Unit 11 vocabulary INTEREST RATE Interest means that I give you something because I am interested in getting some advantages

es back from it. Rates means amount of money indicated in a percentage. So, if I give you 1, , I am interested in getting ! cents per every 1 euro that I have lent you. So, ne"t month, I am going to ask to pay me ! cents in addition to every euro I have given to you. So let#s say, I tell you that every month you can pay me 1 until you have paid back to me all the money that I lent you. $k, so 1 % ! cents every month. &t the end, you 'ill have to pay to me !.!( on top of the money I originally gave to you. )his means that I gave you 1, and you 'ill have to pay me 1, !!. I*)+R+S) R&)+ IS !.!( EXCHANGE RATE )o e"change means buy and sell. Rate is amount of money. So imagine that 'e have a bread company in our country. It is 'orking very 'ell, so 'e 'ant to sell our bread in the Uk. ,e 'ant to set up a ne' business in the U-. .efore, 'e 'ill have to buy a building, pay the machines in our company, pay the 'orkers/ &nd 'e can#t pay then in +uro. ,e have to pay them in 0ounds. So the e"change rate is ho' much money I pay if I 'ant to buy another currency. 1 1 .2 3 1 3 1 1.! INFLATION RATE Inflation rate is sho' much e"pensive are things this year as compared to last year. 4or e"ample the price of petrol is 22 cents a litre. 5ast year it 'as 67 cents a litre. So the inflation 'as 22 67 1 18 ( appro"imately. 18 ( inflation in petrol. So, the inflation rate is the total inflation. LABOUR FORCE Is all the people 'ho 'ork. +specially those 'ho produce in plants, but also you and me. ,e can speak about the labour force in general and 'e can even say that the labour force in 9atalonia is more e"pensive than in +"tremadura. TAX INCENTIVES )a" is the money the government collects from us, for e"ample 'hen 'e buy a product or 'hen 'e 'in the lottery, etc. Incentive means to stimulate, to inspire, to motivate. So, the ta" incentive is the 'ay the government inspires or motivates a company to invest in the country. :o' can it achieve it; )hey can either decrease the ta"es on that company or even eliminate them. In that 'ay, the company is very happy and invests. GOVERNMENT BUROCRACY Is based on )&55 $R<&*IS&)I$*, 'here are layers and layers from the top =9+$> going though vice?presidents, and trillions of departments =safety, @uality, marketing, sales and purchase, logistics/>, managers, supervisors, manager supervisors, supervisor managers, managers of the managers and so, and so and so.

It is in contrast 'ith the 45&) $R<&*IS&)I$*S 'ith only 7 layers 9+$ AI9+ 0R+SIB+*)S ? SU0+RAIS$RS. ,hat is popular no'; )he flat organisation, because it 'orks better. .ut the government prefers the )&55 $R<&*IS&)I$*S, 'hich is the same as saying .UR$9R&9C. <$A+R*D+*) .UR$9R&9C is an organiEational structure 'here you can find people all over the place. It is tall 'ith different divisions, and it#s a D+SS. It#s Fust a mess. It#s not a good thingG it#s slo', it#s inefficient, is 'asteful, it#s e"pensive and it#s not competitive. GDP (Gross domest ! "rod#!t$ It means ho' much stuff is bought and sold in one year. <ross means before ta"H Bomestic means one country and product is something that 'e buy. So, the <ross domestic product in 9anada is 1.7 trillion dollars. :o' do 'e calculate that; ,e have to calculate the balance of trade. &nd ho' do 'e calculate the balance of trade; ,e count the amount of things that our country buys to other countries =ID0$R)>. ,e count the amount of things that our country sells to other countries =+I0$R)> and 'e make a deduction. ,e deduct the amounts. $bviously, 'e al'ays 'ant to S+55 more than 'e .UC, because if 'e sell, 'e have more money. UNEMPLOYMENT RATE U*+D05$CD+*) means people 'ho 'ant to 'ork but can#t 'ork. Rate means the amount of these people indicated by a percentage. If everybody 'ho 'ants to 'ork in a country is employed, that is called 4U55 +D05CD+*). )his doesn#t mean that everybody is 'orking, because if people don#t 'ant to 'ork, the government don#t consider them as unemployed. )hey consider them employed. *&)UR&5 U*+D05$CD+*) is a J( unemployment. )his is 'hat the government considers as natural. If unemployment goes belo' that, it means the economy is doing very good. .ut if it goes above that, it means it is unnatural and I) *+BBS )$ .+ 4II+B. FOREIGN INVESTMENT 4oreign means native from a different country. Investment means to buy stocks to a company, e"pecting these stocks to gro' better and better. BALANCE OF TRADE .alance is ho' much 'eight. )rade is ho' much buying and selling. ,e count the amount of things that our country buys to other countries =ID0$R)>. ,e count the amount of things that our country sells to other countries =+I0$R)> and 'e make a deduction. )he difference bet'een the +I0$R)S and the ID0$R)S is the balance of trade.