaviour. Professor Paines course Globalization, Culture, and Management is intended to provide future global managers with a set of prescriptions for how to handle differences in ethical values across cultures.

Value Judgments: Business Ethics across Borders

by Judith A. Ross

As different cultural traditions meet in the marketplace and inside organizations, managers face tough choices about the values that they and their organizations will live by, Harvard Business School (HBS) professor Lynn Sharp Paine told participants at a research conference in Hong Kong last winter that was part of the inauguration of the HBS Asia-Pacific Research Office. In order to be effective, they must find ways to deal with differences in how people think about matters such as authority, fairness, responsibility, and even the very purpose of business. In her previous work regarding organizational values and business ethics, Paine focused on U.S. companies engaged in business principally at home. But faced with an increasing number of questions from international students about whether U.S. standards and values applied in their home countries, she began searching for answers in a much broader setting. Students would ask me about the possibility of establishing a global system of business ethics, Paine says, and whether cultural clashes of one degree or another were inevitable. I needed a systematic way to study the values and standards of high-aspiration companies around the globe in order to find out where and how much they differ. With a research agenda organized around eight major world cultures African, Confucian, Hindu/Buddhist, Islamic, Japanese, Latin American, Slavic-Orthodox, and Western Paine embarked upon an ambitious course-development project in 1997. Writing cases on firms in China, Japan, Thailand, Argentina, Nigeria, and Russia, she focused on businesses indigenous to each culture as well as multinationals moving between cultures. In addition, she chose companies that aspire to excellence along multiple dimensions in terms of not only financial performance but also management practices and reputation in the community. The result of her efforts is the MBA elective course Globalization, Culture, and Management. According to Paine, as students examine the values and beliefs embraced by companies striving for excellence from different points of cultural reference, they learn to anticipate and deal with the kinds of value conflicts they are likely to face as global managers. Paine points out that students taking her course also develop a business philosophy and a set of values that will help them lead effectively when crossing cultural borders. Two of the seventeen case sequences she has developed for the course so far Siam Cement Group: Corporate Philosophy and The Haier Group take place in Thailand and China, respectively. Named Asia's most ethical company by Asian executives polled several years ago in Asian Business magazines annual most admired companies survey, Siam Cement Group (SCG) was one of the first firms in Thailand to develop its own written code of ethics. SCGs philosophy is rooted in the Buddhist concept of fairness and also stresses product quality, the value of the individual, and concern for social responsibility. As Siam Cement expanded beyond Thailand, however, managers felt pressured to compromise the corporate code of ethics. The companys standards regarding improper payments, for example, made it difficult to compete in places where such transactions are a way of life. The case illustrates a classic dilemma: should organizations conform to the environment theyre in, or should they export

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their ethical standards to other lands? In Paines view, framing the issue as my way or your way tends to heighten the dilemma and limit the possibilities for an effective resolution. Instead, she urges managers to look beyond differences in practice to underlying principles. In many instances, this approach can help managers find a strategy that honors the companys values and also works in a particular environment. One firm that had built its reputation by being environmentally responsible ran into trouble when it expanded its business into India, she explains, because people there were not willing to pay for the world-class technology necessary to maintain the stringent emission standards of the companys U.S. plants. After much debate around the choice of technology, she continues, the company re-examined its concerns about the environment and realized they originated in a broader commitment to social responsibility. Managers then began working with the local community to find meaningful ways such as support for schools, health centers, sewage disposal, and forest preservation to be socially responsible within that setting. A series of cases on the Haier Group describes a Chinese refrigerator and white goods maker aspiring to become a global brand. Among other challenges facing the CEO of this collective enterprise was the need to focus the attention of the work force on performance issues. His task was to create a value system that favors personal accountability, emphasizes product quality, and centers on serving the market and the customer rather than being responsive to the central planner, Paine notes. In addition, the chief executive found himself torn between, on the one hand, a deep-seated cultural code of ethics emphasizing loyalty to family and friends and, on the other, a desire to do what was needed to build a world-class company. Going back to the time of Confucius, says Paine, the primacy of personal relationships and interpersonal reciprocity has been paramount in China. This poses a problem for those who want to use strictly market criteria when choosing suppliers and employees and entering into contracts. While there are no easy answers to these predicaments*, Paine views the challenges she is uncovering as a beginning for coping with cross-cultural conflict. Astute managers learn about cultures in order to build bridges and bring about changes that will make their organization more effective and responsible, she concludes. In any successful change process, an understanding of the starting point is as important as a vision of the ultimate objective.
(http://hbsworkingknowledge.hbs.edu/item.jhtml?id=86&t=corporate_governance) *predicament difficult or unpleasant situation in which one does not know what to do, or must make a difficult choice

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. Codes of conduct or guidelines for multinational corporations __1__ not have any fixed definition. However, it is important to __2__ a distinction between corporate codes of conduct and codes of conduct for multinational corporations. Corporate codes of conduct are individual company policy statements __3__ define a companys own ethical standards, __4__ codes of conduct for multinationals are externally generated and to __5__ degree imposed on multinationals. These codes are not of the companies own making, __6__ are they agreements between companies and the entities which create the codes. In some cases, __7__, multinationals are involved in the drafting process. The fact that __8__ codes are externally established standards while __9__ corporate codes of conduct are of a voluntary and internal nature has important implications __10__ considering their implementation in corporate practice. Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. . Only one answer is correct. Codes of conduct for multinational corporations must also be __11__ from framework agreements, which are __12__ between trade union organizations and individual companies __13__ the companies international activities. There are two types of framework agreements. First, __ 14__ are

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written understandings between multinational corporations and international trade union organizations, which __15__ cover any subject. Examples of such agreements include those __16__ information and consultation arrangements, as __17__ by the European Works Council Directive. Second, there are framework agreements between trade unions and companies concerning the labour __18__ of the company or of its suppliers and subcontractors in other countries. Such __19__ may also be included in collective agreements that are recognized __20__ national law. 11 12 13 14 15 16 17 18 19 20 A A A A A A A A A A parted determined regarding these may fixing advanced practices orders within B B B B B B B B B B contrasted resulted relating there must settling mandated actions obligations in C C C C C C C C C C separated concluded connecting they should regulating proposed habits provisions under D D D D D D D D D D distinguished finished viewing some would establishing forwarded methods arrangements by

Questions 21-24 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph
21) (A) In relation to multinationals, codes of conduct for multinationals are recommendations. Even if the codes have been agreed by (B) a number of sovereign state, or such other entities as (C) have been granted international personality by sovereign states, they do not have a status of international law, (D) which would set a binding effect on multinationals operating in those states which have adopted or joined the code. 22) Hence, codes of conduct for multinationals (A) impose no legal, but only moral, (B) obligations on companies, and they (C) are not capable of enforcement by the application of external sanctions. For multinationals, the commitment to the codes (D) are voluntary. 23) Anyone (A) may introduce codes of conduct for multinational corporations. (B) Besides governments and intergovernmental organizations, codes (C) have introduced by trade union organizations, employers organizations, various environmental, consumer, investor, religious, ethical and other organizations, and by various groups (D) protesting certain international phenomena. Some of the codes have been adopted multilaterally, some unilaterally. 24) Codes of conduct for multinationals may address any issue (A) relevant to their activities. Codes (B) have in fact been addressed a wide variety of issues, including: relations between multinationals in world markets (e.g. with regard to advertizing, marketing, sponsorship, and competition in general); (C) labour matters (e.g. terms and conditions of work and equality); environmental standards (e.g. emissions, waste or safety in production and transportation); and (D) health and safety issues related to individual products (e.g. toys, baby milk substitutes, and other products).

Questions 25-30 Use the word given in CAPITALS at the end of each gapped line (25-30) to derive a word that fits in the space.
Codes of conduct for multinationals can take __25__ forms. Their __26__ depends on three main factors the __27__ that have adopted them or companies that have subscribed to them (e.g. in number, size or internationality); the nature of the __28__ provisions of the code; and any related monitoring __29__, such as investigation methods, reporting of investigation results, and __30__ of reports. VARY CREDIBLE GOVERN SUBSTANCE MECHANISE DISSEMINATE

(adapted from International Labour Office, Bureau for Workers Activities, Geneva, http://www.ilo.org/actrav)

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TEST 15 INTERCULTURAL AWARENESS

INTRODUCTION There are two main perspectives on the concept of culture: high culture and anthropological culture. The first use of culture focuses on cultural elitism, civilisation, or the refinement of the mind, i.e. being acquainted with the best intellectual and artistic accomplishments of humankind. This is culture in the narrow sense, which Hofstede in Cultures and Organisations (1994) calls culture one. Anthropological culture is seen as a collective phenomenon that comprises any aspect of the ideas, communications, or behaviours of a group of people, and is used to organise their internal sense of cohesion and membership. Hofstede terms this broader concept of culture, which is more tied up with ordinary ways of being, culture two, or software of the mind. Hofstede explains that, because almost everyone belongs to a number of different groups at the same time, people unavoidably carry several layers of mental programming within themselves, corresponding to various levels of culture. Some examples are: - a national level according to ones country - a regional and/or ethnic and/or religious and/or linguistic affiliation level - a gender level - a generation level - a social class level, associated with educational opportunities and with a persons profess ion - an organisational or corporate level for those who are employed In intercultural (professional) communication situations, behaviour is appropriate when it meets contextual and relational standards or expectations, and effective when it is functional in achieving desirable ends or in satisfying participants needs. Cultural competence is about more than understanding the intricacies of bowing in Japan or the inappropriateness of accepting food with the left hand in Saudi Arabia. Cultural competence is the ability to recognise the primary cultural orientations of ourselves and others and to be conscious of the potential impact of these differences on working relationships. It involves going beyond the explicit components of a culture, and working with the implicit value orientations that shape and motivate behaviour. A key question is value orientation towards what? Anthropologists, psychologists, communication experts and business consultants have chosen the following 10 variables that are of practical value to international professional communicators in distinguishing between cultures and guiding key decisions: environment, time, action, communication, space, power, individualism, competitiveness, structure, and thinking. For example, there are seven possible ways to describe cultures in relation to their orientation to time: single focus, multifocus, fixed, fluid, past, present, and future. Every culture contains each of these orientations; the key difference among cultures being in emphasis. Fons Trompenaars in Riding the Waves of Culture Understanding Cultural Diversity in Business (1993) explores four types of corporate culture: the Eiffel Tower, the Family, the guided missile, and the incubator. The dimensions he uses to distinguish them are equality hierarchy and orientation to the person orientation to the task. The metaphorical labels illustrate the relationship of employees to their notion of the organisation. Below are the descriptions of these types of corporate culture in terms of the following characteristics: (i) ways of thinking and learning; (ii) criticism and conflict; (iii) attitude to authority; (iv) ways of changing; (v) relationships between employees; (vi) ways of motivating and rewarding; (vii) attitudes to people. The Family is at the same time personal, with close face-to-face relationships, but also hierarchical, in the sense that the father of a family has experience and authority greatly exceeding those of his children, especially where these are young. The result is a power-oriented culture with the leader regarded as a caring father, who knows better than his subordinates what should be done and what is good for them. Rather than being threatening, this type of power is essentially intimate and (hopefully) benign. The work of the corporation is usually carried forward in an atmosphere that in many respects mimics the home. Power and differential status are seen as natural, a characteristic of the leaders themselves, and not related to the tasks they succeed or fail in doing, any more than a parent ceases to be a parent by neglecting certain duties. The Eiffel Tower stands for a bureaucratic division of labour with various roles and functions prescribed in advance. These allocations are co-ordinated at the top by a hierarchy. If each role is acted out as envisaged by the system, then tasks will be completed as planned. One supervisor can oversee the completion of several tasks; one manager can oversee the job of several supervisors; and so on up the hierarchy. Each role at each level of the hierarchy is described and rated for its difficulty, complexity and responsibility, and has a salary attached to it. In considering applicants for the role, the personnel department will treat everyone equally

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and neutrally, will match the persons skills and aptitudes with the job requirements and will award the job to the best fit between role and person. The same procedure is followed in evaluations and promotions. The guided missile differs from both the family and the Eiffel Tower cultures by being egalitarian, but differs also from the family and resembles the Eiffel Tower in being impersonal and task-oriented. While the rationale of the Eiffel Tower culture is means, this culture has a rationale of ends. Its ultimate criterion of human value is how you perform and to what extent you contribute to the jointly desired outcome. In effect, each member shares in problem solving. The relative contribution of any one person may not be as clear as in the Eiffel Tower culture, where each role is described and outputs can be quantified. The incubator is based on the existential idea that organisations are secondary to the fulfilment of individuals. If organisations are to be tolerated at all, they should be there to serve as incubators for selfexpression and self-fulfilment. This corporate type is both personal and egalitarian with minimal structure and minimal hierarchy. The roles of other people in the incubator are crucial. They are there to confirm, criticise, develop, find resources for and help to complete the innovative product or service. The companies are usually entrepreneurial or founded by a creative team that quit a larger employer just before the pay-off. Being individualist, employees are not constrained by loyalties and may deli berately free ride until their eggs are close to hatching. In this way, larger organisations find themselves successively undermined.
(from Hofstede, G. Cultures and Organisations; Trompenaars, F. Riding the Waves of Culture)

READING Read the article about global leadership competences and answer the questions (1-4) by choosing the appropriate answer (A, B, or C). Developing Global Leaders with Coaching across Cultures by Philippe Rosinski, MCE Faculty Member In their special issue Leadership in a Changed World (August 2003), the Harvard Business Review editors (Stephen Green, Fred Hassan, Jeffrey Immelt, Michael Marks and Daniel Meiland) observe that, for all the talk about global organisations and executives, theres no definite answer to the question of what, exactly, we mean by global. There is some consensus, however. First, the five top executives interviewed all agree that the shift from a local to a global marketplace is irreversible and gaining momentum. Second, they all insist on what Fred Hassan (Chairman and CEO, ScheringPlough) calls a global attitude: an attitude which involves a real passion and curiosity about the world, a willingness to accept good ideas no matter where they come from, and collaboration around geographies. Beyond cultural sensitivity, which is characterised by openness, understanding and respect, some of these top executives emphasise the value in cultural differences. Stephen Green (Group CEO, HSBC) declares: If, for example, my French colleagues lost their French-ness or my Brazilian colleagues lost their Brazilian-ness, life would be a lot duller, and HSBC would be a lot less profitable. We prize our diversity. Thats all part of the richness and fun of working together, and its what makes us so creative and responsive to our clients needs. Unfortunately, as Daniel Meiland (Executive Chairman, Egon Zehnder International) explains: Many companies havent been all that successful at developing global executives The intentions are good, but the fact is, practice hasnt caught up with intent. This is where global leadership development comes in. Strangely, many companies still assume that global leadership competences will somehow either come naturally or through superficial training. On the contrary, excellent international companies (including Unilever, Chubb Insurance, Baxter Healthcare and IBM, which I had the chance to serve over the past several years) have found that developing global leaders requires a rigorous and systematic approach. They discovered that the unique combination of coaching and intercultural skills (which is the essence of my book Coaching Across Cultures (2003) is key for effective global leadership, which operates in a complex and multidimensional environment. It is in essence a more creative form of coaching. Whereas traditional coaching tends to operate within the confines of your own cultural norms, values and beliefs, coaching across cultures seeks to challenge these cultural assumptions and discover solutions that lie outside-the-box.

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Coaching is an effective leadership practice that develops people while getting results. Coaching is about facilitating the unleashing of peoples potential to achieve important, meaningful objectives. Coaching across cultures makes it possible to deploy even more potential by tapping into different possible worldviews: alternative ways of thinking, communicating, organising, dealing with power and responsibility, defining identity and purpose, and viewing time. Beyond tolerating or adapting to differences, the goal is to pro-actively learn from other cultures and make the most of various perspectives, that is, leverage the richness that lies in cultural diversity. For example, Chubb Asia Pacifics executives learned to blend Western directness and Asian indirectness, retaining the best about each communication pattern: clear and firm on the content, sensitive on the process. This attitude has played a significant role in fostering harmony and unity at the top, which in turn has allowed these senior executives to mobilise the entire workforce and achieve record growth in Asia Pacific. Similarly, leaders at Baxter Renal in the United Kingdom became skilled at reconciling profit-driven and people-driven values. Used to impersonal marketing plans, business professionals learned to better hold patients needs to heart. They developed the values of caring and empathy. They found a new pride and inspiration knowing that their work would make a real difference for patients. The leadership team set out to make renal patients lives as easy as possible. Baxter offered to take care of various tasks that patients would normally have to worry about, such as the disposal of dialysis bags, water purification, or the update of prescriptions. From a business standpoint, this approach further reinforced Baxters market position and success. Developing global leadership typically involves a combination of consulting, training and coaching. The approach should consider the companys context and build on its current leadership development initiatives. It should promote alignment and consistency with other levers of progress such as the companys vision, strategy, culture, performance appraisal and reward system. Ideally, the levers should reinforce each other rather than send confusing signals (for example, employees are our main asset but the company does not seem to care about its employees, or corporate social responsibility without a genuine intention to make the world a better place). In any event, I suggest incorporating the following (non-exhaustive list of) leadership competences into your companys leadership model: Empowering leadership Intercultural coaching: being able to adopt a coaching style enhanced with a global and intercultural perspective Intercultural excellence: having a capacity to work effectively across cultures through an appreciation of cultural differences augmented by an ability to leverage these differences Integrity: being true to oneself and genuinely committed to serve others Visionary leadership Dialectic/synthetic leadership: uniting and interconnecting (and) rather than dividing and excluding Creative leadership: being curious and able to see reality from multiple perspectives, particularly for addressing leadership challenges Farsighted leadership: framing organisational goals in the broader context of improving the world Effective communication Intercultural communication: being able to rely on various forms of communication: explicit and implicit, direct and indirect, affective and neutral, formal and informal.
(http://www.mce.be/knowledge/400/27)

1)

A global attitude is about A adapting to differences. B enriching ones potential for performing successfully. C tolerating differences. Development of global leadership competencies is facilitated by A an awareness of your own cultural values. B an innate sensitivity for cultural differences. C working in an international context.

2)

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3)

Chubb Asia Pacific and Baxter Renal are two positive examples of how to A reconcile different approaches in an intercultural working context with a view to increasing profits. B identify negative business practices. C accept cultural differences. The competencies included in the global leadership model speak about attaining A harmony of opposites / unity in diversity. B a consideration of a situation from multiple angles for the creation of pro-active solutions. C a positive attitude towards cultural diversity in a company.

4)

USE OF ENGLISH Questions 1-10 For each blank (1-10), think of the word that best fits in the context. Use only one word in each space. When an American executive goes abroad, its very easy __1__ cultural assumptions to slip into his/her suitcase. When negotiations are prolonged, or frustrating, __2__ cultural assumptions tend to jump out of the suitcase, onto the negotiating table, Bengtsson points __3__. The point to remember at times __4__ this is that you are in someone elses culture and, for the time __5__, you need to play by __6__ rules. Because of tighter budgets, companies are sending __7__ executives abroad these days, so the executive who is sent to a foreign country has mission-critical work to __8__. Thus its essential that the executive adapt to a different cultures rules: for communication, interaction, and negotiation. If he __9__ not, if he acts the proverbial Ugly American, his chances for success __10__ small.
(from Harvard Management Communication Letter, December 2002)

Questions 11-20 For each blank (11-20), decide which of the options A, B, C or D is best. Only one answer is correct. At the individual level, leaders discover new cultural __11__ for dealing with challenging situations and for making the most of a diverse __12__. At the team level, they learn how leveraging diversity can lead, somewhat paradoxically, to increased team unity and __13__. At the organisational level, leaders find out how to integrate __14__ cultures during mergers, acquisitions and alliances. They also __15__ their ability to define the new companys culture and to make it become real. In todays global, multicultural, dynamic and competitive world, organisations have to achieve greater results with scarcer __16__. Furthermore, they need the creativity and farsightedness to __17__ the new ideas and aspirations that are also __18__ in our turbulent and changing __19__. Effective global leadership is necessary to address both the threats and the opportunities, thereby enabling sustainable business success. Therefore, global leadership development is becoming vital to attract, develop and __20__ the human talent necessary to achieve this success.
(http://www.mce.be/knowledge/400/27)

11 12 13 14 15 16 17 18 19

A A A A A A A A A

selections staff performance unlike heighten reserves capture inherent condition

B B B B B B B B B

versions workforce operation disparate emphasise assets captivate internal medium

C C C C C C C C C

choices employment production unequal intensify resources seize characteristic situation

D D D D D D D D D

preferences personnel accomplishment separate sharpen supplies catch existent environment

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20

A reserve

B retain

C hold

D continue

Questions 21-25 In each of the following (groups of) sentences (21-25), find the underlined part A, B, C or D that contains a mistake. There is always one incorrect segment in each paragraph. 21) To develop (A) cross-cultural communicative competences, the following (B) global leadership tools (C) have been proven to be (D) particularly useful: the Cultural Orientations Framework, the Global Coaching Process, and the Global Scorecard. 22) The Cultural Orientations Framework (COF) (A) allows leaders (B) deciphering individual and collective cultural orientations. An orientation is (C) an inclination to think, feel or act in a way (D) that is determined - or at least influenced - by culture. 23) When (A) several cultures are involved, the COF gives leaders a systematic approach for clarifying the nature of cultural differences (B) as well as similarities. (C) The emphases is to use (D) dialectics rather than binary thinking for bridging cultural gaps: synthesising differences, achieving unity in diversity. 24) The Global Coaching Process is (A) a three-steps process to facilitate a high-performance and high-fulfilment journey with individuals and teams. Finally, the Global Scorecard is (B) a tool for setting objectives that promote business success (C) while encouraging leaders to take care of themselves, nurture relationships and (D) serve society at large. 25) (A) Coaching across cultures apply at various levels: (B) for leading diverse individuals (C) creatively, cross-cultural teams and (D) across organisations. Questions 26-30 Use the word given in CAPITALS at the end of each gapped line (26-30) to derive a word that fits in the space. Cultural differences do exist, but I think it is important to recognise that all cultural differences are __26__ stereotypes. For every person who conforms to the stereotype there are Many others who are the exact __27__. Yes, there may well be __28__ or preferences but should we allow them to shape our whole approach to a people? Indeed, __29__ may at times do more harm than good. Whilst it is critical to be aware of such preferences and to respect them, I sometimes fear that we focus too much on the differences - and not on what we have in common. Maybe an __30__ approach is to comment more on what we have in common rather than what we see as different. In all my years working in this area I have often been asked to speak about cultural differences but never about commonalities. Perhaps it is time to start?

ESSENCE OPPOSE TEND CONCEIVE

ALTERNATE

(Mark Thomas, MCE Faculty Member Cultural differences So do they matter?)

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WRITING REFERENCE A THE BASIC BUSINESS LETTER

A letter is an extremely versatile medium and format, which can be adapted to almost any purpose. Here are some of the purposes to which we might put a letter: - requesting or providing information - ordering goods or services or acknowledging the order - confirming information or arrangements - notifying of some changes - complaining about a product or service or adjusting a complaint - introducing or explaining the contents of a package (a cover/covering letter) - applying for a specific vacancy - conveying the benefits of a product or service - persuading the recipient to do something - giving instructions, etc. Whatever the specific purpose of a business letter, there is always the general purpose of creating a positive image. The written word being highly exposed, inaccuracy, error and lack of planning, information, expertise, logic, and professionalism are visible in black and white and cannot be immediately adjusted or amended as they might be in spoken communication. Standard elements Letterhead: the basic information (i.e. organisations name and status, address, telephone, fax and telex numbers) that the recipient will need in order to reply* References (Our ref. or Ref. / Your ref.): the originators initials in cap(ital)s and the typists initials in lower case Date: 27th March, 2005 (the fullest form); 27 March 2005 (increasingly used); March 27(,) 2005 (American date format) The recipient / Inside address: an organisation (Vitrina Advertising Ltd.); a department (Accounts Department, Vitrina Advertising); a designated individual (Accounts Manager, Accounts Department, Vitrina Advertising); a named individual (Mr/Mrs/Miss/Ms/Dr. X, Accounts Manager, Vitrina Advertising) + the address Salutation / Opening greeting: conventionally paired with an appropriate complimentary close, as shown in the following table GREETING Dear Sir/Madam/Sirs/Sir or Madam To Whom It May Concern (Name not used) CLOSE CONTEXT Formal situations Recipient not personally known Recipient senior in years, position

Yours faithfully

Dear Dr / Mr / Mrs / Miss Ford Dear Sir Keith / Lady Diana Dear Lord Elton (Name used) Dear colleague / student / customer

Yours sincerely

Friendly (or would-be friendly, e.g. for selling or conciliatory letters) Established relationships

Implied relationships

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Dear Daniel / Alicia

Yours Yours sincerely Yours truly Kind regards Best wishes Affectionately

Close, informal relationships More various, because personal

more

Subject heading: an indication of the main subject of the letter Main body: divided logically into paragraphs, separated by double spacing for clarity Complimentary close: dealt with under Salutation, above Writers signature, name and designation: the signature being often illegible, the addressers name is printed below the signature together with his / her department and position in the company Enclosure (Enc. / enc. or Encs. / encs. for more than one item): to indicate that other documents accompany the letter, such as a cheque, a price list, a leaflet, a CV / rsum, etc. *In a personal letter, you would put your address, phone number (if appropriate), and date at the top right-hand side, but you would not put your name above the address, as this goes at the bottom of the letter, under the signature. Alternative layouts Besides the designer letterhead and good quality print, the overall impact of a business letter depends on the layout of text on the page. Below are the three most commonly used layout styles. - Fully blocked / Block format: all the elements start at the left-hand margin. - Semi-blocked / Modified block format: the body of the letter is left justified as in the block format, but the date is against the right-hand margin and the subject heading are centralised. - Semi-indented format: is similar to semi-blocked, except that the first line of each paragraph is indented instead of left justified. FULLY BLOCKED style Date ____________ Ref: ____________ Recipient ________ ________________ ________________ Dear ___________ Dear ___________ SUBJECT SUBJECT Body ___________________ __________________________ __ _______________ __________________________ __ __________________________ __ __________________________ SUBJECT Dear ___________ SEMI-BLOCKED style Ref: ______ Recipient_______ _______________ _______________ _______________ SEMI-INDENTED style Date Ref: ______ Recipient_______ _______________ _______________ _______________ Date

Body ___________________ Body_________________ __________________________ __________________________ __ ___________ _______________ ______________________ __________________________ ______________________ __ ________ __________________________ __________________________ __ __

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__ ___________ Yours _________

__________________________ ___________ __ ___________ Yours _________ Yours _________ Name _________

Name _________ Name _________ Punctuation Using full punctuation for all elements outside the main body of the letter is called closed punctuation*. The alternative, open punctuation, involves omitting all punctuation from the elements outside the main body of the letter: no comma in the date, nor after each line of the name / address block, nor after the salutation or complimentary close; full stops are also omitted from abbreviations and initials. Obviously, open punctuation is quicker to type and plainer on the page. *In the American business letter format, the standard is to use a colon (:) after the salutation (never a comma) and a comma after the closing.

Structure A letter should have a beginning, a middle and an end. In this section, we will look at particular types of letter, but, for the time being, here are some general ideas. In the opening paragraph, grab the attention of the reader by stating the main purpose or business of the letter right away. Use a couple of sentences to explain the purpose, by acknowledging correspondence received (date and nature), or by providing important details of the circumstances leading to the letter (names, dates). Here are some suggested openings: (1) Thank you for the letter of March 15th in which you requested information about conference bookings. (2) I would like to confirm that I have booked six places at the Marketing Conference on Friday, 9th April at the Transylvania Business School, in the name of GLOBUS Invest PLC. As requested / agreed in our telephone conversation / meeting of 25 March, I am sending you a cost estimate for the printing of 4,000 direct mail leaflets. On Tuesday, 6 August, I went on a One-Day Wildlife Safari organised by your agency. Unfortunately, I am writing in response to your letter of March 24, 2005 in which you discuss problems you have had with an electronic spreadsheet purchased from our company.

(3) (4) (5)

In the middle paragraph(s), state the supporting details to justify your purpose. These may take the form of background information, statistics or first-hand accounts. A few short paragraphs within the body of the letter should be enough to support your reasoning. Consider the following possibilities for structuring your message: (i) chronological order; (ii) order of cause and effect; (iii) topical order; (iv) order of importance. In the closing paragraph, briefly restate your purpose and make clear exactly what response is required. Here are some examples of conventional closing forms: (6) I would be grateful if you would confirm these points in writing.

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(7) (8) (9) (10) (11)

I look forward to meeting you to discuss the matter in more detail. We look forward to doing business with you. Thank you again for your order. I trust our order will be to your satisfaction. I will be contacting you in the next few days to arrange a meeting. If you require any further information, please call me.

Style in business correspondence Keep the following advice in mind when you write and especially when you revise your business letters. Avoid round-about beginnings. Remember that when business people open a letter, their first concern is to know what the letter is about, what its purpose is, and why they must spend their time reading it. Keep the paragraphs of most business letters short. To enable the recipient to read your letters more rapidly and to comprehend and remember the important facts or ideas, create relatively short paragraphs of between three and eight lines long. In business letters, paragraphs that are made up of only a single sentence are common and perfectly acceptable. Compartmentalise the contents of your letter by placing each different segment of the discussion each different topic of the letter - in its own paragraph. Provide topic indicators at the beginning of paragraphs. Study each paragraph of your letters for its purpose, content, or function. When you locate a paragraph that treats more than one point, consider splitting it into two paragraphs. If you discover two short separate paragraphs that deal with the same topic, consider joining them into one. Place important information strategically in business letters. Information in the first and last lines of paragraphs tends to be read and remembered better. Place less positive or detrimental information in less highly visible points in your business letters. Find positive ways to express bad news in your business letters. To convey bad news constructively, cordially and tactfully avoid such words as cannot, forbid, fail, impossible, refuse, prohibit, restrict, and deny as much as possible. Doing so reduces the chances that business relations with the recipient of the bad news will end. Focus on the recipients needs, purposes, or interests instead of your own. Even if you must talk a great deal about yourself in a business letter, do so in a way that relates your concerns to those of the recipient. This recipient-oriented style is called the you attitude. Avoid pompous, inflated, legal-sounding language. When you write a business letter, picture yourself as a plain-talking, common sense, down-to-earth person, but avoid slang. Give your business letter an action ending whenever appropriate, which will make clear what the writer expects the recipient to do and when. Instead of or in addition to Hope to hear from you soon or Let me know if I can be of any further assistance, specify the action the recipient should take and the schedule for that action as in the following examples (see also sentences 6-11, above): (12) As soon as you approve this plan, I will begin contacting sales representatives at once to arrange for purchase and delivery of the microcomputers. May I expect to hear from you within the week? (13) I am free after 2:00 p.m. on most days. Can we set up an appointment to discuss my background and this position further? I look forward to hearing from you. Common types of letter Job application letter This table provides some basic guidelines for approaching the task of writing a job application letter. Purpose Audience

To identify relevant vacancy and express Will need vacancy identified

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interest To highlight suitability for position To present a positive image of self

Will need impression of suitability Will want to see neatness, sense and enthusiasm Will want to see next step (interview) convenient and worthwhile STRUCTURE AND STYLE

Opening paragraph Context: source of knowledge about vacancy; statement of desire to apply

Main body Reason for application: posts attraction Qualifications, interests and / or experience relating to post and demonstrating skill, ability and achievement Current circumstances: employed, student; availability for interview or work

Closing paragraph Enclosure of CV Closing remarks: anticipation of reply

Make an efficient statement of context and of your intention

Link your own career aspirations with the potential employers interests Stated self-evaluation confidently, not arrogantly Be honest, but stress good points Make interview availability convenient

Show willingness to furnish information, and eagerness, not desperation, to get the job Be courteous

Sample application letter Dear Personnel Assistant Position of database programmer I am writing about your newspaper ad in the August 1 Austin-American Statesman concerning your need for an experienced programmer in the database environment. I believe that I have the qualifications and experience that you are looking for. As for my experience with database programming, I have worked for the past year as a programmer / analyst in the Query database environment for Advanced Software Creations. In that capacity, I have converted a large database that was originally written in a customized C language database into the Query database environment. I am currently working on a contract with Texas Parks and Wildlife to make major modifications to its existing Query database application. On both of these assignments, I have also served as customer contact person. Related to this database-programming experience is the work I have been doing to write and market an automated documentation utility for Query database applications. This product was written using a combination of C, Pascal, and Query programming languages. I was responsible for the authorship of the Pascal and Query programs. The Pascal programs are completely responsible for the user interface and system integration management.

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Enclosed you will find a resume, which will give you additional information on my background and qualifications. I would welcome a chance to talk further with you about the position you are seeking to fill. I can be reached by phone between 9:00 a.m. and 6:00 p.m. at (513) 545-1098. I am looking forward to your response. Yours sincerely, Virginia Lopez Enc.: rsum
(http://www.io.com/~hcexres/cgi-bin/color0.cgi?frameset=on&noter=../tcm1603/acchtml/applic3a.html)

Complaint / Grievance Many people find it difficult to write complaints because they have to control their negative feelings. In this case, it is important to distinguish between being assertive, that is, asking for your rights, and being aggressive, that is, being pushy and angry. So you should decide, honestly and realistically, how you want the reader to rectify your problem, and then calmly, go for it. Purpose Audience

To identify problem Will want details for investigation. To express the inconvenience caused by Will weigh cost of fulfilling your demand with problem to you cost of leaving you disappointed. To notify recipient of your wishes Will be resistant to implied failure and loss. To convince the recipient that your demand is May or may not be concerned to secure your honest and realistic goodwill and benefit. STRUCTURE AND STYLE Opening paragraph Context: what you are complaining about; background events (product / service, date and place of purchase, salesperson, invoice number). Main body Exact nature of complaint: details of fault, damage, omission, incompetence Adverse results: inconvenience, delay, injury, etc. Request and justification Give clear details of faults Try to sound dispassionate Be polite, but firm. Be assertive not aggressive Adopt a conciliatory tone Closing paragraph How and when you expect the mistake to be redressed: money back, replacement, apology, payment of damages, by a certain date

Provide concise, accurate details Sample complaint Dear Director

Waveport 5000: purchase and return charges I am writing you concerning the purchase and subsequent return of a Waveport 5000 I made on 10 August 2004 in the amount of $225.

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On 10 August 2004, I purchased a Waveport 5000 from your company in the amount of $225. This price included a two-day delivery and a 60-day money-back trial offer. The $225 was immediately charged to my Ritz card. However, this product did not perform satisfactorily, and, on 15 August, I decided to return the Waveport 5000 to your company. When I spoke to one of your companys representatives by phone, I was informed that the shipping and handling charges, as well as the price of the Waveport 5000, would be credited to my account. I shipped the item by UPX and was notified 19 August of its receipt. Today, October 7, I received a statement for my Ritz card. And as of today, no credit has been applied to my account for either the Waveport 5000 or the shipping and handling charges. If the Waveport 5000 was charged to my account immediately when I ordered it, I fail to understand why the same promptness was not used in crediting my account immediately upon receipt of the returned item. There is no real excuse for this delay other than someone not wanting to take the necessary time in crediting my account. These finance charges*, as well as this letter, could have been avoided if your employees had been as prompt in crediting my account as they were in charging to it. It is not my responsibility to pay for your companys lack of promptness and I rightfully deserve a refund to any and all finance charges that may be applied during this time period. Your companys quick detection products have greatly helped me in the past, and I would like nothing more than to have my account credited with the respective amount by October 15 so that I may be a customer of yours in the future. Sincerely yours, John A. Smithson Encs.: Copies of sales receipt and credit card statement
(http://www.io.com/~hcexres/cgi-bin/color0.cgi?frameset=on&noter=../tcm1603/acchtml/complaintx1a.html)

*Note that the writer does not include any specific amounts as to shipping and finance charges; details like these should be included.

Adjustment letter An adjustment letter is one that answers a complaint letter. It is also called a compensation letter. Such a letter must be seen to address directly the circumstances and stated wishes of the complainant. Consider the guidelines in the following table. Purpose To show you have considered the complaint seriously To attenuate the complainants anger, disappointment To offer a solution that will be acceptable to both parties To keep a positive relationship Audience Will want to have been taken seriously. Will be resistant to denial of responsibility. May be cynical about sincere apologies. Will have to be persuaded to accept the redress you offer.

STRUCTURE AND STYLE Opening paragraph Context: acknowledgement of previous correspondence and Main body Explanation: results of an investigation Closing paragraph Assurance that the matter will be resolved: restatement of

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understanding of the complaint; expression of regret for the problem

Indication of arrangements being made to put things right

apology; assurance of non-recurrence; hope that good relations will continue

Briefly reconfirm the details Dont make excuses or try to Apologise gratefully but simply blame other people Show that you were concerned to find out why the matter occurred Dont sound reluctant: show that you are making amends gladly, and swiftly Sample adjustment letter Dear Mrs. Hughes March 24 letter about damaged freight

Be conciliatory, as you do not want to lose customers Smooth things over, but dont exaggerate

I have just received your March 24 letter about the damaged shipment you received through Green Tree Freight and regret the inconvenience that it has caused you. From your account of the problem, I am quite sure that your request for the $240 adjustment on the damage to the 2 crates of Valjean Cristal stemware will be granted. A certain amount of breakage of this sort does unavoidably occur in cross-country shipping; I am sorry that it was your company that had to be the one to suffer the delay. I must remind you to keep the damaged crates in the same condition in which you received them until one of our representatives can inspect them. That inspection should take place within 2 weeks. If all is in order, as it sounds to be in your letter, you can expect the full reimbursement within 2 weeks after our representatives inspection. I hope this unfortunate accident will not keep you from having merchandise shipped by Green Tree Freight in the future. Sincerely, David F. Morgan Customer Relations (http://www.io.com/~hcexres/cgibin/color0.cgi?frameset=on&noter=../tcm1603/acchtml/adjex1a.html) B MEMOS

The memorandum (plural = memoranda) or memo, for short, is a very flexible medium of communication used within an organisation at all levels and for many different purposes. It can be sent upwards, downwards or sideways in an organisation, from one individual to another, from one department to another, or from one individual to a department or larger body of staff. Memos perform internally the same function as a letter does in external communication. They solve problems either by informing the reader about new information, like policy changes, price increases, etc., or by persuading the reader to take an action, such as attend a meeting, use less paper,

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use office phones for personal calls more economically or change a current production procedure. Regardless of the specific goal, memos are most effective when they connect the purpose of the writer with the interests and needs of the reader. Format and structure Standard memos are divided into segments to organise the information and to help achieve the writers purpose. The heading segment follows this general format: TO: reader(s) names and job title(s) FROM: name and job title DATE: complete and current date SUBJECT: what the memo is about (highlighted in some way) In the opening segment, mention the reason for writing and the context and problem of the message, including the most important information. In the discussion segment, which contains the substance of the message, include all the details that support your ideas. Since a memo is less formal than a letter, put important points or details into lists rather than paragraphs, whenever possible, but be careful to make lists parallel in grammatical form (see tables in this section). In the closing segment state clearly what action you want the recipient to take*. *Because memos are in-house correspondence, no inside address, salutation or complimentary close are required as in letters. Two sample memos RETAIL DEVISION MEMORANDUM TO: Val Ford, Dorset Branch Manager FROM: J. Halliwell, Personnel Manager (Central Branch) TO: J. Clerk, Personnel Assistant (Regional Branch) SUBJECT: L CITRON JOB APPLICATION REF: JH/fm DATE: 28 March 2005

This is to confirm our conversation on the phone this morning regarding Mr CITRONs application for the post of Marketing Assistant. In his preliminary interview, I found Mr Citron an agreeable and articulate candidate. I enclose my notes and his CV, which is outstanding and includes two years marketing experience. I do recommend that you see him at the branch for a further and more technical interview. Please let me know if his CV interests you, and if so, when it would be convenient for you to meet Mr Citron and show him around the branch. JH Encs.
(adapted from Business Communication, BPP Publishing Limited, London, 1997)

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MEMORANDUM To: Administrative Staff From: C Phillips, Office Manager Date: 28 March 2005 Subject: STAFF MEETING, April 2005

The Managing Director intends to hold an informal meeting with administrative staff at some point during April, to discuss any matters that may be of concern. Tentative dates for the meeting are Wednesday 13th or Thursday 21st. In either case, the meeting will be held in Room 104 at 6.00 p.m. Refreshments will be provided by the canteen afterwards, should staff wish to stay. Please let me know as soon as possible (no later than Wednesday 7th): 1 2 3 JH
(adapted from Business Communication, BPP Publishing Limited, London, 1997)

Which date you would find most convenient; Whether you are likely to stay for refreshments; Any topics which you would like to see on the agenda for the meeting.

REPORTS

A report is a medium for putting across a body of ideas to an audience. Reports are diverse in focus and aim and differ in structure. They may be proposals, progress reports, trip reports, accident reports, disciplinary reports, budgetary control reports, completion reports, sales reports, market research reports, investigation reports, feasibility studies or evaluation reports. Purpose Reports are meant to be useful in several ways: to assist management, to be used as a permanent source of reference, to provide information to interested parties or to make your own views known. There are different types of information that might be included in a report: factual (these are the facts), dialectical (this is what is happening, has happened or will happen), or instructive (this is what should be done). Planning In planning a report, you need to consider the following questions: - Who is the user? - What kind of report will be most useful to the user? - What exactly does the reader need to know and for what purpose? - How much information is required, how quickly and at what cost? - Do you need to give judgements, recommendations, or just information? Style This table specifies the main stylistic requirements in the writing of reports. REQUIREMENTS GUIDELINES

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Objectivity and impersonality

Avoid subjective value judgements and emotions, which can undermine the credibility of the report and its recommendations Avoid emotional and loaded language Avoid colloquialisms and abbreviated forms Use impersonal constructions Avoid technical language for non-technical users Use clear, concise sentences Organise the material logically especially if it is leading to a conclusion or recommendation Signal relevant themes by appropriate headings, or highlight for easy scanning Avoid using vague language Specify recommendations firmly

Ease of understanding

Precision

Structure Here are the basic types of business report: Large-scale formal reports may run to hundreds of pages and will include a cover, title page, preface, table of contents, list of exhibits, summary, report body, footnotes, appendix, bibliography, and index. The short formal report is used in contexts such as middle management reporting to senior management. It should be laid out into the traditional report divisions: objective, method, discussion, and conclusion, each referenced and headed appropriately, as shown below. TITLE TERMS of REFERENCE / INTRODUCTION (What have I been asked to do?) PROCEDURE / METHOD (How do I go about it?) FINDINGS (What have I discovered?) (1) Section heading (i) subheading (a) subpoint CONCLUSIONS (What do the findings lead to?) RECOMMENDATIONS (What particular recommendations do I wish to make?)

The structure of the short informal report is less developed, as it is used for less complex and lowerlevel information. There will be three main sections: (i) Context, (ii) Analysis of the situation, and (iii) Recommended action / solution. Sometimes reports function as letters or memos, in which cases we speak about letter reports and memorandum reports, respectively. Sample of short formal report REPORT ON FLOPPY DISK STORAGE METHODS I INTRODUCTION This report details the findings of an investigation into the methods of computer disk storage currently employed at the Head Office of the bank. Mr M Samuelson, Personnel Department Manager, requested the report with recommendations for the improvement of current

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procedure. It was compiled by G Thomson, Supervisor, and submitted to Mr Samuelson on 4 April 2005. II METHOD To evaluate the current procedures and to identify specific shortcomings, the following investigative procedures were engaged: 1 2 3 III 1 interview of all staff using floppy disks inspection of storage and indexing system computer accessory firm consulted by telephone and catalogues obtained (see Appendix1) FINDINGS Current system (a) (b) Floppy disks are backed up or duplicated irregularly and infrequently. Back-up disks are stored in plastic containers in the same room as the disks currently in use. Disks are frequently left on desk tops during the day and even overnight.

(c) 2

Safety and security risks (a) There is no systematic provision for making copies, in the event of damage or loss of disks in use. There is no provision for separate storage of copies, in the event of fire in the personnel office, and no adequate security against fire or damage in the containers used. There is apparently no awareness of the confidential nature of information on disks, nor of the ease with which disks may be damaged by handling, dust, etc.

(b)

(c)

IV

CONCLUSIONS The principal conclusion drawn from the results of the investigation is that there is serious cause for concern because of the insufficient awareness of safety and security among nonspecialist staff and insufficient formal provision for safety and security procedure.

RECOMMENDATIONS In order to rectify the unsatisfactory situation summarised above, the author of the report recommends that consideration should be given as a matter of urgency to the following measures:

1 2 3 4

Immediate backing up of all existing disks Drafting of procedures for backing up disks at the end of each day Acquisition of a fire-proof safe to be placed in separate office Communication to all staff of the serious risk or loss, theft and damage arising from careless handling of computer disks
(adapted from Business Communication, BPP Publishing Limited, London, 1997)

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Sample of short informal report memorandum format MEMORANDUM To: M Robinson, Office Manager From: E Johnson, Supervisor Subject: ABUSE OF OFFICE TELEPHONES As you requested, I have looked into the possible causes of the rise in costs of maintaining current telephone equipment and procedures over the last quarter. I have identified two main causes. (a) (b) There are more telephones in the office than are necessary for efficient communication. Staff have become used to making personal calls on office phones, many of which are made at expensive charge rates and unnecessary length. Date: 5 March 2005 Ref: MK/pf/913

I suggest below some courses of action to prevent further increases. (i) Remove unnecessary equipment. Several extensions are unallocated and little used for business purposes, and therefore could be disconnected immediately. Send circulars to all staff and department heads. This might discourage personal and lengthy calls and encourage staff to be more aware of economy. Monitor the length and cost of calls. A variety of devices are available at a reasonable cost, capable of logging long-distance calls and displaying the value of units used on calls. Provide alternative telephone facilities to staff. The installation of pay phones at accessible locations within the building would allow staff to make personal calls, thereby maintaining good working relations in the office.

(ii)

(iii)

(iv)

If you wish to discuss these suggestions, I would be more than happy to give you further details, at your convenience.
(adapted from Business Communication, BPP Publishing Limited, London, 1997)

Information can also be conveyed in report-style letters. The letter report is generally directed to people or groups outside the company when more information is given than a normal letter would include. The body of the letter report may utilise headings to call the attention to the most important aspects of the report. Subheadings also serve to emphasise and make reference easier (see writing task in Practice Test 5 Professional Communication and the suggested solution in the Answer Key). D ESSAY WRITING

Writing is as much a discipline as it is an art, and to ensure that your essays flow well and make sense, you need to construct solid outlines before you write. Unless you conscientiously impose structure around your ideas, your essay will be rambling and ineffective. An outline should make sense on its own; the ideas should follow logically in the order that you list them. As you add content around these main points, these words should support and reinforce the logic of the outline. Finally, the outline should conclude with an insightful thought or image. Make sure that the rest of your outline reinforces this conclusion. The introduction is the first sentence of your essay and it plays the dual role of setting the theme of your essay and engaging the reader. Once you have drawn the reader in through the first one to

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three sentences, the last sentence in your introductory paragraph should explain clearly and briefly what the point of the whole essay is. The body paragraphs should consist of events, experiences, and activities you have already organized in chronological order or in order of importance. Make clear why one point follows another: each point in your outline should connect with the next; each main category should be linked to your introduction or thesis; and each sub-category should be linked to the main category. As you make your outline, you should be able to see where there are holes in your essay. The conclusion is your last chance to persuade the reader or impress upon them your qualifications. Expand upon the broader implications of your discussion. This could include the following strategies: - Consider linking your conclusion to your introduction to establish a sense of balance by reiterating introductory phrases. - Redefine a term used previously in your body paragraphs. - End with a famous quote that is relevant to your argument. Do not TRY to do this, as this approach is overdone. This should come naturally. - Frame your discussion within a larger context or show that your topic has widespread appeal. - Tie the conclusion back to your introduction. Sample essay outline I Introduction __________________________________________________ __________________________________________________ __________________________________________________ II Body

A. Paragraph 1: 1. Supporting Point #1 ___________________________________________________ ___________________________________________________ 2. Evidence for Supporting Point #1: analysis of example to show how it supports the topic sentence and thesis ___________________________________________________ ___________________________________________________ B. Paragraph 2: 1. Supporting Point #2 __________________________________________________ __________________________________________________ 2. Evidence for Supporting Point #2 __________________________________________________ __________________________________________________ __________________________________________________ C. Paragraph 3: 1. Supporting Point#3 __________________________________________________ __________________________________________________

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2. Evidence for Supporting Point #3 __________________________________________________ __________________________________________________ __________________________________________________ III Conclusion __________________________________________________ __________________________________________________ __________________________________________________ Style and Tone A large majority of the corrections made by examiners fall into the following five categories: sentence variety, word choice, verb tense, transitions and essay clichs. Sentence Variety Many students think that the longer the sentence they write, the better the sentence. This is far from the truth. You do not need long, complicated sentences to show that you are a good writer. The best essays contain a variety of sentence lengths, mixed within any given paragraph. Once you have completed your essay, try labeling each sentence short (under 10 words), medium (under 20 words), or long (20 or more words). A nice paragraph might read something like M S M L M S. A dry essay would be S S S M L L L. Word Choice Dont Thesaurusize. The second trap into which many students fall is thinking that big words make good essays. Advanced vocabulary is fine if it comes naturally to you, and when used correctly in an appropriate context. Show, dont tell. Students wrongfully assume that the reader will not get it if they do not be at to death their main arguments. Thus, the essay succumbs to the usual clichs: the value of hard work and perseverance or learning to make a difference or not taking loved ones for granted or dreams coming true or learning from mistakes. Such statements are acceptable if used minimally, as in topic sentences, but the best essays do not use them at all. Instead, allow the details of your story to make the statement for you. Dont Get Too Conversational. Slang terms, clichs, contractions, and an excessively casual tone should be eliminated from all but the most informal essays. Only non-traditional essays, such as ones in the form of narrative or dialogue, should rely on conversational elements. Write informally only when you are consciously trying to achieve an effect that conveys your meaning. Dont repeatedly start sentences with I. The trick is to change around the words without changing the meaning. Dont repeat the same subject nouns. For example, when writing an essay about leadership, do not repeatedly use the word leadership. Look for alternative phrases for your subject nouns. In the case of leadership, you could use phrases such as setting an example, or coordinating a group effort. Verb Tense As you write your essay, remember to focus on verbs and keep adjectives to a minimum. Pumping your sentences full of adjectives and adverbs is not the same thing as adding detail or color. Adjectives and adverbs add lazy description, but verbs add action. One of the greatest weaknesses of essays can be the frequent use of the passive tense. Overuse of the passive voice throughout an essay can make your prose seem flat and uninteresting. Sentences in active voice are also more concise than those in passive voice.

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Essay Clichs According to the Merriam-Webster Collegiate Dictionary, a clich is a trite phrase or expression, a hackneyed theme, characterization, or situation, or something that has become overly familiar or commonplace. The last thing you want in your essay is any of the above. Clichs make your writing appear lazy, your ideas ordinary, and your experiences typical. Arm yourself with the list below and eradicate these and other clichs from your writing. I always learn from my mistakes. I know my dreams will come true. I can make a difference. _________ is my passion. I no longer take my loved ones for granted. These lessons are useful both on and off the field (or other sporting arena). I realized the value of hard work and perseverance. _________ was the greatest lesson of all. I know what it is to triumph over adversity. _________ opened my eyes to a whole new world.

Transitions A good essay must use transitions within paragraphs and especially between paragraphs to preserve the logical flow of the essay. An essay without good transitions is like a series of isolated islands; the reader will struggle to get from one point to the next. Use transitions as bridges between your ideas. As you move from one paragraph to the next, you should not have to explain your story in addition to telling it. If the transitions between paragraphs require explanation, your essay is either too large in scope or the flow is not logical. If you are confident in your structure, but find yourself stuck on what might make a good transition, try repeating key words from the previous paragraph and progressing the idea. If that doesnt work, try this list of common transitions as your last resort: to add facts or information: as well, and, additionally, furthermore, also, too, in addition, another, besides, moreover to indicate the order of a sequence of events: first of all, meanwhile, followed by, then, next, before, after, last, finally, one month later, one year later, etc. to list things in order of importance: first, second etc., next, last, finally, more importantly, more significantly, above all, primarily to connect one idea to a fact or illustration: for example, for instance, to illustrate, this can be seen to indicate an effect or result: as a result, thus, consequently, eventually, therefore, to indicate that one idea is the opposite of another: nonetheless, however, yet, but, though, on the other hand, although, even though, in contrast, unlike, differing from, on the contrary, instead, whereas, nevertheless, despite, regardless of to compare one thing to another: In a different sense, similarly, likewise, similar to, like, just as, conversely

Types of essay The following main essay structures are presented next: (i) example / argumentative, (ii) compare and contrast, (iii) narrative and chronological, (iv) descriptive and (v) cause and effect. Argumentative / Example Structure The Example Structure follows the rules of a traditional academic essay: begin with a main argument or thesis statement, follow this with three pieces of evidence that support the argument, and wrap up

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by stating what the essay has shown. This is a good structure to use when making a single, strong point. Its power lies in its simplicity. Because it allows you to present several points neatly in support of a single claim, it is especially useful for making a persuasive argument. Sample argumentative essay Current Affairs: Middle East Debate A Greek philosopher once said, In argument, truth is born. Even though sometimes feelings and emotions come into play that confuse the issue at hand, usually an argument results in a new insight on the subject. Even if a person holds strong views that are unshaken by anything his adversary may say, he may nevertheless gain from the debate. It forces him to organize and analyze his views, leaving him with a clearer understanding of the subject than before. Further, his opponents arguments help him better appreciate his views and their differences. Finally, the argument forces both to look inwards, at their character and value system. For these reasons, I enjoy debating issues that are important to me and about which I hold strong views. One such issue receiving great national attention is the Middle East peace process. While the peace process has always been important to the American community as a whole, and more specifically to the Jewish American community, the assassination of Israel Prime Minister Yitzhak Rabin has focused the spotlight upon it, as well as intensified the debate around it. Since I attend a private Jewish school, I often discuss this topic with my peers, often finding myself in the minority. Most of them support the peace process, while I adhere to the views of the Likud (opposition) party, which opposes the peace process. Complicating the issue are several emotional stigmas that are often attached to it, transforming the discussion from an objective one to one driven by passion. The foremost of these stigmas is the accusation, which is often hurled at the opponents of the peace process, of promoting war and violence. Often made by people who know little about the issue, this view fails to realize that opposition to the peace process does not imply opposition to peace. Rather, it implies disapproval of certain tactics and specifics of the peace process as it was carried out by Rabin. Another commonly advanced accusation against American Jews who disagree with the peace process centers around the question of whether they have the right to influence Israeli policy. You dont have to send your children to the Army, it is said, your children dont die in wars. What right have you to oppose peace? The fallacy of this argument is that it doesnt differentiate between belief and action. While it is true, for precisely the reasons above, that American Jews have no right to try to influence Israeli policy, that does not preclude them from having ideas of what that policy should be. Finally, the assassination of Yitzhak Rabin has introduced yet another dimension into this debate. In its aftermath, opposing the peace process sometimes is identified with condoning the assassination itself. Such an identification of the man and his beliefs involves grave dangers, such as rashly implementing his ideas in a flurry of compassion and commiseration. What all of these stigmas have in common is that they forsake logical and objective debate, opting rather for emotions, generalizations and accusations. And the dangers of that happening are the main lesson I learned from my debates. While those debates have shed new light on the issue and have forced me to reconsider what I think is moral and just, most importantly they have demonstrated the necessity of objectiveness and removal of emotions from the discussion, especially when, as in the case of the peace process, thousands of lives are at stake. When passions and hatred take over, we must stop and think of what it all is really about.

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Compare and Contrast You can structure a cause-and-effect essay point for point, by comparing one aspect of the object or situation at a time. Or you can choose to employ the block method by thoroughly covering all the points of the first object or situation in the first half of the essay and then comparing it with all the points of the other in the last half.

Sample compare and contrast essay Harvard, Favorite Characters Of all the characters that Ive met through books and movies, two stand out as people that I most want to emulate. They are Attacus Finch from To Kill A Mockingbird and Dr. Archibald Moonlight Graham from Field of Dreams. They appeal to me because they embody what I strive to be. They are influential people in small towns who have a direct positive effect on those around them. I, too, plan to live in a small town after graduating from college, and that positive effect is something I must give in order to be satisfied with my life. Both Mr. Finch and Dr. Graham are strong supporting characters in wonderful stories. They symbolize good, honesty, and wisdom. When the story of my town is written I want to symbolize those things. The base has been formed for me to live a productive, helpful life. As an Eagle Scout I represent those things that Mr. Finch and Dr. Graham represent. In the child/adolescent world I am Mr. Finch and Dr. Graham, but soon Ill be entering the adult world, a world in which Im not yet prepared to lead. Im quite sure that as teenagers Attacus Finch and Moonlight Graham often wondered what they could do to help others. They probably emulated someone who they had seen live a successful life. They saw someone like my grandfather, 40-year president of our hometown bank, enjoy a lifetime of leading, sharing, and giving. I have seen him spend his Christmas Eves taking gifts of food and joy to indigent families. Often when his bank could not justify a loan to someone in need, my grandfather made the loan from his own pocket. He is a real-life Moonlight Graham, a man who has shown me that characters like Dr. Graham and Mr. Finch do much more than elicit tears and smiles from readers and movie watchers. Through him and others in my family I feel I have acquired the values and the burning desire to benefit others that will form the foundation for a great life. I also feel that that foundation is not enough. I do not yet have the sophistication, knowledge, and wisdom necessary to succeed as I want to in the adult world. I feel that Harvard, above all others, can guide me toward the life of greatness that will make me the Attacus Finch of my town. Narrative / Chronological structure While the narrative is one of the most effective forms of writing for an essay, it can also be difficult. Use the following tips as your write your narrative: Make the reader aware of chronology and keep the story generally moving forward. Dont feel obligated to tell more of the story than you need to convey your point. Extra details distract from the main drive of the story. Try not to use reflective conclusions or introductions describing what you learned; start and end with the action and have everything take place within the context of the story. Describe events, people, and places in very specific, colorful terms.

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Sample narrative essay Harvard, Hobbies and Interests: Violin Struck with sudden panic, I hastily flipped through the many papers in my travel folder until I spotted the ticket. I nervously thrust it toward the beaming stewardess, but took the time to return her wide smile. Before stepping into the caterpillar tunnel I looked back at my parents, seeking reassurance, but I sensed from their plastered-on grins and overly enthusiastic waves that they were more terrified than I. I gave them a departing wave, grabbed my violin case, and commenced my first solitary journey. Seated in the plane I began to study the pieces I would soon be performing, trying to dispel the flutterings in my stomach. I listened to some professional recordings on my Walkman, mimicking the fingerings with my left hand while watching the sheet music. Where ya goin? smiling businessman-seatmate interrupted. To the National High School Orchestra, I answered politely, wanting to go back to the music. Its composed of students chosen from each states All-State ensemble. After three days of rehearsal, the orchestra would be giving a concert at a convention center in Cincinnati. I focused back on the music, thinking only of the seating audition I would have to face in a few hours. When I arrived at the hotel in Cincinnati, instruments and suitcases cluttered every hallway, other kids milled around aimlessly, and the line to pick up room keys was infinitely long. In line I met my social security blanket, a friendly Japanese exchange student, [name], who announced proudly and frequently, I fro Tayx-aas! Both glad to have met someone, we adopted each other as friends of circumstance, and touched on a few of the many differences between Japanese and American culture (including plumbing apparatuses!) Soon all of the performers received an audition schedule, and we went rushing to our rooms to practice. I had an hour until my audition, and repeated the hardest passages ad nauseam. When my time finally came, I flew up to the ninth floor and into the dreaded audition room. Three judges sat before a table. They chatted with me, futilely attempting to calm me. All too soon they resumed serious expressions, and told me which sections to perform. They were not the most difficult ones, but inevitably my hands shook and sweated and my mind wandered. . . . I felt giddy leaving the audition room. The immense anxiety over the audition was relieved, yet the adrenaline still rushed through me. I wanted to yell and laugh and jump around and be completely silly, for my long-awaited evaluation was over. After dinner the seating list would be posted and I would know just where I fit in with the other musicians, all of whom intimidated me by their mere presence at the convention. Solitary, having been unable to find [name] or any of my three roommates, I entered the dining room. I glanced feverishly around the giant room which swarmed with strangers. I gathered up all of my courage and pride for the first time ever, and approached a group I had no preconceived notions about. I sat quietly at first, gathering as much information as I could about the new people. Were they friend material? After careful observation of their socialization, I hypothesized that these complete strangers were very bright and easy to talk to, and shared my buoyant (but sometimes timid), sense of humor. I began to feel at home as we joked about S.A.T.s, drivers licenses, and other teenage concerns. I realized then how easy it is to get along with people I meet by coincidence. I became eager to test my newfound revelation. The flutterings returned to my stomach when I approached the seating lists which everyone strained to see. I knew it; I got last chair, I heard someone announce. My flutterings intensified. I located the

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violin list and scanned for my name from the bottom up. My tender ego wouldnt let me start at the top and get increasingly disappointed as I read farther and farther down. There I am, seventh seat. Pretty good out of twenty, I thought. Every day at the convention seemed long, only because we did so many wonderful things. We rehearsed for at least seven hours each day, made numerous outings, and spent time meeting new friends. On the second day, during a luncheon boat ride on the Ohio River, [name] and I sat together, both dreaming of Japan. Looking over at her as we talked, I remembered that in two days I would be torn from the young, promising friendships I had been building. When some friends-including a few I had met at the dinner table on the first night-approached us, bearing a deck of cards, I became absorbed in a jovial game and quickly forgot my sorrow. Rehearsals were magical right from the start, because everyone rapidly grew accustomed to the strangely professional sound of the group and began to play without reserve, with full dynamics. I continually gazed, wide-eyed, around the large, bright room, watching others, admiring their skill. We were surrounded by pure talent, and the sky was our limit. We blossomed under the conductors suggestions, using our pre-developed technique to its fullest. Each time the orchestra played, my emotion soared, wafted by the beauty and artfulness of the music, bringing goose-bumps to my skin and a joyful feeling to my soul. I felt the power of the group-the talent and strength of each individual-meld into a chorus of heavenly sound. I was just where I wanted to be. I had everything Id ever need. I was no longer doubting myself among strangers; I was making music with friends. Descriptive Structure This is similar to the chronological structure except that instead of walking step by step through increments of time, it follows step by step through a description of a place, person, or thing. The first paragraph gives an introduction describing the general feel of the place, person, or thing. The body paragraphs offer in-depth descriptions of two or three particular aspects of the place, person, or thing. In the last paragraph, the writer steps out of the descriptive mode and offers a brief conclusion of what the place, person, or thing says about him or her. Sample descriptive essay Harvard, Personal Identity: Bedroom Tour If someone were to look through your bedroom, what do you hope your possessions would convey about you? A typical teens room? In some respects, yes, but in many ways, my room has become an extension of my personality, interests and values. Upon entering, one would probably notice the lack of any music group, scantily clad female model, or indeed, any adornment at all on my walls. I prefer the unsoiled look of clean walls, which provide a sense of calm. However, my room is far from military precision and order; my bed lies unmade and yesterdays wardrobe gathers dust on the floor. The visitor may consider my room tidy, but not inflexible. While touring my room, one would surely stop to look through the rooms workspace, my desk and computer. The desktop is fairly organized, consisting of a pencil holder, desk calendar, and assorted textbooks. The calendar is full of important dates-tests, deadlines, and of course, the rare days off from school. Academics are one of my highest priorities, but would be useless without occasional

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relaxation. Above my desk hangs a bulletin board. Similar to the calendar, it holds important pieces of information, as well as a few personal items. A postcard, a present from my grandfather, would likely catch ones eye. The postcard is from my homeland, and includes a famous quote by Maha tma Gandhi. It reminds me of the country I was born in, and the ties I have to my original culture. Directly below the postcard hang a few baby pictures of myself, mementos of a simpler time. Alongside my desk is a computer, without which I could not survive. The slightly outdated, yet fully competent Apple Macintosh aids with school, and, nearly any other activity I participate in. The Mac also has a modem, connecting me to the global community linked through the Internet. I am very interested in the Internet, and have found it a very useful source of information for everything ranging from tomorrows weather to buying a new car. Upon leaving my workspace, I hope my possessions would convey that I am serious about my work, but I approach it with practicality and a grain of salt. On the other side of my room lies my relaxation area, commonly referred to as a bed. Strewn about the bed are two magazines that represent my interests, MacWorld and Time. I read these magazines daily, to keep up with current events as well as advancements in the information age. Atop my bureau lays the latest work by Stephen King. The content may not be as deep and insightful as Jane Austens or Keats, but his stories serve their purpose in providing light entertainment. The bed is unmade, a fact for which I feel no remorse. Although my mother disapproves, I consider an unmade bed a symbol of rest and quietude. My bed may be considered utilitarian, for its uses are not limited to sleeping upon. Some of my best moments of focus and concentration have occurred while lying on the bed and staring at the ceiling, producing thoughts ranging from T.V. shows to pondering college life. Few teen rooms can be considered complete without a loud stereo and an assorted collection of tapes and C.D.s. My room is no different-my music collection occupies two shelves. Past the techno-rubble of the Eighties lie my current favorites, alternative rock. If a visitor were to turn on the stereo, he would find a couple presets devoted to homework music, classical and light jazz. I find that these sounds provide a sense of tranquility while trying to do homework, write reports, or complete college essays. My bed and surrounding areas represent my non-academic, more human interests. They personify the activities and hobbies which I truly enjoy, and provide a breather from some of the more rigorous aspects of life. After exiting my room, I would hope my visitor learned a few important things about me. I consider my academics seriously, and devote much of my time (and room) to them. However, they do not necessarily dominate my existence; loud music and Stephen King novels also play a role.

Cause-and-effect structure For this type of essay, you can either divide the essay into a cause section and an effect section or you can mesh the two together by taking each small description one by one and explaining the effect it has had. Sample cause-and-effect essay Columbia, Musician (cello) For some reason, my parents felt the necessity to inundate me at a young age with extracurricular activities. After school, I was always being driven from tennis to violin to swimming to cello to baseball to piano to karate to near craziness! I could have been called the worlds busiest kid at the time. From two of the activities, I have reaped the most benefits. Although my cello has been used less frequently than my tennis racquet, the musical instrument creates the most meaningful ideas in my life.

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However, my appreciation for playing the cello did not come immediately. From the time I was nine years old until I left for prep school, I detested Sunday. The first day of the week was torturous cello day: I practiced all morning, had a lesson during the afternoon, and came home in the evening exhausted. But today, I thank austere old Professor [teachers name] for forcing me to learn the art in music. With the hectic schedule I have year round, being overwhelmed is not a difficult task. Therefore, I consider playing the cello one of the most rewarding aspects of my life. Very few people have the luxury of being able to absolutely enjoying themselves in the middle of a workday. I can bomb a physics test, and then five minutes later be in heaven. Totally relaxed, I sway back and forth to the rhythm created by my bow and my fingers; both of my arms work in harmony. Eyes closed, I reach the final note and my left hand creates a slow, soothing vibrato-mediocre cello playing at its perfection. The cello reigns as the supreme instrument in my mind. Whether blusteringly chaotic or lovingly sweet, good cello playing, with its deep, rich tones and fantastically broad range is the epitome of expression. I also have ample opportunity for the other half of art-interpretation. I feel a delight beyond description when listening to Pablo Casals or Yo-Yo Ma. I am able to just sit there and think about my life, and their masterful music can make me feel ebullience or rage. Most importantly, whether I listen to music or play it, I can reflect upon and enjoy life as one special being. I wish the venerable Professor [teachers name] could be alive today to hear me play the cello. With feeling, he would always say. Whenever I played a note out of tune, Mr. [teachers name] would yell at me until I cried. But now, with my newfound love for the cello, even if he screamed in my ear, I would continue to relish my playing and let him go until he became hoarse. (adapted from http://www.justcolleges.com/essays/index.phtml?no=essayedge/html) BIBLIOGRAPHY Business Communication. 1997. London: BPP Publishing Limited. Paxson, W.C. 1981. The Business Writing Handbook. New York: Bantam Books. Websters New Encyclopedia of Dictionaries.1990. New York: Ottenheimer Publishers, Inc. http://media.fastclick.net http://owl.english.purdue.edu http://www.ecf.utoronto.ca http://www.justcolleges.com http://www.kings.edu

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ANSWER KEY Test 1 PROFESSIONAL COMMUNICATION READING Tips for Avoiding Misunderstandings when Negotiating Cross-Border Deals 1) T; 2) F; 3) T; 4) T; 5) F; 6) T USE OF ENGLISH 1) are; 2) much; 3) any; 4) is; 5) for; 6) better; 7) which; 8) it; 9) without; 10) because; 11) D; 12) C; 13) A; 14) C; 15) D; 16) B; 17) B; 18) A; 19) C; 20) B; 21) D; 22) B; 23) B; 24) C; 25) C; 26) capabilities; 27) accessibility; 28) outcomes; 29) Competitive; 30) strengths WRITING (Suggested solution) Dear Mr Pretorius, Business Communication Courses You may have read recent press reports highlighting the link between basic communication skills and the success or failure of job applications. For example, surveys suggest that an unemployed person is 50 per cent more likely to be a poor speller than someone who has managed to get a job. This has clear direct implications for both your categories of clients job candidates and prospective employers and we would like to share with you a solution backed by the governments Be a Better Communicator campaign. Communication aspects Our one-day business communication courses cover the following basic communication competencies that people need to develop in order to improve their job prospects: Spelling Punctuation and grammar Letter writing Memos Filling in forms Verbal communication The course is accompanied by a self-help training pack, which includes a booklet, a set of exercises and a cassette tape to consolidate the material covered on the course. I enclose a leaflet with further details about the course and the training pack. We offer a 30 per cent discount to anybody who enrols in one of our courses as a result of a recommendation from you. If you need more leaflets to give to your clients, please contact Ms Janet Johnson on 0264 608957. Yours sincerely Karl Markus Marketing Manager Encs.: Leaflet and training pack

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Test 2 MANAGEMENT READING Leveraging Your Teams Interpersonal Skills 1) G; 2) L; 3) C; 4) F; 5) I; 6) A; 7) E; 8) K; 9) B; 10) N; 11) D; 12) H; M extra sentence USE OF ENGLISH 1) like; 2) some; 3) into; 4) ourselves; 5) get; 6) again; 7) other; 8) along; 9) had; 10) did; 11) B; 12) D; 13) C; 14) C; 15) A; 16) B; 17) A; 18) C; 19) D; 20) A; 21) B; 22) A; 23) B; 24) C; 25) A; 26) noticed/noted; 27) revitalizes; 28) strengthens; 29) saying; 30) Enjoy Test 3 BUSINESS MEETINGS READING Lights, Camera, Presentation! Liven Up Boring Meetings with Video 1) C; 2) G; 3) E; 4) H; 5) D; 6) F; B extra sentence USE OF ENGLISH 1) are; 2) before; 3) did; 4) often; 5) has; 6) more; 7) Moreover; 8) for; 9) addition; 10) within; 11) D; 12) C; 13) B; 14) A; 15) C; 16) D; 17) B; 18) D; 19) C; 20) A; 21) C; 22) A; 23) C; 24) C; 25) B; 26) inconsistent; 27) sufficient; 28) beneficial; 29) routinely; 30) Productive Test 4 PROFESSIONAL PRESENTATIONS READING Presenting Is Manipulating! Are You Ready for It? 1) D; 2) G; 3) B; 4) F; 5) A; 6) E; H extra sentence USE OF ENGLISH 1) out; 2) ever; 3) case; 4) has; 5) best; 6) not; 7) make; 8) yourself; 9) another; 10) for; 11) B; 12) A; 13) B; 14) C; 15) A; 16) D; 17) A; 18) D; 19) C; 20) B; 21) C; 22) D; 23) D; 24) C; 25) D; 26) attention; 27) vitality; 28) confidence; 29) effective; 30) failure Test 5 RECRUITMENT READING How the Web Changes Recruiting 1) C; 2) I; 3) G; 4) A; 5) H; 6) B; 7) E; D extra sentence USE OF ENGLISH 1) one; 2) do; 3) more; 4) job; 5) for; 6) are; 7) been; 8) since; 9) have; 10) out; 11) C; 12) A; 13) D; 14) A; 15) C; 16) B; 17) D; 18) B; 19) C; 20) A; 21) C; 22) B; 23) D; 24) C; 25) C; 26) applicability; 27) counsel(l)ors; 28) acquaintances; 29) foreseeable; 30) apparent Test 6 MARKETING READING EDS Serving Multichannel Customers for the J. Jill Group 1) E; 2) A; 3) G; 4( B; 5) F; C extra sentence USE OF ENGLISH

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1) there; 2) even; 3) have; 4) these; 5) another; 6) to; 7) already; 8) those; 9) more; 10) from 11) B; 12) A; 13) B; 14) A; 15) C; 16) D; 17) B; 18) C; 19) D; 20) A; 21) C; 22) D; 23) D; 24) B; 25) A; 26) sales; 27) expertise; 28) automation; 29) measurement; 30) quantitative Test 7 ADVERTISING READING Greed 1) D; 2) F; 3) A; 4) H; 5) C; 6) G; E extra sentence USE OF ENGLISH 1) their; 2) are; 3) where; 4) would; 5) with; 6) you; 7) More; 8) has; 9) this; 10) an; 11) A; 12) C; 13) B; 14) D; 15) C; 16) A; 17) D; 18) A; 19) B; 20) A; 21) B; 22) C; 23) A; 24) C; 25) C; 26) winner; 27) legendary; 28) collaboration; 29) revolutionized; 30) provocative Test 8 FINANCE AND ACCOUNTING READING The Financial Crisis of 2008: Year In Review 2008 1C; 2F; 3M; 4J; 5O; 6K; 7D; 8N; 9E; 10L; 11G; 12P; 13I; 14B; A extra sentence USE OF ENGLISH 1) to; 2) has; 3) last; 4) together; 5) has; 6) our; 7) must; 8) only; 9) for; 10) based; 11) B; 12) C ; 13) A ; 14) B; 15) D ; 16) C ; 17) A ; 18) C ; 19) D ; 20) A ; 21) B; 22) C; 23) B; 24) A; 25) B; 26) consistency; 27) internationally; 28) Strengthened; 29) inappropriately; 30) discourage Test 9 BANKING READING A Macroeconomic View of the Current Economy 8A; 5B; 7C; 1D; 9E; 2F; 11G; 3H; 10I; 4J; 6K USE OF ENGLISH 1) did; 2) had; 3) most; 4) rates; 5) out; 6) them; 7) alone; 8) view; 9) has; 10) such; 11) C; 12) A; 13) D; 14) C; 15) B; 16) B; 17) A; 18) C; 19) D; 20) A; 21) B; 22) C; 23) C; 24) B; 25) A; 26) voluminous; 27) analysis; 28) monetary; 29) summaries; 30) fully Test 10 INSURANCE READING Health Care Services in Romania 1G; 2I; 3F; 4H; 5A; 6C; 7B; D extra sentence USE OF ENGLISH 1) other; 2) most; 3) against; 4) may; 5) event; 6) bound; 7) Such; 8) result; 9) some; 10) these 11) C; 12) B; 13) D; 14) B; 15) B; 16) D; 17) C; 18) C; 19) B; 20 A; 21) C; 22) D; 23) B; 24) C; 25) D; 26) coverage; 27) inability; 28) variations; 29) availability; 30 perceptions Test 11 INTERNATIONAL TRADE

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READING Free Trade and Distorted Development: A Critique of WTO Perspective 1J; 2E; 3B; 4G; 5A; 6I; 7H; 8K; 9D; F extra sentence USE OF ENGLISH 1) As; 2) to; 3) was; 4) prior; 5) were; 6) from; 7) which; 8) during; 9) other; 10) part; 11) C; 12) B; 13) D; 14) A; 15) C; 16) B; 17) A; 18) D; 19) B; 20 C; 21) B; 22) B; 23) C; 24) B; 25) A; 26) applicable; 27) strictly ; 28) decision; 29) ministries; 30) provisions Test 12 INFORMATION TECHNOLOGY IN BUSINESS READING Making Your Company Ready for the Next Twenty-Five Years 1) G; 2D; 3H; 4B; 5A; 6C; F extra sentence USE OF ENGLISH 1) do; 2) make; 3) that; 4) while; 5) some; 6) nor/neither; 7) however; 8) these; 9) other; 10) when; 11) D; 12) C; 13) A; 14) B; 15) A; 16) D; 17) B; 18) A; 19) C; 20) C 21) C; 22) C; 23) A; 24) C; 25) A 26) remarkably; 27) skil(l)ful; 28) disruptive; 29) ceaseless; 30) withstand Test 13 BUSINESS TRAVEL READING Making Your Company Ready for the Next Twenty-Five Years 1) T; 2) F; 3) F; 4) T; 5) T USE OF ENGLISH 1) do; 2) that/which; 3) Since/As/Because; 4) can; 5) much; 6) with; 7) notes; 8) whether; 9) make; 10) is; 11) C; 12) D; 13) A; 14) B; 15) C; 16) D; 17) A; 18) D; 19) A; 20) B; 21) B; 22) C; 23) A; 24) B; 25) C; 26) regardless; 27) corporate; 28) expense; 29) carriers; 30) upgrades Test 14 BUSINESS ETHICS READING Value Judgments: Business Ethics across Borders 1) F; 2) F; 3) T; 4) T; 5) F USE OF ENGLISH 1) do; 2) make; 3) that; 4) while; 5) some; 6) nor/neither; 7) however; 8) these; 9) other; 10) when; 11) D; 12) C; 13) A; 14) B; 15) A; 16) D; 17) B; 18) A; 19) C; 20) C 21) B; 22) D; 23) C; 24) B; 25) various; 26) credibility; 27) governments; 28) substantive; 29) mechanisms; 30) dissemination Test 15 INTERCULTURAL AWARENESS READING Developing Global Leaders with Coaching across Cultures 1) B; 2) C; 3) A; 4) B
USE OF ENGLISH 1) for; 2) these; 3) out; 4) like; 5) being; 6) their; 7) fewer; 8) do; 9) does; 10) are; 11) C; 12) B; 13) A; 14) B; 15) D; 16) C; 17) C; 18) A; 19) D; 20) B; 21) C; 22) B; 23) C; 24) A; 25) A; 26) essentially; 27) opposite; 28) tendencies; 29) preconceptions; 30) alternative

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