Vocabulary

inflation rate – темп инфляции

stable – стабильный

stagflation – стагфляция

to devalue – девальвировать

demand-pull inflation – инфляция, вызванная избыточным спросом на товары и услуги

cost-push inflation – инфляция, вызванная ростом издержек производства

anticipated inflation – ожидаемая инфляция

to negotiate contracts – заключать контракты

wage hikes – увеличение зарплаты

purchasing power – покупательная способность

to reprice – пересматривать цены

4. Give Russian equivalents:

indicator

to affect

to absorb

updated

retiree

decline

interest-free

5. Choose words from the list to fill in the gaps, then use them to make sentences:

wage, purchasing, stable, economic, monetary

1. _____ output

2. _____ hikes

3. _____ deflation

4. _____ prices

5. _____ power

6. Correct the statements:

1. Deflation is less problematic than inflation.

2. When the money supply decreases too rapidly, inflation is created.

3. The demand-pull inflation happens in slow growing economies.

4. Inflation does not affect pensioners.

7. Answer the questions:

1. What does inflation mean?

2. What is more problematic: inflation or deflation?

3. What are the kinds of inflation?

4. What is the demand-pull inflation?

5. What does the cost-push inflation mean?

6. What problems arise in the case of unanticipated inflation?

8. Use words/phrases from the list to help you retell the text: general level of prices, to increase the money supply, to devalue the currency, general price inflation, the demand-pull inflation, the cost-push inflation, anticipated inflation, interest rates, to negotiate contracts, unanticipated inflation.

Unit 5 Competition

1 (10). Listening. Listen and practice. Mind the new words.

open market	открытый рынок
competitor	конкурент
to set a price	устанавливать цену
to gain the market share	получить прирост доли рынка
to compete	конкурировать
market leader	лидер рынка
rival	конкурент
loyalty	верность, приверженность
border	граница
presence	присутствие

In an open market any number of sellers or competitors can offer goods for sale. An efficient producer, who keeps costs low, can set a low price for goods that other companies find it difficult to compete with. All companies try to gain the biggest market share possible, and compete aggressively with their main competitors to do this. Companies with the biggest market share for a product, the market leaders, may compete with their rivals on quality, image, brand loyalty or price. Major companies compete across borders in the global market place to try to enter new markets in countries where they do not have a presence.