Материал: 152961
face risks, competitors, insurance, company, capital, an agreement, take on the risk
1.Having discussed the scale of operations including all possible risks, both parties came to _________ .
2.Our _________ is prepared to accept the pooled risks of fire damage which you are unwilling to take individually.
3.Normally, all profitable businesses _________ of various sorts.
4.An entrepreneur risked the loss of _________ which he had invested in that enterprise.
5.If there is the prospect of making a profit, our customers may be prepared to
_________ .
6.If your products become obsolete because of technical advances achieved by _________ , your business will face a great risk.
COMPREHENSION
6.Answer these questions:
1.What does the term exposure mean?
2.When may your customers prefer a competitor's product?
3.In what cases are the risks too great for the business to bear?
4.What risks can usually be insured against?
5.What factors may an acceptable level of risk depend upon?
6.What can easily put the business out of business?
7.When do foreign exchange dealers take risks with exchange rates?
8.What does pooling of risk underlie?
9.In what cases will financial intermediaries be likely involved in hedging of risks?
10.In what cases should a business try to cut down on its exposure to foreign exchange risks?
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7. Complete these sentences with appropriate words or phrases:
1.There are two main reasons why _________ makes good business sense.
2.Some _________ are unwilling to take risks of fire damage individually.
3._________ also underlies the diversification of a portfolio of investments.
4.Businesses may wish to avoid particular _________ of risks.
5.Risks which are unacceptable to individual policyholders may be aggregated or ''pooled' by being taken on by _________.
6.Without any _________ in foreign exchange dealings, one should not try to take risks with currency operations.
8.State whether the following statements are true or false.
Comment on the true statements and correct the false ones.
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1.Some proprietors may be prepared to take on the risk if there is no prospect of them making a profit.
2.Farmers often face risks which derive from the uncertainties of the weather.
3.If the risks are too great for the business to bear, the financial manager will try to reduce them to acceptable levels.
4.In hedging of risks it is likely in practice that financial intermediaries will not be involved.
DISCUSSION
9. Define optimum ways of running a successful firm and taking on risk only if there is the prospect of making a profit. Use the following words and phrases:
to invest capital in an |
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to make losses |
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enterprise |
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unacceptable risks |
to be a success |
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failure |
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to be 'averse' to risk-taking |
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to adopt |
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insurance company |
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policies |
to be exposed to risks |
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technique |
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acceptable levels |
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anticipation of making profits. |
to reduce risks
10.Divide the text into paragraphs and entitle each of them.
FROM TIME IMMEMORIAL…
TO BURY ONE'S TALENT – ЗАРЫТЬ ТАЛАНТ В ЗЕМЛЮ
A talent was an ancient monetary unit, a gold or silver coin. The phrase to bury one's talent is taken from a Gospel parable. A slave buried in the ground the money (a talent) given to him by his master. When the man returned and asked the slave what he had done with the money, the latter replied that he had hidden the talent in the ground and had it quite safe. The master reproached his slave for being lazy, adding that he could have lent the money to the traders and thus he could have made more money.
In the course of time the word talent changed its meaning and came to denote the natural endowments of man. To bury one's talent means to disregard one's abilities and gifts, to make no use of them.
Do the following two-way translation:
Откуда возникло выражение ''зарыть талант в землю''?
The phrase is drawn from a Gospel parable about a slave and his master.
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В притче, насколько я помню, слово ''талант'' имеет значение, отличающееся от современного.
You are right. There talent is used in its original meaning and denotes an ancient monetary unit.
Как распорядился раб деньгами, полученными от хозяина?
The slave secreted the talent in the ground and on his master's return said that he had all his money safe.
Но хозяин, кажется, вовсе не стал ни благодарить, ни хвалить его за бережливость, ведь так?
Just on the contrary. The master reproached the slave for being lazy.
А как, по мнению хозяина, раб должен был распорядиться деньгами?
The master said that the slave could have lent the money to the traders and thus could have made more money.
С течением времени слово талант изменило свое значение и стало синонимом природных способностей или одаренности человека.
–And the expression to bury one's talent changed the meaning accordingly. Now it means to disregard one's abilities and gifts, to make no use of them.
CHAPTER 2
EXCHANGE-RATE RISK
A company may become exposed to exchange-rate risk in a number of ways, including the following:
(a)as an exporter of goods and services;
(b)as an importer of goods and services;
(c)through having an overseas subsidiary;
(d)through being the subsidiary of an overseas company;
(e)through transactions in overseas capital markets;
The following different types of exchange-rate risk may be distinguished:
(a)Transaction exposure is the risk of adverse exchange-rate movements occurring in the course of normal international trading transactions. This arises when export prices are fixed in foreign-currency terms, or imports are invoiced in foreign currencies.
(b)Transaction exposure arises from differences in the currencies, in which assets and liabilities are denominated. If a company has different proportions of its assets and liabilities denominated in particular currencies, then exchange-rate movements are likely to have varying effects on the value of these assets and liabilities. This could influence investors' and lenders' attitudes to the financial worth and creditworthiness of the company. Clearly, such risk can be reduced if assets and liabilities denominated in particular currencies can be held in balanced amounts.
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(c) Economic exposure refers to the effect of exchange-rate movements on the international competitiveness of a company. For example, a UK company might use raw materials, which are priced in US dollars, but exports its products mainly within the European Community. A depreciation of sterling against the dollar or an appreciation of sterling against other EC currencies will both erode the competitiveness of the company. Economic exposure can be difficult to avoid, although diversification of the supplier and customer base across different countries may reduce this kind of exposure to risk.
VOCABULARY FOCUS
1. Match the words and phrases on the left with their correct equivalentss on the right:
1. |
transaction |
a) |
конкретный |
2. |
occur |
b) |
внутри |
3. |
influence |
c) |
использовать |
4. |
subsidiary |
d) |
происходить |
5. |
amount |
e) |
сделка |
6. |
use |
f) |
сумма |
7. |
within |
g) |
влиять |
8. |
particular |
h) |
хотя |
9. |
includе |
i) |
филиал |
10. although |
j) |
включать (в себя) |
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2. Match the words on the right with the suitable attributes on the left and translate the resulting wordcombinations:
1. |
exchange- |
a) |
exposure |
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rate |
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2. |
capital |
b) |
price |
3. |
balanced |
c) |
company |
4. |
raw |
d) |
Community |
5. |
transaction |
e) |
competitiveness |
6. |
European |
f) |
effects |
7. |
foreign |
g) |
amounts |
8. |
varying |
h) |
currency |
9. |
export |
i) |
risk |
10. overseas |
j) |
market |
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11. high |
k) |
materials |
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3. Match the synonyms: |
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4. Match the antonyms: |
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1) |
varying |
a) |
kind |
1) |
demand |
a) |
customer |
2) |
firm |
b) |
international |
2) |
exporter |
b) |
branch |
3) |
foreign |
c) |
sterling |
3) |
above |
c) |
importer |
4) |
currency |
d) |
country |
4) |
supplier |
d) |
easy |
5) |
employ |
e) |
influence |
5) |
difficult |
e) |
below |
6) |
pound |
f) |
use |
6) |
subsidiary |
f) |
supply |
7) |
worldwide |
g) |
overseas |
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8) |
hard |
h) |
difficult |
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9) |
land |
i) |
money |
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10) type |
j) |
different |
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11) affect |
k) |
company |
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9 |
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5. Match the words on the left with the definitions on the right:
1) |
competitive |
a) |
financially sound enough to justify the extension of |
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credit |
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2) |
raw material |
b) |
a person who purchases a commodity or service |
3) |
invoice |
c) |
something (such as coins, treasury notes, and |
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banknotes) that is in circulation as a medium of |
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exchange |
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4) |
customer |
d) |
inclined, desiring, or suited to compete |
5) |
sterling |
e) |
consideration of a question in open and usually |
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informal debate |
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6) |
country |
f) |
a political state or nation and its territory |
7) |
discussion |
g) an itemized list of goods shipped, usually specifying |
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the price and the terms of sale |
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8) |
foreign |
h) |
British money |
9) |
creditworthy |
i) |
situated outside one's own country |
10) currency |
j) |
crude or processed stuff that can be converted by |
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manufacture, processing, or combination into a new and |
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useful product. |
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COMPREHENSION
6. Answer the questions on the text:
1.What kinds of companies may become exposed to exchange-rate risk?
2.How many types of exchange-rate risk are usually distinguished?
3.What can arise when export prices are fixed in foreign-currency terms?
4.When does the risk of adverse exchange-rate movements arise?
5.What arises from differences in the currencies in which assets are denominated?
6.What risk arises when imports are invoiced in foreign currencies?
7.What factors can erode the competitiveness of a company?
8.How can economic exposure affect competitiveness of a company?
9.Why is economic exposure very difficult to avoid?
10.What factor may reduce economic exposure to risk?
7.Complete the sentences using proper words and phrases in the box:
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