VI. Summarise the text using the words and phrases given below:

to pay high interest charges; to generate revenues; to hand over money; to seek to foster venture-capital industries; a cottage industry; a small cluster; to ensure; to flood in; to place bets; to recruit; to launch; to lead to smth; to pay off by the bucketful; to thrive.

VII. Translate into English:

1. Венчурный капитал позволяет предпринимателям открыть свое дело, не прибегая к займам под высокий процент.

2. Венчурный капитал - это не единственный фактор, обеспечивающий успех американской экономики.

3. В основе ее процветания - стабильная макроэкономическая политика, направленная на поддержание низкого уровня инфляции, гибкие рынки труда, а также культура предпринимательской деятельности.

4. Для вновь возникающих венчурных предприятий наиболее актуальны проблемы подбора персонала и управления ростом капитала.

5. Индустрия венчурного капитала расширяется и приобретает глобальный характер.

6. Успешное существование индустрии венчурного капитала объясняется более значительной ролью, которая стала отводиться менеджменту, наряду с финансами, в процессе принятия рисков и управления ими.

VIII. Work as one group. Supply details to prove the following:

1. "... venture capital deserves a slice of the credit for transforming America's economy from the industrial dinosaur of the 1980s into today's high-growth, high-tech animal";

2. "the boom in venture capital reflects the opportunities created by the Internet".

IX. Work as several groups. Comment on the following statements:

1. Yet as the venture-capital industry gets bigger and more global, more may not always mean merrier.

2. Too much investment in innovation is unlikely to be damaging in quite the same way as too many buildings or factories.

3. The venture-capital industry has thrived partly as a disciplined risk-taking process that put as much emphasis on managing as on financing.

Revision of chapter 3 Test Put the verbs in brackets in the correct form

1. The total output of the society depends on the total supply of resources, as well as on the methods in which they (to use).

2. The demanded quantity of goods (to depend) on a particular market, the num­ber of consumers, their tastes and even the season of the year.

3. Both resources, that is, labour and capital, (to be) necessary provided an individual is going to start a new business elsewhere.

4. When prices (to be) above the equilibrium price, it (to result) in excess supply of goods.

5. (To calculate) expenditures on (to run) a business it is necessary to include expenses on (to maintain) buildings in good repair.

6. The increase in a country's economic growth can (to achieve) by (to use) more economical machines and technologies (to consume) less electricity.

7. The aim of producers (to use) this new technological improvement is (to receive) higher profits.

8. Within budget constraints the increase in consumption of one good (to reduce) the consumption of the other.

9. A number of African countries (to export) agricultural products to European countries and to the USA as well .

10. There are many examples of goods that (to consume) together, such as bread and cheese, cars and petrol, so they (to call) complementary goods in economics.

11. The decrease in production costs (to lead) to the increase in the total profit (to obtain).

12. West European countries as well as the USA often (to call) (to industrialize) countries.

13. Free market and command economies are two quite opposite sys­tems. The last (to be) typical of some countries of the East European block.

14. Statistics (to show) that consumption per capita (to rise) in developed coun­tries.

15. As to free market economies, all resources entirely (to allocate) through markets there.

16. Economists (to explain) most economic laws (to give) examples from people's every day life.

17. In a command economy the output level (to affect) by the decisions of the central office.

18. Market supply is calculated in terms of the alternative quantities of a commodity all producers in a particular market can offer.

19. A number of assumptions (to use) by economists (to study) the theory of supply and demand.

20. Provided a consumer's income (to increase), he (to prefer) to buy more normal goods rather than inferior goods.

21. Profitability is profit (to earn) by a firm in relation to the size of the firm.

22. The conditions of the lease (to consider) to give an advantage to the landown­er rather than the tenant.

23. Slower economic growth (to result from) the smaller size of population.

24. Economic rent is money (to pay) for a factor of production which is over the minimum amount necessary (to keep) it in its present condition.

25. Under these conditions the landowner may (to have) some advantages over the tenant.

26. The officially (to record) level of (to spend) last year did not grow in line with the recorded incomes, which means that part of incomes was spent illegally.

27. The expansion of trade between nations provides aid for (to depress) industries.

28. (To analyze) expenses, a manager normally (to distinguish) between capital inputs and labour costs.

29. Government bonds are known (to trade) on the Stock Exchange.

30. Profit is argued to be a firm owner's reward for (to organize) productive activi­ty, (to make) innovations, (to take) risks, etc.

31. Wholesalers (to suppose) to sell commodities to retailers but actually they sometimes sell directly to consumers.

32. Diverse institutions (to undertake) lending transactions compete for borrowers.

33. Some producers believe direct contacts with consumers without

wholesalers and other intermediaries (to make) their output cheaper and, therefore, more competitive.

34. The acceptance of financial aid often (to result) in the agreement to accept some political conditions.

35. The (to lift) of tariffs is believed (to promote) international trade.

36. Fertilizers and other chemicals are known to be sometimes (to waste) and to affect the environment.

37. The investment was not large enough (to ensure) economic growth.

38. The major purpose of transactions (to undertake) by financial institutions is to turn diverse assets into investments.

39. Diverse institutions handling (to lend) transactions are included in the financial sector.

40. Most commodities could (to receive) by means of barter in primitive societies.

41. It is important for potential investors to have full information of the companies (to compete) for capital.

42. The interest banks (to charge) for loans is sure to be higher than the one they pay to their depositors.

43. In order to ensure steady economic growth it (to be) necessary (to attract) larger investment in industry.

44. Thousands of retailers and wholesalers are known (to compete) with each other for consumers in the computer market throughout the world.

45. The forms of foreign financial aid (to know) to be loans, investments and some others.

46. Economists of different schools (to account for) the rapid growth of money sup­ply in different ways.

47. Securities (to handle) by companies, financial institutions and governments as a result of (to borrow) money.

48. Nowadays trade barriers (to lift) both among the World Trade Organization members and outside the organization.

49. The (to anticipate) rate of unemployment this year is higher than the previous year.

50. A debt is something an individual or a firm (to owe) to another individ­ual or firm.

Chapter 4

BUSINESS CORRESPONDENCE

Unit 4.1. Business Letters

Text

The essence of business letters

Correspondence is an essential part of business. In spite of telephone, telex, telegraphic and faximile communication the writing of letters continues; in fact, most telephoned and telegraphed communications have to be confirmed in writing. Every letter no matter what kind it is, should be laconic, precise, to the point and positive. Letters are written on various occasions and on various subject matters. Many business letters are connected with establishing business relations, doing business and various miscellaneous questions.

Here is one of many business letters:

Mr. Walter Drake

Chairman

The Drake and Sons Engineering Co. Ltd.,

Bristol, 5, England

Dear Sir,

I wish to thank you most warmly for your excellent hospitality extended to me during my visit to your company. The opportunity to meet you and your directors was something I had long looked forward to. I can only hope now that one day I may be able to receive a visit here from you. I very much appreciated your kindness and that of Mr. James Frobisher in showing me round the new plant. I thank you once again.

Yours faithfully,

John Gibbs,

President, Metal Equipment Inc.