Economics

The global economy is moving away from the cliff edge

1 Watch the video and put the words into the gaps in the text

 

 

The global economy has moved away from the edge of the cliff with short term (1)___ clearly improving compared to the situation at the end of last year. North America is looking stronger with (2)____ for Canada and United States suggesting firm (3)____ during each of the coming two quarters. Activity in Japan will remain (4)_____ with a (5)___ in growth expected in the first quarter and a moderation in the second. The situation for the three largest euro area countries: Germany, France and Italy, - is expected to remain fragile, with negative growth in the first quarter and a moderate improvement in the second. Europe and the United States appear to be (6)____. Consumer (7)____ is strengthening in the US, but remains low in the euro area. (8)____ remains stubbornly high and climbing in Europe, but is falling in the US. And bank (9)____ is also moving in different directions with credit to firms recovering strongly in the US, in contrast to Europe where credit growth is starting to weaken once again. Pier Carlo Padoan(OECD Chief Economist): - Substantial risks remain high in the Euro area, confidence is low, (10)____ remain high  and  lending activity has weakened recently. So in spite of positive action from the OECD more needs to be done to boost growth and (11)___ the recovery. Beyond Europe, other risks have emerged. Rising oil prices pose a (12)____ to the recovery. Emerging markets, which have been the (13)____ of the world economy for years are also showing signs of slowing activity. World trade growth remains muted bearing witness to the moderation of activity in key (14)____. Pier Carlo Padoan(OECD Chief Economist): - The global outlook is still largely bended on policy action. In the US the (15)____ deadlock must be addressed. In the euro area the firewall must be significantly strengthened, banks need to be (16)____, underlining (17)____ must be addressed to structural policies to (18)____ growth. We have walked away from the cliff but more needs to be done.	indicators
	volatile
	prospects
	growth
	rebound
	unemployment
	diverging
	lending
	confidence
	emerging countries
	yields
	threat
	engine
	sustain
	boost
	balances
	fiscal
	recapitalized

2Vocabulary focus. Sudy the wordsand  word combinations, practise their translation, spelling. Check your knowledge in the test. Play vocabulary game and set your own vocabulary game record.

3Answer the Questions

1.     How can situation in North America be characterized?

2.     What is going on with unemployment in Europe and the US?

3.     What does Chief Economist say about situation in Euro area?

4.     What poses a threat to the recovery?

5.     On what is the global outlook still largely bended?

4Mark the following statements as True or False

1. The situation is clearly improving compared to the situation at the end of last year.

2. Activity in Japan will remain volatile with moderation in the second quarter.

3. The situation for the three largest euro area countries: Germany, France and Italy  is becoming better.

4. Europe and Japan appear to be diverging.

5. Unemployment remains stubbornly high and climbing in Europe.

6. Lending activity in Europe has weakened recently.

7. Lending should grow to boost growth and sustain the recovery.

8. World trade growth remains muted.

9. The global outlook is still largely bended on policy action.

10. The global economy is still on the edge of the cliff.

Driven by a Business Plan, but How Far Will It Get You? 

 1 Watch the video  and put the words into the gaps in the text.

A (1)____, in the words of the Small Business Administration in Washington, is a (2)____ with three basic purposes. As a communication tool, it can show possible (3)____ how well you have considered your ideas. As a management tool, it can list goals and ways to (4)____ progress. And as a planning tool, it can help guide a business around problems. For people starting a new business, the biggest problems commonly involve financing. (5)____ often seek (6)_____. This is money from wealthy individuals or investment companies for the purpose of building new businesses. Each year, entrepreneurs with ideas for the “next big thing” (7)____ venture capitalists with business plans. But John Mullins of the London Business School, writing in the Wall Street Journal, says most business plans are never even fully read. A good business plan, he says, must (8)____ a problem that the new business will (9)____. Many plans fail to show how a product or service meets a need. Also, business plans often assume it will be easy to gain a share of a large or fast-growing market. Professor Mullins advises entrepreneurs to do market tests so they have real numbers to support their (10)____. And he says honesty about possible problems with the plan is important. Successful businesses often change plans as (11)____ change. Business students spend hours and hours learning how to write a business plan. But even a good one has its (12)____. A new study suggests that venture capitalists rarely consider the business plan when deciding whether to (13)____ in a new company. David Kirsch is an associate professor at the Robert H. Smith School of Business at the University of Maryland. He and others examined more than seven hundred (14)____ made to an American venture capital firm. He says he was startled to find that planning documents have such little (15)____. Professor Kirsch tells us that venture capitalists instead talk to people who know the entrepreneur. They talk to business experts, (16)____ and other (17)____ people. The study appeared in the May issue of Strategic Management Journal. David Kirsch considers business plans a good way to organize an entrepreneur's ideas. But, in his words, “A (18)____ entrepreneur should spend his time developing the business rather than the business plan.” tool measure business plan investors flood entrepreneurs venture capital conditions solve define claims invest requests limits influence smart lawyers knowledgeable

2 Vocabulary focus. Sudy the words and  word combinations, practise their translation, spelling. Check your knowledge in the test. Play vocabulary game and set your own vocabulary game record.

3 Mark the following statements as True or False.
1.Business plan demonstrates that you have thought about your ideas.
2.A business plan can be a management tool.
3.Business plan is the biggest problem for the people who want to start a new business.
4.Business partners pay special attention to business plans and read them attentively.
5. It is more important to develop a business plan than to develop business itself.

4 Answer the Questions.
1.What are the purposes of a business plan?
2.What is the biggest problem for people starting a new business?
3.Where do entrepreneurs usually get money to build new business?
4.Do investors get information from the business plans they get?
5.What sources of information are important for capitalists?