UNIT 1:

Management: The process used to accomplish organizational goals through planning,

organizing, leading, and controlling people and other organizational resources.

Manager: An individual who is in charge of a certain group of tasks, or a certain area or

department of a business.

Chief Executive Officer: The most senior manager responsible for the overall performance
and success of a company.

Planning: A management function that includes anticipating trends and determining the best
strategies and tactics to achieve organizational goals and objectives.

Organizing: A management function that includes designing the structure of the organization
and creating conditions and systems in whiqch everyone and everything work together to
achieve the organization’s goals and objectives.

Leading: Creating a vision for the organization and guiding, training, coaching, and
motivating others to work effectively to achieve the organization’s goals and objectives.

Controlling: A management function that involves establishing clear standards to determine

whether or not an organization is progressing toward its goals and objectives, rewarding
people for doing a good job, and taking corrective action if they are not.

strategy a plan for achieving success

innovation a new idea or method
subordinate a person with a less important position in an organization
consultant a person who provides expert advice to a company
crisis a situation of danger or difficulty
objective (noun) something you plan to do or achieve
public sector he section of the economy under government control

promotion when someone is raised to a higher or more important position

leader Is the person show their passion and personal investment in the success of his or her
followers reaching their goals
UNIT 2:

Motivation: factors that influence the behavior of workers towards achieving business goals.
Motivation can be increased by:

a. monetary rewards + can be bonuses, profit sharing, promotion

b. non-monetary rewards can be: Recognizing workers by doing a great job, or permit
workers to have flexible working schedules

c. introducing ways to give job satisfaction.

Job satisfaction: The enjoyment a worker gets from feeling that they have done a good job.
There are three ways to motivate workers to be more committed to their job and work more
effectively:

Job rotation (swapping workers round and only doing a specific task for a limited time
before swapping round again).

Job enlargement (extra tasks are added to the job to make it more interesting)

Job enrichment (adding tasks that require more skill and/or responsibility)

Theory X: The average person does not like work. Workers must be constantly supervised so
they will work. Motivation is from external factors, e.g. pay schemes where the workers are
paid more for increased output.

Theory Y: The average person is motivated by internal factors. To motivate workers, you
need to find ways to help workers take an interest in their work, e.g. give rewards, incentives.

Maslow's hierarchy of needs: A theory of motivation which states that five categories of
human needs dictate an individual's behavior. Those needs are physiological needs, safety
needs, love and belonging needs, esteem needs, and self-actualization needs.

Frederick Herzberg’s motivation theory: Humans have two sets of needs: one is for the
basic needs, which he called hygiene factors or needs, and the second is for a human being to
be able to grow psychologically, which he called motivational needs or motivators.

Hygiene factors: The factors that must be present in the workplace to prevent job
dissatisfaction.
1. making something better and more enjoyable __enrichment __________
2. result ______outcome ______
3. power to make independent decisions _autonomy___________
4. quality of being serious, useful and important ____meaningfulness________
5. making something bigger __enlargement__________
piece of work that you must do as part of your job or course of study assignment
1. Skill variety. The extent to which a job demands different skills.

2. Task identity. The degree to which a job has a visible outcome.

3. Task significance. The degree to which a job has an impact on the work of others.

4. Autonomy. The degree of freedom and choice that people have in scheduling work
and determining procedures.

5. Feedback. The amount of direct and dear information that is received about
performance.

UNIT 3:
Organizational structure: The levels of management and division of responsibilities within
an organization.
Hierarchy: The levels of management in any organization, from the highest to the lowest. A
level of hierarchy refers to managers/ supervisors, other employees who are given a similar
level of responsibility in an organization.
Chain of Command: The structure in an organization which allows instructions to be passed
down from senior management to lower levels of management.
Span of Control: The number of subordinates working directly under a manager.
Directors: Senior managers who lead a particular department or division of a business.
Line managers: People who have responsibility for people below them in the hierarchy of
an organization.
Supervisors: Junior managers who have direct control over the employees below them in the
organizational structure.
Staff managers: Specialists who provide support, information and assistance to line
managers.
Delegation: Giving a subordinate the authority to perform a particular task.
Decentralization: Taking decision away from the centre of an organization- way from the
Head Office.
centralisation? Keeping all of the important decision-making powers within head office or
the centre of the organization

UNIT 4:

Glocalization is a combination of the words "globalization" and "localization." The term is

used to describe a product or service that is developed and distributed globally but is also
adjusted to accommodate the user or consumer in a local market.
Culture is defined as the complex system of values, traits, morals, and customs shared by a
society.

Context refers to the stimuli, environment, or ambience surrounding an event.

The Lewis Model was developed by linguist and leading cross-cultural specialist Richard D.
Lewis. The model divides humans into 3 clear categories, based not on nationality or religion
but on BEHAVIOUR, namely, Linear-active, Multi-active and Reactive.

High-context culture is a culture by which the rules of communication are primarily and
dominantly transmitted through the use of contextual elements. These include specific forms
of body language, the social or familial status of an individual, and the tone of voice
employed during speech. High-context cultures usually do not have rules that are explicitly
written or stated.

Low-context culture refers to a culture whereby most communications take place through
verbal language and rules are directly written out or stated for all to view.
Power distance is the distribution of power among individuals within a culture and how well
unequal levels of power are accepted by those with less power.

UNIT 5:
Recruitment - the process from identifying that the business needs to employ someone
up to the point at which applications have arrived at the business.
Employee selection - the process of evaluating candidates for a specific job and
selecting an individual for employment based on the needs of the organisation.
A job analysis - identifies and records the responsibilities and tasks relating to a job.
A job description - outlines the responsibilities and duties to be carried out by
someone employed to do a specific job.
A job specification - a document which outlines the requirements, qualifications,
expertise, physical characteristics, etc., for a specified job.
Internal recruitment - when a vacancy is filled by someone who is an existing
employee of the business.
External recruitment - when a vacancy is filled by someone who is not an existing
employee and will be new to the business.
Induction training - an introduction given to a new employee, explaining the
business’s activities, customs and procedures and introducing them to their fellow
workers.
On-the-job training - occurs by watching a more experienced worker doing the job.
Off-the-job training - involves being trained away from the workplace, usually by specialist
trainers.
UNIT 6:
The primary sector of industry extracts and uses the natural resources of Earth to produce
raw materials used by other businesses.
The secondary sector of industry manufactures goods using the raw materials provided by
the primary sector.
The tertiary sector of industry provides services to consumers and the other sectors of
industry.
A mixed economy has both a private sector and a public (state) sector.
Public sector: the sector of the economy in which organisations are owned and controlled
by the state (government)
Private sector: The sector of the economy in which organisations are owned and controlled
by individuals.
Privatisation: The sale of state-owned assets such as public corporations to the private
sector.
Sole trader: a business owned and operated by one person.

Limited liability: the liability of shareholders in a company is limited to only the amount
they invested.
Unlimited liability: the owners of a business can be held responsible for the debts of the
business they own. Their liability is not limited to the investment they made in the
business.
Partnership: a form of business in which two or more people agree to jointly own a
business.
Shareholders: the owners of a limited company. They buy shares which represent part-
ownership of the company.
Private limited companies: businesses owned by shareholders but they cannot sell shares
to the public.
Public limited companies: businesses owned by shareholders but they can sell shares to the
public and their shares are tradeable on the Stock Exchange.
UNIT 7:
Production: the process of converting inputs such as land, labour and capital into saleable
goods, for example shoes and cell phones.

Inventories: the stock of raw materials, work-in-progress and finished goods held by a
business.

Lean production: the production of goods and services with the minimum waste of
resources.

Job production: the production of items one at a time.

Batch production: the production of goods in batches. Each batch passes through one stage
of production before moving onto the next stage.

Flow production: the production of very large quantities of identical goods using a
continuously moving process.

Just-in-time (JIT) is a production method that involves reducing or virtually eliminating the
need to hold inventories of raw materials or unsold inventories of the finished product.

1. Unless our supplier reduces its ____lead time (also called cycle time) __ ______, we will
have to radically change the way we operate. (the length of time that lapses between placing
an order for something and receiving it)
2. The recession has led to a drop in overall _____purchasing power _ ______ , which means
that we will have to reduce output on some of our less popular lines. (the quantity of goods or
services which can be bought by a group of people, a sector, an organization, etc)
3. We are currently operating at_______optimum capacity _ _______ , which means that we
can afford to keep prices lower for our clients. (the most efficient level of production or output,
with the result that production costs are kept to a minimum)
4. She works on an ____ assembly line (also called a production line)__ _______ in a factory
that makes electronic goods. (a production system where a product moves slowly through a
factory as new parts are added to it)
5. We do not allow visitors to come onto the factory floor, but you can view our range of
____finished goods__ ______ in the showroom. (complete products that are ready to sell)
6. The company had to put out a ____product recall __ ______ to its customers when several
potentially dangerous faults were discovered. (the removal from sale of an item that might be
dangerous to the people who have bought it)
7. We will be unable to compete successfully in the domestic market unless we reduce our
costs by taking advantage of ___offshore production___ ______. (the manufacture of goods in
another country for import to the domestic market)
8. Our company builds ___ planned obsolescence___ ______ into most of its electronic
products, so that our customers are forced or obliged to update them more often. (designing
products so that they have a limited lifespan and so need to be replaced more often)
9. We make packaging for frozen food, and are an important part of the _____supply chain_
______ for the industry. (the manufacturers, wholesalers, distributors, etc, who make, deliver
and sell products to customers)
10. None of our products are allowed to leave the factory unless there are ___zero defects___
______ present. (having no faults)
11. Without effective _____ resource allocation_ ______ , we will not be able to produce
enough goods to keep up with demand. (assigning people and machines to projects in a way
that optimises production and results)
12. The manufacture of most items relies on a reliable source of ____raw materials __ ______
such as wood, iron ore or crude petroleum. (basic items which have to be treated in some way
before they can be used)
13. If _____manufacturing costs_ ______ can be kept to a minimum, we can keep market
prices at a minimum. (the money needed to make a product)
14. We don't check every item before we send it for sale. We usually find that _____random
sampling_ ______ gives us a good idea of quality. (testing a few items from one batch of
products before they are sent for sale)
15. Our company takes _____ capacity planning_ ______ very seriously: we never start a
project without working out how many people it will need, and the equipment they will
require. (measuring the amount of work that can be done within a certain amount of time, and
how many people, machines, etc, it will need)

UNIT 8:

Logistics - the business activity that involves planning, implementing, and controlling the
physical flow of materials, final goods, and related information from points of origin to points
of consumption to meet customer requirements at a profit.

Inbound logistics - the area of logistics that involves bringing raw materials, packaging,
other goods and services, and information from suppliers to producers.

Materials handling - the movement of goods within a warehouse, from warehouses to the
factory floor, and from the factory floor to various workstations.

Outbound logistics - the area of logistics that involves managing the flow of finished
products and information to business buyers and ultimate consumers (people like you and
me).

Reverse logistics -the area of logistics that involves bringing goods back to the manufacturer
because of defects or for recycling
estimate . a guess of what the size or amount of something might be

forecast . a statement of what is expected to happen in the future

agile. able to move quickly and easily

accurate Correct, exact and without any mistakes

logistics. designing and managing the flow of goods, information and other
resources

manual . done with the hands

.lean (of production) using small quantities and avoiding any waste

replenish. to fill something up again

Supply chain A network of facilities that performs the function of procurement of

materials, transformation of these materials into finished products, and the distribution
of these products to customers
Reverse Logistics) all operations related to the reuse of products and materials

Cargo goods carried by a ship, aircraft, or other vehicle

Logistics the management of the flow of goods, information and other resources,
between the point of origin and the point of consumption

Provider) someone whose business is to supply a particular service or commodity

Logistics management that part of supply chain management, which plans, implements,
and controls the flow and storage of goods between the point of origin and the point
of consumption

Logistician) a specialist in logistics

Customs clearance) the act of passing goods through customs so that they can enter or
leave the country
UNIT 9:

Quality: to produce a good or a service which meets customer expectations.

Quality control: the checking for quality at the end of the production process, whether it is the
production of a product or service.
Quality assurance: the checking for quality standards throughout the production process,
whether it is the production of a product or service.
Total Quality Management (TQM): the continuous improvement of products and processes
by focusing on quality at each stage of production.

defect: a fault or imperfection or deficiency

warranty: a promise that goods will meet a certain specified quality level, or be repaired or
replaced
goodwill: customers' satisfaction with and loyalty to a company
serviceability: ease of maintenance and repair
benchmarking: going outside the firm to see what excellent competitors are doing, and
adopting the best practices
durability: performance over a long period of time
reliability: regular performance according to specification
to scarp: to sell defective goods for the price of the recyclable materials they contain

1. How long various activities take to complete (eg one production run)._____cycle
time_________ (2 words)

2. Looking at how easy it is to make a new product, not just the

features._______________

3. Asking questions to find out if your suppliers are able to meet quality standards.
_____suppliers capability survey_______ (3 words)

4. Materials or small parts that are no longer useful. ___scrap__________

5. The return of products, for example because they’re faulty or dangerous.

______product recall _______ (2 words)
1. ______Benchmarking __________ is measuring your performance against other
companies that are best in class and then using the information to improve.

2. _____Tolerance___________ is the amount by which a parameter (eg. size) can vary

from the norm before the piece becomes a defect.

3. ____ISO 9000 ____________is a set of international standards of quality.

Companies can be audited for compliance with one of the standards, and then
publicly state that they're ‘________________-certified’

4. ______Nonconformance __________ is when a requirement has not been met. It

does not need to be a serious defect, it could be a simple mark on the surface that
spoils the appearance.

5. ________Six sigma ________ is the name of a well-known quality methodology. It

takes a highly disciplined approach to eliminating defects in manufacturing. This
term originally comes from statistics.

6. _______Key performance indicators (KPI) _________ are

statistical measures of how well an organization is doing in particular areas. The term
is particularly common in production and operations, but is used throughout business.

7. ____Leading indicators ____________ are those that a future outcome. For example,
predict levels of staff satisfaction are often a leading indicator of quality. A more
motivated workforce will make fewer mistakes.

8. ____Lagging indicators ____________ are those that show a result. For example,
warranty claims are a lagging indicator of quality. Fewer claims mean that earlier
actions to improve quality are now working. (A ‘lag’ is a delay between two events).

UNIT 10:
· market: the set of all actual and potential buyers of a good or service; the place where
people buy and sell; the people who trade in a particular good; to make goods available
to buyers and to encourage them to buy them
· market leader: the company with the largest market share
· market nicher: a small company that concentrates on one or more particular niches or
small market segments
· market research (GB) or marketing research (US): the collection, analysis and
reporting of data relevant to a specific marketing situation (e.g. a proposed new product)
· market segment: part of a market; a group of customers with specific needs, defined in
terms of geography, age, sex, income, occupation, life-style, etc.
· market segmentation: the act of dividing a market into distinct groups of buyers who
have different requirements or buying habits
· market share: the sales of a company (or brand or product) expressed as a percentage
of total sales in marketing - the process of identifying and satisfying consumers' needs
and desires
· marketing channel: the set of intermediaries a company uses to get its goods to their
end users
· marketing mix: the set of all the various elements in a marketing programme, and the
way a company integrates them
· marketing strategy: a plan or principle designed to achieve marketing objectives
· product life cycle: the standard pattern of sales of a product over the period that it is
marketed

distribution channel all the companies or individuals ('middlemen') involved in moving

goods or services from producers to consumers

wholesaler an intermediary that stocks manufacturers' goods or merchandise, and sells it to

retailers and professional buvers

market segmentation dividing a market into distinct groups of buyers who have different
requirements or buying habits

product differentiation making a product (appear to be) different from similar products
offered by other sellers, by product differences, advertising, packaging, etc.

market opportunities. possibilities of filling unsatisfied needs in sectors in which a

company can profitably produce goods or services
market skimming setting a high price for a new product, to make maximum revenue before
competing products appear on the market

sales representative someone who contacts existing and potential customers, and tries to
persuade them to buy goods or services

product features the attributes or characteristics of a product, such as size, shape, quality,
price, reliability, etc.

price elasticity the extent to which supply or demand (the quantity produced or bought) of a
product responds to changes of price

market penetration the strategy of setting a low price to try to sell a large volume and
increase market share

UNIT 11. ADVERTISING

· Advertorial: A paid-for advertisement which includes editorial content;

normally identified in a print magazine with the word "Advertisement" printed
as a head across the top of the page to distinguish it from genuine (in theory
unbiased) editorial content
· Advertising agency: The organization that takes care of advertising for
clients.
· Advertising campaign: A time-limited set of ads - campaigns may run across
different media, and for one month or ten years, but can be categorized
together as they are the execution of a central idea
· Demographics: Describing an audience by age, gender, ethnicity, or location
– i.e the facts about them
· Focus Groups: Small, select groups representing a target audience who are
paid to answer questions at the behest of a market research organization
· Product Placement: The practice of paying for a branded product to be used
by a character in a movie – e.g James Bond driving a BMW Z3
· Product Positioning: Establishing the market niche of a product - which may
not be as the brand leader - and advertising to the appropriate segment of the
audience
· USP: Unique Selling Proposition/Point - a highlighted benefit of a product
which makes it stand out from all rival brands.
1. companies that design advertising for clients...............
2. the advertising of a particular product or service during a particular period of
time..................
3. the statement of objectives that a client works out with an advertising
agency.........................
4. a defined set of customers whose needs a company plans to satisfy.............................
5. the amount of money a company plans to spend in developing its advertising and buying
media time or space.............................
6. the choice of where to advertise in order to reach the right people..........................
7. choosing to spend the same amount on advertising as one's
competitors..................................
8. a small amount of a product given to customers to encourage them to try
it.............................
9. free advertising, when satisfied customers recommend products to their
friends..........................
10. trying to get consumers to forward an online marketing message to other
people.........................
redeemable coupon a certificate offering consumers a price reduction on a particular product

brand-switcher a consumer who shows no loyalty to a particular brand, but changes among
competing products

loss leader a popular product sold with no profit, in order to attract customers to a store

free sample a small amount of a new product given to consumers to encourage them to try it

industrial buyer someone who purchases goods or services that will be used in the
production or supply of other goods or services

price-conscious (adjective) strongly influenced by the price when goods or services

purchasing cycle the average length of time between a consumer's repeat purchases of the
same product

brand loyalty the commitment of consumers to a particular brand

initial trial the first time a consumer buys a product to see what it's like

brand image. the public's beliefs and perceptions about particular product
UNIT 12. BANKING

· deposit - to place money in a bank; or money placed in a bank

· liquidity - available cash, and how easily other assets can be turned into cash
· collateral- anything that acts as a security or guarantee for a loan
· A mortgage - a type of loan used to purchase or maintain a home, land, or
other types of real estate. The borrower agrees to pay the lender over time,
typically in a series of regular payments that are divided into principal and
interest. The property then serves as collateral to secure the loan.
· Overdraft- Something that occurs when you make a purchase with your debit
card or write a check for an amount that exceeds your checking account’s
available balance. Many bank accounts offer overdraft protection to help avoid
overdraft fees. Some banks don’t charge overdraft fees at all.
· A current account - an account at a bank against which checks can be drawn
by the account depositor; a checking account.
· A savings account - a deposit account that generally earns higher interest than
an interest-bearing checking account. Savings accounts limit the number of
certain types of transfers or withdrawals you can make from the account each
monthly statement cycle.
· A deposit account - a bank account maintained by a financial institution in
which a customer can deposit and withdraw money.
· Solvency- When banks have enough money to cover potential losses. Banks
are expected to maintain a sufficient level of capital to remain solvent and
avoid failure. The FDIC and other federal regulators work with banks to
maintain standards for solvency.
· Maturity date: This is the date of expiration for the contractual obligation of
a financial instrument. For example, certificates of deposit have a maturity
date that depends on the length of the CD term. When the CD matures, you
have the option to withdraw the money. Some banks and credit unions also
allow you to roll it into a new CD or enable the CD to renew automatically.

UNIT 13. ACCOUNTING AND FINANCIAL STATEMENTS

· Cost accounting - calculating all the expenses involved in producing something,
including materials, labour, and all other expenses

· Tax accounting - calculating how much an individual or a company will have to

pay to the local and national governments (and trying to reduce this to a minimum)

· Auditing - inspecting and reporting on accounts and financial records

· Accounting - preparing financial statements showing income and expenditure,

assets and liabilities

· Managerial or management accounting - providing information that will allow a

business to make decisions, plan future operations and develop business strategies

· “creative accounting” - using all available accounting procedures and tricks to

disguise the true financial position of a company

· Bookkeeping - writing down the details of transactions (debits and credits)

· Cash flow statement - a statement giving details of money coming into and
leaving the business, divided into day-to-day operations, investing and financing

· Income statement (or Statement of income, Profit and loss statement, or

Profit and loss account) - a statement showing the difference between the revenues
and expenses of a period

· Balance sheet (or Statement of financial position) - a statement showing the

value of a business's assets, its liabilities, and its capital or shareholders' equity
(money the business has that belongs to its owners)

1. all the money received from business activities during a given period

A. assets B. income C. transactions

2. all the money that a business spends on goods or services during a given period

A. debts B. expenditure C. liabilities

3. a financial operating plan showing expected income and expenditure

A. account B. budget C. financial statement

4. anything owned by a business - cash, buildings, machines, equipment, etc.

A. asset B. income C. revenue

5. all the money that a company will have to pay to someone else in the future, including
debts, taxes and interest payments

A. debts B. expenditure C. liabilities

6. an entry in an account, recording a payment made

A. credit B. debt C. debit

7. an entry in an account, recording a payment received

A. credit B. debit C. income

8. adjective describing something without a material existence, which you can't touch

A. current B. intangible C. tangible

9. adjective describing a liability which has been incurred but not yet invoiced to the
company

A. accrued B. deferred C. receivable

10. delayed or postponed until a later time

A. deferred B. payable C. retained

forensic accounting when a company's financial records are officially checked because
the illegal activity is suspected

insolvency an accountant working in this area acts for a person or company that is no
longer able to pay its debts or a company whose liabilities exceed its assets

tax accounting preparing a person's or company's financial information in order to

calculate the proportion of their profit that they must pay to their government

auditing checking an organization's activities or performance or examining a person's

or organization's accounts to make sure that they are true and honest

Revenue’ (= income / turnover / sales / the top line)

'Cost of goods sold' (= direct costs) includes manufacturing costs, salaries of manual (= blue-
collar) workers etc.
'Operating expenses' (= indirect costs / overhead) include salaries of sales and office staff,
marketing costs, utility bills etc.
'EBITDA' stands for Earnings Before Interest, Tax, Depreciation and Amortization.
'Retained profit' is transferred to the Balance Sheet, where it joins the amounts from
previous years.
'Inventory' is the value of raw materials & stock.
'Current assets' may also include 'marketable securities' (= shares intended for disposal
within one year).
'Fixed assets' may also include long-term financial investments.
'Intangible assets' include patents, trademarks & 'goodwill' (reputation, contacts and
expertise of companies that have been bought).
'Accrued' items are those where an expense has been incurred, but the money is not yet paid

UNIT 14. THE BUSINESS CYCLE

· Business cycle model: a model showing the increases and decreases in a
nation’s real GDP over time; this model typically demonstrates an increase in real
GDP over the long run, combined with short-run fluctuations in output.

· Expansion: the phase of the business cycle during which output is increasing

· Recession: the phase of the business cycle during which output is falling

· Depression: a deep and prolonged recession

· Peak: the turning point in the business cycle between an expansion and a
contraction; during a peak in the business cycle, output has stopped increasing and
begins to decrease.

· Trough: the turning point in the business cycle between a recession and an
expansion; during a trough in the business cycle, output that had been falling
during the recession stage of the business cycle bottoms out and begins to increase
again.

· Recovery: when GDP begins to increase following a contraction and a trough

in the business cycle; an economy is considered in recovery until real GDP returns
to its long-run potential level.

· Potential output: the level of output an economy can achieve when it is

producing at full employment; when an economy is producing at its potential
output, it experiences only its natural rate of unemployment, no more and no less.

· Growth trend: the straight line in the business cycle model, which is usually
upward-sloping and shows the long-run pattern of change in real GDP over time

· Positive output gap: the difference between actual output and potential output
when an economy is producing more than full employment output; when there is a
positive output gap, the rate of unemployment is less than the natural rate of
unemployment and an economy is operating outside of its PPC (The production
possibilities curve).

· Negative output gap: the difference between actual output and potential output
when an economy is producing less than full employment output; when there is a
negative output gap, the rate of unemployment is greater than the natural rate of
unemployment and an economy is operating inside its PPC.
gross domestic product (GDP) a decline in economic activity

upturn an increase in economic activity

downturn . beliefs about what will happen in the future

consumption purchasing and using goods and services

expectations the difference between the funds a country receives and those it pays for all
international transactions

balance of payments the total market value of all the goods and services produced in a
country during a given period

save the willingness and ability of consumers to purchase goods and services

demand the willingness and ability of businesses to offer goods or services for sale

supply to put money aside to spend in the future

deficit an amount of money that is smaller than is needed (e.g. when

spending exceeds revenues)

surplus an excess: a quantity that is larger than is needed

.equilibrium a state of balance, for example when supply is the same as

demand

monetary policy government or central bank actions concerning the rate

of growth of the money in circulation

fiscal policy government actions concerning taxation and public

expenditure

Keynesianism the economic theory that government monetary and fiscal

policy should stimulate business activity and increase employment in a
recession

money supply the total amount of money available in an economy at a

particular time
UNIT 15. CORPORATE SOCIAL RESPONSIBILITY

· Ethical standard: a rule for moral behaviour in a particular area

· Ethical behaviour: doing things that are morally right
· Ethical lapse: temporary failure to act in the correct way
· Ethical dilemma: a choice between two actions that might both be morally
wrong
· Ethical stance: a stated opinion about the right thing to do in a particular
situation
· Ethical issue: an area where moral behaviour is important
· Business Ethics: Standards of business behaviour that promote human welfare
and “the good.”
· Corporate Social Responsibility (CSR): A company’s commitment to
improving or enhancing community well-being through discretionary
contributions of corporate resources. There are five dimensions of CSR:
Environment, Social, Economic, Stakeholder, and Volunteerism.

UNIT 16. EFFICIENCY AND EMPLOYMENT

· Job insecurity: The fear that you might lose your job
· Employability: The extent to which a person has skills that employers want
· Downsizing: Decreasing the number of permanent employees
· Core: The central part of something (e.g. a company's workforce)
· Efficiency: a situation in which a person, company, factory, etc. uses
resources such as time, materials, or labour well, without wasting any
· Rationalization: to make a company, way of working, etc. more effective,
usually by combining or stopping particular activities, or by employing fewer
people
· redundancy package: all the payments and advantages that a company gives
to workers who have lost their jobs because they are no longer needed
· restructuring: to organize a company, business, or system in a new way to
make it operate more effectively (noun)
· delocalization: to move the location of an enterprise (noun)

flexible labour market a situation in which it is easy for companies to hire non-permanent
staff

downsizing decreasing the number of permanent employees working for an organization

outsourcing or contracting-out. using other businesses as subcontractors to supply
components or services

job sharing employing two or more people on a part-time basis to perform a job normally
available to one person working full time

.relocation or delocalization moving some of a business's activities (e.g. accounting,

production) to another place or country

delayering removing unproductive parts of the management hierarchy to make organizations

more flexible and efficient
rationalization or restructuring reorganizing a company, business or system in a new way
to reduce costs and improve efficiency and effectiveness

.contract work temporary employment by an organization to do a specific project or piece of

work

casual work. temporary employment that is not regular or fixed

rightsizing another way of saying downsizing, though it could also describe increasing the
size of an organization, perhaps as an attempt to correct a previous downsizing

UNIT 17. INTERNATIONAL TRADE

· International trade: Purchase, sale, or exchange of goods and services across

national borders.

· Free trade: a trade policy that does not restrict imports or exports. It can also be
understood as the free market idea applied to international trade.

· Protectionism: the economic policy of restraining trade between nations, through

methods such as tariffs on imported goods, restrictive quotas, and a variety of other
restrictive government regulations designed to discourage imports, and prevent
foreign take-over of local markets and companies.

· Trade barriers: Government laws, regulations, policies or practices that either

protect domestic products from foreign competition or artificially stimulate exports of
particular domestic products.

· Tariff: A duty (or tax) levied upon goods transported from one Customs area to
another, for either protective or revenue purposes. Tariffs raise the prices of imported
goods, thus making them generally less competitive within the market of the
importing country, unless that country does not produce the items so tariffed.

· Quota: Restriction on the amount (measured in units or weight) of a good that can
enter or leave a country during a certain period of time.

· Absolute advantage: Ability of a nation to produce a good more efficiently than

any other nation.

· Comparative advantage: Inability of a nation to produce a good more efficiently

than other nations, but an ability to produce that good more efficiently than it does
any other good.

· An infant industry: a new industry, which in its early stages experiences relative
difficulty or is absolutely incapable of competing with established competitors
abroad.

· A strategic industry: an industry which is essential for the promotion or

stabilization of the growth of the locality in which that industry is situated.

.generic a cheaper copy of a product that is not marked with the producer's name

trademark. a name or a symbol showing that a product is made by a particular producer and
which cannot be legally used by anyone else

dumping . selling unwanted goods very cheaply, usually in other countries

Copyright . the legal right to control the production and selling of a book, play, film,
photograph, piece of music, etc.

.subsidize to pay part of the cost of something

Quota. A type of protectionist measure that sets a numerical limit on the imports allowed into a
country over a specified time period.

Free trade. International trade without any protectionist barriers between countries.

Dumping. The act of selling exports at artificially low prices, below those charged by domestic
firms, and often at less than the costs of production.

Tariffs. Import taxes imposed on foreign goods and services.

.Embargo A type of trade protectionist measure banning the trade of a certain good, or banning
trade with a particular country.

.Barriers to trade Obstructions to free trade, imposed by a government to safeguard national

interests by reducing the competitiveness of foreign firms.

Globalization The process by which the world's economies become increasingly interdependent
and interconnected.

A multinational corporation (MNC). An organization that operates in two or more countries.

Protection. The use of trade barriers to safeguard a country from excessive international trade and
foreign competition.

[Link] support from the government to lower the production costs of domestic firms,
thereby improving their competitiveness.

International trade. The exchange of goods and services beyond national borders.

Infant industries New, unestablished businesses that need protection from foreign competitors.
1. trade in goods visible trade (GB) or merchandise trade (US)
2. trade in services (banking, insurance, tourism, and so on) invisible imports and exports
3. direct exchanges of goods, without the use of money barter or counter-trade
4. the difference between what a country receives and pays for its exports and imports of
goods balance of trade
5. the difference between a country’s total earnings from exports and its total expenditure on
imports balance of payments
6. the (impossible) situation in which a country is completely self–sufficient and has no
foreign trade autarky
7. a positive balance of trade or payments surplus
8. a negative balance of trade or payments deficit
9. selling goods abroad at (or below) cost price dumping
10. imposing trade barriers in order to restrict imports protectionism
11. taxes charged on imports tariffs
12. quantitative limits on the import of particular products or commodities quotas