Word power

I. Give English equivalents for the following words and phrases from the text.

Полное товарищество, коммандитное товарищество (товарищество с ограниченной ответственностью), акционерно-коммандитное товарищество, основная черта, солидарная имущественная ответственность, распустить товарищество, договорное объединение предпринимателей, котироваться на фондовой бирже, повлечь за собой ликвидацию компании, держатель контрольного пакета акций.

II. Match synonyms in columns A and B.

A. B.

Additional tax free

equal agreement

private to take part

to carry out the loss of value

property the same

consent to contain

to participate individual

to include possession

devaluation to fulfill

tax exempt extra

III. Translate the following word chains. Determine the part of speech and the way of word-building.

limit – limitation – limited – unlimited

response – responsible – responsibility

participate – participation – participator

invest – investor – investment

oblige – obliged – obligation – obligatory

value – devalue – devaluate – devaluation

Make up your own sentences with these words.

Grammar Revision

Look through the text again and find sentences with modal verbs. Analyze the form of the infinitive following the modal verb.

Quick Reading

Read the text and find the answers to the following questions.

- What firm or company can be called a monopoly?

- What types of monopolies are mentioned in the text?

- What helps to break the power of the natural monopolist?

Monopoly.

The economic model of monopoly assumes that there is a single firm, which is selling a good or service for which there is no close substitute. Such monopolies may be created by state decisions or may be a publicly owned institution. They may also grow up from some natural deposit of minerals which are owned by one firm or from physical geography which gives a particular location such as a river crossing an effective monopoly of ferries or bridges. Another type of monopoly that may arise is called a “natural” monopoly although there is some dispute about the exact application of this term. Modern technology and state intervention may enable competition to be enforced. An example of this type of natural monopoly is in the gas pipeline grid in the United Kingdom where it would obviously be uneconomic to have two or more pipelines to each town or house. The pipes might be duplicated in some instances for security of supply reasons to large consuming areas or firms. Modern computer technology enables the natural monopolist’s power to be broken. Natural gas is a homogeneous product and any company can put its gas into the system because British Gas, the owner of most of the grid, is legally obliged to give them wayleave. The inputs from different sellers can be measured and the individual consumer can be billed and British Gas paid for its pipeline service. A similar system now operates with the electricity grid and telephones. The method adopted to privatize the railways via Railtrack which owns the track, signalling system and most stations and via franchise operators who run trains after payment to Railtrack, is an attempt to break a natural monopoly.

Talking Point

Make up dialogues discussing attractive features and disadvantages of different types of partnerships. Imagine that you want to create a partnership to make your money work. So you come to an expert in economy and ask him (her) for advice.

Text 4

Pre-reading task

a) Discuss the following questions before reading the text.

1. We often hear that “some company is a monopolist”. In your opinion, what does it mean? Is monopoly a good or a bad thing in economy? Why do you think so?

2. What is your idea of a fair free market? Must there exist barriers between trading countries? Does Russia come across trade barriers? Do you think it is easy for a company to do business on the world market?

b) Key words: monopoly, sale, profit, oligopoly, competition, trade mark, licensing, collusion.

Look up the key words in the dictionary to find out the exact meaning. Write them out.