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Teoria e pratica dell’inglese commerciale con materiali autentici aggiornati agli ultimi dati e alle ultime statistiche Elementi di business, marketing e finance Fraseologia commerciale e funzioni comunicative Lessico specialistico Approfondimento grammaticale Presentazione, analisi e simulazione di casi professionali Video autentici di attualità Dossier di civiltà anglofona con percorsi interdisciplinari CLIL Approfondimenti di attualità Preparazione alle certificazioni Cambridge English aggiornate ai nuovi esami a partire dal 2020 Percorsi per le Competenze Trasversali e per l’Orientamento (PCTO)

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BEST PERFORMANCE PREMIUM

• • • • • • • • • • •

Alison Smith

BEST PERFORMANCE PREMIUM è il nuovo corso di inglese commerciale rivolto agli studenti degli Istituti Tecnici Economici. In linea con i nuovi orientamenti della formazione, il testo si caratterizza per il percorso fortemente incentrato sullo sviluppo delle competenze linguistiche e professionali.

ESP

ISBN 978-88-536-2962-3

CON NUOVO ESAME DI STATO Quest’opera ha forma mista cartacea e digitale secondo le più recenti disposizioni di legge.

CAMPIONE GRATUITO FUORI COMMERCIO Fuori campo IVA (D. PR. 26 ottobre 1972, n. 633, art. 2, lett. d)

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BEST PERFORMANCE BUSINESS, MARKETING & FINANCE

PREMIUM

‘An investment in knowledge pays the best interest.’ Benjamin Franklin

Contents MODULES

1 2

The World of Business p. 9

Business Organisations p. 55

BUSINESS in THEORY

BUSINESS in PRACTICE

Production

Commerce and trade

Business communication

• • • •

• • • • • • •

• • • •

The production process Needs and wants Factors of production Sectors of production

Types of economic systems • Planned economy • Free market economy • Mixed economy

Private sector • Sole traders • Partnerships • Limited liability companies • Cooperatives • Franchises

Marketing and Advertising p. 97

Marketing • • • • • • • • •

International Trade p. 137

The role of marketing Market segmentation The marketing mix The extended marketing mix SWOT analysis Product life cycle Market research Digital marketing Unsolicited offers

VIDEO

The global market • Importing and exporting • Economic indicators • Protectionism • Customs

Commerce Trade The supply chain The distribution chain E-commerce Information technology Green economy

Methods of communication Written communication Oral communication Visual communication

VIDEO

• Multinationals • Micro-multinationals

VIDEO

• Crowdsourcing • Types of company integration • Organisation chart • NGOs, non-profit organisations and charities • Mission statements

Public sector

Job applications • Looking for a job • Recruitment ads

Curriculum vitae • • • •

How to write a curriculum vitae How to write a covering letter Personal branding Personal statements

Getting a job • Preparing for an interview • Working practices

• Public enterprises

Advertising

Studying the market

• The purpose of advertising • Effective advertising • The history of advertising • Advertising media

• Internet marketing questionnaires • Focus groups

Promotion

• Product placement and sponsorship • Trade fairs

Promotional correspondence • Unsolicited letters, emails and phone calls • Circular letters

Analysing adverts • Features of an advert

Promotional activities • Promotion at a fair

Trading procedures

Enquiries

• • • •

• Written enquiries • Telephone enquiries

Trading within the EU Trading outside the EU Sales contract terms Incoterms

Trade organisations

Replies to enquiries • Written and oral replies

• Trading blocs • International trade organisations

Transport and Insurance p. 175

Types of transport • • • • • • • •

Transport by land Transport by water Container ports Transport by air

VIDEO

Freight forwarding Means of transport Packing The environmental impact of freight traﬃc

Transport documents

Placing an order

• The road/rail consignment note • The bill of lading • The air waybill

• Written orders • Order forms and online orders • Phone orders

Invoices

• The invoice • The pro-forma invoice

Insurance • • • • •

What is insurance? Business insurance Marine insurance Focus on Lloyd’s Acts of God insurance

Replying to orders • Accepting or refusing an order

Modiﬁcation and cancellation • Changing an order • Cancelling an order • Counter-offers

Sending goods • Contacting a freight forwarder • Shipping advice

BUSINESS LANGUAGE

BUSINESS NEWS

BUSINESS CASE STUDY

Phraseology

Vocabulary

Business communication trends

Case analysis: BarkBox

• Writing a business letter • Making telephone calls • Face-to-face communication • Talking about graphs/ diagrams

• Word formation (1) • Collocations with business

Professional competences • Finding an idea • Deciding the details • Writing a memo • Phone enquiry • Confirming a booking • Presenting your idea

Grammar • Present simple • What/Which • Present simple passive

Video tutorials 1, 2

Phraseology

Vocabulary

• Covering letter of a CV • Job interviews

• Word formation (2) • Describing job responsibilities • Collocations with job

Young entrepreneurs

Case analysis: Greenpeace Professional competences • Arranging an interview • Rearranging details • Interview questions • Interview preparation • Writing a personal statement • Writing a covering letter

Grammar • Present continuous • The future • First conditional

Video tutorials 3, 4, 5

Phraseology

Vocabulary

• Circular letters • Unsolicited offers • Focus groups • Unsolicited phone calls • At a fair • Analysing adverts

• Word formation (3) • Absolute adjectives • Intensifiers • Verbs for marketing/ advertising purposes

Emotions in advertising

Case analysis: Converse Professional competences • Organising a team meeting • Understanding a message • Designing an advert • Pitching for the business

Grammar • Modal verbs • Comparatives • Superlatives

Video tutorials 6, 7

Phraseology

Vocabulary

• Enquiries • Replies • Telephone enquiries and replies

• Verb patterns: verb + preposition • Collocations with trade • Phrasal verbs

The economy of fakes

Case analysis: Garofoli Vini Professional competences • Writing a letter of enquiry • Replying to a letter of enquiry • Following up an email • Making a phone call • Confirming the details of a visit • Welcoming a client

Grammar • Past simple vs past continuous • Past simple passive • Present perfect simple

Video tutorials 8, 9

Phraseology

Vocabulary

• Placing an order • Phone orders • Replying to orders • Changing or cancelling an order • Changing or cancelling an order by phone

• Word formation (4) • Verb patterns: verb + -ing or to • too/enough

Grammar • Time expressions used with the present perfect • Present perfect simple vs present perfect continuous

Insurance claims

Case analysis: Swift Transport Professional competences • Writing an internal email • Writing an unsolicited letter • Making an enquiry • Arranging a meeting • Confirming a contract • Modifying details

Contents MODULES

Banking and Finance p. 225

BUSINESS in THEORY

BUSINESS in PRACTICE

Banking systems

Payment methods

Payment issues

• Types of bank • Microcredit • Ethical banking in the UK

• • • • •

• • • •

Central banks • The Bank of England • The Federal Reserve System • European Central Bank

Banking services • • • •

Globalisation p. 275

PRACTICE ROUND UP

Business banking E-banking VIDEO Types of cards Fraud

Aspects of globalisation • Effects of globalisation • Advantages and disadvantages of globalisation

Open account Payment in advance Bank transfer Bill of exchange Documentary collection • Documentary letter of credit

Credit references Sending a statement of account Requesting new payment conditions Extension of credit

Payment reminders and replies • Written reminders • Written replies • Phone reminders and replies

Finance

Analysing data

• Stock Exchanges and Commodity Exchanges • London and New York Stock Exchanges • Securities fraud and speculation

• Explaining financial data

Economic globalisation

Complaints and replies

• Economic globalisation

• • • •

Global sustainability • Sustainable development versus de-growth

Making a complaint Responding to complaints Phone complaints and replies Complaints and replies using social media

p. 303

Cultural Background DOSSIERS

1 2 3 4 5

UK vs USA

Geography p. 308

• The UK – Quick facts • Geography of the UK • The USA – Quick facts

• Geography of the USA • Climate in the UK • Climate in the USA

History p. 324

• • • • •

A brief history of the UK The Industrial Revolution and the Victorian period The British Empire Key moments in the 20th and 21st centuries A brief history of the USA

• • • •

Society and Identity p. 346

• • • • •

UK population and identity US population and identity Education in the UK Education in the USA Business schools in the UK and USA

• UK and US media • Origins and development of the English language • British English vs American English

Economy p. 364

• UK economy • Adam Smith • John Keynes

• US economy • US banking crisis

Institutions p. 386

• The UK political system • UK General Elections • The European Union

• The US political system • US elections • Famous political speeches

INVALSI TRAINING

p. 408

EXAM PRACTICE

p. 420

Mass production The Great Depression Key moments in the 20th century Key moments in the 20th and 21st centuries

BUSINESS LANGUAGE

BUSINESS NEWS

BUSINESS CASE STUDY

Phraseology

Vocabulary

Cashless economy

Case analysis: The Bloody Oyster

• Payment issues • Payment reminders • Reply to reminders • Phone reminders

• Linkers • Collocations with payment

Professional competences • Finding an idea • Deciding the details • Writing a formal letter • Making a phone call • Writing an informal letter • Writing a proposal

Grammar • Past perfect simple • Past perfect continuous • Second conditional • Third conditional

Video tutorial 10

Global climate change

Phraseology

Vocabulary

• Complaints • Replies • Phone complaints and replies

• Phrasal verbs • Collocations with complaint • Connectives

Case analysis: The English Academy Professional competences • Sending a reminder • Replying to a reminder • Writing a complaint • Complaining in person • Using live web chat

Grammar • Relative clauses • Indirect speech • Modal verbs with past infinitives

Video tutorials 11, 12

ESW

GOING DEEPER

LIT CORNER

Australia and New Zealand

Global warming

Wordsworth’s Romantic nature VIDEO

Colonisation in Africa

Women's rights

Virginia Woolf and feminism VIDEO

The Bahamas

The Troubles

Multicultural Britain? VIDEO

Asia: Singapore and India

The importance of tourism

Arthur Miller and the American dream VIDEO

Current Commonwealth nations: Canada

The United Nations

Big Brother is watching you VIDEO

Welcome to BEST PERFORMANCE PREMIUM BEST PERFORMANCE

PREMIUM è il nuovo corso di inglese commerciale rivolto agli studenti degli Istituti Tecnici Economici. Il volume si articola in 7 moduli dal contenuto tecnico e settoriale e 5 dossier di civiltà, organizzati in questo modo:

Internet banking

What kind of banking operations can be carried out online?

Internet banking allows private customers and businesses to manage their bank accounts and carry out traditional banking operations like checking bank statements, paying bills and transferring funds online. It is also possible to have access to other services such as loan applications, financial products and stock market investments. Internet banking services are provided by both ‘bricks and mortar’ banks and online banks. The former is a bank with physical branches that also offers internet banking, the latter operates exclusively online.

Mobile banking

Mobile Money Is Booming in Africa

• 24/7 availability: You can access your account and related services whenever and wherever you want. • No wasted time: There is no need to waste time going into a branch and waiting in a long queue. • Real time: You can immediately access updated financial statements and check your account balance. • Cost-effective: Account costs are usually less than for a traditional account. • Environmentally-friendly: There is no need for the bank or the client to print and send documents and statements as it is all stored electronically.

ccording to the latest report from the mobile money team of GSMA, the association of mobile phone companies, there are more than 866 million registered mobile money accounts in 90 countries, with daily transactions of $1.3 billion. The advantages of mobile money for the unbanked, displaced people, women and those in rural locations are significant and extensive, and nowhere is this more true than in Sub-Saharan Africa. As of December 2018, the region had 395.7 million registered mobile money accounts, which is nearly 46% of the global figure. Sub-Saharan Africa is followed by South Asia with just over 33%. M-Pesa, whose name refers to the Swahili word for fees, others by the time it takes, even if short, to money, was launched 10 years ago in Kenya and today take out your phone and complete the few steps of is one of the biggest and most popular platforms for a transaction compared to handing over a few notes sending money between mobile wallets, paying bills and coins. In addition to this, many people in the and applying for loans. It has recently started ventures country still receive their wages in cash which means with Paypal and Western Union to expand their value that it must be first transferred into digital form, an proposition and include a full range of products and unnecessary step for many. Once more people are paid services to suit different customer needs. digitally, it is likely that we will see a further increase However, even in Kenya which is the leading country in mobile money transactions. The incredible boom in in Africa for digital payments, it is estimated that mobile money shows no signs of slowing down and it many of the mobile money accounts are actually will continue to attract existing and new companies in inactive and eight out of ten payments are still carried the technology, banking and mobile phone industries, out in cash. Some are put off by the high transaction desperate to get a slice of the action. And profits.

DISADVANTAGES • Security issues: Most online banking operations are secure thanks to encryption techniques but there still may be a risk. • Identity theft: There is a risk of your identity and bank details being stolen and used fraudulently. • Lack of contact: For some people, the lack of personal contact can be a problem and they prefer being able to speak to someone directly about their account matters. • Dependability: In the case of online banks, it is advisable to check their reliability and background, as well as their registration with national regulatory bodies. • Computer illiteracy: Online accounts are not suitable for those who are not good or confident at using computers nor, obviously, for those with no internet access.

ACTIVITIES

Mobile banking is when a bank account, credit card or other financial account can be accessed using a smartphone or similar device. This can be via internet access to a bank’s home page, text messaging or by using one of the many apps from banks for handling various financial transactions. Mobile payment, often called mobile wallet, is the process in which mobile phones are loaded and stored with money which is then used to make payments. Both these services are increasing in popularity in the western world, but even more so in those parts of the world where physical banks are more difficult to reach due to long distances and also, in the case of mobile wallets, for the unbanked, those people who do not have access to any kind of bank account.

Reading comprehension 4 INVALSI

Reading comprehension 2

1 Internet banking is aimed 2 Traditional accounts may have 3 Not having to print documents means 4 Online banks registered with the regulatory authorities

a b

for people in remote areas. carry out financial transactions from your mobile phone. are safe for clients to use. at both private and business customers. online banks are environmentally-friendly. more bank charges than online ones.

c d e f

5 By downloading a bank app you can 6 Mobile payment has many benefits

Find the expressions for these definitions in the texts. 1 2 3 4 5 6

234

a bank with physical branches all day, every day of the week a method of coding data to make it secure to transmit online stealing somebody’s personal and bank account details a method of using a mobile phone to keep and spend money someone who does not have the possibility to use banking services

4 The article predicts that… A Mobile money growth will gradually slow down. B Fewer companies will be willing to invest in mobile money in the future. C There is still a lot of profit to be made in mobile money in Africa. D Companies will become more competitive.

2 What does the figure 46% refer to? A The percentage difference between the number of mobile money accounts in Asia and Sub-Saharan Africa. B The percentage of global mobile money accounts which are held in Sub-Saharan Africa. C The global growth of mobile money accounts since December 2018. D The percentage of global mobile money transactions which are carried out in SubSaharan Africa.

Vocabulary 3

Read the article and choose the most suitable option according to the text. People in Sub-Saharan Africa… 3 Why do some Kenyans prefer using cash? A have fewer benefits from mobile money than A There is nothing extra to pay if you pay in those in other regions. cash. B have been slow to sign up to mobile money B They don’t trust mobile money platforms. platforms. C They are worried about losing their phone and C are benefitting hugely from mobile money therefore money. platforms. D The mobile platforms take a long time to D are financially disadvantaged due to their rural authorise transactions. location.

Read the texts and match the two halves of the sentences.

________________ ________________ ________________ ________________ ________________ ________________

Watch the video: Somalia abandons shillings for mobile money transfers

MODULE 6 | BUSINESS in THEORY

Banking and Finance | MODULE 6

The elements of a business letter

Letterhead or heading

Sloane & Millford Ltd. 85 Melrose Terrace Milton Keynes, MK9 2EL Tel: 01908 689584 Fax: 01908 689588 Email: patrick.barnes@sloane.millford.co.uk

Letterhead or heading

Your Ref. AG/jw – 18th October 20.. Our Ref. PB/ck

References Date of writing Inside address or receiver’s address Attention line

Att: Ms Anna Gallagher

Opening salutation

manufacture, and are We were pleased to receive your enquiry about the tiles we of products for floor sending you a price list and catalogue showing our full range and wall tiles. We are also enclosing a few samples of our best-selling collections and kitchens, including our latest range of hand-painted tiles.

Body

for bathrooms

catalogue within ten days. On receiving an order, we can supply most of the tiles in our three and four weeks. Those marked ‘special order’ in our catalogue will take between We know you and your clients will be absolutely delighted with products. We look forward to doing business with you.

Closing salutation

the quality of our

Sloane & Millford Ltd.

Sales Manager Encl. (2)

This depends on the opening salutation used and how well you know the person you are writing to. USA UK if the letter begins Truly yours, Yours faithfully, with Dear Sir/Madam Very truly yours, Yours truly, Yours sincerely,

Sincerely, Sincerely yours, Yours cordially, Cordially,

if the letter begins with the receiver’s name

Regards, Best regards, Kind regards,

with any salutation

here.

Best wishes, All the best,

if you know the person well

Attention line (Attn.: …; Attention: …; For the attention of…) This directs the letter to a particular person. The attention line can be omitted if the name of the person is specified in the inside address.

Opening salutation

• If you do not know the receiver’s name: USA UK Gentlemen: (if you are writing Dear Sir/Madam, to a company) To whom it may concern: Dear Sirs, • If you know the receiver’s name: In a formal letter these should be followed by the surname only: Dear Mr Ruthford, / Dear Ms Smith, In an informal letter: Dear Jennifer, / Dear Jack,

Signature

Every letter must be signed by hand by the author. The author’s name is typed under it and is generally followed by the official position in the company in the line underneath. If the person signing the letter is not the author, you may find the abbreviations per pro/p.p./per p. (i.e. per procurationem) before the author’s name or the company’s name. They mean ‘for’ and ‘on behalf of’.

Enclosures

When the letter contains other documents, these are mentioned by Encl. or Encls., followed by the type and number, at the bottom of the letter.

Vocabulary Ms is now the most common title for women, although Mrs can be used for a married woman and Miss for an unmarried woman.

Reading comprehension

ACTIVITIES

• La sezione BUSINESS in PRACTICE mostra esempi completi della corrispondenza in uso nelle varie fasi della transazione commerciale con particolare attenzione alle esercitazioni pratiche. Troverai attività di preparazione alla certificazione Cambridge English: Business (B) Preliminary nei primi moduli e Vantage in quelli successivi.

Closing salutation

Read the business letter and answer these questions. 4 Who is the recipient of the letter? 1 Who is the sender of the letter? 5 What company does she work for? 2 What company does he work for? 6 What is the purpose of the letter? 3 What kind of company is it?

Match the opening and closing salutations. 1 Dear Ms Jefferson (USA) 2 Dear Sirs (UK) 3 Dear Sandra 4 Dear Mr Sparrow (UK) 5 Dear Sir/Madam (USA)

a b c d e

Write these dates in full. 1 11/12/2014 (USA) __________________________ __________________________ 2 28.2.2016 (UK) 3 9/11/2001 (USA) __________________________

4 4/17/2015 (USA) 5 18.3.2013 (UK) 6 21.8.2011 (UK)

ACTIVITIES

Patrick Barnes

Signature

Enclosures

Body

Yours sincerely,

Position in company

This indicates the subject or purpose of the letter.

Inside address

This is the name and address of the company that receives the letter. When addressing the letter to a specific person, the name and position in the company should be included

Your enquiry of 18th October

Subject line

This contains the text of your message.

Your Ref./Our Ref. are often the initials of the person in charge (capital letters) and those of the person writing the letter (lower case letters). They are optional.

This should always be written in full format; do not use figures. There are different formats: USA UK Month Day Year Day Month Year (June 21, 20..) (21st June 20..)

Dear Ms Gallagher,

235

References

Date of writing

21st October 20.. The Tile Shop 52 Banbury Road Stratford-upon-Avon Warwickshire CV35 0RW

This normally contains: the company logo; the company’s full name and address, email address, telephone and fax numbers; website.

ACTIVITIES

Ogni modulo si suddivide in due parti principali, teoria e pratica. • La sezione BUSINESS in THEORY presenta testi teorici che affrontano i temi tecnici e settoriali con testi descrittivi, numerosi approfondimenti tratti da fonti autentiche, video di attualità, collegamenti a Internet. A conclusione di ogni percorso tematico è prevista o un’attività di Exam Practice per prepararsi all’Esame di Stato o un’attività INVALSI.

ADVANTAGES

E-banking

WARM UP

Yours faithfully Truly yours Sincerely Best regards Yours sincerely

__________________________ __________________________ __________________________

The World of Business | MODULE 1

MODULE 1 | BUSINESS in PRACTICE

BUSINESS LANGUAGE

La sezione BUSINESS LANGUAGE si divide in tre parti: • Phraseology, dove approfondirai le funzioni linguistiche presentate nel modulo ed eserciterai la fraseologia di riferimento per la comunicazione commerciale scritta e orale, imparando ad adattarle ai contesti comunicativi che la realtà commerciale presenta; • Vocabulary, dove potrai sviluppare e consolidare il lessico specifico e tecnico già incontrato all’interno del modulo; • Grammar, dove vengono brevemente presentate ed esercitate diverse strutture grammaticali con un approccio graduale. La pagina di grammatica si chiude sempre con un esercizio di traduzione da e verso l’inglese. Phraseology

PCTO

Written communication

More business language practice

CIRCULAR LETTERS

Keeping customers informed • The growth of our business has convinced us/made it necessary • We have recently opened a new shop/store/showroom at…/in… to move to/acquire new and larger premises. Street, opposite the station. • Kindly/Please take note that our new address is/our new factory • The new department/branch will be opened/will open on… will be situated at… • The new agency will be/has been entrusted to Mr/Mrs/Miss/Ms… • You may be interested to know that our factory has been extended.

UNSOLICITED OFFERS

Attract attention • We’d like to make you an exceptional offer that you really can’t refuse. • We know that what our customers want is… • Have you ever thought about…? • We are writing to inform you about a very special offer reserved for our best customers. • We want to help you save up to...%!

Emphasise the product or offer

• We’re delighted to tell you about our new… • It is our great pleasure to introduce our new range of… • This fantastic product is available for a limited period. • These computers have been specially designed for/to…

Grammar

Translate these sentences.

1 2 3 4 5 6

WORD FORMATION (3)

________________ ________________ ________________ ________________ ________________

Mediating texts

astonishing

FOCUS GROUPS

Asking for and giving an opinion • What do you think about…? • What’s your opinion of…? • I don’t think it’s/that’s a good idea. • In my opinion, it’s a good/not very good project. • Personally, I feel/think/believe it’s… • According to recent reports/the latest statistics/experts in this field…

128

Deindustrialisation

Agreeing/Disagreeing

________________ ________________ ________________ ________________

• I agree with you. / I disagree with you. • Actually, I think… • You’re right! / That’s true! / Absolutely! • I think so too. • I agree up to a point. / I see what you mean. • I don’t agree. / I have to disagree. • Maybe, but…

Work in small groups. You are part of a focus group organised by your local council on facilities for young people in your area. Discuss what facilities are available and how they could be improved.

MODULE 3 | BUSINESS LANGUAGE

________________ ________________ ________________ ________________

Should and shouldn’t are used to give advice and make suggestions. Ought to is also possible. We shouldn’t launch the new product until the holiday season. That company ought to use social media. Needn’t is used to talk about the lack of necessity. We needn’t leave now – the presentation doesn’t start until 2 p.m.

Video tutorial 6

fascinating

brilliant

INTENSIFIERS very – before gradable adjectives absolutely/completely/simply – before absolute adjectives really – before all adjectives not at all – with negatives

analyse

develop

Write six sentences comparing these forms of advertising media: print, outdoor, radio, digital media. Use the adjectives in the box.

cheap − popular − effective − dynamic easy to evaluate − suitable − traditional

VERBS FOR MARKETING/ADVERTISING

130

________________ ________________ ________________ ________________

furious

gorgeous

tiny

Then write 5 sentences of your Choose the correct alternative. ad? What did you think of the new 1 It was absolutely/very fantastic. 2 It was very/simply perfect. all/very. at convincing 3 It wasn’t 4 It was very/completely good. 5 It was really/at all humorous.

PURPOSES

launch

monitor

persuade

with a verb from the table above.

Complete these sentences is to 1 One of the purposes of advertising a product. ___________ consumers to buy a customer’s 2 A product has to ___________ needs or wants. way to 3 A product presentation is one the market. ___________ a new product on mix is how to 4 The fourth P of the marketing ___________ a product or service.

promote

reach

own.

satisfy

department is to 5 One of the roles of a marketing ___________ the competition. market research 6 It is important to ___________ an effective data in order to ___________ marketing strategy. media will help 7 Choosing the correct advertising audience. a company ___________ its target

must have 1 Work experience is necessary. You _________ previous experience. 2 It is not necessary to register to use this site. You _________ to use this site. 3 The marketer advised the company to use consumer panels. ‘You _________ consumer panels,’ said the marketer. 4 Perhaps the meeting will be delayed. The meeting _________ delayed. 5 Documents for internal use only. These documents _________ leave the company’s premises. 6 It’s not a good idea to exceed your established marketing budget. You _________ exceed your established marketing budget.

the sentences below. gradable adjectives in italics in the table above to replace the Use the absolute adjectives from are interesting and 4 Digital marketing techniques is good. in the future. 1 That new advert from Audi are sure to develop even more continue a small percentage of 2 I find it surprising that ad agencies 5 Personally, I think that only to promote result. to use happy, smiling women unsolicited letters achieve a concrete beauty cleaning products. if the women used to promote Even 6 make I’m eating , their images are 3 Cold callers who ring while products are already beautiful, me angry. often airbrushed and photoshopped.

Print ads are more effective than radio ads because of their visual impact.

We use the superlatives to compare people or things within a group or category. Digital media is the fastest growing sector in advertising. Advertising is perhaps the most important aspect of promotion. What do you think is the least effective technique in print ads? Reducing your marketing budget is the worst thing in the world to do.

Video tutorial 7 Translate these texts.

We use the comparatives to compare people or things. Radio advertising is cheaper than TV advertising. Social networks are becoming much more important for modern businesses. The better you know your market, the better your sales will be. Competition is not as fierce as it once was in this sector. Secondary research can be a lot less expensive than primary research.

SUPERLATIVES

COMPARATIVES

Mediating texts

The first objective in marketing is to attract customers. Next, the company must retain these customers. It can do this by building a relationship with them. It should get feedback from its customers and then it ought to use this information to improve the product, its design, packaging or customer service. A company needn’t have a huge marketing budget but it mustn’t be too small either.

Complete these sentences using a superlative form. 1 It’s a very good ad. It’s _________ ad in the competition. 2 The advertising budget is very low. It’s _________ budget we’ve ever had. 3 It was a very bad result. It was _________ result last year. 4 Our product is very trendy. It’s _________ product on the market today. 5 He’s very famous. He’s _________ celebrity we’ve ever used in a campaign. 6 This research data is not at all reliable. It’s _________ data in the report. È vero che nella pubblicità la qualità è più importante della quantità? Un investimento notevole può risultare meno efficiente di un investimento minore, se non è gestito in modo corretto. Inoltre una campagna pubblicitaria ridotta può produrre risultati migliori se mira al target giusto e utilizza i mezzi giusti. L’utilizzo sapiente dei social media, per esempio, è uno dei modi economicamente più efficaci per raggiungere il mercato dei giovani.

Marketing and Advertising | M O D U L E 3

MODULE 3 | BUSINESS LANGUAGE

Schede di approfondimento online

Puoi scaricare gratuitamente dal sito www.elilaspigaedizioni.it i seguenti materiali: materiale didattico supplementare | tutti gli audio in formato MP3 | FLIP BOOK 6

______________ ________________ ________________ ________________

ABSOLUTE ADJECTIVES

Oral communication

P Complete the second sentence so that it means the same as the first, using no more than three words.

Must is used to express obligation while mustn’t is used to express prohibition. A company must consider all 4 Ps of the marketing mix. You mustn’t forget the meeting with the ad agency tomorrow.

-less. are: -able, -ible, -ous, -ive, -ful and • If you order these goods within the next … days, you will be able Some common suffixes for forming adjectives to benefit from an extra …% discount. of them can be used • This offer is valid with effect from today to the end of next under the correct column. Five using these roots and write them month. / Our special offer is valid only for orders received by … 1 Form the adjectives may need to change the spelling. in more than one column. You Suggest further steps compete − care − create • For more information call us at… / on... adventure − attract − believe − − use − value accept − access − advantage − success − • You can find full details of all our products… profit − − inform − meaning • If you would like to know more about this product, please danger − effect − hope − humour contact us at the address below. -less • Contact us promptly to place your order. -ful -ive -ous • We know you will take advantage of this exceptional deal and -able/-ible __ ________________ look forward to receiving an order from you. __ ________________ ______________

Questa offerta speciale è limitata ai primi 50 clienti. Non perdere questa occasione di risparmiare fino al 40%. Come nostro fidato cliente, vogliamo riservarLe uno sconto speciale. Potrete vedere Voi stessi i vantaggi, cliccando sul nostro sito. Contattateci entro 15 giorni per poter richiedere il Vostro omaggio. Grazie per la gentile attenzione, confidiamo di sentirLa presto.

MODAL VERBS

Video tutorial All’interno del FLIP BOOK troverai tutti i video tutorials con la spiegazione di alcune delle regole grammaticali.

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BUSINESS CASE STUDY • Case analysis, una prima sezione in cui vengono presentati e analizzati dei casi professionali autentici (Background, Case presentation, Case analysis); • Professional competences, in cui viene simulata una situazione reale d’impresa e viene proposto un percorso guidato verso la realizzazione di un task.

of the customer and boxes from the point of view List the advantages of subscription box to help. What about in the texts on page 52 and the the business, using the points about different problems for both parties? Think any disadvantages and potential e-commerce, satisfying as distribution, warehousing, aspects of the business, such needs or wants.

Case analysis Step one BRAINSTORMING

BUSINES S CASE STUDY

− small profit − finding new products getting bored − run from home − individual activity storage space − getting new subscribers − cancellations − luxury or necessity website design and maintenance

Case analysis: BarkBox

do consumers like boxes. What are they? Why Read this description of subscription business model? them? Why are they a popular

Background

but they are for retail idea as magazine or newspaper subscriptions, Subscription boxes follow the same stationery, baby stuff, craft kits wines, beauty products, make up, books, products such as specialty foods and in the world, with many close to 7000 subscription box services and many more items. There are probably needs or wants. help you find the best box for your comparison and review websites to choose the option you require, You sign up on the company’s website, packages to arrive at your door. Each the for wait and card credit by pay selected products or samples and the box contains a variety of specially to $100 for a monthly package. costs usually range from about $10 due to the element of They are popular with consumers contents of the box are surprise and anticipation as the exact and cost-effective. As a unknown. They may also be convenient form of e-commerce. business model, they are a simple are straightforward for Operations, such as storage and shipping, the number of most products. Thanks to the knowing demand easily, with costs subscribers, a company can calculate stable. relatively and revenue remaining

Advantages

Disadvantages

For the business

__________________________ ________________________________ __________________________ ________________________________

For the customer

__________________________ ________________________________ __________________________ ________________________________

For the business

__________________________ ________________________________ __________________________ ________________________________

For the customer

__________________________ ________________________________ __________________________ ________________________________

and cons of these ideas to BarkBox? Discuss the pros What do you think will happen company should introduce. and decide which one(s) the received in their boxes for clients to order the products • an e-commerce shopping site • subscription boxes for cats health can get advice on their dogs’ • a vet helpline where owners their dogs share videos and stories about • a blog where the owners can dogs rehome • a service to help animal shelters

Step two DECISION MAKING

Case presentation

Henrik was founded in 2012 by Matt Meeker, BarkBox, a subscription box for dogs, in New York and Werdelin and Carly Strife. It is based year later, thanks to ships to all of the US and Canada. One subscribers and a venture funding, it already had 100,000 The employees, monthly revenue of over $2 million. has a Great Dane including the CEO Matt Meeker who their dogs regularly test called Hugo, are all dog lovers and to customers. out the products before they are sent

Deciding the details

Dog owners

Target

Based on the size of the dog, a combination

Contents

Starting from $22 at the start of the subscription period All major credit cards and PayPal,

Cost Payment

Bark & Co added a new and has served over 2 million dogs. BarkBox continues to be successful and also expanded their other with just treats and fluff-free toys subscription box for dogs, SuperChewer, and chews; BarkPost is a site to purchase toys, treats, accessories services: BarkShop is an e-commerce BarkPark offers outdoor spaces videos, photos and stories about dogs; for place to find and share information, not started any boxes or services remained faithful to dogs and has for dogs. However, the company has projects, also through the dog shelters and supporting rescue helping to committed remains It other pets. with dogs in need of new homes. app BarkBuddy, which connects people

delivery of toys, treats, and chews. ‘For humans, BarkBox is a monthly 1 million belly scratches. For dogs, BarkBox is like the joy of chews, We paw-pick the best natural treats, dog’s unique preferences.’ and innovative toys to match your

hygiene products

1, 3, 6 or 12 months

Subscription length

Phone enquiry

The World of Business | M O D U L E 1

Quickly write down at least 8 different ideas for products. Everyone should contribute and there should be no comments at this stage. Taking each idea in turn, discuss its potential: originality, interest, range, availability, etc. Now criticise each idea: competition, price, problems, etc. Reduce the list to the three most positive ideas. Discuss the pros and cons of each one again, adding any new thoughts. Make a joint decision to select the best idea. Decide the details for the subscription box: name, target, frequency, cost, range and number of products, etc. Write a memo to the other members of your team to inform them of the next team meeting to discuss the launch of your subscription box. Tell them: • when the meeting is; • what you need to discuss; • the provisional date for the launch. In pairs, role-play this conversation. Invent all the necessary details. A You want to book a venue for the presentation of your subscription box. Phone the venue to check availability for the date you want. Find out about the price and the facilities available.

Confirming a booking

www.barkbox.com

Free delivery by courier service

Delivery

of 4-6 treats, toys, and occasional

Monthly

Frequency

you make the same decisions? Read about BarkBox today. Did

Outcome

In groups, decide on an idea for a subscription box service.

Mediating concepts

Writing a memo

• insurance policies for dogs

successful? Why do you of subscription box is it? Is it Read about BarkBox. What kind think this is?

Professional competences Finding an idea

Presenting 53 your idea

B You work for a venue and receive a call from someone interested in booking your venue for a presentation. Tell him/her if the date is available, the price and any other details about your facilities.

Write an email to the venue to confirm the details of your booking. Include the following information: • the date, time and cost; • how you want the venue set up (chairs, tables, projector, screen, etc.); • the refreshments (hot or cold drinks, wine, buffet food, etc.). Present your subscription box to the class. You have a maximum of five minutes per group. At the end of all the presentations, you can ‘subscribe’ to the subscription you prefer and see which is the box most popular.

STUDY M O D U L E 1 | BUSINESS CASE

Presentation Tips • Choose a presentation style in line with your product and ‘audience’. • Have an interesting start to catch everyone’s attention. • Use some visual materials, such as slides or even an example box of the products. • Make sure that each presenter in the group links his/her part with the next part, to make a flowing presentation. smooth

2 WARM UP

Scan the texts quickly and match these historic figures to the correct description. 1 2 3 4 5 6 a

d e

Claudius William I King John Henry VIII Oliver Cromwell Wellington formed the Church of England won the Battle of Waterloo important figure in the Civil War signed the Magna Carta ruled under the feudal system first Roman Emperor to conquer Britain

324

The Tudors (1485-1603)

DOSSIER

History A brief history of the UK Prehistoric history The first people to inhabit the British Isles were hunters and gatherers. Around 4500 BC the introduction of farming marked the beginning of the Neolithic period, when people started to have more settled lives and introduced rituals and ceremonies. Famous monuments, like Stonehenge, were built in this period. Through the Bronze and the Iron Ages the population increased and defensive forts were built.

The Romans

High and Late Middle Ages (1154-1485) This part of the Middle Ages was marked by war (the Hundred Years War between England and France), natural disasters (such as the plague in 1348 killing between 30% and 45% of the population) and public rebellion. The monarchy was starting to become less dominant and in 1215 King John was forced by his feudal barons to sign the Magna Carta, the oldest constitutional charter in Europe, which imposed limits on the monarch’s power.

The Anglo-Saxons (410-800) With the departure of the Romans, Britain was vulnerable to attacks from the Anglo-Saxons, from northwest Europe. They invaded and eventually settled in most of England, some of Scotland, but not Wales or Ireland. The country was divided into several kingdoms.

The Vikings

(43-410 AD)

The Stuarts (1603 -1714) With James I now king of Ireland and England, as well as Scotland, it started to be difficult to maintain peace between the Catholics and Protestants. Civil War broke out in 1642 between Royalists, who supported the monarch, and Parliamentarians, led by Oliver Cromwell, who were against the absolute power held by the king and in favour of a more powerful parliament. King Charles I, who succeeded James, was executed in 1649 and later Cromwell became Lord Protector of England, Scotland and Ireland. The monarchy was restored in 1660.

Cultural Background

The Georgians (1714-1837) After Queen Anne, the last of the Stuarts, the crown passed to George, from the House of Hanover. The Georgian period (there were four kings of the same name) saw social change, for example the abolition of slavery, and the increase in the power of Parliament. It was also a period of wars, notably the American War of Independence and the Napoleonic Wars, with Nelson beating Napoleon at the Battle of Trafalgar and Wellington’s victory at Waterloo.

(800-1066)

The Romans first arrived under Julius Caesar in 55 and 54 BC but the first conquest was carried out by Claudius and his troops in 43 AD. They gradually conquered all of what is now England and Wales but never managed to conquer Scotland. In fact, they built Hadrian’s Wall across the north of the country to protect them from the Scottish tribes. The Romans founded many important settlements, such as London, Bath, Manchester and York. They also built roads and introduced sanitation and sewage systems.

This period had perhaps two of the country’s strongest monarchs: Henry VIII and his daughter Elizabeth I. Henry, who had six wives in his attempt to have a male heir, separated from the Catholic Church as the Pope would not allow him to divorce and remarry. He appointed himself head of the Protestant Church of England. Queen Elizabeth I reigned over a period of great discovery and exploration as well as cultural renewal. On her death, the crown passed to her cousin James Stuart, King of Scotland.

The next invasions came from the Vikings from Scandinavia. They settled in many areas and dominated a large part of the country, taking over political control. Yorvik (now York) was their capital. Their legacy was the formation of the independent kingdoms of Scotland and England.

Reading comprehension 2

The Normans (1066-1154) In 1066 William, the Duke of Normandy, defeated the Saxons at the Battle of Hastings. He became King William I of England and ruled the country under the Feudal System . The Normans built many stone churches and cathedrals, as well as castles to protect the land.

DOSSIER 2 | UK vs USA

Now read the texts more carefully and decide if these sentences 1 2 3 4 5 6 7 8

ACTIVITIES

Under the Feudal System the king had complete control and owned all the land, which he leased to his barons. These barons swore to be faithful to the king. In turn, the barons gave the land to their knights, who had to fight and protect the baron and king when needed. At the lowest level, there were the servants or serfs.

M O D U L E 1 | BUSINESS CASE STUDY

are true (T) or false (F). T

The Romans invaded Britain before the Anglo-Saxons. The Anglo-Saxons settled in Wales. The Kingdoms of England and Scotland were formed under the Vikings. During the Middle Ages the figure of the king became even more important. Queen Elizabeth I was one of Henry VIII’s wives. The Civil War was between supporters of the king and supporters of Parliament. During the Stuart Age, the country became a republic for a short period of time. Slavery became illegal during the Georgian period.

Internet research 3

Choose one of the historical periods above and compare it to the same period in your country. Write a short report, including these points: • what the significant events and developments in your country were; • any similarities or connections • who the important people were; with British history.

History |

DOSSIER 2

• La ricca sezione di civiltà offre un confronto culturale fra la geografia, la storia, la società, l’economia e le istituzioni del Regno Unito e quelle degli Stati Uniti (UK vs USA). Ogni dossier presenta inoltre un approfondimento su altri paesi di lingua inglese (ESW). • Troverai attività di preparazione alle certificazioni Cambridge English: Preliminary (P) nei primi dossier e First (F) in quelli successivi.

325

Reading comprehension 1

BUSINESS NEWS

Chatbots: Can We Help You? n business so much emphasis is put on effective communication, personalising customer interaction and building a rapport with clients that it leaves you wondering where chatbots fit into this way of thinking. Chatbots – automated systems for conversations by text or voice – are becoming more and more common in customer service situations. The little pre-sales chatbox with ‘Hello, can I help you?’ that pops up on the corner of your screen as you if are browsing a shopping site can quite easily be ignored but you contact a company with a question or a problem to be resolved you might not have any choice, at least at first, but to talk to one of these chatbots. These virtual agents, available 24/7, can save companies time and money by dealing with requests like billing details, technical support and all manner service of other mundane tasks, freeing up real customer agents for other more complex situations. Artificial intelligence and natural language generation have meant that today’s chatbots have come a long way from the stilted, scripted conversations which were all the first examples were capable of, but it takes a lot of time, financial investment and data to build an advanced system. Transcripts of hundreds of thousands of company specific enquiries and calls have to be analysed to train the AI, through deep learning, in order for the chatbots to handle requests correctly. In addition, they must be able to connect with the rest of the company’s IT system and records, such as a customer’s past purchases, settings and location. This allows the chatbots to combine this information with the customer’s current question so as to identify and then correctly respond to the customer’s intent. For these reasons, the latest virtual agent systems are really only suitable for huge service-oriented companies, with large-scale customer interactions, such as retail, travel, telecommunications and financial services. These advanced forms of chatbots might be able to mimic real speech and respond ******to subtle changes in tone of voice, however their aim is not to fool people into believing they are talking with a real person – that would leave clients feeling cheated and probably wary of using the company again – but to show that chatbots offer a fast, easy, reliable and above all secure way of contacting a company. In this way, it should be possible to overcome customers’ dislike and fear of dealing with an automated system instead of talking to a customer service assistant. After all, being able to resolve any issues quickly and easily is good news for businesses and customers alike.

(F). If there is not enough

The use of chatbots in customer service has increased. Chatbots on e-commerce websites are often ignored by shoppers. have employment. Chatbots mean that customer service agents may no longer language. The first chatbots used a very natural and flowing form of with customer requests. Deep learning is how AI chatbots are able to learn to deal efficiently costs drop. Smaller companies are advised not to use chatbots until the it is a real person. A good chatbot should be able to convince people WARM UP than use chatbots. Some clients would prefer to speak to customer service assistants 1 Discuss these questions in small Listening groups. smartphones at work 1.12 B Listen to an expert talking about the use of personal 2 1 What do you and complete the notes. do to help the ou reduce, reuse and recycle. You environment? refuse plastic bags in the shops. You do BYOD – Bring your own (1)) ____________ 2 What does your all the ____________ ( right things. Good. Just know that it won’t can be more (2) • personal smartphones and tablets Advantages: local council save the tuna, protect the rain forest than company ones or stop global do? And local warming. increase The changes necessary are so large and productivity can • workers feel (3) ____________ businesses? and profound that they are beyond ____________ (3 What the reach of • companies invest less in (4) about individual action. • (5) ____________ can be compromised Risks: the national Even is if aifphone you sold ( ____________ your car, stopped can be (6) • sensitive and valuable datagovernment? 1 2 3 4 5 6 7 8

DOSSIER

Going Green but Getting Nowhere

The author of the article believes: 1 global warming is not a problem. of the company to the director tohelps 2 individual words) action solve the problem of global warming. B You work for a small retail company. Write an email (60-80 points 3 the Include the following points: suggest that employees bring their own devices to work. solution to global warming can be found in new economic policies. 4 we must allthe employees; the paybenefits the full for • describe price for our actions. • explain what BYOD is; • say how it will help the company. • say what devices employees could bring;

MODULE 1 | BUSINESS NEWS

320

The World of Business | MODULE 1

DOSSIER 1 | Going Deeper

2.19 P Listen to this interview with an environmental journalist on the topic of carbon the missing information. offsets and fill

What do you think about carbon offsets? What are the advantages and disadvantages? Do you think they are an effective way of lessening the harmful effects of emissions?

DOSSIER

Wordsworth’s Romantic Nature

Read this text and complete the biography card.

William Wordsworth is a major Romantic poet. His poems are inspired by the extraordinary beauty of nature. He was born on 7th April 1770 in Cockermouth, near the Lake District. After finishing Grammar School, he went to Cambridge University. In 1791, he travelled to France and was impressed by its revolutionary spirit and the principles of liberty, equality and fraternity. After graduation, he returned to France, but became disillusioned with the Revolution since it had turned into the Reign of Terror and he became a conservative. Wordsworth was close friends with the poet Coleridge and together they wrote and published Lyrical Ballads in 1798. In its preface, Wordsworth defined poetry as ‘the spontaneous overflow of powerful feelings: it takes its origin from emotion recollected in tranquillity.’ In 1807, he published Poems, in Two Volumes, which included ‘I Wandered Lonely as a Cloud’, ‘My Heart Leaps Up’ and ‘Intimations of Immortality’. In 1839 he received an honorary degree from Oxford University and was made Poet Laureate, an honour awarded to a poet whose work is of national significance, in 1843, seven years before his death in 1850.

MORE ABOUT... The poem ‘I Wandered Lonely as a Cloud’ is about an experience Wordsworth had in the Lake District in 1804 while there with his sister, Dorothy, who described it in prose.

CLIL – ITALIAN LITERATURE

Written exam practice 7

Write a short essay (150-200 words) about global warming following these guidelines: • define global warming and its major causes; • illustrate some of the ways to reduce our impact on the environment; • give your opinion on what individuals/govern ments/companies should do to stop global warming.

CLIL – POLITICS/INTERNATIONAL

RELATIONS

Find out about the current international agreements for climate change and any negotiations that are underway. are the most committed to enforcing Which nations these rules?

Compare and analyse Romanticism in Italian and English poetry.

floats fluttua hosts moltitudini fluttering svolazzando twinkle scintillano tossing scuotendo sprightly allegro outdo (v) superare glee allegria gazed fissai bliss beatitudine

322

2.20 Listen and read the poem ‘I Wandered Lonely as a Cloud’. What is the rhyme scheme? Choose the correct pattern from the box.

ABCABC − ABABCC − ABABAB − ABABCD I wandered lonely as a cloud That floats on high o’er vales and hills, When all at once I saw a crowd, A host, of golden daffodils; Beside the lake, beneath the trees, Fluttering and dancing in the breeze.

The waves beside them danced; but they Out-did the sparkling waves in glee: A poet could not but be gay, In such a jocund company: I gazed – and gazed – but little thought What wealth the show to me had brought:

Continuous as the stars that shine And twinkle on the milky way, They stretched in never-ending line Along the margin of a bay: Ten thousand saw I at a glance, Tossing their heads in sprightly dance.

For oft, when on my couch I lie In vacant or in pensive mood, They flash upon that inward eye Which is the bliss of solitude; And then my heart with pleasure fills, And dances with the daffodils.

D O S S I E R 1 | Lit Corner

Read stanzas 1-3 and underline the parts describing the protagonist of the poem and the daffodils. How is the protagonist compared to a natural object? How are the daffodils personified as human beings? Why is this important?

Now discuss these questions in pairs or small groups. 1 What feelings does the poem suggest to you? Sadness? Loneliness? Freedom? Why? 2 Why is the memory so important to the protagonist? 3 What do you think the final message of the poem is?

Read this text and find out more about the Lake District. What is the countryside like? What problems does the area face?

Walt Whitman

Within Great Britain, there are 15 national parks: 10 in England, 3 in Wales and 2 in Scotland. These parks are protected areas due to their beautiful countryside, wildlife and cultural heritage. They range from mountainous areas, to woods, coastal areas and wetlands. Most visitors go to enjoy the natural landscape and scenery and to go walking or do other outdoor sports such as climbing and kayaking. They also visit the towns and villages within the parks. One of the oldest English parks is the Lake District National Park which was founded in 1951. It is also the largest, covering 2,362 km2. This spectacular area, with its mountains, wooded valleys and many lakes also holds other records. You can find Windermere, the largest lake in England, which is over 18 km long. The wettest place in England is also in the Lake District. The village of Seathwaite once registered 316.4 mm of rain in 24 hours. You can also find the highest mountain in England, Scafell Pike at 978 m. With over 19 million visitors a year, tourism is one of the biggest challenges for the park to face. While tourists spend around £1.4 billion every year, creating jobs and income for the local economy, they also bring with them pollution and traffic congestion (89% travel by car), litter, erosion and the risk of fires.

DOSSIER 1

321

Read the poem again and choose the correct alternative to complete this description. The poet was walking in the countryside when he saw a single flower/lots of flowers which were by a lake/a river. The flowers were motionless/dancing in the wind. He paid a lot of/little attention to the sight at that time. At the end of the poem, he remembers with joy/pain the sight of the flowers.

The Lake District National Park

Date anD place of birth: ______________________ eDucation: ____________ ______________________ publications: __________ ______________________ political iDeas: ________ ______________________ poetical views: ________ ______________________

Have you ever calculated your carbon footprint? Go online to one of the many carbon footprint calculators, like the one on the WWF website, and see how much your actions effect the environment.

Geography |

How do you travel to school? What about travelling at the weekends or on holiday? What kind of impact do these forms of transport have on the environment? Is there a greener alternative?

Listening 5

Speaking – Critical thinking

Discuss these questions in pairs. 1 Do you agree with the author on the above points? Why/Why not? 2 Should countries with the largest CO2 emissions, such as the USA, do more to reduce their CO emissions? 3 Do you think that international 2 agreements to reduce pollution, like the Kyoto Protocol, work?

1 ton of carbon is equal to: 2,000 miles by plane (3) ___________ miles by medium-sized car 1,350 miles by jeep using a (4) ___________ for 10,600 hours Carbon offset projects: planting trees installing (5) ___________ making bio-fuels from cooking oil Problems: no proper regulations airlines calculate their emissions for flights in different ways (6) ___________ might have been sold before difficult to check that companies use the money to make genuine savings

limit pollution accordingly. The ‘cap and trade’ system, which helped eliminate leaded petrol in the 1980s and reduce acid rain pollution in the 1990s, is beginning to decrease carbon pollution in Europe, and similar models are planned from California to China. Markets are truly free only when everyone using pays the full price for his or air-conditioning in the summer her actions. Anything and took a else is socialism. stolen High school science tells us staycation , you would, in fact, have no impact mobile device that global warming is real. And • (7) ____________ can access stolen devices using Protection: on the planet. Americans would continue economics to emit teaches us that humanity management technologies an average of rules must have the right reach portata to of carbon dioxide a year; incentives if and other 20 tons ( ____________ (8) it is to stop this terrible trend. Don’t • BYOD policies state employees’ Europeans, about 10 tons. compels obbliga stop recycling. Don’t stop buying local. pay our fair share fare la follow But start Leading climate scientists say we need studying some basic economics too. Our propria parte future to decrease global annual greenhouse leaded con piombo gas will be largely determined by our ability to admit emissions by at least half of current levels by the need to end planetary socialism. That’s carbon offsetting the 2050 and much further by the end of the century. most fundamental of economics lessons compensazione delle and one And that will still mean rising temperatures emissioni di carbonio any serious environmentalist should and listen to. sea levels for generations. Adapted from The New York Times Sadly, individual action does not work. It distracts us from the need for collective A staycation is a holiday action, and it doesn’t amount to enough. spent in your own Self-interest, not self-sacrifice, is what causes country and involves noticeable change. Only the right economic enjoying the local area policies will enable us as individuals to be guided and attractions whilst Speaking – Critical thinking by selfinterest and still do the right thing returning home to sleep for the planet. 3 Discuss these questions in small groups. every night. Things won’t Do change you think untilthis a regulatory customers changes rapidly. 1 The way businesses communicate with each other and with system compels us to pay our fair share to is positive? behind’? 2 Is there a risk that some people or companies will be ‘left Reading you enter the world of work? comprehension when 3 What do you think business communication will be like outweigh the risks? 2 benefits Read the article and decide if 4 Can digital data ever be completely secure? Do the these sentences are true (T) or false (F). 5 Which changes more quickly: social or business communication?

Writing

WARM UP

Carbon offsets can be purchased when you travel by (1) ___________, car or other forms of transport to reduce the effect of (2) ___________ emissions on the environment.

Global warming

Speaking – Critical thinking

CARBON OFFSETTING

Going Deeper

ACTIVITIES

Nelle sezioni Business News (nei moduli) e Going Deeper (nei dossier) troverai articoli tratti dalla stampa internazionale con approfondimenti e attività che guidano allo sviluppo delle abilità linguistiche.

B Read the article and decide if these sentences are true (T) or false information, choose ‘doesn’t say’ (DS).

ACTIVITIES

MORE ABOUT... Beatrix Potter was an English author and illustrator, best known for her children’s stories about animals, like The Tale of Peter Rabbit. She lived most of her life in the Lake District.

Lit Corner, la sezione finale dei cinque dossier di cultura, presenta un percorso letterario e un video inerenti al tema affrontato nei vari dossier.

Watch this video about the Lake District and answer these questions. 1 How many lakes are there in the Lake District? 2 How long is Lake Windermere? 3 What activities can you do on or near Lake Windermere? 4 What is the name of the village where Wordsworth lived? 5 What is the name of the cottage where he lived? 6 How many visitors come to the cottage each year?

Geography |

DOSSIER 1

323

B attività per la preparazione all’esame Cambridge English: Business Preliminary e Vantage P attività per la preparazione all’esame Cambridge English: Preliminary F attività per la preparazione all’esame Cambridge English: First ES indica la tipologia di prova in preparazione all’Esame di Stato PCTO indica i Percorsi per le Competenze Trasversali e per l’Orientamento

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BEST PERFORMANCE BUSINESS, MARKETING & FINANCE

PREMIUM

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MODULE

1 The World

of Business

BUSINESS in THEORY

Production Commerce and trade

BUSINESS in PRACTICE

Business communication

BUSINESS LANGUAGE

Phraseology Vocabulary Grammar

BUSINESS NEWS

Business communication trends

BUSINESS CASE STUDY

Case analysis: BarkBox Professional competences

1 WARM UP

Match these words to the deﬁnitions. 1 2 3 4 5 6 a b c d e

marketplace goods tangible shelf life output to purchase wares time before deterioration to buy production the place of commercial activities can be touched or seen

BUSINESS in THEORY

Production The production process The production process is the way in which a business develops products which are then offered on the marketplace, where they can be purchased to satisfy a need or want. The term ‘product’ – or output – refers to both services and goods.

SERVICES are intangible and consequently cannot be possessed. A service is a benefit or assistance provided to the customer. Types of services include professional experience such as lawyers or doctors, computer server access, or movement of goods like the postal service delivering mail. GOODS , also known as wares, come at the end of the manufacturing process. They are tangible items that can be seen and touched and are either durable or non-durable. Non-durable goods deteriorate in time (e.g. food or medicine). This is known as having a shelf life. Instead, durable goods such as electronic devices have a much longer shelf life.

ﬁrm azienda ratio proporzione meet the needs soddisfare le esigenze

MO DULE 1 | BUSINESS in THEORY

Inputs are the resources required for industrial production (i.e. people, raw materials, information, finance) to obtain a desired output. For example a jeans manufacturer must have a factory output where the jeans are made, as well as the machinery and workers who make the jeans. They also need to design and purchase the material and parts to transform them into the finished jeans to be sold. The productive efficiency of a firm is determined by how well this process is organised. Using the minimum number of inputs to produce a maximum number of outputs is the objective of most manufacturers. This ratio will reduce the cost per unit of production and allow the company to sell the goods at a lower price. Some manufacturers, for example those in the luxury goods market, are still interested in production costs but are able to sell their products at much higher prices. Ideally, the goal of the production process is to provide products and services to meet the needs and wants of customers in the shortest possible time at a competitive price.

The flow chart below shows the three main parts of the production process.

INPUTS

Land

Machinery

Raw materials

Labour

TRANSFORMATION PROCESS OUTPUTS

Finished goods

Services

B Read the text and choose the correct option. 4 Productive efficiency is a result of… A a well-organised transformation process. B the use of the maximum number of resources. C the number of finished products sold.

1 What is the production process? A The way in which a company operates on the marketplace. B The way a business is organised. C The method a company uses to develop its products.

5 According to the text, a manufacturer should ideally try to… A have the lowest prices on the market. B produce a high number of outputs. C offer its services or goods at competitive prices.

2 Services and goods are also known as… A inputs. B outputs. C needs and wants. 3 What does the term ‘shelf life’ mean? A The time it takes to manufacture particular goods. B The time certain goods can be kept and still used. C The time it takes to sell specific products.

Goods or services? Write G or S. 1 trousers 2 refuse collection 3 teaching

Speaking 4

ACTIVITIES

Reading comprehension

4 tablet PC 5 advertising 6 motorbike

___ ___ ___

7 taxi company 8 police 9 transport

___ ___ ___

Mediating concepts

In pairs, explain these terms and give examples. • goods

• services

• inputs

• productive efficiency

The World of Business | MO DULE 1

WARM UP

Answer these questions and then discuss your answers with your classmates. 1 What goods or services do you consider essential? 2 What goods or services do you consider unnecessary?

so-called cosiddetti shelter riparo

Needs and wants All economic activity is founded on the needs and wants of consumers. A need is defined as a necessity for the survival of a person, animal, organisation, etc. The concept is widely used in social sciences, with special attention being paid to so-called human needs. Basic human needs are food, shelter, clean water, protection from heat or cold and disease. Needs vary according to a person’s geographical location, age, job, health and many other factors. Needs are frequently contrasted with wants or desires: needs referring to things that are necessary, wants referring to things which are desired. They are not essential for our survival but can make our lives easier. Things which in the past were considered wants, are now seen as needs in modern life, like a car, mobile phone or other electronic gadgets. Wants are important for improvements. Most people work towards better conditions for themselves, their family and sometimes even for their community, their nation and the world at large. People want not only better living conditions and a cleaner environment but faster computers, stylish clothes and much more. People’s wants are infinite.

ACTIVITIES

Reading comprehension 2

Read the text and answer these questions. 1 What is the difference between needs and wants? 2 Why are consumers’ needs and wants at the basis of economic activity?

Needs or wants? Write N or W. 1 video games ___ 2 handbag ___

3 water ___ 4 heat ___

5 meat ___ 6 clothing ___

7 designer shoes ___ 8 health ___

9 smartphone ___ 10 car ___

Vocabulary 4

Read the text again and ﬁnd the equivalent expressions. 1 2 3 4 5 6 7 8

described to a great extent the study of society and the way people live a place that provides protection set in opposition devices the external surroundings where human beings, animals and plants live without end

________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________

Speaking 5 12

In pairs, think of 3 objects that teenagers in your country need and 3 objects that they want. Rank them in order of importance. Compare your ideas with the rest of the class.

MO DULE 1 | BUSINESS in THEORY

Factors of production The factors of production are the resources of land, labour, capital and enterprise used to produce goods and services.

LAND

Land includes not only the production site but the natural resources above or below the surface, i.e. air, sunlight, trees, soil, minerals, oil, etc.

LABOUR

Labour is the human input in the production process. A company’s output can be dependent on the number of labourers it has in the factory.

Human capital

No company is fully automated; humans are involved in every business whether it is product or service based. The human capital of a company is the men and women working for the company with certain competences and skills that are learned mostly through higher education and training. One way to evaluate the success of a business is to see how well human capital is managed.

assets beni forklifts carrelli elevatori patents brevetti trademarks marchi registrati

CAPITAL

Capital includes all man-made resources: monetary resources and other assets, such as machinery and equipment. There are various kinds of capital depending on the type of business. For instance, in a manufacturing business, production capital is used. This includes the machinery used to make the products and heavy equipment like forklifts and trucks, which are used to move and transport the goods. The building that houses the operation and stores the goods is also included. Resource capital is deﬁned by natural resources such as water, as well as the physical space a company occupies. Increases in the level of capital are called investment.

Patents protect the methods and processes that make things work, for example what makes a wheel turn or the chemical formula of your favourite ﬁzzy drink. A trademark is a sign which can distinguish your goods and services from those of your competitors. It can be words, logos or a combination of both.

Intellectual capital

Successful businesses rely upon non tangibles such as creativity, experience, entrepreneurial spirit, and know-how. These components are collectively called ‘intellectual capital’. Patents and trademarks are also considered intellectual capital whose value is indeterminable. It is almost impossible for competitors to duplicate intellectual capital, making it one of the most desired and useful assets a business can own.

ENTREPRISE

This fourth factor of production is made up of entrepreneurs – the people who come up with innovative and original ideas for a business venture, involving either goods or services. They combine the other three factors of production and their reward is the proﬁt made from running the business.

ACTIVITIES

Reading comprehension B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7

There are four factors of production. Natural resources are included under the definition ‘land’. Human capital is only important for service companies. Material wealth has the same meaning as company assets. Machinery and equipment come under the definition ‘resource capital’. It is possible to calculate the exact value of intellectual capital. Entrepreneurs always invest large amounts of money in a business venture.

Writing 2

Write a short definition for each of the four factors of production. Compare your definitions with a classmate.

The World of Business | MO DULE 1

WARM UP

Sectors of production

The three major sectors of production are:

In which sectors do most people work in your town/country?

RAW MATERIALS

MANUFACTURING

DISTRIBUTION

Deindustrialisation

Primary production The primary sector refers to the extraction and production of raw materials from nature without any processing. For example: • Mining: extracting coal, ores etc. from the earth. • Forestry: cutting down and removing trees from the forest. • Farming: growing and harvesting crops. • Fishing: catching or farming fish from the sea or fish ponds. • Husbandry: breeding and raising livestock.

RETAILER

CONSUMER

Secondary production The secondary sector refers to the transformation of raw materials into finished or semi-finished products. This includes the manufacturing of goods such as dry goods or soft goods (textiles, clothing, etc.), building and construction, the generation of power (electricity) and the production of petrol.

Tertiary production The tertiary sector of production refers to the provision of services and it is the sector which makes up the largest part of the economy in developed countries. Examples of tertiary production include: • Personal services, such as medical services; • Commercial services, such as transport, financial and insurance services, and advertising; • Social services, such as social welfare, education, the police. The quaternary sector is often included as part of the tertiary sector as they are both service sectors. The quaternary sector refers to intellectual activities, such as ICT (information and communication technologies), consultancy and R&D (research and development). ores minerali husbandry allevamento livestock bestiame

The interdependence between the sectors is known as the chain of production. It consists of the various stages involved in the production of a particular product, and each stage adds value to the end product. For example, the production of bread includes these steps: cultivation and harvesting of wheat; grinding of wheat into flour; making and cooking the dough; end product.

MO DULE 1 | BUSINESS in THEORY

ACTIVITIES

Reading comprehension Read the text on page 14 and complete these sentences with the words from the box.

tertiary − selling − cultivation − primary (x 2) − finished − goods − shops − insurance 1 ________________ production includes production resulting directly from the ________________ of land, the raising of animals for the purpose of ________________ them or their produce. 2 The secondary sector generally takes the output of the ________________ sector and manufactures ________________ goods. 3 ________________ production means the selling of the finished ________________ in ________________, as well as other services involved in helping business: banking, ________________, transport, etc.

Write P (primary production), S (secondary production) or T (tertiary production) next to each word. 1 2 3 4 5

mining clothes making police advertising farming

___ ___ ___ ___ ___

6 7 8 9 10

distribution refinery industry cattle breeding transport services forestry

___ ___ ___ ___ ___

11 12 13 14 15

banking manufacturing of toys insurance fish breeding education

___ ___ ___ ___ ___

Listening 4

1.02 B Which production sector is forestry part of? Listen to this interview with Professor Warner, an ecologist, who is talking about deforestation. Choose the correct option.

1 What percentage of the world is covered by forests? A 13% B 30% C 40% 2 Most of the reasons for deforestation are connected to… A money. B agriculture. C paper production.

4 Deforestation causes… A the death of 70% of the species living in the forest. B the extinction of 70% of the world’s plants and animals. C an increase in global warming.

3 Why do small farmers cut down and burn trees? A to have more space for their families B to sell the land to bigger farmers C to grow food for their families

5 Professor Warner says that… A deforestation can be stopped completely. B deforestation has decreased over the last few years. C there is a quick solution to ending deforestation.

Speaking 5

Which areas of the world are affected by deforestation? Does it affect Italy? Where? What could be done to help solve the problem?

Written exam practice 6

Write a short essay on production with reference to both services and goods. You should explain what is meant by the production process, factors of production and sectors of production, giving examples to illustrate your points.

The World of Business | MO DULE 1

Commerce and trade WARM UP

Where do you buy the products you need? Do you normally buy things in shops, superstores or online?

Commerce Commerce is a general term for the sale, purchase and distribution of goods and services. It encompasses all the activities which are involved in this process of moving goods from a production centre to the point of purchase. The main branches of commerce are:

time gap lasso di tempo

WAREHOUSING A warehouse is the place where goods are stored. A warehouse is needed to store the goods during the time gap between production and consumption of products: some goods are produced only in a particular season but in demand all year. Other products are produced throughout the year but in demand only during a particular season, such as Christmas.

TRANSPORT Goods produced by the manufacturer often need to be transported to the consumer, usually from a place of low demand to another place where demand is greater. The growth of commerce depends largely on using the most suitable mode of transport; road, rail, sea or air.

LOGISTICS The flow of goods, information and other resources, including energy and personnel, is managed by the logistics department.

ACTIVITIES

Reading comprehension 2

Read the text on these pages. Which branches of commerce correspond to these deďŹ nitions? 1 ________________

The activity of attracting public attention to a product or business, using paid commercials in the press, on TV and electronic media.

2 ________________

The administrative and physical functions associated with the storage of goods and materials.

3 ________________

The process of moving a product from its manufacturing source to its customers.

4 ________________

The activity of accepting and safeguarding money owned by other individuals and entities, and then lending it out in order to make a profit.

MO DULE 1 | BUSINESS in THEORY

DISTRIBUTION Distribution is the process of supplying goods, especially to retailers. It may be impossible for producers to reach the consumers directly, so a number of middlemen are necessary to complete the process. Amongst others, wholesalers, retailers and brokers are all involved in the distribution process.

retailers dettaglianti middlemen intermediari wholesalers grossisti loans prestiti mitigating ridurre credit lines linee di credito

INSURANCE A great deal of risk is involved in every aspect of commerce. Two of the main risks are fire and theft. Insurance covers these risks and compensates for possible losses or damage.

BANKING Banks hold money for businesses. They play a vital role in mitigating the need for funds. They offer a number of financial services such as loans and credit lines.

MARKETING AND ADVERTISING The sale of products and services is possible only if the consumer knows of their existence, is aware of their availability and is interested in them. Marketing involves raising consumer interest through research, promoting, selling, and distributing products or services. Advertising is used to raise consumer awareness through print, broadcast, outdoor and digital media.

ACTIVITIES

Reading comprehension B Read the text on these pages again and choose the correct option. 1 Commerce includes… A the exchange of goods and services. B the production of goods and services. C the production and exchange of goods. 2 The point of purchase is the place where a product is… A manufactured. B sold to the end customer. C warehoused. 3 The logistics department is important for… A understanding consumer demand. B the efficient internal organisation of a company. C the promotion of a company’s image.

4 The distribution process usually finishes at the… A brokers. B middlemen. C final customer. 5 Companies take out insurance policies to cover… A damage to goods. B the sale of goods. C both A and B.

Vocabulary 4

Find out what the people engaged in each branch of commerce are called. Use a dictionary to help you. 1 2 3 4

Oral exam practice 5

trader

trade transport distribution insurance

________________ ________________ ________________

5 6 7 8

advertising banking warehousing market research

________________ ________________ ________________ ________________

Mediating concepts

Prepare a short presentation of commerce (3-5 minutes). Use these questions to help you. • What is commerce?

• What are the branches of commerce?

• What role do they play in commerce?

The World of Business | MO DULE 1

WARM UP

Are the clothes you are wearing or the things in your bag made in this country? Or have they been imported from another country?

commodity merce in bulk all'ingrosso supply and demand domanda e oﬀerta

Trade Trade is the act of buying and selling goods and services (wholesale and retail) either for domestic markets or international markets (imports and exports). An export is a product that is sold from its country of origin on the global market. An import is a product that is bought into a country from the global market.

DOMESTIC or HOME TRADE is the exchange, or buying and selling, of goods for money within a country from a producer to a consumer usually through wholesalers and retailers. Wholesalers buy goods at cost price from producers and sell them to retailers (i.e. supermarkets, department stores, specialised shops or online stores), who then resell the goods to consumers at a higher price. The price of the goods increases at every point of trade. FOREIGN or INTERNATIONAL TRADE consists of the exportation and importation of goods and services between different countries. This can be done directly between a company and the final customer, or through the use of intermediaries such as wholesalers. Commodities can also be exchanged between different countries. A commodity is a physical substance, usually in bulk, such as food, grains, metals, petroleum, gasoline, heating oil and natural gas, which can be traded on a commodity exchange. The price of a commodity may fluctuate according to supply and demand, i.e. the amount of the product that is available and the needs of consumers.

ACTIVITIES

Reading comprehension 2

Read the text and match the two halves of the sentences. 1 2 3 4 5

a b c d e

Trade A wholesaler A retailer An end consumer The price of products

sells products to end consumers. increases at each stage. buys products at retail price. buys products at cost price. is the act of buying and selling goods.

Read the text again and answer these questions. 1 What is home trade? 2 How is it different from foreign trade? 3 What is wholesale trade?

4 Who is the retail trade customer? 5 Give an example of foreign trade.

Speaking 4

In pairs, talk together and decide if Italy generally imports or exports these products.

olive oil − natural gas − Parmesan cheese − designer clothes petroleum − grain − cars − furniture − TVs − shoes

I think that Italy exports olive oil because we produce a lot of it and it’s a well-known Italian product all over the world. 18

MO DULE 1 | BUSINESS in THEORY

The supply chain

WARM UP

A supply chain involves all the companies, information, resources and activities that are used in the movement of a product or service from a supplier to a customer.

chocolate factory cocoa growers consumer distribution company shipping agents retailer

Elements of the supply chain are:

PLANNING

PURCHASING

Reorder the steps which bring chocolate from the producer to the consumer.

Customer demand sets off the chain. The sales orders from various customers are combined and the planning department creates a production plan. The purchasing department receives the list of raw materials, components or services needed and is in charge of ordering them from suppliers to be delivered to the company on a required date.

INVENTORY

Supplies and materials are received and checked for quality and accuracy. They can be either moved into the warehouse to be kept until needed or transferred immediately to production, in a process known as ‘JIT’ .

PRODUCTION

Based on the production plan, the production process is completed and the goods are ready for storage or delivery.

TRANSPORT

The goods are delivered to the customers by the most efficient means and within the date indicated on the customers’ sales order.

Information has to be efficiently shared up and down the supply chain between the different suppliers and clients and all their activities need to be integrated and coordinated in order to ensure that everyone involved can carry out their specific role. Successful supply chain management brings many benefits to a company: • keeping inventory at a minimum; • reducing costs; • optimisation of the time needed from production to market; • improved flexibility; • quicker reaction to changes in demand.

supplier fornitore inventory inventario

JIT, which stands for ‘Just in time’, is an inventory strategy used by some companies to increase eﬃciency and decrease waste. The idea is that goods are received only as they are needed in the production process so they do not need to be stored for long periods of time. This reduces inventory costs but means that producers must be able to accurately forecast demand.

ACTIVITIES

Reading comprehension Read the text and decide if these sentences are true (T) or false (F). Correct the false ones. T 1 2 3 4 5 6 7 8

A supply chain only links departments and activities within the same company. The starting element of the supply chain is the company. The planning department is crucial for the creation of the production plan. Supplies and materials are always stored in the warehouse before being used. Finished products are immediately sent to the customers. It is important that information is exchanged among all the links of the supply chain. Correct management of the supply chain can be advantageous for a company. An efficient supply chain means a company is less ﬂexible.

The World of Business | MO DULE 1

WARM UP

The distribution chain

How the output or final goods and services are moved from manufacturer to consumer is called the distribution chain (or channel). It links the point of production to the customer. A direct distribution channel is when a company sells its goods or services directly to the consumer, for example through sales agents or the Internet. Indirect distribution is when a company uses various intermediaries (middlemen) such as wholesalers, distributors, agents, brokers and retailers. Wholesalers buy goods in bulk at a lower (cost) price from producers, store them in warehouses and sell them in smaller quantities at a slightly higher (wholesale) price to retailers. The retailer in turn takes the items, marks up the price (retail) to cover the costs and adds a profit, then displays them in their shops for the customers. Therefore the final price of the goods depends on the number of links involved and the difference between cost price and final price can be substantial. In the past, the indirect distribution channel was the most common. Due to their lack of A farmers’ market is a retail market where produce, such storage space which restricted quantities, retailers as fruit, vegetables, meat and were much more dependent on wholesalers for cheeses, are sold directly to holding and distributing goods. Today, traditional consumers by the farmers wholesalers are disappearing as many retail shops who grew or produced them. These markets can be held are either part of a multiple chain or buy goods indoors or outdoors, weekly directly from the manufacturer at a lower price. In or monthly, but what they the UK, the number of small retailers, or corner have in common is that they shops as they are often known, is in steep decline reﬂect local traditions and culture. The advantage for the because of supermarkets, department stores farmers is that the middleman and hypermarkets, which sell a wide variety of in the distribution chain is products at more competitive prices. The increase removed, while consumers can in e-commerce, factory outlets and farmers’ ﬁnd seasonal, fresh products and know exactly where they markets – where producers directly sell their come from and how they have products to consumers – also means that direct been produced. distribution is becoming more widespread. Think of five products or services that you buy regularly. Do they come to you directly from the manufacturer/ producer or indirectly? What is the difference between direct and indirect distribution?

ACTIVITIES

Reading comprehension 2

Read the text and answer these questions. 1 What is the distribution chain? 2 Who are the intermediaries along the distribution chain? 3 What happens to the price of goods along the distribution chain?

4 What are the wholesaler’s and retailer’s roles? 5 How have they changed over time? 6 Why has direct distribution become more widespread?

Speaking – Critical thinking 3

In pairs, choose one of the statements below to support:

It is important for a manufacturer to concentrate on its core business of manufacturing goods and not have to invest in or worry about distribution.

Manufacturers should use direct distribution in order to keep profit margins high and to better understand their customers.

Develop ideas and examples to strengthen your point of view and then have a discussion with another pair of students with opposing views. Use these ideas to help you: • the size and location of the company; • the type and quantity of products or services;

MO DULE 1 | BUSINESS in THEORY

• the type of customer and location.

E-commerce

WARM UP

Electronic commerce or e-commerce is business conducted electronically, i.e. over the Internet. The various channels of e-commerce include internet shopping, online transactions, the selling and downloading of software, documents, graphics, music and so on. Internet makes doing business faster and more accurate. Customers have controlled access to vendors and can better serve themselves. E-commerce started in the early 1990s when the Internet became available for commercial use. Today, electronic trade is booming. An ever increasing number of products from books to car parts to cars themselves are being marketed and sold online. Electronic commerce has opened new markets for vendors, large and small, including those from developing countries. Websites such as Amazon, eBay, or iTunes are e-commerce giants with customers all over the world. E-commerce is not limited to the sale of goods but extends to the services and financial sectors too. Hotels, airlines, phone companies, insurance firms, credit card companies and banks offer millions of customers the ease of doing business and carrying out all their transactions online. With the advent of e-commerce, customers can check out the options anywhere in the world and shop for the best price using comparison sites or bots , and buy from anyone at any time of the day or night.

ADVANTAGES • Electronic purchase orders and sales orders are more economical to place, track and manage. • Buying and selling can go on 24 hours a day, 7 days a week, 365 days a year from any location. • It takes far less time to complete the entire buy/ sell process, which means that payment is faster. • Businesses can find supplies anywhere in the world, in any time or currency zone. • Low-cost entry, as there is no need for setting up a retail outlet or printing a glossy catalogue. • It generates instant notification to identify, avoid or quickly resolve potential problems.

DISADVANTAGES • Shipping takes time and may cost more. • There are many competitors on the Internet, which can make choosing a product confusing and more time-consuming. • Risk of identity and credit card fraud (if the website is not secure). • Risk of viruses, malware or hacking into your computer.

Have you ever bought or sold anything online? What websites did you use?

A bot is a computer program that automatically searches the Internet for particular products, compares their prices, and often gives customers’ opinions of their quality.

ACTIVITIES

Reading comprehension 2

Read the text and answer these questions. 1 2 3 4

How long has e-commerce existed? How is it changing trade? What are the main advantages of e-commerce for a business? And for a customer? What risks should a customer be aware of before buying something online?

The World of Business | MO DULE 1

ACTIVITIES

Vocabulary 3

Complete the text with the words from the box.

networks − visit − trade − browse − technology − accessible − apply − downloaded These days, if a customer wishes to buy a book, he/she can (1) ____________ an online bookshop, (2) ____________ through the shop’s collection, choose a title and pay for the book online. The book can be delivered physically or be (3) ____________ onto the customer’s computer or portable device. These new ways of buying books (4) ____________ to other goods and services too. However, since shopping online is also international, many challenging issues are raised regarding existing trade rules and copyright laws. E-commerce – the production, advertising, sale and distribution of products via telecommunications (5) ____________ – is dependent on (6) ____________ and is transforming the way trade is conducted. And these transformations make (7) ____________ cheaper and more widely (8) ____________.

Match these headings to the paragraphs below. Can you think of any examples of websites for each category? 1

B2C (Business-to-Consumer)

C2C (Consumer-to-Consumer)

B2B (Business-to-Business)

C2B (Consumer-to-Business)

There are four main categories of e-commerce:

This category is made up of companies doing business with each other. For example, a supplier selling parts to a car manufacturer or a wholesaler selling goods to a retailer.

This is the category most people have in mind when they think about e-commerce. It is where a business sells goods and services to the general public. The websites typically use online catalogues and shopping cart software.

Over the last few years, there has been rapid growth in this category which sees transactions between individuals. There are many sites which offer free classified ads, auctions and forums so individuals can buy and sell online. Online payment systems, like PayPal, have meant that it is easy and safe for people to send and receive money online.

Consumers offer projects, products or services to a company, which can then decide to pay for them. Upwork is an example of a website which brings consumers and companies together for this kind of transaction. Blogs and forums, where the author has a link back to an online business and receives a commission for any business, are another example.

Speaking 5

If you have bought something online, describe your experience. Why did you choose to shop online? Why do some people prefer e-commerce to regular commerce?

MO DULE 1 | BUSINESS in THEORY

Is Online Shopping Killing Off Shopping Centres? Where can you browse all your favourite clothing brands, ﬁnd something new, check out the latest books or gadgets and grab something to eat? Ten years ago, your answer certainly would have been at your local shopping centre or your town’s main shopping street. Nowadays, your answer is more likely to be online. A report carried out by sector analysts Retail Economics in the UK, states that online shopping is likely to account for 53% of retail sales by 2028. This change in consumer habits, coupled with high rents for premises and business rates, means that many UK department and chain stores are already announcing the closure of several branches, with others risking going into administration due to the increased pressure from online competition. Shopping centres too are at risk of closing down and the British Retail Consortium has said that the sector is facing its toughest period for over a decade, with job losses and the number of empty shops in town centres on the rise. Is there any way for the High Street and shopping centres to compete with online or are they slowly being killed off? When shopping centres were ﬁrst built in the UK’s town and city centres in the 1960s, they offered the shiny glamour and glitz of American malls. Over the next thirty years, more and more were built in out of town locations, often on former industrial sites where factories had been

closed down. These were huge places which, together with lots of retail opportunities – clothes, beauty, electronics, household items and so on – offered other facilities like a cinema and places to eat. These extra facilities – or experiences as we like to say today – could be precisely what will allow shopping centres to continue to thrive since they can offer experiences that consumers can’t get through a screen. Bars, restaurants, bowling alleys, water parks, indoor ski slopes, spas, live performances and classes to learn new skills will satisfy the current desire to be more than just simple shoppers and retail could almost become a secondary activity.

thrive prosperare

Reading comprehension

ACTIVITIES

6 INVALSI

Read the article and choose the correct option.

1 The forecast for the retail sector in 2028 is that … A the whole sector will be in crisis. B more sales will be online than in physical shops. C the number of online shoppers will drop. D consumer habits won’t change significantly.

4 In the 80s and 90s, UK shopping centres… A were located on the outskirts of towns and cities. B no longer looked like their US counterparts. C were mainly built in the industrial north. D had limited space and shops.

2 Apart from online competition, UK stores already risk closing down because A they have lost many of their employees. B they have too much competition from shopping centres. C they have high expenses. D they have been badly administered by management teams.

5 In what way might retail become secondary in shopping centres? A People will have less money to spend in retail outlets. B People will go there for other reasons apart from shopping. C There will be less space for retail outlets in shopping centres. D Shopping centres will start selling more secondhand goods.

3 According to the British Retail Consortium the situation of the retail sector A was worse five or six years ago. B has improved over the last ten years. C will never recover. D has not been as challenging as this for several years.

Speaking 7

What is the current situation for the High Street retail sector in your country? Has the increase in online shopping had any effect on it? What do you think the future for this sector will be?

The World of Business | MO DULE 1

Information technology

WARM UP

What do these abbreviations stand for? Scan the texts and find out if you are correct. 1 CAD 2 CAM 3 CAE

4 CIM 5 RFID 6 QR

RFID TECHNOLOGY

Information technology plays a primary role in industry and business today. The incredible changes and developments in the management and processing of information have brought about advances in all areas, from design and production to distribution and sales. IT has allowed companies to build up a competitive advantage, increase their efficiency and speed, cut costs and develop strategic planning.

COMPUTER-AIDED TECHNOLOGIES

Computer-aided technologies is a term used to indicate the use of computer technology to assist with the ideation, design, analysis and manufacturing of products. Two of the most well-known applications are CAD and CAM, although there are many others including CAE (computer-aided engineering) and CIM (computer-integrated manufacturing). CAD, short for computer-aided design, creates 2D drawings and 3D models and is used, for example, by designers, architects and engineers. The software allows the user to rotate the model in any direction and to edit and instantly make changes to the design. It is widely employed in the automotive and aerospace industries, as well as architectural design. CAM stands for computer-aided manufacturing and refers to computer applications which control the machine tools used to produce high-quality parts. Its beneﬁts include precise control, a more eﬃcient and faster production process and less waste of raw materials.

RFID stands for Radio Frequency Identification and it is a versatile technology for identifying, tracking and auditing items. The two components of a RFID system are tags and readers. Tags are the very tiny, data-carrying transponders which are attached to an item. These tags can be self-adhesive, heat and water resistant, embedded on credit cards, wrist bands or key rings. Readers are the devices used for the collection of the data and can be connected to a computer or POS terminal, for example. These readers collect the data without direct contact with the tag: it is sufficient for it to be within a certain distance. In addition, multiple tags can be read at the same time, unlike barcodes which have to be read one at a time. This fast, contactless reading of data increases speed and efficiency, keeping costs lower and providing accurate, real-time information. The applications for this technology are multiple and include ticket systems for public transport, motorway toll payment systems, manufacturing process checks, distribution chain, stock and inventory control and security and safety inspections.

QR CODES

The Quick Response code, usually shortened to QR code, is a two-dimensional barcode which can be read faster than a traditional barcode and also has a much greater storage capacity. It was originally invented for use in the automobile industry to keep track of vehicles during production. Its uses in business and industry include traceability, picking, inventory management, document management and admission control and it can be found in all areas from a manufacturing plant, to a retail outlet, warehouse or pharmacy. Recently, its use has become extremely common in consumer advertising and marketing. These black and white squares of code are placed everywhere: on adverts and bus shelters, in magazines and stores. A potential customer can use his or her smartphone, with a QR scanner app, to scan the code and will be taken directly to a company website, for example, with more product information, discounts or special oﬀers.

ACTIVITIES

Reading comprehension 2

Read the texts and answer these questions. 1 What benefits has IT brought to businesses and industry? 2 How does CAD software help a designer? 3 In what ways does CAM assist the manufacturing process?

4 What are the two essential elements for a RFID system? 5 What advantages does RFID technology have over traditional barcodes? 6 In what areas is the use of QR codes common today? Why?

Listening 3

1.03 Listen to this presentation of 3D technology and choose the correct alternative.

1 2 3 4 5 6

3D printing has become cheaper/more expensive. It is suitable/unsuitable for private use. 3D printers all use the same/different material. The 3D model is printed as separate layers/pieces. Manufacturing costs less/more with 3D printing. The successful examples given are from the industrial/medical sector.

MO DULE 1 | BUSINESS in THEORY

Industry 4.0 Cyber-physical systems, artificial intelligence, the Internet of Things, the industrial Internet of Things, cognitive computing: today these technologies are often grouped together under the term Industry 4.0 since they are revolutionising the industrial and manufacturing sectors. Computers and automation are obviously already present in today’s factories, but the development of smart factories means that systems will be connected and will communicate with one another, collecting data and making decisions without human involvement. This will result in increased productivity and efficiency and a reduction in waste. The potential of Industry 4.0 is not limited to the production process but will be felt all along the supply chain and through transport, warehousing, logistics, distribution and so on. A simple example to illustrate the process, but one which also shows its application in an environment other than a factory, is that of an office printer. The printer monitors its paper and ink situation, connects to an inventory system to know how much spare ink and paper is available in the office and orders new supplies when needed, all without any human involvement. Well, except for adding new paper and changing the toner of course. In 2016, Professor Klaus Schwab, the founder and Executive Chairman of the World Economic Forum*, published a book titled The Fourth Industrial Revolution in which he describes how these new

technologies have enormous potential to improve not only manufacturing and businesses, but also health, medicine, the environment and human lives. He predicts that the fourth industrial revolution will completely change our economy, communities and lives. However, at the same time, he warns that these rapidly developing technologies pose incredible risks if they are not managed and regulated correctly. In his 2018 book Shaping the Fourth Industrial Revolution, Professor Schwab, together with leading experts from the fields of technology, economics and sociology, presents a practical guide on how we can make sure that these exciting technologies transform our society in a way that is safe, ethical and sustainable. Which is something we should all bear in mind as our world and lives are rapidly transformed in front of us.

The World Economic Forum, established in 1971, is the International Organization for PublicPrivate Cooperation. It is an independent and impartial notfor-proﬁt foundation which invites prominent political, business and other leaders to discuss global, regional and industry issues.

4 INVALSI 1 2 3 4 5 6

Read the text and answer the questions using no more than four words.

What sectors are currently being revolutionised by Industry 4.0? What will be missing from many processes in smart factories? What are the benefits of a smart factory? (2 answers) What other applications are there for Industry 4.0? What warning does Professor Schwab give in his first book? How would he like to see Industry 4.0 develop?

Internet research 5

ACTIVITIES

Reading comprehension

Mediating concepts

In small groups, carry out some research on Industry 4.0 and prepare a short presentation for the rest of the class, giving a short explanation of the technology and some examples of its current or potential application. You should divide the following areas of research among the members of the group: Cyber-physical systems • Internet of things • Industrial Internet of Things • Artificial Intelligence

The World of Business | MO DULE 1

WARM UP

Do you recognise the Fairtrade mark? Are Fairtrade products available in your area? Do you or your family buy them?

scarcities scarsità fair giusto, equo awareness consapevolezza

Watch the video: Fair trade

Green economy The United Nation’s Environment Programme defines green economy ‘as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities’. This means that a reduction in carbon emissions and pollution, efficient use of energy and resources and the prevention of loss of biodiversity must accompany economic growth.

Fair trade Not all trade is fair. The people at the beginning of the food production chain – the farm workers in developing countries – do not usually get a fair share of the profits or other benefits of trade. The international fair trade movement is seeking to balance out this inequality by ensuring that workers and producers in developing countries get a fair deal. Fair trade’s objective is to negotiate a decent price for goods that will cover the cost of production and guarantee a living income, as well as establishing long-term contracts which offer security. Another important aspect of fair trade is to provide the necessary support and education MORE ABOUT... so that producers and workers have the skills to The FAIRTRADE develop their business and protect their Certification Mark is a registered environment for the future. trademark which is The fair trade movement also campaigns used on consumer to change the regulations of conventional retail products that international business and works towards meet the Fairtrade Standards. There are building consumer awareness of the general and product specific issues concerning trade in developing standards which producers countries. Over the last few years, and traders have to meet. consumers have become more aware of • 8.5 billion were spent on the treatment of small-scale farmers and Fairtrade products in 2017. producers in less developed countries • There are 1600 Fairtrade certified producer and the demand for fair trade products organisations in 75 has increased. Thanks to this consumer countries, with 1.6 million demand, the number of retailers which farmers and workers. sell fair trade goods and the selection of products available continue to grow, www.fairtrade.net benefiting more and more communities.

ACTIVITIES

Reading comprehension 2

Read the text and complete these sentences. 1 The fair trade movement wants to get a fair deal for… 2 If producers receive a fair price for their goods, it means… 3 Support and education are important for producers and workers because… 4 Fair trade campaigns are aimed at… 5 The fair trade movement wants consumers to be more aware of… 6 Due to the increase in consumer demand, now there are…

Internet research 3

Go to www.fairtrade.net, choose a product and ﬁnd out this information for that product: • the problems the producers are facing; • how fair trade is helping the producers/workers; Then prepare a short oral presentation to give to the class.

MO DULE 1 | BUSINESS in THEORY

• the country/countries involved.

Sustainable trade A new kind of trade system is emerging in the business world. Sustainable trade is a type of trade that harms neither the social nor the ecological environment. It ensures that trade contributes positively to economic, social and environmental development. It can be applied to agricultural products as well as manufactured goods like handicrafts and textiles. In developed countries, the markets for certified products have grown significantly in recent years. As a result, a growing number of socially-driven companies have become a medium to support sustainable agriculture and eco-friendly production activities in underdeveloped parts of the world. Natural products are purchased directly from rural cooperatives growing organic coffee, cocoa, tea, fruit and spices. Buyers from these socially-aware companies are able to increase the incomes of small producers and enhance local productivity and competitiveness by offering steady markets, price protection, financial and technical assistance. Similarly, it is possible to purchase products which have been manufactured according to processes that cause minimal negative environmental impact, with respect for natural resources, workers and communities.

handicrafts lavori artigianali gathering raccolta

MORE ABOUT... BioTrade, closely tied to sustainable trade, is the collection, production, transformation and selling of goods (e.g. medicinal plants, tropical fruit, coﬀee, tea, etc.) from native lands to other countries worldwide.

Reading comprehension ACTIVITIES

Read the text and match the two halves of the sentences. 1 2 3 4

Sustainable trade is a type of trade that It includes The market for certified products The organic agricultural produce market means that

a b c d

has increased in developed countries. natural and manufactured products. farmers can compete on an international level. does not damage the social or the ecological environment.

Listening 5

1.04

B Listen to this short description of an initiative called ‘Aid For Trade’. Complete the notes below.

AID FOR TRADE Aim: Start date: Facts: Projects: Recent report:

to improve trade and economic growth in developing countries which have no basic (1) ____________ and cannot compete in regional and (2) ____________. (3) ____________. US$137 billion, most of which is destined for (4) ____________ infrastructure projects. improvement to road networks; simplification of business rules; (5) ____________ for farmers and women. (6) ____________, ____________ and finance sectors increased. The (7) ____________ (e.g. commodity prices) affects Aid for Trade and its growth rate.

Written exam practice 6

For more information, visit www.oecd.org and www.wto.org

Over the last twenty years, a lot of emphasis has been placed on green economy both by international organisations and individual companies. Write a short essay on how the green economy has changed trade and its importance in today’s business world. Use examples and your personal experience to support what you say.

The World of Business | MO DULE 1

1 WARM UP

Decide if these sentences are correct or not. 1

Business communication only includes letters, faxes and emails. All companies 2 today use the services of a public relations company. Virtual 3 communication has increased over recent years.

corporate vision visione aziendale

MORE ABOUT... Intranet is a private network which is only accessible to the employees of an organisation and is an excellent form of internal communication which can increase collaboration among staﬀ and teams anywhere in the world.

BUSINESS in PRACTICE

Business communication Methods of communication Business communication is similar to standard communication and also includes the promotion of products, services or organisations. It is also used to transmit information within the business and manage legal issues. Moreover, it is the means of communicating along the supply chain. Business communication can be broken down into two areas:

EXTERNAL (outside the company): Examples include branding, marketing, advertising, customer, media and government relations and business to business negotiations. INTERNAL (within the company): This includes propagating the corporate vision, strategies, and plans. Internal communication is also important to motivate employees, which improves productivity. The communication director is responsible for internal communications. Business communication, like all communication, is conducted in a variety of ways. • Phone calls and emails are probably the most common since they are the fastest way to communicate. • Business letters sent by post, although slower, are still used, in particular when sending original documents and contracts which require a signature. • Business letters and other correspondence can also be sent quickly by fax or electronic fax. • Social media and apps are frequently used to communicate both among employees in a company and externally with clients. They are particularly useful for those constantly on the move and those who need to be available 24/7. • Presentations are held on a regular basis in every sector of business. Presentation programs have facilitated the audio-visual aspect of this important way of communicating new strategies and introducing new products. • Web-based or video conferencing is a very popular means of holding meetings. It is an efficient way for companies with operations and personnel all over the globe, like multinational corporations, to convene with huge savings in costs and time. • Face-to-face communication, although often replaced by virtual communication, is still an important aspect of business whether for internal meetings, appointments with clients, conferences or trade shows.

ACTIVITIES

Reading comprehension 2

Read the text and answer these questions. 1 What is business communication and what is its purpose? 2 Why is external communication important?

3 Who is responsible for internal communication in a business? 4 Why are presentations held? 5 What are the advantages of web-based or video conferencing?

Speaking 3

In small groups, discuss which methods of communication would be most suitable in these situations. • booking a hotel room • confirming an order

MO DULE 1 | BUSINESS in PRACTICE

• asking for a price list • launching a new product

• applying for a job • an international sales meeting

Written communication

Netiquette

When deciding which method of written communication to use, it is not only important to evaluate which is the most suitable for your purpose but it is also essential to decide whether you need to use a formal or informal tone. Emails and memos are usually informal, while business letters, faxes and e-faxes are normally more formal.

Emails Email (electronic mail) is a system of sending and receiving text messages digitally over a computer network, between personal computers, smartphones and similar devices. It is fast, convenient and eco-friendly, as long as you do not print out masses of emails unnecessarily. Emails are so direct and instant they have changed the way businesses communicate and have led to a decrease in the formality of a lot of business correspondence.

WARM UP

Which of these adjectives best describe an email? Why?

long − short fast − slow detailed − cheap expensive friendly accurate vague − concise courteous informal

The format of an email is as follows: FROM: This is the name and email address of the sender of the email.

TO: This is the name and email address or addresses of the recipient(s) of the email.

ATTACHMENTS: You can attach one or more pictures, documents or links to your email.

CC: It stands for “Carbon Copy”. Here you can specify the address/addresses of those you want to share the contents of the message with. The CC recipient’s name is visible to all recipients.

DATE: This is the date and time the message was sent from the sender’s computer.

sender mittente recipient destinatario attach allegare blind nascosto (di copia di email)

BCC: It stands for “Blind Carbon Copy”, the address/ addresses which will also receive a copy of the message, but whose names are not visible to the other recipients. The BCC recipients can see the To and CC addresses.

BODY: The message.

SUBJECT: A short title for the mail which should refer to its contents.

The World of Business | MO DULE 1

Petra Stewart <p.stewart@stewartfletcher.co.uk> Maurice Mitchell <mmitchell@wellness.com> Kathy Harrison <k_harrison@yogaapparel.com> Jack Fletcher <jack.fletcher@stewartfletcher.co.uk> 10 August 20.. 11.26 a.m. Yoga/Pilates Gear Dear Mr Mitchell, We were given your name by Ms Kathy Harrison of Yoga Apparel Ltd. We are in the Yoga and Pilates clothing and equipment business and would like to widen our range of products. We are looking for a supplier of yoga and Pilates mats, bands and balls and would appreciate it if you could send us your latest catalogue, as well as a detailed price list and sales conditions. We have more than 35 shops in the UK and Europe. We expect to place substantial orders if the quality and prices of your products are satisfactory. We look forward to your reply. Yours sincerely, Petra Stewart Stewart & Fletcher Ltd.

ACTIVITIES

Reading comprehension 2

Read the email and answer these questions. 1 2 3 4

Who is the sender? Who is the recipient? Who is receiving a copy of the email? Who is receiving a blind copy?

5 What kind of business is Stewart & Fletcher Ltd.? 6 Why is the sender writing this email? 7 What does Ms Stewart want to receive from Mr Mitchell?

This is Mr Mitchell’s reply to the above enquiry. Put the sentences in the correct order.

Maurice Mitchell <mmitchell@wellness.com> Petra Stewart <p.stewart@stewartﬂetcher.co.uk> 11 August 20.. 9.45 a.m. wellnesscatalogue.pdf Re: Yoga/Pilates Gear Please do not hesitate to contact me for any further information. Thank you for your email. Our company was established in 1975 and we specialise in top quality wellness gear. Maurice Mitchell

You can ﬁnd our complete range of products in the attached catalogue and price list. Dear Ms Stewart, Best regards, I look forward to hearing from you. I would be pleased to discuss special conditions for your ﬁrst order with us.

Phraseology p. 46

Writing 4

B Write an email (60-80 words) to Maurice Mitchell at Wellness Ltd. In your email, you should include: • how you heard of Wellness Ltd.; • why you are contacting the company;

5 30

• what sector your company operates in; • a request for their catalogue and price list.

Swap emails with a partner. Write a reply to his/her letter of enquiry.

MO DULE 1 | BUSINESS in PRACTICE

Memos A memo (or memorandum – plural: memorandums/memoranda) is a short note informally conveying minimal information from one person, department or office to another within the same company. Memos can be on paper or electronic. They are used to tell employees about changes in procedures, rules or policy, or else for a specific purpose like a request to attend a meeting.

If the memo is to a speciﬁc person, include his or her job title.

The subject should be brief and speciﬁc, relating to the purpose of the memo.

Ms Whitman of Hampton Gadgets wants to discuss a matter with the company’s Purchase Manager. She writes him a memo to arrange a meeting.

Memos do not usually contain greetings or closing salutations.

The text should be clear and to the point. Avoid long complex sentences with a lot of clauses. Short sentences make your message less confusing.

State the most important points ﬁrst and then move on to the details. Use contractions and abbreviations. Imperatives can often be used.

ACTIVITIES

Reading comprehension Read the text and the memo and answer these questions. 1 What is a memo? 2 Why should you write short sentences? 3 What formalities do memos generally not contain?

4 Why is Ms Whitman writing a memo to Mr Marks? 5 What is Mr Marks’ position at Hampton Gadgets Ltd.? 6 What should Mr Marks do before the meeting with Ms Whitman?

Writing 2

B You want to plan a trip to China to visit a new supplier. Write a memo (30-40 words) to your assistant: • saying which airport you need to ﬂy to; • telling him the dates you would prefer to travel; • asking him to look online for a good hotel.

The World of Business | MO DULE 1

Forms You will probably have to fill in a form if you apply for a job or a passport, join a club, subscribe to a newsletter, request information from a company or shop online. Business and commercial documents are often forms, such as order, booking and application forms, income tax return and VAT forms, bank transfer forms and legal forms. A form, whether it is printed or online, is made up of fields which need to be filled in with specific information. It is important to follow the instructions carefully. For example, many printed forms require you to write in block capitals or to use only black ink. Online forms, on the other hand, often have required fields – normally marked with an asterisk – which must be filled in otherwise the form is not valid and cannot be submitted.

ACTIVITIES

Vocabulary 1

Find the synonyms of these expressions on the form below. 1 fill out ________________ 2 given name ________________ ________________

3 family name ________________ 4 ZIP code ________________

5 check ________________ 6 mandatory

Listening 2

1.05

B Now listen and complete the form with the missing details.

Notes Informal notes can be taken during meetings, presentations and telephone calls for later personal use, to serve as a reminder of things that need to be done, to be passed on to colleagues or to be written up more completely, for example as minutes or a report. Notes are normally written in a condensed and abbreviated form.

ACTIVITIES

Listening 1

B Mr Berkley, Chief Financial Ofﬁcer, calls Zoe in the accounts department. Listen and complete her note to her colleague. 1.06

For (1) _____________, Give figures by (2) _____________ to CFO. Sent him (3) _____________ documents No payroll meeting next (4) _____________ Zoe

MO DULE 1 | BUSINESS in PRACTICE

MORE ABOUT... Post-its have become an indispensable part of oﬃce life. These useful sticky pieces of paper can be found stuck to telephones, monitors, documents and letters, serving as a reminder of something important. They were invented by Art Fry, an employee at 3M, using an adhesive which had been invented in the same company many years earlier. The ﬁrst Post-its which went on sale in 1980 were pale yellow, but now they are available in many colours and sizes.

Business letters A business letter is a formal means of communication between two people. Its purpose is to inform or convince the reader about something. It can either go top down (from a superior to a subordinate: i.e. a corporate head to shareholders or employees), or bottom up (from a subordinate to a superior: i.e. employee to employer, a job applicant to a potential employer). A formal business letter can also be lateral, that is business to business or customer/client to owners. Business letters differ from personal letters because they follow strict rules of composition. When you write a business letter, make sure it is clear, correct, courteous, convincing and complete. Before writing a business letter you always need to know exactly what type of letter you are writing, why you are writing and what you want to achieve. Consider what the letter is for: acknowledgement, adjustment, complaint, enquiry, sales, order. You also need to think about whether it is in response to another letter. This will help organise what you intend to say. Ideally your letter should not be too long, in order to respect the limited amount of time the recipient might have available.

ACTIVITIES

Reading comprehension Read the text and answer these questions. 1 What is a business letter? 2 What are the different types of business letters? 3 What are the 5 Cs of business writing?

4 How does a business letter differ from a personal letter? 5 Why should you know exactly what kind of letter you are writing? 6 Why should a business letter be short?

Speaking 2

In pairs, talk about the characteristics of these different forms of business communication and complete this table. Emails

Memos

Business letters

quick, ____________________________ ____________________________

short, ____________________________ ____________________________

____________________________ ____________________________

The World of Business | MO DULE 1

The elements of a business letter Sloane & Millford Ltd. 85 Melrose Terrace Milton Keynes, MK9 2EL Tel: 01908 689584 Fax: 01908 689588 Email: patrick.barnes@sloane.millford.co.uk

Letterhead or heading

References Date of writing

Your Ref. AG/jw – 18th October 20.. Our Ref. PB/ck 21st October 20..

Inside address or receiver’s address

The Tile Shop 52 Banbury Road Stratford-upon-Avon Warwickshire CV35 0RW

Attention line

Att: Ms Anna Gallagher

Opening salutation

Dear Ms Gallagher,

Subject line

Your enquiry of 18th October We were pleased to receive your enquiry about the tiles we manufacture, and are sending you a price list and catalogue showing our full range of products for floor and wall tiles.

Body

We are also enclosing a few samples of our best-selling collections for bathrooms and kitchens, including our latest range of hand-painted tiles. On receiving an order, we can supply most of the tiles in our catalogue within ten days. Those marked ‘special order’ in our catalogue will take between three and four weeks. We know you and your clients will be absolutely delighted with the quality of our products. We look forward to doing business with you.

Closing salutation

Yours sincerely, Sloane & Millford Ltd.

Signature Position in company Enclosures

Patrick Barnes

Ms is now the most common title for women, although Mrs can be used for a married woman and Miss for an unmarried woman.

Sales Manager Encl. (2)

ACTIVITIES

Reading comprehension 1

Read the business letter and answer these questions. 1 Who is the sender of the letter? 2 What company does he work for? 3 What kind of company is it?

MO DULE 1 | BUSINESS in PRACTICE

4 Who is the recipient of the letter? 5 What company does she work for? 6 What is the purpose of the letter?

Letterhead or heading

This normally contains: the company logo; the company’s full name and address, email address, telephone and fax numbers; website.

Subject line

This indicates the subject or purpose of the letter.

Body

This contains the text of your message.

References

Your Ref./Our Ref. are often the initials of the person in charge (capital letters) and those of the person writing the letter (lower case letters). They are optional.

Closing salutation

This depends on the opening salutation used and how well you know the person you are writing to.

Date of writing

This should always be written in full format; do not use ﬁgures. There are diﬀerent formats:

UK Yours faithfully, Yours truly,

UK Day Month Year (21st June 20..)

Yours sincerely,

USA Month Day Year (June 21, 20..)

Inside address

This is the name and address of the company that receives the letter. When addressing the letter to a speciﬁc person, the name and position in the company should be included here.

USA Truly yours, Very truly yours, Sincerely, Sincerely yours, Yours cordially, Cordially,

if the letter begins with Dear Sir/Madam if the letter begins with the receiver’s name

Regards, Best regards, Kind regards,

with any salutation

Best wishes, All the best,

if you know the person well

Attention line (Attn.: …; Attention: …; For the attention of…) This directs the letter to a particular person. The attention line can be omitted if the name of the person is speciﬁed in the inside address.

Opening salutation

• If you do not know the receiver’s name: UK USA Dear Sir/Madam, Gentlemen: (if you are writing to a company) Dear Sirs, To whom it may concern: • If you know the receiver’s name: In a formal letter these should be followed by the surname only: Dear Mr Ruthford, / Dear Ms Smith, In an informal letter: Dear Jennifer, / Dear Jack,

Signature

Every letter must be signed by hand by the author. The author’s name is typed under it and is generally followed by the oﬃcial position in the company in the line underneath. If the person signing the letter is not the author, you may ﬁnd the abbreviations per pro/p.p./per p. (i.e. per procurationem) before the author’s name or the company’s name. They mean ‘for’ and ‘on behalf of’.

Enclosures

When the letter contains other documents, these are mentioned by Encl. or Encls., followed by the type and number, at the bottom of the letter.

Match the opening and closing salutations. 1 2 3 4 5

ACTIVITIES

Vocabulary Dear Ms Jefferson (USA) Dear Sirs (UK) Dear Sandra Dear Mr Sparrow (UK) Dear Sir/Madam (USA)

a b c d e

Yours faithfully Truly yours Sincerely Best regards Yours sincerely

Write these dates in full. 1 11/12/2014 (USA) __________________________ 2 28.2.2016 (UK) __________________________ 3 9/11/2001 (USA) __________________________

4 4/17/2015 (USA) 5 18.3.2013 (UK) 6 21.8.2011 (UK)

__________________________ __________________________ __________________________

The World of Business | MO DULE 1

Dear Sirs,

The body of the letter Opening paragraph

The ﬁrst paragraph states the purpose of the letter. It also refers to any previous correspondence or dealings.

Middle paragraph

The middle paragraph or paragraphs are the main points of the letter, for example giving information about a company, speciﬁc details of a request or an explanation for a problem. Each point or theme should be in a new paragraph.

Closing paragraph

This suggests a course of action and tells the reader what response is required.

We have found your company on the Internet. We are one of the leading sunglasses manufacturers in China and we would like to propose our services to your company. Our company is export-oriented and we have enjoyed an excellent reputation for over 17 years. We also have all the necessary certifications to meet EU requirements. Please browse our website www.guangzhoulenses.com at your convenience. If you find anything of interest, please advise us of the item numbers and quantities and we will quote you our best prices. We are also pleased to offer a personalised service, where we manufacture samples according to your specifications and drawings and submit them for your approval. Hoping to start a long-term business cooperation with you, we look forward to hearing from you. Yours faithfully, Ken Liu

MORE ABOUT... The most common way to separate paragraphs is to leave a line between them. It is also possible to indent the ﬁrst line of each new paragraph.

course of action linea d’azione

Phraseology p. 46

ACTIVITIES

Reading comprehension 1

Read the text and look at the sentences below. Do they come from the opening paragraph, the middle paragraph or the closing paragraph? Write OP or MP or CP. 1 Once again, I apologise for any inconvenience. ___ 2 With reference to your letter dated 13th October 20... ___ 3 As you can see, our prices are extremely competitive. ___ 4 We refer to previous correspondence with regards to your complaint. ___ 5 Enclosed you will find our best quotation for 50 units. ___ 6 I am writing to enquire about the sports equipment you manufacture. ___ 7 If you have any questions, please do not hesitate to contact me. ___ 8 I received your address from the Chianti Chamber of Commerce. ___

Writing 2

Look again at the letter on page 34 and complete the letter of enquiry (on the right) that Ms Gallagher wrote to Sloane & Millford.

Writer’s address: ___________________________ Our Ref. AG/jw 18th October 20.. Receiver’s address: ___________________________ For the attention of the Sales Manager Dear Sir, Enquiry We have seen _____________ in House and Garden. We are currently _____________ a new supplier of kitchen and bathroom tiles and _____________ grateful if you could send us the _____________ and _____________ regarding the _____________ you manufacture. We _____________ to your kind _____________. Yours _____________, For The Tile Shop ___________________________

MO DULE 1 | BUSINESS in PRACTICE

Faxes and electronic faxes Most faxes today are sent directly using a computer, smartphone or tablet and Internet. There is no additional cost – just the existing internet connection fee – and it is environmentally friendly as there is no need to print out any documents. Given that they can’t be signed by hand, it is possible to use electronic or digital signatures. Traditional faxes, sent using a telephone line and a fax machine, can still be useful for those without a computer or internet connection. However, as the cost of sending a fax depends on the time the phone line is connected, it can be an expensive option to send long, multiple faxes to distant locations. Companies often have templates files or pre-printed forms for faxes, which contain the following elements: the sender’s name, position, company name and fax number; the receiver’s name, position, company name and fax number; the date; the subject; the number of pages; space for the message.

ACTIVITIES

Reading comprehension Read the text and the fax and answer these questions. 1 Who is the sender of the fax? 2 Who is the recipient of the fax? 3 Have they been in contact before?

4 What is the purpose of the fax? 5 What is the second page of the fax?

Writing 2

B Write a short fax reply (60-80 words) from Sally Burns to Clive Crisp. Include these points: • • • •

thank him for the amended order; inform him that the delivery will now be on December 11th; give a reason for this change; make a reference to future business together.

Social media and apps Practically everyone has a personal smartphone nowadays, and many business people are also issued a company phone, so it is unsurprising that they are frequently used for work purposes like making and receiving phone calls and checking emails at any moment. Messaging is also quick and easy with apps like WhatsApp. However, there are also apps that are specifically aimed at the business market, such as Slack, Basecamp and Facebook at Work. The market for this kind of enterprise social software is growing rapidly and the services offered are constantly updated. The idea of allowing employees to chat to each other more easily seems almost counterproductive to increasing productivity, but these systems can help employees focus on what is relevant to them and increase teamwork and collaboration. They also cut down on the number of emails that are sent and copied unnecessarily around a company. Security, of course, is of prime concern for both users and the enterprise social software companies since no company would want their internal communications spread across the Internet for all to access.

ACTIVITIES

Reading comprehension Read the text and answer these questions. 1 2 3 4

How can smartphones be used at work? What is enterprise social software and what are the advantages for a business? What drawbacks could there be to these systems? What type of company do you think they could be most beneficial to? Why?

The World of Business | MO DULE 1

Oral communication Oral communication whether face-to-face, on the phone or via web conference is a vital part of business today. Therefore good oral communication skills – in both your mother tongue and in English – are essential to help you make a good impression, express your ideas clearly and get ahead in the business world.

Telephone calls Making and receiving telephone calls in a foreign language is one of the hardest things to do in the workplace. Because we are unable to see the person we are speaking to, we cannot use the usual non-verbal clues. Eye contact, facial expressions and body language are all unvoiced ways of communicating and help us understand our interlocutor. Fortunately, phone calls follow certain standard phrases. Learning to pronounce them well will help you go a long way in mastering telephone skills and reduce the anxiety that is so common at first attempts.

Receptionist

Raul Niser Clive Suarez

Phraseology p. 46

ACTIVITIES

Functions 1

Read the phone call and ﬁnd the equivalent expressions. 1 My name is Sam. This is Sam. 2 Can I speak to…? _______________ 3 She isn’t here. _______________

MO DULE 1 | BUSINESS in PRACTICE

4 Would you like to leave a message? _______________ 5 Clive Suarez speaking. _______________ 6 Could I have…? _______________

1.07

Listen to this phone call and write the missing words/expressions.

Mr Jack O’Neill of Pens & Pencils receives a phone call from Peter Greene of Wonderland Shop, who would like to add some items to an order. Telephonist Peter Greene

Hello, Pens & Pencils, this is Judy. How can I (1) ___________ you? Hello, (2) ___________ I speak to Mr O’Neill, please? (3) ___________ Peter Greene from Wonderland Shop.

Telephonist

Yes, Mr Greene, I’ll (4) ___________.

Jack O’Neill

Sales Department, Jack O’Neill (5) ___________.

Peter Greene

Good morning, Jack, (6) ___________ Peter Green from Wonderland Shop.

Jack O’Neill

Hello, Peter. How are you?

Peter Greene

Fine, thank you. (7) ___________ you about the order I emailed you last Friday.

Jack O’Neill

What can I do for you?

Peter Greene

(8) ___________ to add 50 Tinkerbell Character Pens and 25 Taz Character Pens to our order.

Jack O’Neill

OK, Peter. (9) ___________ send me a fax conﬁrming these new quantities?

Peter Greene

Yes, of course. (10) ___________ make sure that these changes won’t delay delivery.

Jack O’Neill

No problem. We can deliver everything next Monday as scheduled.

Peter Greene

Thank you, Jack. Goodbye now.

Jack O’Neill

Goodbye.

1.08

ACTIVITIES ACTIVITIES

Listening

scheduled programmato

Reorder this phone call, then listen and check.

Mr Sam Crawford from Greystone Ltd. calls Mr Dawson of King Industries to make an appointment. Mr Dawson

How about Tuesday morning?

Mr Crawford

Hello, Mr Dawson, this is Sam Crawford from Greystone Ltd. We met at the trade fair in London last June.

Mr Dawson

Well, Mr Crawford, see you next Tuesday. Goodbye.

Mr Crawford

That would be ﬁne.

Receptionist Hold on, please, I’ll put you through to Mr Dawson. Mr Dawson

Mr Dawson speaking.

Mr Crawford

We are interested in your capsule coffee machines. Next week I’ll be in Brighton and I’d like to make an appointment to see you. What day would suit you?

Mr Dawson

Of course, I remember.

Mr Crawford

No, 9.30 is ﬁne with me.

Receptionist Good morning, King Industries. Can I help you? Mr Crawford

Good morning, this is Sam Crawford from Greystone Ltd. I’d like to speak to your Sales Manager, Mr Dawson, please.

Mr Dawson

Well, shall we say 9.30? Or is that too early for you?

Mr Crawford

Goodbye.

The World of Business | MO DULE 1

ACTIVITIES

Listening & Functions 4

1.09 Listen to a phone conversation and answer these questions.

1 2 3 4

What is the purpose of the phone call? Who will pay for the hotel room? How much does the room cost? How will James confirm the booking?

1.09 Listen to the phone call again and write down the expressions for these functions. Then complete the table with other expressions from the previous phone calls.

Answering the phone

Introducing yourself

Asking to speak to someone

Saying why you are calling

____________________ ____________________ ____________________ ____________________ ____________________ ____________________

Speaking 6

Professional competences

Work with a partner. Read the instructions and practise the phone conversation. B

A You work for Coleman Brothers. Call Franks Ltd.

You work for Franks Ltd. Answer the phone. Ask to speak to Ms Pearson. Leave a message asking her to call you back urgently.

Tell the caller you will give Ms Pearson the message.

Thank the person. Close the conversation.

Close the conversation.

Now practise mini-telephone calls with a partner for these situations. Remember to swap roles. CALLER

Say Ms Pearson is not in the office. Ask if the caller wants to leave a message.

RECEIVER

You want to speak to the Sales Manager of Cunnings Enterprise but he/she is out. Ask when you should call back.

You work for Cunnings Enterprise. The Sales Manager is away at a conference and will return to the office on Friday.

You call Mr Evans at Clarkson Cars to arrange a meeting for Tuesday. You are not available in the morning.

You are Mr Evans at Clarkson Cars. You are free on Tuesday and would prefer a meeting in the morning.

You call Jefferson Ltd. to ask for a copy of their new catalogue. You need it urgently.

You work for Jefferson Ltd. Your new catalogue is at the printers but you can send a copy by email.

MO DULE 1 | BUSINESS in PRACTICE

Voice mail Voice mail, or answerphones, are useful tools for both land lines and mobile phones. They allow a company to leave an automatic message regarding opening hours, holidays or alternative contact numbers, while individuals can leave a personal message for when they are unavailable. With voice mail, callers can leave a message directly for the person they are trying to contact without the risk that a colleague forgets to pass on a message. It is easy to remotely access voice mail messages which is convenient when you are out of the office for long periods of time. Many companies now use an automated information system for answering phone calls instead of the traditional figure of a switchboard operator or receptionist. These systems have a recorded message and a menu, listing the various services or departments available and the relevant number to press. This saves time and money for the company, but can be exasperating for the caller when the menus are excessively complicated or time-consuming.

switchboard centralino

ACTIVITIES

Listening 1.10 Listen to three voice mail messages and tick which of these points the callers include in their messages.

When leaving a voice mail message, remember to: Caller 1 • say your name/position/company

Caller 2

Caller 3

✓

• state your reason for calling • leave your contact details • give your availability • end the message

1.11 Listen to this automated information system and match the number to press with the correct option. There are two extra options you do not need.

A B

special deals

change your number

payment enquiries F C

existing contracts G

talk to an operator

technical assistance

new business

The World of Business | MO DULE 1

Face-to-face communication In spite of all the hi-tech ways of communicating, face-to-face communication remains one of the most important forms of communication in the world of business. Within a company, face-to-face conversations are common between colleagues to discuss daily schedules, problems and solutions, as well as for meetings or presentations. It is also essential when dealing with people external to the company, whether they are suppliers, potential clients, customers or members of the public. Face-to-face communication is not only fundamental for formal situations, but also for informal occasions such as a quick chat by the coffee machine or socialising during a conference or an exhibition. Naturally, the tone and content of what you say will depend on the context and how well you know your interlocutor, but it is always important to smile and be pleasant and friendly. You should pay attention to your body language - gestures, eye contact and so on, and also respect the other person’s personal space. When travelling abroad and doing business with people of different nationalities, you also need to be aware of any particular local customs to be respected and sensitive topics to be avoided.

Cultural awareness TIME Not everyone gives the same importance to

punctuality for meetings. In Britain and Japan, for example, it is very important to be on time, but in certain parts of the Arab world it is standard to be kept waiting. PHYSICAL DISTANCE In the USA and Europe, you

shouldn’t stand too close to someone when you are talking. It can seem invasive and off-putting. GREETING There are various ways of greeting people in formal and informal situations and it is best to know the custom for the country or nationality in question: shaking hands (Europe and the US), bowing (Japan), putting your palms together (Thailand) and so on. Hugging and kissing is best left to informal occasions and people you know well in order to avoid offence. EYE CONTACT This is expected in Western culture and is a sign of interest and engagement with the conversation. In other cultures, especially hierarchical ones like Japan and some Middle Eastern countries, it can be seen as disrespectful or even aggressive.

ACTIVITIES

Reading comprehension & Speaking 1

Read the texts and discuss these questions in pairs. 1 2 3 4 5

In what circumstances is face-to-face communication used in the business world? Why do you think face-to-face communication is so important? How might what you say change if you know the person you are speaking to? Why should you respect local customs when doing business internationally? Are there any particular customs to observe or conversation topics to avoid when doing business in your country? What are they? 6 Why should you be careful of personal space and eye contact when talking to someone? What other cultural differences are you aware of?

Internet research 2 42

Think of a country you would like to travel to. Do some research on the Internet to ﬁnd out about local customs and etiquette for doing business and socialising. Then prepare a short report to illustrate your ﬁndings.

MO DULE 1 | BUSINESS in PRACTICE

Video conferencing Video conferencing is an integrated audio and visual communications technology that can connect users anywhere in the world. With this technology, users can see and hear each other in real time, allowing natural ‘face-to-face’ communication and the use of visual aids. WhatsApp, Facetime and other similar apps offer this possibility which is fine for personal calls, but a business would normally rely on a professional package and software. There are many packages available, and at different price points, which allow multiple users to also share files, edit documents and chat. It is possible to set different security levels and issue access codes in order to protect the content of a web meeting or conference. This technology is of great benefit to businesses of all sizes as it allows participants to take part in meetings without everyone having to travel to the same location, thus saving time and money. Webinars* and webcasts* are also beneficial in other fields, such as education and medicine.

The expression webinar derives from joining the word ‘web’ to ‘seminar’. This term refers to an online presentation, often educational in some aspect, during which participating viewers can submit questions and comments. Webcast is a combination of ‘web’ plus ‘broadcast’ so it refers to the showing of an event on the web, just the same as they are broadcast on TV.

ACTIVITIES

Reading comprehension B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6

A video conference combines both audio and visual communication. It is not possible to use this technology with multiple users. A disadvantage is the time it takes to share files and documents. Data security could be an issue during a web meeting. Advantages include cutting costs and travel expenses. The benefits of video conferencing are limited to the business sector.

Speaking 2

Discuss these questions in class. 1 How could video conferencing change the way these organisations or people do business? multinational − lawyer − clothes shop − mining company − doctor − car manufacturer 2 How could it help during the different stages of the supply chain or distribution chain? 3 What about the other branches of commerce? 4 Are there any disadvantages?

The World of Business | MO DULE 1

Presentations

WARM UP

What makes a presentation interesting in your opinion?

nerve-wracking snervante

Presentations are a means of communication used in various business, educational and personal situations. They are utilised by companies to present projects and plans to employees and also for external uses such as the launch of a new product or service. They can be given by a student at college or a guest speaker at a gala dinner. Even a speech by a family member at a wedding is a kind of presentation. Therefore being able to give a clear and effective speech or presentation is a key skill everyone should have today. Some key points to think about when preparing a presentation are:

PowerPoint, and other presentation software, can really bring a presentation alive. But beware of ‘death by PowerPoint’. This is a phenomenon caused by using too many slides, with too much information on them and then just reading them aloud. Too many colours, fonts and special eﬀects with images appearing in a shower of sparks also contribute to this.

CONTEXT Where is the venue? How big is it? Have you already been there? AUDIENCE Is it a large or small group? Are they colleagues or strangers? DELIVERY Will you use visual aids (e.g. PowerPoint slides)? What about non-verbal forms of communication (gestures, body language etc.)?

OBJECTIVE Why are you giving the presentation? What outcome is expected? LENGTH How long do you need to speak for? Do you need time for a question and answer session at the end? It can be nerve-wracking to stand in front of a room full of people, therefore many companies send their employees on training courses to improve their verbal communication and presentation skills, and to boost their confidence. You can also find lots of advice and ‘how to’ videos on the Internet.

ACTIVITIES

Reading comprehension 2

Read the text and choose the correct alternative. 1 2 3 4 5 6 7

Presentations are only/often used in business situations. Presentation skills are necessary/optional for everyone. You need to find out about the presentation venue in advance/on the day. The size of the audience makes no/a difference to how a presentation is done. You should/should not also consider using other forms of communication. Presentations can often have a question and answer session at the beginning/end. Training courses are aimed at increasing self-assurance/anxiety.

Vocabulary 3

Complete these tips using the expressions from the box.

bullet points − conclusion − connect − examples eye contact − gesticulate − introduction − key points learn − practise − research − slides − speak − time

• Give yourself enough time to (1) and prepare carefully. , the main part with • Have a logical order to your presentation, with an (2) and a (4) . (3) clean and simple, without lots of text. • Keep your (5) . It might not make you perfect but it will help, but don’t (7) • (6) everything by heart. to help remember key information while you speak. • Have notes with (8) clearly and not too quickly. Short silences will help underline (10) • (9) . • Stand up straight, smile and make (11) , but don’t overdo it. • Move around and (12) with your audience. • Be enthusiastic and (13) you have been allocated. • Don’t go over the (14)

MO DULE 1 | BUSINESS in PRACTICE

Visual communication

WARM UP

Both oral and written communication can be enhanced by visual communication. Sales figures will be much clearer and easier to read with the data presented in a graph. A newspaper article about the Stock Exchange’s daily performance would be almost impossible to understand without charts and graphs. A brochure presenting a company’s services would be extremely dull without photographs, as would a product presentation without slides. Therefore it is essential to incorporate visual aids – such as photographs, drawings, maps, tables, diagrams and charts – in order to illustrate, compare, simplify or summarise facts, data and statistics. However, if these visual aids are not created and used correctly, they can distract and detract from the purpose of the written or oral communication. Take, for example, a presentation where slides are changed before you have a chance to read all the information or a user manual with unclear diagrams and illustrations.

How can a company use visual communication? Why is it important? What do you think the advantages and disadvantages are? Read the text and see if your ideas are the same.

Examples of the most common diagrams and charts Visitors in January

bar chart

pie chart

pictogram

line graph

Venn diagram

ﬂow chart

Vocabulary & Functions Match these descriptions to the diagrams and charts. 1 2 3 4 5 6

This is used to show parts of a whole. It does not show changes over time. This is useful for showing trends or changes over a period of time, particularly when the changes are small. This is used to compare things between different groups. It can also be used to follow changes over a period of time, especially when the changes are large. This is used to show similarities or differences between sets of data. This is useful to show a process clearly, using both symbols and text. This represents data with a picture. A key is usually necessary.

Now match these sentences to the most suitable diagram or chart. 1 This next slide shows how our online registration process works. ___ 2 Last month, the number of male visitors to the exhibition was double that of female visitors. ___ 3 Our market share is just over 45%, making us the market leader ahead of our rival with 29%. ___

Oral exam practice 4

ACTIVITIES

4 Our turnover has shown a steady increase for the last six years. 5 This simple diagram clearly illustrates our target audience, here in the centre. 6 Sales in Europe dropped dramatically half way through the year, while those in the USA increased.

___ ___

___

Mediating concepts

What have you learnt about business communication? Prepare a short presentation (3-5 minutes) following these guidelines. • What is business communication and what is its purpose? • What are the most common ways of communicating for a business? How are they changing the way business is being done? • Why is using the phone so intimidating in a foreign language and how can it be made easier? • How do visual aids help oral and written communication? • How might business communication change in the future?

The World of Business | MO DULE 1

1 Phraseology

BUSINESS LANGUAGE More business language practice

PCTO

Written communication WRITING A BUSINESS LETTER

Opening and closing salutations

Body of the letter

• UK: Dear Sir/Madam, / Dear Sirs, ➞ Yours faithfully, / Yours truly, / Best/Kind regards, / Regards, US: Gentlemen: / To whom it may concern: ➞ Truly yours, / Very truly yours, / Best/Kind regards, / Regards, • UK: Dear Mr/Mrs/Ms/Miss Ruthford, ➞ Yours sincerely, / Best/ Kind regards, / Regards, US: Dear Mr/Mrs/Ms/Miss Ruthford, ➞ Sincerely, / Sincerely yours, / Yours cordially, / Cordially, / Best/Kind regards, / Regards • Dear Jack/Jennifer, ➞ Best wishes,

• I am writing in relation to/to enquire about… • Many thanks for your letter of 17th September 20.. • We are the leading/largest importers of… • Our company specialises in… • We would be grateful if you could… • We look forward to hearing from you. • Please do not hesitate to contact us. • We hope to start a mutually advantageous business relationship. • Looking forward to receiving a prompt reply. • Thanking you in advance for your kind assistance…

Write any ten sentences from a business letter and then swap them with a partner, who has to decide if they are suitable for the opening, middle or closing paragraphs.

Oral communication MAKING TELEPHONE CALLS Introducing yourself

Saying that someone is not available

• Good morning./Hello. This is John Boswell from Sun Equipments Ltd. • My name is John Boswell.

• I’m sorry, but Mr Miller isn’t here at the moment/is out of the oﬃce/is away from his desk/is in a meeting. • I’m sorry, but the line is engaged/Mr Miller is on another line. • I’m afraid he isn’t in today. Can he call you back tomorrow?

Answering the phone • Good morning./Hello. Judy Lennon speaking. • Hello. This is Judy. Can I help you? • Speaking! (If the caller has asked for you by name) Asking for caller identiﬁcation • May I ask who’s calling? • Could I have your name, please? • Who’s calling, please? Saying why you are calling • I’m calling to…/about... • I’m phoning you about… • I’ve been trying to get through to the manager. Is he in today? • Hello? I was speaking to Mr Miller and I think we were cut oﬀ. Asking to speak to someone • Could/May I speak to Mr Miller, please? • I’d like to speak to Mr Miller, please. • Could you put me through to Mr Miller, please? If you keep the other person waiting • Hold on, please. • Can you hold on a moment? • Hang on a second. I’ll see if he’s there. • Sorry to keep you waiting.

MO DULE 1 | BUSINESS LANGUAGE

Oﬀering to take/Leaving a message • Would you like to leave a message? • Can I take a message? • Can I take your name and number? • Could you ask Mr Miller to call me back, please? • Can I leave a message for Mr Miller? Promising action • I’ll give Mr Baxter your message as soon as he comes back. • I’ll pass your message on. • I’ll call you back as soon as possible. • I’ll do/check it straight away/at once. • I’ll call our suppliers now and get back to you later. • This line is terrible. Hang up and I’ll call you back. • I’m a little busy at the moment, but I’ll call you later today. If you don’t understand what the other person is saying • Sorry?/Pardon? • Could you repeat that, please? • Sorry, I can’t hear you. Can you speak up, please? • I’m sorry I didn’t catch that. • Can you spell that, please? Saying goodbye • Thank you for calling/your help.

In pairs, practise these phone calls. Remember to swap roles. Caller 1 Vuoi parlare con il Sig. Frankson. Lascia un messaggio se non è in ufficio. 2 Chiedi di parlare con la Sig.ra Midler. Vuoi sapere se ha ricevuto il tuo fax. La linea non è buona, perciò devi chiedere di ripetere il numero di fax corretto.

Professional competences

Receiver 1 Sei l’assistente del Sig. Frankson che oggi non è in ufficio. Chiedi se chi ha chiamato vuole lasciare un messaggio. 2 Sei la Sig.ra Midler. Non hai ricevuto nessun fax. Il vostro numero è 0171 896 3211.

FACE-TO-FACE COMMUNICATION Introducing people • This is Mr/Mrs/Miss/Ms Redford, and this is Mr/Mrs/Miss/ Ms Jenkins. • How do you do, Mr/Mrs/Miss/Ms Redford. • How do you do. / Pleased/Nice to meet you. • We’ve already been introduced. • Can/May I introduce you to Mr Hopkins/Mr Hopkins to you? • I’d like to introduce you to Mr Hopkins/Mr Hopkins to you. • Can/May I introduce myself? I’m Samuel O’Neil.

Starting a presentation • Thank you for your warm welcome. I’m so pleased to be here. • I’d just like to start by telling you about a strange thing that happened on my way here this morning. • Let me ask you a question. Have you ever thought about…? • I want to divide my presentation into three main parts. Firstly, … Concluding a presentation

Introducing a speaker • Ladies and gentlemen, I am pleased to present today’s key note speaker, Ms Gomez. • Please welcome our guest speaker from the United States, Liz Stein.

• Now, I’m going to hand over to Mr Willis, who will speak to us about…

• Thank you for your attention. If there are any questions, please feel free to ask. • So, in conclusion, remember to think big/not to give up at the ﬁrst obstacle.

Complete these sentences with a suitable expression from the box.

thought − second part − personal anecdote − warm welcome − question and answer session 1 I’d like to ask you to give a ___________ to today’s guest speaker. 2 The ___________ of my presentation will focus on current production issues.

3 To conclude, there will be a ___________ where you can discuss any issues. 4 Let me tell you a __________ to illustrate this point. 5 To sum up, can I leave you with this ___________?

Visual communication TALKING ABOUT GRAPHS/DIAGRAMS Referring to graphs or slides

Describing graphs and ﬁgures

• As you can see here in this chart, … • This map clearly shows/illustrates… • The next slide is about/shows/refers to… • I’ve prepared a few ﬂow charts to explain the process clearly. • This slide illustrates our current situation/position regarding…

• Now, to examine these figures in more detail, ... • Please note that the information included here covers the period from... to... • This sector had the highest/lowest revenue in February/Europe. • The highest-selling/lowest-selling... month was… • Our market share is over …%. • European sales represent …% of the total revenue. • As you can see, inflation/sales/profit decreased over this period.

Match the two halves of the sentences. 1 2 3 4 5

Looking at these photographs, As you can see, The next slide lists This line graph illustrates The areas covered by

a b c d e

the four main benefits of choosing our product. our current distribution network are marked on this map. the increase in the number of enquiries from the Middle East. our competitors have over 48% of the market share. we can see the changes in our packaging over the last 20 years.

The World of Business | MO DULE 1

Vocabulary WORD FORMATION (1) It is often possible to form a noun by adding a suﬃx to a verb or an adjective. Spelling changes may be necessary. The suﬃxes -sion, -tion, -ment can be added to a verb, while -ence, -ance can be added to a verb or an adjective.

Change these verbs and adjectives into their noun form and write them under the correct column. You may need to change the spelling.

accept − assist − create − decide − develop − divide − employ − govern − important include − independent − inform − intelligent − organise − pay − prefer − produce

-sion

-tion

-ment

-ence

-ance

________________ ________________ ________________

________________ ________________ ________________ ________________

________________ ________________ ________________

Transform the words in brackets into the appropriate form (adjective, noun or verb) in order to ﬁt the meaning of the text.

Nations with their own natural resources can (1) ___________ (exploitation) them by specialising in the (2) ___________ (extract) and (3) ___________ (produce) of these resources. For example, the (4) ___________ (develop) of North Sea Oil and Gas has helped the UK economy. A need is a necessity for the survival of a person, animal or (5) ___________ (organise). Basic human needs are things like food and (6) ___________ (protect) from the weather. Wants are things which are desired and they are (7) ___________ (importance) for (8) ___________ (improve).

COLLOCATIONS WITH BUSINESS verb + (a) business set up (a) / do / lose / go into / run (a) / go out of business business + noun business plan / trip / model / lunch / meeting / partner / deal

Choose the most suitable collocation to complete these sentences. 1 2 3 4 5 6 7 8

My dream is to ___________ my own ___________ one day. Ms. Morton is away next week on a ___________. If you don’t want to ___________ to your competitors, you need a good ___________. That company has expanded and has started to ___________ with Russia. A ___________ in a restaurant can be an excellent way to close a ___________. A recession can cause a financially unstable company to ___________. Nowadays, thanks to video conferencing, it’s not necessary to hold a ___________ face to face. Many self-employed people ___________ from home in order to reduce overheads.

MO DULE 1 | BUSINESS LANGUAGE

Grammar 1

PRESENT SIMPLE We use the present simple to talk about: • permanent situations ‘What does Joe do?’ ‘He’s a manager. He works for a retail company.’ • habits and regular actions Do you often give presentations? • timetables (e.g. public transport, cinema) for the future ‘What time does your plane leave tomorrow?’ ‘It leaves at 3.30 p.m.’

Video tutorial 1

Complete these sentences with the present simple form of the verbs in brackets.

1 A How often ________ you ________ web conferences? (have) B Twice a month. We _____________ them every week. (not hold) 2 A How many people ________ the company ________? (employ) B It _____________ 1,650 employees. (have) 3 A What ________ your company ________? (produce) B It _____________ computer parts. (make) 4 A ________ you ________ your products? (export) B Yes, we do. We _____________ all over the world. (ship) 5 A ________ fair trade ________ poor countries? (help) B Yes, it does, but it ________ enough. (not be)

2 Complete these sentences with what or which.

WHAT/WHICH

1 ___________ of the two products should we order? 2 ___________ do you want to do about postponing the meeting? 3 ___________ is intellectual capital? 4 ___________ sector of production concerns the provision of services? 5 ___________ risks are likely to occur during production?

We use Which…? when we are asking about one or some of a limited set. Which goods or services could you live without? We use What…? when there is an unlimited number of answers. What is the importance of labour?

3 Rewrite these sentences in the passive form.

PRESENT SIMPLE PASSIVE We use the passive when the focus is on what happens and not who does the action. Advertising is used to help consumers be aware of products. The goods are transported from the place of low demand to the place of greater demand. We can use by + agent to say who or what does the action. The world economy is affected by global events.

Video tutorial 2

1 People often contrast needs with wants. Needs ______________________________________________. 2 The manufacturer transports the goods to places of higher demand. The goods __________________________________________. 3 Companies use marketing to increase consumer interest in their products. Marketing ___________________________________________. 4 Banks play a vital role in providing funds to firms. A vital role __________________________________________. 5 Wholesalers buy goods at cost price from manufacturers. Goods ______________________________________________.

4 Translate these texts. Mediating texts

Production is divided into three main sectors. The primary sector refers to industries engaged in the production or extraction of natural resources such as crops, oil, and metals. The secondary sector refers to the manufacturing of products. It is also known as manufacturing of goods. The tertiary sector refers to those industries which provide services.

Il canale di distribuzione è il percorso che un prodotto segue partendo dal produttore per arrivare al consumatore finale. Il canale diretto è quando la merce passa direttamente dal produttore al consumatore, ad esempio tramite internet. Si parla invece di canale indiretto quando vengono utilizzati vari intermediari, ad esempio grossisti e dettaglianti.

The World of Business | MO DULE 1

BUSINESS NEWS

Chatbots: Can We Help You?

n business so much emphasis is put on effective communication, personalising customer interaction and building a rapport with clients that it leaves you wondering where chatbots fit into this way of thinking. Chatbots – automated systems for conversations by text or voice – are becoming more and more common in customer service situations. The little pre-sales chatbox with ‘Hello, can I help you?’ that pops up on the corner of your screen as you are browsing a shopping site can quite easily be ignored but if you contact a company with a question or a problem to be resolved you might not have any choice, at least at first, but to talk to one of these chatbots. These virtual agents, available 24/7, can save companies time and money by dealing with requests like billing details, technical support and all manner of other mundane tasks, freeing up real customer service agents for other more complex situations. Artificial intelligence and natural language generation have meant that today’s chatbots have come a long way from the stilted, scripted conversations which were all the first examples were capable of, but it takes a lot of time, financial investment and data to build an advanced system. Transcripts of hundreds of thousands of company specific enquiries and calls have to be analysed to train the AI, through deep learning, in order for the chatbots to handle requests correctly. In addition, they must be able to connect with the rest of the company’s IT system and records, such as a customer’s past purchases, settings and location. This allows the chatbots to combine this information with the customer’s current question so as to identify and then correctly respond to the customer’s intent. For these reasons, the latest virtual agent systems are really only suitable for huge service-oriented companies, with large-scale customer interactions, such as retail, travel, telecommunications and financial services. These advanced forms of chatbots might be able to mimic real speech and respond ******to subtle changes in tone of voice, however their aim is not to fool people into believing they are talking with a real person – that would leave clients feeling cheated and probably wary of using the company again – but to show that chatbots offer a fast, easy, reliable and above all secure way of contacting a company. In this way, it should be possible to overcome customers’ dislike and fear of dealing with an automated system instead of talking to a customer service assistant. After all, being able to resolve any issues quickly and easily is good news for businesses and customers alike.

MO DULE 1 | BUSINESS NEWS

Reading comprehension 1

B Read the article and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7 8

The use of chatbots in customer service has increased. Chatbots on e-commerce websites are often ignored by shoppers. Chatbots mean that customer service agents may no longer have employment. The first chatbots used a very natural and ﬂowing form of language. Deep learning is how AI chatbots are able to learn to deal efficiently with customer requests. Smaller companies are advised not to use chatbots until the costs drop. A good chatbot should be able to convince people it is a real person. Some clients would prefer to speak to customer service assistants than use chatbots.

Listening 2

1.12 B Listen to an expert talking about the use of personal smartphones at work and complete the notes.

BYOD – Bring your own (1) ____________ Advantages: • personal smartphones and tablets can be more (2) ____________ than company ones • workers feel (3) ____________ and productivity can increase • companies invest less in (4) ____________ Risks: • (5) ____________ can be compromised • sensitive and valuable data can be (6) ____________ if a phone is stolen Protection: • (7) ____________ can access stolen devices using mobile device management technologies • BYOD policies state employees’ (8) ____________ and other rules to follow

Speaking – Critical thinking 3

Discuss these questions in small groups. 1 The way businesses communicate with each other and with customers changes rapidly. Do you think this is positive? 2 Is there a risk that some people or companies will be ‘left behind’? 3 What do you think business communication will be like when you enter the world of work? 4 Can digital data ever be completely secure? Do the benefits outweigh the risks? 5 Which changes more quickly: social or business communication?

Writing 4

B You work for a small retail company. Write an email (60-80 words) to the director of the company to suggest that employees bring their own devices to work. Include the following points: • explain what BYOD is; • say what devices employees could bring;

• describe the benefits for the employees; • say how it will help the company.

The World of Business | MO DULE 1

1 Background

BUSINESS CASE STUDY

Case analysis: BarkBox Read this description of subscription boxes. What are they? Why do consumers like them? Why are they a popular business model?

Subscription boxes follow the same idea as magazine or newspaper subscriptions, but they are for retail products such as specialty foods and wines, beauty products, make up, books, stationery, baby stuff, craft kits and many more items. There are probably close to 7000 subscription box services in the world, with many comparison and review websites to help you find the best box for your needs or wants. You sign up on the companyâ&#x20AC;&#x2122;s website, choose the option you require, pay by credit card and wait for the packages to arrive at your door. Each box contains a variety of specially selected products or samples and the costs usually range from about $10 to $100 for a monthly package. They are popular with consumers due to the element of surprise and anticipation as the exact contents of the box are unknown. They may also be convenient and cost-effective. As a business model, they are a simple form of e-commerce. Operations, such as storage and shipping, are straightforward for most products. Thanks to the knowing the number of subscribers, a company can calculate demand easily, with costs and revenue remaining relatively stable.

Case presentation

Read about BarkBox. What kind of subscription box is it? Is it successful? Why do you think this is?

BarkBox, a subscription box for dogs, was founded in 2012 by Matt Meeker, Henrik Werdelin and Carly Strife. It is based in New York and ships to all of the US and Canada. One year later, thanks to venture funding, it already had 100,000 subscribers and a monthly revenue of over $2 million. The employees, including the CEO Matt Meeker who has a Great Dane called Hugo, are all dog lovers and their dogs regularly test out the products before they are sent to customers.

Target

Dog owners

Contents

Based on the size of the dog, a combination of 4-6 treats, toys, and occasional hygiene products

Frequency

Monthly

Subscription length

1, 3, 6 or 12 months

Cost

Starting from $22

Payment

All major credit cards and PayPal, at the start of the subscription period

Delivery

Free delivery by courier service

MO DULE 1 | BUSINESS CASE STUDY

Case analysis Step one BRAINSTORMING

List the advantages of subscription boxes from the point of view of the customer and the business, using the points in the texts on page 52 and the box to help. What about any disadvantages and potential problems for both parties? Think about different aspects of the business, such as distribution, warehousing, e-commerce, satisfying needs or wants.

getting bored − run from home − small profit − finding new products storage space − getting new subscribers − individual activity website design and maintenance − cancellations − luxury or necessity For the business

__________________________________________________________ __________________________________________________________

For the customer

__________________________________________________________ __________________________________________________________

For the business

__________________________________________________________ __________________________________________________________

For the customer

__________________________________________________________ __________________________________________________________

Advantages

Disadvantages

Step two DECISION MAKING

What do you think will happen to BarkBox? Discuss the pros and cons of these ideas and decide which one(s) the company should introduce. • • • • • •

Outcome

an e-commerce shopping site for clients to order the products received in their boxes subscription boxes for cats a vet helpline where owners can get advice on their dogs’ health a blog where the owners can share videos and stories about their dogs a service to help animal shelters rehome dogs insurance policies for dogs

Read about BarkBox today. Did you make the same decisions?

BarkBox continues to be successful and has served over 2 million dogs. Bark & Co added a new subscription box for dogs, SuperChewer, with just treats and fluff-free toys and also expanded their other services: BarkShop is an e-commerce site to purchase toys, treats, accessories and chews; BarkPost is a place to find and share information, videos, photos and stories about dogs; BarkPark offers outdoor spaces for dogs. However, the company has remained faithful to dogs and has not started any boxes or services for other pets. It remains committed to helping dog shelters and supporting rescue projects, also through the app BarkBuddy, which connects people with dogs in need of new homes.

‘For humans, BarkBox is a monthly delivery of toys, treats, and chews. For dogs, BarkBox is like the joy of 1 million belly scratches. We paw-pick the best natural treats, chews, and innovative toys to match your dog’s unique preferences.’ www.barkbox.com

The World of Business | MO DULE 1

Professional competences Finding an idea

In groups, decide on an idea for a subscription box service.

Mediating concepts

Deciding the details Writing a memo

Decide the details for the subscription box: name, target, frequency, cost, range and number of products, etc. Write a memo to the other members of your team to inform them of the next team meeting to discuss the launch of your subscription box. Tell them: • when the meeting is; • what you need to discuss; • the provisional date for the launch.

Phone enquiry

In pairs, role-play this conversation. Invent all the necessary details. A You want to book a venue for the presentation of your subscription box. Phone the venue to check availability for the date you want. Find out about the price and the facilities available.

Confirming a booking

Write an email to the venue to conﬁrm the details of your booking. Include the following information:

Presenting your idea

Present your subscription box to the class. You have a maximum of ﬁve minutes per group. At the end of all the presentations, you can ‘subscribe’ to the subscription box you prefer and see which is the most popular.

• the date, time and cost; • how you want the venue set up (chairs, tables, projector, screen, etc.); • the refreshments (hot or cold drinks, wine, buffet food, etc.).

Presentation Tips • • • •

Choose a presentation style in line with your product and ‘audience’. Have an interesting start to catch everyone’s attention. Use some visual materials, such as slides or even an example box of the products. Make sure that each presenter in the group links his/her part with the next part, to make a smooth ﬂowing presentation.

MO DULE 1 | BUSINESS CASE STUDY

MODULE

2 Business

Organisations

BUSINESS in THEORY

Types of economic systems Private sector Public sector

BUSINESS in PRACTICE

Job applications Curriculum vitae Getting a job

BUSINESS LANGUAGE

Phraseology Vocabulary Grammar

BUSINESS NEWS

Young entrepreneurs

BUSINESS CASE STUDY

Case analysis: Greenpeace Professional competences

2 WARM UP

What kind of political and economic theories do you associate with Karl Marx, Adam Smith and John Keynes?

When supply and demand are equal, the market is in equilibrium. The amount of goods supplied is exactly the same as the amount of goods demanded and everyone (individuals, firms, or countries) is satisfied with the economic condition. Any change in either the supply or demand curves will change this situation. If the price is above the equilibrium, there is a surplus of the product while if it is below, there is a shortage. In the real marketplace equilibrium can only ever be reached in theory, so prices change constantly in relation to ﬂuctuations in demand and supply.

BUSINESS in THEORY

Types of economic systems Today, there are three major economic systems: planned economy, free market economy and mixed economy. They basically differ according to the amount of intervention from a country’s government in economic activity and how much it controls economic decisions.

Planned economy This kind of economy, also known as a command economy, represents the maximum intervention of a government in its country’s economy. The factors of production are owned by the government which is responsible for all decisions regarding production (land, labour and capital) and distribution. It establishes which goods will be produced, the quantity and their price rather than relying on the market forces of supply and demand . Socialism and communism are associated with a centrally planned economy. In fact, countries such as the ex-USSR and other Eastern European countries used to follow this model before moving towards the mixed economy model in the 1990s. Today, some countries which follow a planned economy system to some extent are Cuba and North Korea.

ADVANTAGES • Prices under control so everybody can afford to consume goods and services. •Less inequality of wealth • Low level of unemployment as the government aims to provide employment for everybody.

• Less freedom and choice for citizens • Shortages and over supplies are common as production does not consider market demand. • No incentive for innovation

Free market economy This kind of economic system is also called the capitalist or laissez-faire system. Classical economists, such as Adam Smith with his notion of the ‘invisible hand’, were great advocates of the laissez-faire system which is in favour of minimal government intervention. Unlike the planned economy model where the government is in control, under the free market system it is the private sector which organises economic activity. Resources are privately owned and decisions regarding production, distribution and price are determined by the factors of supply and demand. However, it has to be said that a true free market economy with no government intervention whatsoever does not exist. Nations such as the USA which follow the free market model do still have some degree of government involvement, for example the regulation of certain industries.

ADVANTAGES • Equal opportunity for every individual to improve his/her standard of living. • Incentive to innovation and efficiency (better use of resources) to beat competitors. • It encourages entrepreneurship because people can easily set up their own business.

DISADVANTAGES

MO DULE 2 | BUSINESS in THEORY

DISADVANTAGES • Rigid class systems and the gap between the rich and poor increases as there is limited government control. • Money tends to remain concentrated in a few hands. • Large private companies can easily monopolise the market.

Mixed economy The mixed economy system, as the name implies, is a combination of the characteristics of both the free market and planned economy models. No exact formula exists since countries can adopt more or fewer elements of the two systems, and therefore can be closer to the ideal of private ownership and capitalism or more towards public ownership and socialism. However, both the private sector and public sector have a role in the economic decisions regarding the country. Production is mainly within the private sector which is free to operate following the price mechanism of supply and demand, although the state or government monitors market forces and may intervene with ﬁscal or monetary policies. The public sector, on the other hand, is generally responsible for providing many essential services such as education and healthcare.

ADVANTAGES • All national resources are utilised. • Public and private sectors work together. • Private companies have the freedom to operate but the government can intervene, e.g. to stop the production of harmful goods.

DISADVANTAGES • There may be unnecessary government interference. • The government may allocate more resources to welfare rather than other necessary areas. • It can suffer from the drawbacks of both capitalism and socialism.

drawbacks lati negativi

Smith and Keynes pp. 370-371

The rise of state capitalism

Read the texts and tick which economic system(s) these sentences refer to.

Planned 1 2 3 4 5 6 7 8

ACTIVITIES

Reading comprehension Free market

Mixed

Capitalism is a form of this economic model. Communism follows this economic system. Government intervention is absent or minimal. Consumer demand determines the price of a product. Education and healthcare are provided by the public sector. Many countries changed to this model at the end of the last century. Resources are not privately owned. Governments can intervene and regulate economic activity.

Speaking – Critical thinking 3

Discuss these questions in small groups. 1 Which system do you think is most common in the world nowadays? Why? 2 Which economic system is in place in your country today? 3 Has it always been the same? Do you think it is successful? Why/Why not?

4 What benefits do you think there are for citizens living in a free market economy? 5 What difficulties or disadvantages can a planned economy create? 6 Do you agree that it is not possible to have a true free market economy? Why/Why not?

Business Organisations | MO DULE 2

Private sector WARM UP

In your country, which goods or services are provided by the private sector and which by the public sector?

sole trader imprenditore, ditta individuale unlimited liability responsabilità illimitata

SME stands for ‘small and medium enterprise’.

The private sector is composed of different kinds of business organisations which are run by individuals or groups, usually with the aim of making a proﬁt. These organisations vary in size and structure from one-person businesses to SMEs and multinationals.

Sole traders A sole trader or single ownership company is a business that is owned by one person. It may have one or more employees. It is the most common form of ownership in the United Kingdom.

ADVANTAGES • There is a total control of the business by the owner. • It is cheap and easy to start up – there are few forms to fill in and no need to employ any specialist services, other than setting up a bank account and informing the tax offices. • As the owner, all the profit belongs to the sole trader. • Business affairs are private – competitors cannot see what sole traders are earning.

DISADVANTAGES • Unlimited liability: a sole trader is liable for any debts that his business incurs. This means any or all money that the owner has invested could be lost thus leading to bankruptcy. • It can be difficult to raise finance. Due to the small size of the business, banks will not lend large sums and the sole trader may not be able to find other forms of long-term finance. • It can be difficult to enjoy economies of scale. A sole trader cannot buy in bulk and have the same discounts as larger businesses and so is more likely to be hurt by competitive prices.

Sole traders are often successful because they can offer better customer service (e.g. repair specialists); they can be sensitive to the needs of customers and, as sole decision-makers, they can react more quickly to customers’ demands. Many customers may also prefer to meet the owner face-to-face and, being part of his or her community, a sole trader has the advantage of being more involved with local people, in local events and even in local politics. Coworking

ACTIVITIES

Reading comprehension 2

Read the text and answer these questions. 1 What is a sole trader? 2 What do you think is the most important advantage of being a sole trader? Why?

3 What potential financial difficulties can a sole trader face? 4 Why are sole traders often successful?

Vocabulary 3

Complete the sentences with the words from the box.

accounting − bureaucratic − business − debts − losses − personally 1 Being a sole trader is the easiest way to get started in _____________. 2 As a sole trader, you can make quick changes in your business with minimal _____________ procedures and you have complete control over your business and _____________ matters. 3 As a sole trader you will be _____________ liable for any _____________ you incur in the running of your business. 4 The sole trader is ultimately personally liable for any _____________ the business makes, and therefore may be forced into bankruptcy.

MO DULE 2 | BUSINESS in THEORY

Partnerships In a partnership two or more people own and share the costs and risks of a business. Most often the partners share all aspects of the business from decisionmaking to financing. There are two types of partnership: ordinary or unlimited partnership and limited partnership. In a limited partnership, there can be one or more ‘sleeping partners’ who invest financially in the business but do not deal with its daily management and are liable only for the money they invest in the business. A contract called a ‘deed of partnership’ is normally drawn up to protect the partners from certain misunderstandings. This states the type of partnership, how much capital each party has contributed and how profits and losses will be shared. It is common for professionals in the service industry, like doctors, dentists and lawyers, to go into partnership.

drawn up stilato expertise competenza resigns si dimette

MORE ABOUT... A partnership has no legal existence distinct from the partners themselves. If one of the partners resigns, dies or goes bankrupt, the partnership must be dissolved and rewritten to include new partners or transformed into a sole trader organisation.

ADVANTAGES • Shared responsibility • Specialisation, where one partner’s expertise can complement the other’s. • More people contribute capital to the business, which allows for more opportunities.

DISADVANTAGES • Unlimited liability for partners • Disputes can arise over almost all aspects of the business, like making decisions, the balance of work done by the partners, and certainly the distribution of profits. All of this can put stress on the partnership, which can damage the business.

ACTIVITIES

Reading comprehension Read the text and answer these questions. 1 2 3 4

What is a partnership? Who is a ‘sleeping partner’? What is a deed of partnership? What does it state?

5 What are the advantages of a partnership? 6 What are the main disadvantages? 7 What happens if one of the partners resigns?

Listening 2

1.13 Listen to a UK business advisor talking about deeds of partnership and decide if these sentences

are true (T) or false (F). T

1 Partners normally have a deed of partnership agreement in order to avoid problems in their business relationship. 2 A deed of partnership only contains basic information about the business. 3 Partners must contribute the same amount of capital to the business. 4 Partners can sometimes be paid a salary. 5 All partners must agree before any decision can be made. 6 Details about joining or leaving the partnership can be included in the deed.

Business Organisations | MO DULE 2

board of directors consiglio di amministrazione

Limited liability companies are called corporations (Co.) in the USA.

Limited liability companies

Vodafone Group Plc

A limited liability company (LLC) or joint-stock company is a business enterprise formed by a minimum of two shareholders, but is a separate entity for both legal and tax purposes. The company’s finances are separate from the personal finances of their shareholders. This means that shareholders can lose the money they have invested in the company, but their personal assets are not at risk. The capital of a limited liability company is divided into shares. Profits are usually distributed to shareholders in the form of dividends unless they are retained within the business as working capital. Management decisions are made by either a director or board of directors, who may also be shareholders. In the UK, the main types of limited companies are: • private limited companies (Ltd): They cannot offer shares to the public and they cannot be quoted on the Stock Exchange. • public limited companies (Plc): They must have at least two shareholders and a share capital of at least £50,000 before they can trade. They can be quoted on the Stock Exchange. Vodafone Group Plc, with headquarters in Newbury, is one of the leading telecommunications groups in the world.

Green Energy (UK) Plc is a provider of 100% renewable electricity and 100% green gas in the UK.

Dr Martens Ltd, which started in 1901, produces the iconic boots of the same name.

ACTIVITIES

Reading comprehension 1

Read the text and answer these questions. 6 What happens to the part of profits that are not distributed to shareholders? 7 Who makes the management decisions in an LLC? 8 What is the difference between a private limited company and a public limited company?

1 2 3 4

What is a limited liability company? Where does the finance come from? What financial risks do shareholders run? How is this different to a sole trader or partnership? 5 What is a dividend?

Vocabulary 2

Read the text again and ﬁnd the English equivalents for these words and expressions. 1 2 3 4

responsabilità limitata azionisti società (di persone) dividendi

______________ ______________ ______________ ______________

MO DULE 2 | BUSINESS in THEORY

5 6 7 8

società a responsabilità limitata (S.r.l.) ______________ società per azioni (S.p.a.) ______________ azione ______________ borsa ______________

Cooperatives

MORE ABOUT... The International Cooperative Alliance (ICA) is an independent, non-governmental organisation which represents cooperatives worldwide. It aims to increase awareness about cooperatives and how they can help individuals and communities by putting people before profit. ICA provides technical assistance, support and information on best practice, as well as helping cooperatives to contact and trade with each other around the world.

Cooperatives, or co-ops for short, are people-centred organisations that are owned, managed and used by their members, who provide the capital and share profits and liability. Ideally the members believe more in ethical values like honesty, openness and social responsibility than in making profits. All members take an active role in the organisation. When decisions need to be made, each member has the right to one vote regardless of how much money they have invested. As a means of reducing unemployment and helping underdeveloped communities, governments often give subsidies, low interest loans, tax relief and other assistance to co-ops. Difficulties that co-ops may face include long decision-making processes, because of the ‘one member one vote’ system, and problems raising finance as banks are not as willing to lend them money since co-ops do not have making a profit as their primary objective.

http://ica.coop/

ACTIVITIES

Reading comprehension Read the text and match the two halves of the sentences. 1 2 3 4 5

a b c d e

Cooperatives are Making a profit is All members are Co-ops often Banks are sometimes

reluctant to help co-ops financially. run democratically by their members. not usually the primary aim of a co-op. receive government help. involved in making decisions about the co-op.

Listening 2

1.14 Listen and complete the missing information on the map.

UK (5) ___________

Canada 18.1 million

Iran 25.5 million Japan (3) ___________

France 32.4 million

(2) ___________ 160.8 million

USA (1) ___________ (4) ___________ 40.6 million

Worldwide members of co-ops – top 10 countries

India 97.6 million

(6) ___________ 11 million

Source: http://ica.coop/

Speaking 3

In pairs, say which ﬁve countries have the most members and comment on the reasons why. Does the number always reﬂect the population size of the country?

France is the country in Europe with the highest number of members, … Business Organisations | MO DULE 2

Franchises

WARM UP

Can you think of any examples of franchise businesses in your country?

sets out stabilisce fee quota ongoing continue turnover fatturato

Franchising is an agreement in which an entrepreneur or group of partners buys a licence to use an established business’ brand and trade secrets. This gives the partners – the franchisees – the opportunity to enter a business, especially in highly competitive industries, without having to build a brand or invent new services or products. The franchisee takes advantage of the success of an established business while the franchisor can get a quicker return on investment. The franchise agreement between the parties sets out how the business should be run, with some degree of ﬂexibility, as well as the exact deﬁnition of the licence, such as the particular geographical area and length of time it covers. There is no set way to buy a licence. It can be paid for through an initial fee, ongoing management fees, MORE ABOUT... a percentage of the franchisee’s turnover, purchase of goods from the franchisor or a combination of these. Franchise businesses

DISADVANTAGES

ADVANTAGES

• Initial fees can be high • Limited freedom and flexibility (e.g. shop layout, promotions etc.) • Overall profits are lower

• Reduction of risk for their investment • Better prices on supplies because the franchise company can purchase goods and supplies in bulk and pass on the savings to the individual franchise units. • Management help and training • Promotion thanks to the franchisor’s existing corporate image, brand awareness and advertising

ACTIVITIES

Reading comprehension 2

are extremely common in the food and beverage industry with names like McDonald’s, Hard Rock Cafe, Subway, Starbucks, Pizza Hut and Nando’s on the streets of many towns and cities. However, franchises can be found in all business sectors and common ones include UPS, Western Union, The Body Shop, Europcar and InterContinental Hotels.

Read the text and answer these questions. 1 What is franchising? 2 Why would an entrepreneur want to open a franchise? 3 What are the advantages for the franchisor? 4 What limits can there be to a licence?

5 What ways are there to pay for a franchise? 6 What do franchisors usually provide for franchisees? 7 Why do you think there is less financial risk for opening a franchise compared to setting up other forms of business?

Vocabulary 3

Match these terms to the correct deﬁnition. 1 franchisee

2 franchisor

3 franchise agreement

4 franchise fee

The organisation which allows the use of its brand, trademarks or products for a fee. A written legal document that defines the relationship and obligations of the two parties involved. The money paid for the right to use the franchisor’s name, trademark and business model. An individual who purchases the rights to use a company’s trademark and business model.

Internet research 4

Find out about one franchise business and prepare a short presentation. Include: • the location of the company headquarters; • when it was founded; • how long it has been offering franchise opportunities;

MO DULE 2 | BUSINESS in THEORY

• the sector; • the number of franchisees; • which countries they are located in.

Here’s How I Turned My Existing Business into a Franchise

or Neil and Mandy Chapman, a career break to indulge their passion for sailing turned into a franchise business success story. Boatshed.com is now the world’s largest used yacht brokerage group. Neil explains how franchising worked for them. Build a strong business ‘In 1999, my wife and I took a career break to go on the sailing trip of a lifetime, during which we thought about buying and selling yachts as a job. So we bought a small yacht brokerage in Wales. While business was OK, we knew that in order to grow, we needed to overcome the geographical drawbacks, i.e. how

could we get more people to travel to the far corner of Wales to look at a boat? The Internet seemed an obvious solution. ‘We brainstormed the website name before designing and launching the site. We included large numbers of photos – about 60 per boat – and detailed descriptions. This proved the key to success. Not only were we reaching far more potential customers, those that came in person had a much higher propensity to buy than in the more traditional yacht brokerage scenario. ‘When sales increased from 12 yachts to 118 in our ﬁrst year, we knew we’d found a great business model.’ Develop the franchise model ‘The idea of franchising started when a competitor wanted to buy the business, but in the end we gave him a licence to use our brand instead. We got specialist help for all the legal aspects and franchise agreements.’

IT support for franchisees ‘Our computer system offers a lot of online management information, support and training programmes. As well as meeting face-to-face at conferences and company events, we use online forums and Skype to facilitate daily contact and sharing of best practice between the businesses.’ Don’t say yes to everyone ‘Early on, we were tempted to recruit everyone who wanted to become a franchisee, even when our instincts told us they weren’t quite right. We should have stuck to our guns and rejected a couple of applicants because we later had to get rid of them as they were unsuitable.’ Source: www.businesslink.gov.uk

of a lifetime di una vita overcome superare stuck to our guns mantenere la nostra posizione get rid of them liberarsi di loro

ACTIVITIES

Reading comprehension B Read the article and choose the correct option. 1 What is the purpose of the article? A to explain how to start a boatshed.com franchise B to give an account of a franchisee’s experience C to describe the experience of one franchising company

4 Where did the idea for starting a franchise come from? A A specialist organisation recommended it. B A customer suggested it. C A competitor asked to purchase the company.

2 What disadvantage did the Chapman’s original yacht brokerage business have? A its small size B its remote location C the small number of boats for sale

5 Franchisees have contact with the franchisor… A only online. B only in person. C both online and in person.

3 Including lots of photos on their website, meant that customers… A no longer viewed the boats in person before buying. B were more likely to buy when they viewed the boats. C bought more boats during each visit.

6 What advice does Neil give in the last paragraph? A A franchisor should evaluate potential franchisees carefully. B A franchisor should recruit as many franchisees as possible. C A franchisee should evaluate the franchisor carefully.

Business Organisations | MO DULE 2

Google’s headquarters, located in Mountain View, California, has often won ‘Great Place To Work’ awards.

Multinationals

A multinational corporation (MNC) has its headquarters in one country but has branches or owns companies in many different countries. Examples of multinationals are car manufacturers like Toyota, oil companies like Exxon Mobil, technology companies like HP, Apple and Google and food and drink companies like Coca-Cola. The structure of an MNC can vary but often there is a holding company which completely owns or has the controlling interest in subsidiaries in other countries. Multinationals are able to avoid tax and trade barriers, since they can locate parts of their operations in countries which have low corporation tax rates or fewer barriers for allowing outside companies to enter the market. They can also take advantage of lower resource costs, such as raw materials and labour, in order to lower their operating costs and be able to offer cheaper goods and services. For this reason, multinationals are likely to locate their operations in LDCs (Least Developed Countries). Then, by diversifying sales in different markets, they are able to widen their market share and increase profits. Their size also means that they have significant power and influence in the countries where their operations are located. There has been much controversy over multinationals and the question of ethical business practices and opinion is divided as to whether they are beneficial or harmful to the host countries.

ADVANTAGES • creation of jobs and a skilled workforce • investment of capital and technology in the host country • payment of taxes to the host country

DISADVANTAGES • low wages and poor conditions for workers • exploitation of the environment • strong influence over foreign governments • destruction of local businesses

ACTIVITIES

Reading comprehension 1

Read the text and answer these questions. 1 Define a multinational corporation. 2 What other examples of multinationals can you think of? 3 Where do multinationals generally manufacture their products and why?

4 What are the advantages for a multinational company? 5 What are the benefits for the manufacturing country? And what about the disadvantages?

Speaking – Critical thinking 2

Discuss these questions in pairs. 1 Is the economy of Italy based on big multinationals? 2 In which countries do a lot of multinationals have their headquarters? Why do you think that is?

MO DULE 2 | BUSINESS in THEORY

3 Are you in favour of multinationals or against them? Justify your opinion. 4 Do you think the number of multinationals will increase or decrease in the future? Why?

Micro-multinationals Today, it is not necessary to be a large business or huge multinational in order to go global or cross over borders. You can go from start-up to global in one step. Micro-multinational is often the term used for these small and medium-sized enterprises which operate across geographic borders from their start-up, without waiting to grow big ﬁrst. While 20th century enterprises had to build huge infrastructures and invest millions over many years in order to become global, today’s ongoing communication and computer innovations allow even the smallest company to enter the global marketplace. Email, chat, social networks, VoIP and cloud computing are all available for free on the web. Technology is a must-have for any micro-multinational business and it means they do not have to invest so heavily in other resources, thus keeping costs low. Investing in an online presence is also fundamental, since a well thought-out website is the gateway to doing international business. It opens up business channels, offers global marketing and is a place to connect with and communicate with customers. Another aspect which must not be overlooked is understanding the tax, legal and business environments the company will be operating in. Doing research carefully in this area should mean no surprises later. There has never been a better time to be an entrepreneur and start a micro-multinational. More and more people are writing their own job descriptions and creating a profession for themselves in today’s highly diversiﬁed modern economy. And much of this is thanks to the inexpensive technology and services that are readily available to everyone.

The first Angry Birds game was launched in 2009 by a Finnish video games company, started by three university students. It was an immediate success and there have been many other versions of the game and spin-offs such as cartoons and toys. Rovio Entertainment, as the company is now called, is still headquartered in Espoo, Finland, and is a globally recognised brand in the entertainment and video games publishing sector, with a revenue of €297.2 million in 2017.

A start-up company, or start-up for short, is a company that is in the first stages of its operation. It often has the potential to grow rapidly with minimum investment. The initial finance usually comes from the entrepreneur who has conceived and developed the product or service, although further financing from venture capitalists is essential if the start-up is to grow further and become successful. During the late 1990s a lot of start-ups were dot-com companies, eBay and Amazon being two winning examples.

MORE ABOUT... In Italy, it is possible for anyone under 35 to open a simplified Ltd (S.r.l. in Italian) with only €1 of capital instead of the thousands needed previously. This is aimed at encouraging more young people to start up their own business.

Watch the video: Entrepreneurs in Ethiopia

ACTIVITIES

Reading comprehension Read the text and answer these questions. 1 In what ways do micro-multinationals differ from multinationals? 2 What free services can the web provide for micro-multinationals?

3 Why is technology so important for these enterprises? 4 What are the other two key factors? Why?

Speaking – Critical thinking 2

Discuss these questions in small groups. 1 Why do you think so many people are starting micro-multinationals? 2 What is your opinion of the Italian legislation for a simplified limited company?

3 Do you think it encourages young people to start their own business? 4 What else could the government do to support new businesses?

Business Organisations | MO DULE 2

WARM UP

Have you heard of crowdsourcing? What is it? Read the ﬁrst paragraph to check.

Crowdsourcing The term crowdsourcing derives from the words ‘crowd’ and ‘outsourcing’, that is contracting a job to a third party or another company. With crowdsourcing, the idea is to offer a particular task or project to many people through the Internet in order to reach the highest level of ideas and the best possible quality by combining their skills and knowledge. Using the combined power, skills and knowledge of many people is not actually a new concept, but modern technology has made it quicker, easier and more productive. Crowdsourcing can be used as a marketing tool to keep in touch with customers and to ﬁnd out what they need or want. It is also 1714 Longitude Act used for problem-solving, getting A very early example of crowdsourcing is the 1714 creative ideas for new products and Longitude Act. While at sea, 18th century navigators start-ups, and funding for projects. were able to calculate their latitude (the position north Wikipedia – a website we are all and south) by using the sun but they had no way of accurately being able to calculate their longitude familiar with – uses the concept of (the position east or west). So, in 1714, the British shared knowledge where anyone Government set up an official act which offered can add information to a topic for £20,000 to anyone who could solve the ‘longitude everyone to access, with the risk, problem’. A Board of Longitude was set up to evaluate the solutions, which had to be accurate within half however, of the information not a degree, and to decide the amount of the reward. always being veritable. Wikipedia also One winner was John Harrison who built a marine uses the concept of crowdsourcing timekeeper that kept the correct time whatever the to raise the money to continue to humidity, temperature and movement of the sea. operate.

ACTIVITIES

Reading comprehension 2

B Read the texts and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6

The idea behind crowdsourcing is that ‘more brains are better than one’. Crowdsourcing started with the arrival of the Internet. Marketing departments may find crowdsourcing useful. Wikipedia is the most famous example of crowdsourcing information. The Longitude Act can be considered a form of crowdsourcing. The prize money was offered by the Board of Longitude.

Listening 3

1.15 B Listen to an expert talking about the use of crowdsourcing as a marketing tool and complete the notes below.

CROWDSOURCING:

used to acquire new (1) __________ ideas and to learn what (2) __________ think.

Used by: Domino’s Pizza to add a new (3) __________ to their menu in Australia to reinvent the brand and create (4) __________ in the USA Walmart to understand the best products to have in their (5) __________ for crowdsourcers: a lot of solutions at a (6) __________ Advantages for contributors: (7) __________ reward or recognition

MO DULE 2 | BUSINESS in THEORY

California Sending Waves Through Gig Economy Firms

alifornian legislators have passed a first-ofits-kind bill targeting contract workers, in a move that will potentially revolutionise the ways gig economy giants such as Lyft and Uber engage with employees. The gig economy is based on temporary or freelance jobs where instead of a regular wage, workers get paid for the 'gigs' they do. If they aren't out working, 1 In 2018 the US Bureau of Labor Statistics reported that 55 million people in the US workforce were 'gig workers' – more than 35% of the market. In the UK the gig economy accounted for 4.7 million workers in 2019. The bill, known as AB5, has gathered attention across the US and beyond, 2 Its passage positions California to be ‘the national leader on this critical issue’, Steve Smith of the California Labor Federation said. ‘Misclassification is not something that just happens in California, it happens everywhere,’ he said. ‘The trend towards cheating workers out of basic protections has been accelerating in recent years. We think this is significant for us here in California, 3 This is because California is often considered to be a leader in establishing policies that are adopted by other states. Under the new bill, companies will have to complete an “ABC test” to classify workers as contractors, proving they (a) are free from the company’s control, (b) are doing work that isn’t central to the company’s business and (c) have an independent business in that industry.

If workers don’t meet all three of these standards, 4 And therefore they will be entitled to benefits including unemployment insurance, healthcare subsidies, paid parental leave, overtime pay and the guaranteed state minimum of a $12 hourly wage. The extent to which AB5 will actually affect wages of drivers and other contract employees remains to be seen, according to Veena Dubal, an associate professor of employment law at UC Hastings College of Law. In the past, Uber has been able to preclude itself from class action suits, 5 ‘It has the potential to have a huge impact, but the devil is really in the details here in terms of enforcement,’ Dubal said. ‘We aren’t going to see change overnight – we may not even see it for a year. Unions and companies all over the world are watching to see what happens next.’ Adapted from The Guardian, 2019

ACTIVITIES

Reading comprehension 4 INVALSI

Read the article and choose the correct sentence for each gap. There are two extra sentences you do not need.

A B C D E F G

largely because of the size of California’s workforce. they will be classified as employees. however they are not automatically reclassified. making it difficult to force legal change on the company at a large scale. they aren't getting paid. who has strongly criticised the bill. but its national significance cannot be understated.

Speaking 5

Discuss these questions in pairs. 1 Is there a gig economy in your country? Do you think it is likely to increase? 2 What kind of companies does it involve? 3 What category of people usually does this type of work? Why do you think that is?

Business Organisations | MO DULE 2

merger fusione takeover rilevamento, incorporazione joint venture impresa in partecipazione

MORE ABOUT... Co-branding, while not actually an integration or merger, is a form of marketing partnership when two companies join forces to unite two different brands of goods or services in order to raise awareness and increase sales. The strength of each separate brand is brought together to enhance an existing product (e.g. Smarties and Fruttolo yogurt snack) or to create a new product (e.g. the Apple and Nike Sport Kit).

Types of company integration Businesses need to grow in order to remain competitive and increase their market share. This can be achieved through internal growth, for example increasing the amount of capital invested by shareholders, and also through integration, that is external growth. The various forms of integration include: MERGER Two or more companies of similar size decide to combine and form a single entity.

TAKEOVER / ACQUISITION

JOINT VENTURE

These two terms are used when one company buys another one. In an acquisition, the acquirer can purchase 100% off the shares in the target company or just enough shares (more than 50%) in order to have the controlling interest. A hostile takeover is when the target company opposes the takeover operation.

Two or more companies agree to start a new business or project together. They invest capital and share resources and costs.

In the ﬁeld of production, integrations can be divided into: • vertical: the companies involved in the integration are in the same industry, but they operate at a different stage of production or distribution; • horizontal: the companies deal with the same activities; • conglomerate mergers: the companies have totally different activities.

ACTIVITIES

Reading comprehension 1

Read the text and complete this summary. There are various ways of combining two or more companies into one entity. A (1) __________ is a joint decision taken between similar sized companies, whereas a (2) __________ and an (3) __________ are when one company buys another one and takes control of it. When outsiders’ advances are unwanted by the management of the targeted company, it is called a (4) __________ takeover. When companies agree to start a new project together, we have a (5) __________. Reasons for external growth, or (6) __________, include staying competitive in the market and increasing (7) __________.

2 1

Read these headlines and say what type of integration each one is.

Dow Chemical and DuPont in talks to create chemical giant

Pharmaceutical company Mylan fought hard for drugmaker Perrigo but failed

Software giant acquired company which makes hardware for its games consoles

International oil company purchases 40 new refineries

Zurich abandons RSA takeover bid after Tianjin blasts

6 Staples and Oﬃce Depot deal blocked for fear of

MO DULE 2 | BUSINESS in THEORY

reduced competition in oﬃce supplies market

Organisation chart Organisation charts are diagrams that illustrate the hierarchy within a company in terms of authority and responsibility. The shareholders of a company elect a board of directors who, in turn, elect a managing director or CEO to run the company. Each department or division is headed up by a director, with various assistant directors, managers and other staff working below them. Shareholders Board of Directors Managing Director (CEO)

Finance Director (CFO)

HR Director (CHRO)

Operations Director (COO)

Marketing Director (CMO)

IT Director (CIO)

Manager

Accounts and Administration Departments

Personnel Department

Purchasing, Production and Logistics Departments

Marketing and Sales Department

Information Systems Department

Office Staff

Workers

ACTIVITIES

Reading comprehension Look at the organisation chart and work out what positions these initials stand for. 1 CEO 2 CFO

Chief Executive Officer ____________________

3 CMO ____________________ 4 CHRO ____________________

5 COO ____________________ 6 CIO ____________________

Listening 2

1.16 B Listen to six people describing their jobs. Write the correct job title next to each person. There are three extra job titles you do not need.

Administration Assistant − Warehouse Manager − Production Manager Purchasing Manager − Sales Director − Advertising Manager − Purchasing Assistant Financial Director − Managing Director 1 Mark Solomon 2 Larry Freeman 3 Monica Miller

Oral exam practice 3

__________________ __________________ __________________

4 Jeff Linford 5 Anna Campbell 6 Camilla Stanford

__________________ __________________ __________________

Mediating concepts

ES Prepare a short presentation (3-5 minutes) about the main features of the different types of private business organisations. Then say which type of organisation you would set up if you wanted to start your own business.

Business Organisations | MO DULE 2

NGOs, non-profit organisations and charities An important and developing area of business is that formed by NGOs, non-profit organisations and charities which, although they have different legal and corporate structures, can often be grouped together due to their common ideology and purpose. These organisations are usually centred around social, environmental and developmental issues, in areas like health, famine, peace, security, poverty, education, climate change, trade and human rights. They operate on a local, national or international level, with both paid and voluntary staff. Money can come from membership fees, fundraising, private donations, selling of goods such as handicrafts, and grants from governments and other organisations. A NON-GOVERNMENTAL ORGANISATION (NGO) is not affiliated with any government. It might get some or all of its funding from governments, but no government officials are allowed to be members of the organisation and it operates independently from any government influence. They are often also non-profit organisations. Well-known international examples include the Red Cross, Greenpeace, Amnesty International, Médecins Sans Frontières/Doctors Without Borders and WWF. A NON-PROFIT ORGANISATION , also known as a not-for-profit organisation or NPO for short, has to use its profits and revenues for the purpose of its organisation, such as to plan and fund other projects. It cannot allocate profits to shareholders as dividends. Many NPOs operate on an international level, but there are lots of local and national organisations too.

Oxfam

In its 70 years of history, Oxfam has transformed itself from a local charity in Oxford, UK, to an international aid agency. The Oxford Committee for Famine Relief was set up in 1942 to campaign for food to be sent to starving civilians in Belgium and Greece during World War II. Today there are 19 member organisations of the Oxfam International Confederation. It is perhaps best known for its emergency relief in areas hit by natural disasters and conﬂict, but Oxfam is also involved in long-term development projects and campaigns for issues such as climate change, fair trade, better health and education and the eradication of poverty. One of its current campaigns is Behind the Price which wants to raise awareness of the hardship and suffering that is behind the production of much of the food we eat and to challenge those in power to change this situation. Oxfam relies on donations and volunteers from the general public for much of its work.

A CHARITY is a type of non-proﬁt organisation which operates exclusively for charitable purposes. It has to follow strict rules regarding its purpose, operations and ﬁnances, and all of its actions and spending must be transparent and accountable. There are normally tax exemptions for this kind of organisation.

Source: www.oxfam.org

allocate suddividere starving senza cibo

ACTIVITIES

Reading comprehension 1

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7 8

NGOs, NPOs and charities are similar in their legal and organisational structure. Everyone who works for one of these organisations is paid a salary. Private donations provide the majority of funding for these organisations. Governments have no inﬂuence on how NGOs operate. A non-profit organisation can choose how to invest its profits. Charities often do not have to pay taxes. Oxfam originated in the UK. Oxfam is the biggest international aid agency which offers emergency relief.

Speaking 2

Discuss these questions in small groups. 1 Are there many organisations of this kind in your country? 2 In what ways can this kind of organisation play an important role in society? 3 Would you like to work for an organisation of this kind? Why/Why not?

MO DULE 2 | BUSINESS in THEORY

Mission statements

WARM UP

A mission statement sets out the purpose of an organisation and its reasons for operating. It focuses on the ‘what, who and how’: what the organisation does, who it does it for and how it does it. It needs to be well-written, clear and concise, but without the immediate impact of a slogan, so it reads as a well-thought-out statement of an organisation’s strategy and actions. It is not only multinationals and large corporations which have mission statements: many smaller businesses, NGOs and charities have them. Even some colleges and universities have a mission statement to present their objectives and standards. They can be found on an organisation’s website and in its literature, like brochures, annual reports and employee handbooks. A company’s mission statement does not need to remain the same. In fact, it is likely that it will need reviewing and updating as the business develops and new goals are set. It makes good marketing sense to have a mission statement for the media, your industry or sector, suppliers, clients and employees to read. There are additional advantages too. • It can sharpen the focus of the company and provide a sense of purpose and direction. The core activities and objectives are clear and employees and management know exactly what to concentrate on. • It promotes a sense of identity among the employees, and can inspire and motivate them with shared values, beliefs and standards of behaviour. • It ensures that the interests of everyone, not just shareholders, are taken into consideration. A commercial company’s primary goal is to make money, but it cannot ignore other elements in favour of this. Unsatisﬁed customers, for example, will go to a competitor; disgruntled employees could create problems for management, the media can pick up on examples of bad practice and so on.

What do you think a mission statement is and what kind of organisations might have one?

disgruntled scontenti

MORE ABOUT... Many organisations also have a vision statement. This differs slightly from a mission statement in that it is an inspirational statement which concentrates on the company’s future objectives and what it wants to achieve in the long term, rather than where the company is at present or its short term goals.

ACTIVITIES

Reading comprehension Read the text and complete the table below to summarise the main information about mission statements. Who they are for

employees

Characteristics

concise

Advantages

motivate people

Writing 3

In pairs, read the mission statement from the Massachusetts Institute of Technology (MIT). Does it answer the questions ‘what, who and how’?

The mission of MIT is to advance knowledge and educate students in science, technology, and other areas of scholarship that will best serve the nation and the world in the 21st century. The Institute is committed to generating, disseminating, and preserving knowledge, and to working with others to bring this knowledge to bear on the world’s great challenges. MIT is dedicated to providing its students with an education that combines rigorous academic study and the excitement of discovery with the support and intellectual stimulation of a diverse campus community. We seek to develop in each member of the MIT community the ability and passion to work wisely, creatively, and effectively for the betterment of humankind.

Now, in pairs, prepare a brief mission statement for your school or college’s website. Use the above example to help you.

Business Organisations | MO DULE 2

Public sector WARM UP

Work in pairs. Make a list of state-operated services in Italy. Do you know any British counterparts?

Public enterprises The public sector, sometimes referred to as the state or government sector, is concerned with providing basic government services on a national, regional and local level. The exact structure is different in every country but often the public sector includes services such as the police, public transport, education and healthcare. Some public enterprises are administered directly by the government and funded by taxpayers’ money. In the UK, this includes government departments such as education. Other public enterprises are run on a more commercial, profit-making basis and their management and financial operations are largely free from government policy and intervention. In the UK, the Post Office is one of the last remaining nationalised companies, while the BBC is an example of a public corporation.

Privatisation

Nationalisation

As part of its economic strategy, a government may choose to privatise a public enterprise. This means that a government-owned and operated company is sold to private individuals or a corporation. The two main reasons for selling a public enterprise are to increase revenue for the state and to increase efficiency of the service. In the 1980s and 1990s, for example, the UK Conservative government carried out large scale privatisations, including the rail, telecommunications, electricity and gas industries.

A less common form of public enterprise is when a government decides to nationalise a business. This is the opposite of privatisation. It rarely happens but it is a policy that governments could follow to keep the revenues of major industries in the country, especially those that might otherwise be controlled by foreign interests. It can also happen in moments of extreme financial crisis, such as in the UK and the USA during the 2007-2010 financial crisis when the two governments rescued or purchased financial institutions and banks.

ACTIVITIES

Reading comprehension 2

Read the text and answer these questions. 1 What kind of services are often provided by the public sector? 2 Which two ways to run public enterprises are mentioned? 3 What is privatisation?

4 Why would a government-run enterprise be privatised? 5 What is nationalisation? 6 Why might a government decide to nationalise a company?

Listening 3

1.17

B Listen to a spokesperson talking about the BBC and choose the correct option.

1 The BBC was founded… A by the Royal Family. B with a Royal Charter. C with funds from the Royal Family.

4 The BBC World Service is broadcast… A only by radio. B only in English. C in many languages.

2 How is it financed? A by a TV licence fee B by advertising C by private investments

5 BBC Worldwide differs from the BBC because it… A broadcasts in many languages. B is profit driven. C only shows new programmes.

3 How many national TV channels and national radio stations has the BBC got altogether? A 10 B 9 C 19

6 Over the years, the mission of the BBC… A has developed. B has not changed. C has become more detailed.

MO DULE 2 | BUSINESS in THEORY

Should the USPS be privatised? Back in 2015 when the UK government decided, and then very quickly implemented, the sale of its remaining stake in Royal Mail for £591.1 million, making the total from the privatisation of the postal service £3.3 billion, many analysts in the USA were asking themselves why their country wouldn’t do the same with their postal service. In the summer of 2018, there was a proposal to restructure the postal service as the ﬁrst step to its privatisation, but as of now it remains an independent agency of the Executive branch of the US federal government in spite of the fact it has been losing money for years. Privatising the US Postal Service would allow the company to raise

prices, negotiate terms like pay and beneﬁts for its employees and update the rather old and unsound business model it currently has to use. It would also mean that the company would be able to be much more competitive against package delivery services like UPS and FedEx. The American Postal Workers Union, however, is against the privatisation of the agency, stating that it would put an end to affordable place online. Even the ever-increasing mail and package services and it would number of packages created by damage those people living in rural e-commerce which need to be delivered is not enough to boost revenue. Packages areas the most. Some of the US Postal Service’s cost more to process and develop due to ﬁnancial problems can be traced to the the constraints the USPS has to operate continuing decline in revenue from under. First Class mail as so much Quarter Fiscal 2019 Volume correspondence now takes Third by Service Category Compared to Prior Year Volume Volume in millions of pieces

Exam practice - Comprehension & interpretation

Service category

ES Choose the option which ﬁts best according to the text. 1 How was the privatisation of the Royal Mail in the UK organised? A It followed a similar model to that for previous privatisations. B The government sold the entire company in 2015. C The government had already sold part of its shares before the final stake. D It took a long time for the privatisation to get the go ahead from the government. 2 What could be the benefits of privatising the USPS? A It would be able to compete with other delivery companies. B It could serve people living in rural areas better. C It could lower prices for consumers. D Employees could negotiate better pay deals. 3 Which reason for the fact that USPS is losing money is not given in the article? A It cannot currently raise its prices. B It has to follow an outdated business model. C The directors and managers are not up to the job. D There is less first class mail to deliver.

2018

First-Class Mail

13,098

13,459

Marketing Mail

17,668

18,546

1,423

1,470

204

222

1,182

1,355

33,660

35,148

Shipping and Packages International Periodicals Other Total volume

ACTIVITIES

2019

4 The table shows the volume of business per service category for two fiscal periods. Which of these statements is true? A First Class mail was the biggest service category for both periods. B The volume of Marketing mail increased between the two periods. C In the third quarter 2019, Periodicals were the second smallest category. D Marketing mail accounted for over half of the total volume of business in the third quarter 2019. 5 Answer the questions by referring to the table. What are the biggest areas of business for the USPS? How did they change over the two periods indicated? What do you think the reasons might be?

Business Organisations | MO DULE 2

2 WARM UP

If you were looking for a job, where would you go or what would you do?

BUSINESS in PRACTICE

Job applications Looking for a job Whether you are looking for a part-time job while you are still at school or university or a full-time job after ﬁnishing your studies, there are many different ways to ﬁnd out about job opportunities. Here are some of the most important. Remember, it is also possible to write to a company directly, proposing yourself for a certain type of job based on your experience, or even to place your own advert.

PRESS/INTERNET Recruitment ads can be published in the printed press, such as local, national and international newspapers, and on their websites. Some papers have a specific day for recruitment and/or different sectors. Websites dedicated to job hunting, like indeed.com, simplyhired.com and monster.com, are also very popular. Some sites are free to use while others charge a fee.

COMPANY WEBSITES Companies also advertise their vacancies on their websites, so it is a good idea to look at these frequently, especially when you are interested in a specific sector or company.

RECRUITMENT AGENCIES Companies can use a private recruitment agency to carry out the selection process on their behalf. These agencies advertise the position in their agency, on their website and through the other means mentioned here. They can then either send all the candidates’ CVs to the company for review or make an initial selection. They may also carry out preliminary interviews in order to present only a small group of candidates for final interview at the company. Some recruitment agencies are specialised in temporary or short-term positions.

HEADHUNTERS Headhunters, who can work independently or as part of an agency, can be used to fill executive, well-paid positions, where very specific skills and a lot of experience are required. Headhunters often have a list of potential high-profile candidates they can quickly propose for a position. They can also act more aggressively, hunting for talented people in competitors’ companies and then contacting them directly to propose a career move.

PROFESSIONAL NETWORKING SITES Having a profile on a professional networking site, such as Linkedin or Jobcase, is a way to show your CV to prospective employees and to find out about job opportunities. At the same time, you can make useful contacts with other members, usually from a similar sector or professional background, and keep up to date with news about conferences, tradeshows and other work events.

ACTIVITIES

Reading comprehension 2

Read the texts and answer these questions. 1 What kind of website is indeed.com? 2 In what different ways can a recruitment agency carry out a job search for a company?

3 What is the main difference between a headhunter and a recruitment agency? 4 How do headhunters find potential candidates for a job? 5 What are the purposes of professional networking sites?

Speaking 3

Discuss these questions in small groups. 1 What do you think are the advantages and disadvantages of each of these job search methods? 2 Which is the most common way to look for a job in your country?

MO DULE 2 | BUSINESS in PRACTICE

Recruitment ads Recruitment ads specify information about the position available, including the responsibilities and tasks, the location and maybe the working hours and salary. They state the qualities they are looking for in a candidate, such as experience, skills and qualiďŹ cations, as well as the method to apply for the position. A

ACTIVITIES

Reading comprehension P Read the descriptions of these ďŹ ve job seekers and the eight recruitment ads above. Match each person to the most suitable job. There are 3 extra jobs that you do not need. 1

Lauren Grey graduated two months ago from Warwick University and is looking for her first fulltime job. She is very ambitious and is looking for a position with career opportunities. Mary Steeler wants to find a part-time job now that her children are at school. She previously worked in sales and has a degree in French. Vijay Patel has just been made redundant. He has worked in IT for 8 years and has gained considerable experience in hardware and software administration.

Jonathan Pierce wants to further his career away from his home town of Sheffield. He is very familiar with all the most common software packages and his working methods are very precise and methodical. Jemma Brodowski loves working alone. Her current job is very stressful so she is looking for something less demanding. She does not want to work at the weekends.

Business Organisations | MO DULE 2

Curriculum vitae WARM UP

Tick the things you would expect to see in a CV. address career history date of birth favourite TV programmes interests marital status name nickname qualifications social media presence

MORE ABOUT... In the UK there are laws against age discrimination, so you do not have to indicate your date of birth or age. Positive words: consult, negotiate, competent, adaptable, conscientious, punctual, organised, etc.

How to write a curriculum vitae A curriculum vitae, CV for short (resumé in American English), is a brief summary of facts about you and your qualifications, work history, skills and experience. It is essential to have a good CV when applying for a job as it is your chance to sell yourself and be selected for an interview. Some companies may ask you to fill in an application form instead of sending a CV. Your CV should be: • printed on white paper and no more than 2 or 3 sides; • clear and correct; • positive and make a good impression, emphasising your strengths and successes; • adapted to suit the specific job profile.

Key features Personal details

Your name, address, phone number(s), email address and date of birth.

Personal profile

This is normally at the beginning of the CV. It is a short statement aimed at selling yourself so you should use positive words and expressions. It must be specifically written for the position you are applying for.

This can include foreign languages and computer skills, as well as things like artistic or musical skills. It is possible to highlight a particular achievement – personal or professional – which reﬂects well on your ability to do the job.

Interests

Hobbies or sports activities can help show particular abilities or skills which could be relevant for the job.

Work experience

It is normal practice to list your most recent job first, with the dates. It is not a good idea to leave any gaps between dates and if you do not have a lot of experience, you should include details of part-time and voluntary work.

Qualifications and training

Achievements/Skills/Competences

This includes qualifications from school and university as well as any other training courses or certificates. You should indicate the date (the most recent first), the title of the qualification, the level obtained and the organisation/ place.

References

This section is for the name, position and contact details of at least two people who can provide a personal and/ or work reference. Alternatively it is possible to state that references can be supplied on request.

ACTIVITIES

Reading comprehension & Speaking 2

Read the text and discuss these questions. 1 What is the purpose of a CV? 2 How long should it be? Why do you think that is? 3 Is it a good idea to use the same CV for different job applications? Why/Why not? 4 Why do you think the personal profile is normally at the start of the CV?

MO DULE 2 | BUSINESS in PRACTICE

5 What order should you list your qualifications and previous jobs? Why do you think that is? 6 What kind of interests do you think would be positive to include in your CV? And negative? 7 What is the purpose of indicating references? 8 Can you think of other examples of positive words and expressions for a CV?

Example of a CV

In pairs, look at this CV and say whether it follows all the advice given on the previous page.

Now discuss the suitability of the candidate for the job advertised.

ACTIVITIES

Speaking

1 What position is being advertised? 2 What requisites are they looking for? 3 Does the candidate have the right experience? And qualifications? 4 Does the CV make a positive impression? Why/Why not?

Business Organisations | MO DULE 2

WARM UP

Have you ever seen a Europass CV? How do you think it differs from a standard CV?

Europass CV The Europass CV is a standard document aimed at simplifying the job application process between EU member states for both employers and applicants. It is possible to complete the CV online or to download it, together with examples and instructions on how to ďŹ ll it in.

MORE ABOUT... There are five Europass documents designed to make your skills and qualifications clearly and easily understood in Europe. In addition to the CV, there is the European Skills Passport, which includes a Language Passport, Europass Mobility, Certificate Supplement and Diploma Supplement. The European Skills passport can be attached to the Europass CV to give comprehensive details of your skills and qualifications, grouping together copies of certificates and degrees and proof of employment. Europass also offers the possibility to compile covering letters and gives suggestions for key expressions for each part.

sabi_cerra@mail.com

http://europass.cedefop.europa.eu/en/documents/curriculum-vitae

Writing 2 78

Go online or print off a copy of the Europass CV and ďŹ ll it in. You can invent some details if necessary.

MO DULE 2 | BUSINESS in PRACTICE

Other forms of CV As well as the traditional CV which is sent to a company in response to a job ad, there are also other types of CV which can be used in different circumstances to market yourself. A mini CV, which is Senior Receptionist • 3 years’ experience in useful at luxury hotels and resorts careers • Responsible for attaining customer fairs and satisfaction targets • Spanish and Arabic networking speaker events, is the same size as a business card. On the front it has your name, contact details and job title. On the back there is a list of your key skills and achievements. Being small, it is easy to carry around and with the right information and layout it will get you noticed and remembered. 011702986631

Jemma Watts

Video CVs are also becoming a common way for job seekers to promote themselves. It is unlikely that an employer will speciﬁcally request a video CV for a job application, but it can be uploaded to Internet for prospective employers to view. The video must be professional and quite short. It should be ﬁlmed in a suitable location with a well-prepared script; otherwise you risk making a lasting impression, but for all the wrong reasons. You can upload your video CV to your own website and your social media accounts.

Giulio Tiberi Tourist Information Assistant and Guide Pescara, Italy | Hospitality and Business Current

Pescara Tourist Information Office

Education

Italian High School Certificate in Business

LinkedIn is one of the most popular professional networking sites, used both by people who want to network with others in the same industry and by thousands of recruiters when looking for an ideal candidate to fill a position. Your profile has details of your qualifications, experience, skills and achievements, just like your CV, but there is also the possibility to connect with other people, make recommendations and give references.

au.linkedin.com/pub/giulio-tiberi/32/a03/6a3

ACTIVITIES

Reading comprehension Read the texts and answer these questions. 1 What is a mini CV and when might it be useful? 2 When might a video CV be useful? 3 What should you be careful about when making a video CV?

4 What is LinkedIn? 5 What kind of information can you upload to the site? 6 How can it be useful for people looking for a job?

Vocabulary 2

Choose the correct option. 1 2 3 4 5 6 7 8

I am used/accustomed/familiar with the principal software packages. I am highly motivated and perform/carry out/make well as part of a team. I have 3 years’ knowledge/experience/skill in the IT industry. I would like a location/vacancy/position with increased responsibility. I am looking for an opportunity to construct/build/create on my experience. My communication and interpersonal talents/skills/gifts are excellent. I am looking to develop/grow/improve a career in executive sales. I am clever/capable/competent in all Sales and Purchase Ledger tasks.

Writing 3

Professional competences

Prepare a mini CV for yourself.

Business Organisations | MO DULE 2

How to write a covering letter There is a lot of competition when you apply for a job so, in addition to a well-presented CV, it is vital to have an excellent covering letter which stands out from the others. It is your ďŹ rst contact with a potential employer, therefore it makes sense to spend the time and effort on writing an effective letter which will get you noticed. A covering letter can be in response to a job advertisement you have seen or heard about or it can be a prospecting letter, that is an unsolicited letter to enquire about possible positions and to propose yourself as a future employee. In both cases, the covering letter follows the basic structure of a business letter. It should be fairly short with a clear layout, no typos or errors and printed on good quality paper. Here you should refer to the advertisement and where you saw it. Include the title of the position and any reference number. If you are writing a prospecting letter, you should mention how you heard of the company, e.g. a fair, an article, an employee, etc. Here you can give a few details about your qualifications and/or experience, but there is no need to go into too much detail and repeat everything that is written on your CV. If your profile is not exactly what they are looking for, you should still present yourself in a positive way. This is your chance to state why you would be perfect for the company. Do not just use the same letter for every job application. Each letter should be tailored to the specific requisites mentioned in the ad.

7 High Street Rochford SS4 7PT Tel: 01702 986631 john.clarke@virgin.net Ms Fran Lewis, MediCare, Edinburgh EH11 8PP

17th April 20..

Dear Ms Lewis, I am writing in response to your advertisement in The Guardian and wish to apply for the post of Assistant Researcher. Since graduating with a first class degree in Chemistry from Manchester University, I have been working as a laboratory assistant where I have gained an excellent understanding of the day-to-day running of lab operations. Although I do not have any direct experience of TPA testing methods, I have just enrolled on an online course so I can stay up-to-date with the theoretical side of these new techniques. I have always enjoyed working as part of a team and I am confident that my experience of working in extreme conditions will enable me to face the demanding conditions that the position entails. Please find enclosed my Curriculum Vitae and I would welcome the opportunity to provide further information during an interview. I look forward to hearing from you. Yours sincerely,

John Clarke

John Clarke, BSc (Hons)

Here you can mention any enclosures (CV, references, certificates) and state how you are going to follow up on your letter.

Enc.

See Phraseology p. 46 to remind yourself of the correct opening and closing salutations for business letters.

ACTIVITIES

Reading comprehension 1

Read the text and answer these questions. 1 2 3 4

Why is a covering letter important? What two kinds of covering letter are there? How should a covering letter be written? How does a covering letter usually start?

MO DULE 2 | BUSINESS in PRACTICE

5 Should a covering letter repeat all the details of a CV? Why/Why not? 6 Why is it not a good idea to use a standard covering letter for all applications?

Mediating texts

Phraseology p. 88

ACTIVITIES

Phraseology

Translate these expressions and then use them to complete the letter. a La contatterò la settimana prossima b ho maturato un’ampia esperienza c lavoro per una piccola azienda di informatica

d recentemente ho visto una presentazione e dove posso migliorare e ampliare le mie competenze nel marketing f che fornisce ulteriori dettagli Emma Knight 17 Castle Street Norwich NR7 1TJ knightknight@btinternet.com

Carter’s Toys 235 Willow Road Norwich NR1 5CN

2nd September 20..

Dear Mr Evans, (1) ________________ by your company at the University of East Anglia and I have to say I was extremely interested in your marketing techniques. Since completing a two-year course in Marketing at Selby College in Norwich, (2) ________________ where I (3) ________________ in internet marketing techniques. Furthermore, the dynamic environment has allowed me to increase my organisational skills. I am currently looking for a new, more challenging position (4) ________________ and work as part of a team on developing a well-known brand. I would welcome the opportunity to work with such an innovative company as yours and I attach my curriculum vitae (5) ________________ of my qualifications and skills. Please contact me at your convenience if you require any further information. (6) ________________ to discuss any positions you may have available. Yours sincerely,

Emma Knight Emma Knight

Writing 3

Sabina Cerratani wants to apply for this job. Use the details of her CV on page 78 and write her covering letter. Also include these points: • you saw the advertisement in The Telegraph; • you will be in London in two weeks so would be available for an interview; • you have travelled a lot in South America because your mother is from Argentina.

Write a prospecting letter to a company you would like to work for. Use these points to help you: • • • •

hai visto il sito dell’azienda; sei interessato a una posizione nell’ufficio estero; hai una buona conoscenza dell’inglese e del cinese; hai tre anni di esperienza nelle vendite sul territorio nazionale nello stesso settore.

Business Organisations | MO DULE 2

WARM UP

Personal branding

In pairs, try to deﬁne personal branding. Then read the ﬁrst paragraph of the article to see if your ideas were right.

How to Discover

and Create Your Brand

any people think that personal branding is just for celebrities, yet each and every one of us is a brand. Personal branding, by definition, is the process by which we market ourselves to others. As a brand, we can make use of the same strategies that make celebrities or corporate brands appeal to others. First, you need to think about what face you want to show to the world and how you want to position yourself for success. Then you need to think about creating your brand. You can use these tools to highlight your brand and allow people to easily view what you’re about. Business card: It doesn’t matter if you’re a college student, CEO, or a consultant, everyone should have their own business card. Email address: Your email address poses a great opportunity for your brand, so use something like gmail with your address as ‘firstname.lastname@gmail.com’ rather than using silly expressions or nicknames. Blog/Website: You need to own yourname.com or a website that aligns with your name in some fashion. If you have enough time and can accept criticism, you should start a blog rather than just have a static homepage. Bloggers will be at an advantage because blogs rank higher in search engines and lend more to your expertise and interest areas over time. LinkedIn, Facebook and Twitter profiles: Develop these carefully, paying attention to things like privacy settings, using the same photo/ avatar on all of them and linking your profiles to your blog or website. Remember to keep your online profile professional. It is not the place to share too much about your private life, with childish photos or silly comments which could ruin your chances of getting a job. Portfolio: A CD, web or print portfolio is great way to showcase the work you have done in the past, which can convince someone of your ability to accomplish the same results for the future. Source: www.mashable.com

ACTIVITIES

Reading comprehension 2

Read the article and choose the correct alternative. 1 Personal branding is/is not reserved for celebrities. 2 An individual can/cannot use the same tactics as a company for branding. 3 It is crucial to think about what image to present to everyone/only to employers. 4 A business card is sometimes/always important.

5 A sensible email address is better/worse for your brand than a ridiculous one. 6 If you have a blog, you will/will not be at an advantage. 7 Your social network profiles should/should not be professional. 8 A portfolio shows the work you want to do/have done.

Speaking – Critical thinking 3

Discuss these questions in small groups. 1 Do you believe that ordinary people can be a ‘brand’? Why/Why not? 2 Is personal branding important to get a job? Why/Why not? 3 What could be the disadvantages to having such a massive online presence?

MO DULE 2 | BUSINESS in PRACTICE

Personal statements Many companies ask candidates for a personal statement as part of their selection process for new employees and interns. It is also very common for academic applications in the USA and the UK, both for first degrees and masters. CVs can contain a short personal profile, and a covering letter highlights a candidate’s suitability, but a personal statement is much more than this. It is the opportunity to demonstrate why you would be a good candidate (for the job, internship, course) and why you should be chosen over others. It should not just be a repetition of the information that ‘My primary interest as a language student has always can be found in the rest of the application. been to get to know and So how can you write a first-rate personal statement understand foreign cultures. that will get you noticed? Here are some general points Keeping an open mind over the to consider: years, I have always tried to learn • Why that company or course? Express your enthusiasm for the particular company, course or university by showing your knowledge of it and why it interests you. • Why are you a good candidate? Write about your academic studies and any relevant work experience or voluntary work to show you have the right background and interest. • How are you unique and interesting? Mention extra things you have done, like hobbies, sports and special achievements, and state the skills and lessons you have learned from them.

as much as I could about other civilisations and I have come face to face on more than one occasion with realities which are really different and very far from my own. Even if I am just beginning my professional career, I know that my goal is to study and work towards a different, better future in which every person will be granted the same rights. This is why I believe that the MA in Global Citizenship is an irreplaceable chance for my personal and academic growth: the specific modules, the career opportunities and the academic support form a unique combination that would give me the best preparation for my future career.’

ACTIVITIES

Reading comprehension Read the texts and answer the questions. 4 What is the purpose of the above personal statement? 5 Which of the three points in the text do you think the extract is focusing on? 6 How does it show enthusiasm and confidence? Underline the key words and phrases.

1 When might a personal statement be necessary? 2 What is its purpose? 3 What should a personal statement be like?

Phraseology 2

Match the two halves of the sentences. 1 Through my voluntary work, 2 I look forward to the challenge 3 An internship with your company will provide me 4 Exposure to an import/export company will be 5 Working with people and helping them 6 I can offer commitment, ﬂexibility and enthusiasm

Writing 3

a b c d e f

solve problems and achieve goals is something I enjoy doing. with the opportunity to apply my academic knowledge in a business setting. for learning as demonstrated by the extra-curricular courses done in the last two years. of this degree course and to the opportunities that it will bring to my future. I have had the opportunity to interact with many different types of people. an invaluable experience, as I aim to work for a multinational company.

Choose one of these situations below and write a personal statement. It should be no more than 150 words. • Three months’ internship at a local company. • Degree course at a foreign university to study International Business Administration.

Business Organisations | MO DULE 2

Getting a job WARM UP

Have you heard of the saying ‘Don’t judge a book by its cover’? Do you think people judge on appearance? How do you think this applies to job interviews?

panel gruppo fidget agitarti di continuo swear dire parolacce

Preparing for an interview Job interviews can take various formats – from a pre-selection online or an initial telephone interview to a full-day interview and selection process. The most common form of interview is probably face-to-face conducted by a single person, usually the head of Human Resources or the head of the department where the candidate will work. In larger companies and for management positions, it is also possible that the interview is carried out by a panel composed of various managers from different departments. The interviewer asks questions to get to know more about the candidate, check the information in the CV and see if he/she has the competence to do the job and will ﬁt in to the work environment. For school leavers and graduates with little work experience, the questions are more general, while for candidates with more experience there will also be the types of questions that ask for examples of past experience dealing with particular situations or questions on how they would deal with a hypothetical situation. The candidates can also ask questions to know more details about the role, the company and its operations. TIPS FOR SUCCESS Before

During

• Do your research on the company to find out about its values, structure, areas of operation and so on. • Use this information, and the recruitment ad, to prepare some questions to ask during the interview. Don’t ask about the salary, unless they mention it first. • Think about examples you can use to answer the typical questions you can expect in an interview. • Plan your journey to the interview location – whether by car or public transport – and aim to arrive ten minutes early. • Organise what you are going to wear – something fairly formal is best. You should be smart and neat. • Get together anything you need to take with you, e.g. certificates, a copy of your CV, notes to use during the interview.

• When you arrive at the location, switch off your mobile. • Smile and shake hands firmly with the interviewer. Maintain eye contact. • Sit down when you are invited to and then sit up straight and do not fidget. • Answer questions as fully as you can, providing relevant examples of your skills and achievements, but do not exaggerate or lie. • Do not interrupt, swear or criticise your past employers. • Be positive, confident and show you are interested in the company and the job. • When you leave, shake hands and thank the interviewer(s) for his/her time.

After • If you are not successful, you can call and ask for feedback on your performance and you should use this to help prepare for the next interview.

ACTIVITIES

Reading comprehension 2

B Read the texts and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7 8

Interviews can be carried out by one or more people. One of the interviewers is always the potential employee’s boss. It is important to research the company before an interview. You should not use public transport to go to an interview. You may need to take some documentation to an interview. You can sit down as soon as you enter the interview room. It is acceptable to invent some details during an interview. You must make sure you say everything important in the first few minutes.

Speaking 3 84

Which of the above points do you think are the most important? Why? Can you think of any other ‘Dos and Don’ts’ for an interview?

MO DULE 2 | BUSINESS in PRACTICE

ACTIVITIES

Listening B Read this job advert and then listen to excerpts from the interviews with two candidates for this position. Complete the interviewerâ&#x20AC;&#x2122;s notes. 1.18

Candidate One

Candidate Two

Name:

Simon Cowley

Name:

Sally Boone

Current tasks:

sales ledger, (1) _________, credit notes

Double entry experience:

top (5) _________ in bookkeeping course and (6) _________ experience

Why job seeking?: for a higher (2) _________ and more challenging (3) _________

Why job seeking?: believes in our company (7) _________

Personal qualities: hardworking, (4) _________, punctual

Personal qualities: reserved, (8) _________ of others

Listening & Speaking 5

1.18 Listen again and then, in pairs, say which of these comments you think the interviewer included in his notes for each candidate and why.

over-confident

strong interpersonal skills

maybe not loyal to the company

good qualifications

good in a team

researched the company

shy

not prepared

Now discuss which candidate would be best for the position and why. How could both candidates improve their performance and answers?

In pairs, prepare positive and effective answers to these typical interview questions. 1 2 3 4 5 6

Why do you want to work here? What makes you the right person for this job? Why do you want to leave your job? What are your strengths/weaknesses? Where do you see yourself in five yearsâ&#x20AC;&#x2122; time? Tell me about yourself.

Phraseology p. 89 Business Organisations | MO DULE 2

Working practices

Temporary or seasonal work

In the past, many workers would start and end their working career with the same company – ‘a job for life’. The majority of work contracts were for full-time, permanent positions. Nowadays, the employment situation has changed dramatically. There are many forms of contract and working practices and the tendency seems to be towards ‘a life of jobs’.

Part-time

With this type of contract, employees work less than the standard number of full hours. It is convenient for those who have other responsibilities, such as looking after young children, as it offers a good work-private life balance. It does not represent any particular disadvantages for the employer, as long as the expected quantity of work can be completed within the designated hours.

Self-employed

Being self-employed – or a freelancer – offers the worker a lot of independence in choosing which contracts to accept and the number of hours to work. It can also offer the possibility of earning more than in a permanent position. However, it does bring risks – such as periods without any work at all – and responsibilities, such as organising income tax declarations. Companies can have the services of an experienced professional much more cheaply and easily than hiring someone.

This is when a worker is hired for a short period of time, even just a few weeks. Most of these positions are filled through specialised temp agencies who supply workers (‘temps’) to the employers. This type of contract is advantageous for employers as they only pay for staff when there is a need, although they cannot count on worker loyalty. The flexibility can also suit some workers, but the wages are generally lower as the agency takes a percentage.

Fixed-term contracts

Job-sharing

These contracts are usually for one or two years, after which the company can decide whether to renew the contract or not. They are advantageous for employers as the fiscal costs are often less than for permanent contracts and they do not have to risk a long-term investment in a moment of instability. They can be a good starting place for young people entering the job market for the first time, although the uncertainty for the future is worrying.

This is when two members of staff share responsibility for one full-time position. Its success – for both the workers and the employer – depends on the ability of the job-sharers to co-ordinate their work and to collaborate well together. Remuneration is on a pro-rata basis.

Teleworking

This involves working at home, and using a phone, computer and Internet to keep in touch with work. It is increasingly viable for a wide selection of jobs. It reduces the cost and time of commuting which helps with personal stress levels and saves the environment. However, workers do not have the social aspect of being with colleagues in an office and companies may have less control over the work.

ACTIVITIES

Reading comprehension 1

Read the text and say which type(s) of working practice these expressions refer to. 1 2 3 4

ﬂexibility lower wages more advantageous for the employer than the worker risky

5 6 7 8

possibility to earn well independence security stressful

Writing 2

In pairs, list the advantages and disadvantages of ‘a job for life’ and ‘a life of jobs’. PROS

CONS

Job for life

Job security, _________________________

Lack of variety, ______________________

Life of jobs

Wide range of experience in different It could be seen as a lack of commitment by sectors, ______________________________ a new employer, ______________________

F Now write an essay (about 140-190 words) using all the notes below and giving reasons for your opinions.

Which is better: changing jobs or having the same job for all your working life? Write about: 1 financial security 2 personal growth 3 career advancement 86

MO DULE 2 | BUSINESS in PRACTICE

Work From anywhere N

owadays, remote work is quite a consolidated work trend, with employees working from home entirely or with one or two days away from the office or place of work as a way to cut down on, for example, commuting times. However there is another form of remote working that has been picking up a lot of interest over the last few years and that is working from anywhere. As the term implies, employees can choose basically anywhere in a specific country, or sometimes in the world, to live and work without worrying about the location of their employer. The only vital thing is to have a fast, reliable internet connection. Work from anywhere has all the benefits of working from home, such as flexible working hours, a comfortable work environment, less stress and a better work-life balance, plus the advantage of choosing where to live. That might be closer to family, in a warmer climate or a place where the cost of living is a lot lower. This last fact brings distinct economic advantages: even without a pay rise, a salary would actually go further if rent, utilities and groceries cost less. And obviously there are no commuting costs either. Companies such as SAP and Akamai have introduced work from anywhere programmes. According to a working paper from Harvard Business School, it has also proven to be successful at the US Patent & Trade Office, where it has increased employees’ productivity, with no negative effect on quality.

Freelance workers, particularly those who work in areas like computer programming, web development and copywriting, have had the option of geographic flexibility for some time. They can decide where to live and work as they are not linked to one company or one office location. Many in fact have become digital nomads, travelling the world while working, changing cities and countries whenever the mood takes. However, work from anywhere now offers a practical solution also to employees who would not normally have had this chance of geographic flexibility.

Reading comprehension 4 INVALSI 1 2 3 4 5

Read the text and answer the questions using no more than four words.

How can working from home help save time? What is essential if you want to work from anywhere? What could be the benefits of choosing where to live and work? (Give two answers.) What benefit has the US Patent & Trade office seen from their work from anywhere programme? Who has already been able to take advantage of geographic ﬂexibility?

ACTIVITIES

Oral exam practice

Mediating concepts

ES Prepare a short presentation (3-5 minutes) about employment and working practices in your country. Include these points: • • • •

a comparison between the past and current situations; the reasons why there have been changes to working practices; what you think the situation will be like when you start looking for a job; whether you would prefer to have ‘a job for life’ or ‘a life of jobs’.

Business Organisations | MO DULE 2

2 Phraseology

BUSINESS LANGUAGE More business language practice

PCTO

Written communication COVERING LETTER OF A CV Reference to source

Skills

• In response to your advertisement in… on…, I would like to apply for the post/position of… • I am writing to apply for the post/position of… which you advertised in…, on… • I would like to apply for the position of… advertised today on your website. • I found your advert for a… on www… and would like to apply for the post.

• I believe I have the relevant skills for this position. • I have a European Computer Driving Licence which I obtained in 20.. • I am able to communicate well in… • I have attended courses in… and have advanced qualifications in all secretarial duties. • I have spent the last… years perfecting my… skills. • I can speak… ﬂuently. • I speak English very well and have recently passed the First Certificate in English exam with high marks.

Qualifications/Education • I feel I am qualified to apply for the post as… In fact… • I feel that I have the right combination of experience and qualifications for this type of responsibility. • My profile corresponds very closely to the requirements you mention. • As you can see in the enclosed/attached CV I graduated from… with a degree in… • I left school with a diploma in… • I have a degree/diploma in…, from… • After obtaining a diploma in Accountancy, I graduated from the University of… in Business Studies. • In 20.. I received a degree in Economics and Finance from the University of Bologna. Previous employment • My first post was with… During my time with the company I worked as a… • This position enabled me to gain valuable experience in… • My experience of working as… has been good preparation for this position. • I have always enjoyed working as part of a team and… Current employment • I am currently employed as a… by… • In this post I have acquired… and learnt to… I have also gained further experience in… • For the last two years, I have been working for/as a… where I have been able to develop… • Since graduating… I have been working as…

• The main reason I am looking for another job is that I feel… • I am interested in this post because I need a new challenge in my career. • I am seeking challenging work which would enable me to use my skills and experience. • I am interested in this position because I would like to work for a company where I can improve my skills and get experience in the secretarial field. • I am currently looking for a more challenging position where… Reference to enclosures/attachments • I enclose/attach… references from my teacher/employers. • Please find enclosed/attached a copy of my CV and… Request for interview • I hope my application will be considered favourably and I look forward to being invited to an interview. • I am confident that I have the necessary qualifications for this post and welcome the opportunity for an interview. • I would welcome the chance to give you further details, should you decide to interview me. • I would appreciate an opportunity to meet you. Enclosed means inside an envelope, a body of text etc. whereas attached means separate, joined/added to, outside the envelope, stapled or paper-clipped to the main page. With emails, you use ‘enclosed’ if the document is inside the body of the email message, and ‘attached’ if the document is not inside the body but added as separate file.

Match the two halves of these sentences. 1 2 3 4 5

I am considered to be Another reason for applying I attach my curriculum vitae I am particularly interested in My meticulous nature and eye for detail 6 I recently attended a trade fair

Future expectations/Motivation

MO DULE 2 | BUSINESS LANGUAGE

a b c d e f

developing these skills further. would be an added benefit for this position. reliable and hardworking, with good communication skills. which gives further details of my career to date. where I was particularly impressed by your stand. is that the hours would perfectly fit in with my university course.

Translate this covering letter.

Mediating texts

In relazione all’inserzione comparsa sul Corriere della Sera del 4 marzo 2016, vorrei sottoporre la mia candidatura alla Vostra attenzione. Come potete vedere nel curriculum che allego, ho conseguito il diploma di ragioniere nel 2015 e ho una breve ma significativa esperienza come impiegato contabile. Sono una persona dinamica, precisa, affidabile e particolarmente interessata al profilo professionale da Voi richiesto. In attesa di un gentile riscontro, porgo distinti saluti.

Oral communication JOB INTERVIEWS Interview questions

• I strongly believe in helping others. In fact, I’ve been working as a volunteer in my local children’s hospital for the last three years.

• Why do you want to work here? • What makes you the right person for this job? • Why do you want to leave your job? • What are your strengths/weaknesses? • Where do you see yourself in five years’ time? • Tell me about yourself.

To say that you don’t understand • I’m sorry, I don’t understand the question. • I’m sorry, I didn’t get the last bit of that question. To ask for repetition

Interview answers • I strongly believe in the ideals your company represents and I’d like to be part of a team with these values. • I believe that my excellent interpersonal skills, developed during my previous job, are ideal for this position. • After three years, I’m looking for a more challenging position where I can build on my experience. • My main strength is my presentation skills. I’ve done lots of public speaking and followed several courses. • I think my main weakness is time management. However, I’ve made improvements in this area by using a planner app which I consult every day.

• I’m sorry, could you repeat the question, please? • Could you repeat the last bit again, please? To ask for clarification • Could you explain what you mean by…? • Do you mean…? • Is that…? To get yourself time to think • Let me see… • Let me think about it a moment… Well…

Complete these sentences with the words from the box and then write them in the correct column.

could − don’t − get − let me − see − would 1 I __________ understand the question. 2 __________ you say that again, please? 3 Well, let me __________.

4 __________ you mind repeating that, please? 5 Sorry, I didn’t __________ that bit. 6 __________ think for a moment.

Saying you don’t understand

Asking for repetition

Giving yourself time to think

___________________________ ___________________________

Practise part of a job interview. Choose one of the interview situations below. The interviewer has to choose some of the typical interview questions and the candidate should reply as quickly and as positively as possible. Then swap roles. • a junior position in the accounts department of a local company • an internship in the advertising department of a national company • a place to study Economics at a prestigious university

Business Organisations | MO DULE 2

Vocabulary WORD FORMATION (2) The following suffixes can be used to make nouns to indicate a profession, occupation or job: -an, -ian, -ist, -ant, -ent, -er and -or. Spelling changes may be necessary.

Form the occupations using these roots and write them under the correct column. You may need to change the spelling.

account − assist − biology − direct − electric − farm − inspect − journal − law − library music − paediatric − pharmacy − politics − preside − science − therapy − translate -an/-ian

-ist

-ant/-ent

-er/-or

____________________ ____________________ ____________________ ____________________ ____________________

____________________ ____________________ ____________________

____________________ ____________________ ____________________ ____________________ ____________________

DESCRIBING JOB RESPONSIBILITIES be in charge of be responsible for

carry out deal with

head up manage

report to work on

2 Complete these sentences with the correct expression from the box. be in charge of − deal with − reports to − headed up − is responsible for carry out − are working on − manages 1 The Purchasing Manager __________ negotiating contracts with suppliers. 2 Next week, I’ll __________ the office because my manager is on a business trip. 3 A shop assistant has to __________ the public every day. 4 I’d love a job in R&D where I could __________ tests and research. COLLOCATIONS WITH JOB job + noun job | search / application / vacancy / advert / opportunities / market / satisfaction / security verb + a job apply for / look for / find / get / resign from / interview somebody for / offer somebody | a job adjective + job part-time / full-time / temporary / Saturday / well-paid / badly paid / manual / skilled / unskilled /dead-end | job

MO DULE 2 | BUSINESS LANGUAGE

5 The accounts department is really busy. They __________ the end-of-year financial statement. 6 The Marketing Director __________ directly __________ the CEO. 7 Mr Needham __________ the company’s US operations in 2015. 8 The Chief Inspector __________ a team of more than twenty people.

3 Choose the most suitable collocation to complete these sentences. 1 It’s getting more and more difficult for students to find a __________ while they are still at school or college. 2 I’ve seen a __________ in the local paper. I think you’d be perfect for it. 3 Which is more important for you: __________ or the salary? 4 How much notice do you need to give if you want to __________? 5 If you want to __________, it’s important to have an excellent CV and covering letter. 6 Blue-collar worker can be used to describe someone who does a __________, while white collar worker is used for professional jobs.

Grammar 1

PRESENT CONTINUOUS We use the present continuous to talk about actions that are happening at the moment or in this period of time. It is also used to describe temporary situations. We do not usually use continuous tenses with ‘state’ verbs. The boss is interviewing a candidate for the sales rep position. Our Sales Manager is running the Hong Kong office for two months. Compare the present continuous and present simple: I don’t usually work overtime but this week we’re very busy so I’m working until 9 p.m. every day.

Video tutorial 3

Complete these sentences with the present simple or present continuous form of the verbs in brackets. 1 ‘What _________ you _________ (do)?’ ‘I’m an accountant.’ 2 Our company _________ (look for) a new receptionist. You should apply. 3 Unfortunately at the moment, youth unemployment _________ (increase) in Europe. 4 I _________ (not understand). Can you explain it again, please? 5 They _________ (work) closely with the design team on this current project.

THE FUTURE To talk about the future, we can use:

will

going to

• for decisions made at the moment of speaking, especially for offers or promises I’ll help you finish the project on time.

• for things that are certain to happen, based on current evidence Look at these sales figures. We’re going to have an excellent year.

• for intentions He’s going to look for a new job.

• for predictions The number of franchises won’t increase much in the next 20 years.

Present continuous

• for arrangements and meetings They’re meeting the CEO next Friday to talk about the merger.

Complete these sentences with the correct future form of the verbs in brackets. 1 2 3 4 5

Video tutorial 4

‘Can you email me the presentation?’ ‘Sure, I _________ (do) it now.’ ‘We’ve got a problem with one of our clients.’ ‘Yes. I know. I _________ (call) him later.’ My boss _________ (ﬂy) to Berlin next Friday to meet our new supplier. In my opinion, he _________ (not get) the promotion. He hasn’t got enough experience. Jake doesn’t like his job, so he’s decided that he _________ (apply) for that position in New York.

FIRST CONDITIONAL We use the first conditional to talk about a probable or likely situation. If this new branch is successful, the company will open a second one next year. It is possible to use unless instead of if + not. We’ll lose customers unless we improve our products.

Complete these sentences using the ideas from the box to help you.

be very pleased − go bankrupt − work overtime improve our products − earn more money 1 2 3 4 5

If he gets the promotion, he… Unless we cut costs, we… If I get that job in the Accounts Department, I… I believe that our turnover will increase if we… They won’t finish the project unless they…

Video tutorial 5

Translate these texts.

Mediating texts

This country follows the mixed economy model which means that the state is responsible for some essential services while the private sector is free to follow market forces. However, the government is currently considering the privatisation of some of the public sector, especially healthcare. If this happens, it will mean a better and more efficient service.

Ciao Jake. Ho finalmente deciso cosa fare. Aprirò un ristorante fast food in franchising. La settimana prossima incontrerò un rappresentante della società per discutere i dettagli. Spero che sarà un successo dato che sto investendo tanti soldi. So che dovrò lavorare molto ma non vedo l’ora…

Business Organisations | MO DULE 2

BUSINESS NEWS

Young entrepreneurs

Australian Teen Millionaires Jack Bloomfield is 17 years old and is going places. He has deals to close, a business to build, and above all else, money to make. He’s an unlikely self-made millionaire, but this savvy entrepreneur isn’t on the way to the office – he’s off to school. With nothing but perseverance, he’s made it work with money that he’s earned all by himself – with no help from his parents. “I’m not … some special individual that’s been primed his whole life to start a business,” Jack tells Alex Cullen, a reporter for Australian TV programme Sunday Night. “Just a kid with a dream that got started and made it work.” Jack’s motivation came as he started to consider his life after high school. “Go to university, start off at a really low paying job, work your way up for 20 years until you’re finally 40 or 50 and then living the good life. I was like… how can I do something now? And it genuinely scared me.” It scared Jack enough to take action. His first online business was selling gift cards. Then at the age of 13, he designed a website that keeps all your medical data in one location. But his biggest money earners are his five online stores. He buys in bulk and sells almost anything that will make a profit, from bowties made in China to iPhone cases from South Korea. Ali Kitinas also knows the challenges of business success in your teens. At the age of 15, she developed a boutique skincare business that recycles used coffee grinds and turns them into facial and body scrubs. “I think I’d always been told growing up that whatever I wanted to do I could do it,” Ali explains. “Mum and dad would be there to support me and help me figure that out.” But balancing life as an entrepreneur with being a Year 12 student is more challenging than Ali ever imagined. For Morgan Hipworth, his passion is food – especially

MO DULE 2 | BUSINESS NEWS

desserts. Aged 11 he was making birthday cakes for family and friends, at 13 he was supplying a local café with fresh cakes every day and at 18 he is running a bakery business with 20 full-time employees, including his mum, and an annual turnover of about AUS$ 0.5 million. Morgan and the other high achievers have strong views on how the education system discouraged their entrepreneurial spirit. Morgan remembers that some of his teachers were dismissive, telling him it wasn’t worth it or that he would fail. “If you look at other things like abilities in sport, swimming, athletics, things like that, that's often embraced by schools, whereas business is not really seen as the norm. So I think some schools don’t know how to handle it yet.” “The word ‘entrepreneurship’ and the words ‘school system’, they don’t go together,” believes Jack. “If you walk into a classroom and say, ‘Hey, I want to start a business,’ I can guarantee you will be laughed at, no matter what school you go to.” Courtesy of Seven Network Australia

Reading comprehension 1 INVALSI

Read the article and choose the correct option.

1 Jack Bloomfield got started as an entrepreneur thanks to… A financial support from his parents. B studying business at high school. C his determination to succeed early in life. D his appearance on a TV programme. 2 What do all his business ideas have in common? A They all include selling goods. B He started them all when he was 13. C Initially they didn’t make a profit. D They are all online activities. 3 What problem does Ali Kitinas have? A How to divide her time between work and school.

B Finding new ideas for beauty products. C The lack of parental support. D Her business is not successful enough. 4 What does Morgan Hipworth remember about his school teachers? A They wanted him to be better at sport. B They were unsupportive of his plans. C They thought he would fail his exams. D They criticised him for wasting money. 5 According to Jack, schools don’t… A teach students enough about business. B take entrepreneurial spirit seriously. C care about students’ wellbeing. D discipline students for joking in class.

Listening 2

1.19

B Listen to this advice from an entrepreneur about starting your own business. Complete the notes below.

Top tips 1 2 3 4 5

Find out your passions, talents and _________. Keep an eye on _________ in commerce and technology and _________ ways to improve things. Prepare a _________, with a clear proposal and _________. Look for _________ to give you capital. Choose a _________ and a name for your business.

Speaking – Critical thinking 3

Discuss these questions in small groups. 1 2 3 4

How easy is it to become an entrepreneur/set up your own business in your country? What are the advantages and disadvantages of working for yourself? What kind of qualities do you think make up an entrepreneurial spirit? Can you come up with any good ideas for an innovative business, product or service?

Writing 4

B Read part of a letter from Martin Steel who is interested in investing in your start-up business.

I found your business plan outstanding and would be interested in discussing an investment. Are you available on 11th March at 3 p.m.? Please suggest where we should meet. Write a reply (60-80 words), including these points: • acknowledge his letter; • confirm your availability; • suggest a place to meet; • say you have an updated business plan to show him.

Business Organisations | MO DULE 2

2 Background

BUSINESS CASE STUDY

Case analysis: Greenpeace Read this proﬁle of Greenpeace. What kind of organisation is it? Where does it operate? How is it ﬁnanced?

Greenpeace is an independent organisation, which uses non-violent campaigns and creative opposition in order to expose global environmental problems. We want to help find the solutions which are essential for our future, one that is both green and peaceful. Our objective is to make sure our planet can nurture life in all its diversity. Therefore Greenpeace aims to: • protect all forms of biodiversity; • prevent pollution and abuse of the earth’s resources; • stop all nuclear threats; • encourage peace, global disarmament and non-violence. Greenpeace is financially independent from all political and commercial interests and does not accept money from companies or governments. We are funded solely through individual contributions from members of the public, together with foundation grants. www.greenpeace.org

Case presentation Step one

Read about Greenpeace’s ﬂeet of ships which have been an active part of the organisation since its foundation. What and who was Greenpeace’s ﬁrst protest against? What kind of protest was it? What kind of campaigns have the Greenpeace ships taken part in since?

The Greenpeace fleet In 1971, a small group of people wanted to protest against the testing of nuclear weapons by the USA on Amchitka Island in Alaska. As their protest was to be non-violent direct action, they needed a boat to get close to the testing site. They found an old fishing boat, rusty and in very bad condition, called the Phyllis Cormack. It was all they could afford, so they decided it would be the boat they would use against the bomb, and called her ‘Greenpeace’. Today there are three ships in the Greenpeace fleet – the flagship, Rainbow Warrior, the ice-breaking MV Arctic Sunrise, and the latest ship MV Esperanza, which has all the most up-to-date, environmentally friendly equipment. These three ships are at the heart of Greenpeace’s campaigns and research work. Over the years, they have obstructed nuclear tests in the Pacific, saved whales from being harpooned, stopped the shipping of illegal timber and publicised offshore wind farms. They continue the tradition of non-violent direct action which started in 1971, and allow Greenpeace to oppose all forms of environmental destruction of our oceans, such as pollution, the killing of marine life and damage to the ecosystem.

Step two CRITICAL THINKING

In small groups, talk about where the best place for Greenpeace to advertise global and local jobs would be. What personal qualities and values do you think you would need to have to work for Greenpeace?

MO DULE 2 | BUSINESS CASE STUDY

Case analysis Step one

Read this job announcement from the Greenpeace website and answer the questions below.

Do you want to work on board a Greenpeace ship and be part of the world’s leading environmental campaigning organisation? We are always seeking enthusiastic volunteers and professionals to be part of our crew and to work promoting our causes across the world. We offer paid three-month tours of duty, together with the chance to participate in exciting campaigns. It is important that you are comfortable sailing on small ships in a multicultural, mixed-gender, risk-based environment. You must have a passport that is valid for at least another 9 months. If you have experience at sea and possess the appropriate licences, please complete our online form and your motivational statement. As we receive a lot of applications, please make sure to demonstrate your interest in sailing with us, how you identify with our objectives, and the skills you feel could be an asset for Greenpeace.

• • • • •

Step two

How long does the crew stay on the ship? What requisites are essential? How can you apply? Why is a convincing motivational statement important? What skills and qualities do you think would be the most useful?

1.20 Greenpeace are now selecting new people to join the crew of the Rainbow Warrior. Listen and choose the correct alternative.

RAINBOW WARRIOR CREW Number of crew needed: four/five Looking for people with/without experience with Greenpeace Position to be filled: first mate/deckhand Everyone helps with specific/general tasks on board Next campaign leaving on the 13th/30th for the Arctic/Antarctic

Step three

Look at the proﬁles of these four candidates and decide which one would be the most suitable to join the Rainbow Warrior. They all speak ﬂuent English, have sea-going experience and hold the necessary maritime licences. Then present your decision, with reasons, to the rest of the class.

DECISION MAKING

Name:

Anna Miller

Nationality: British Age:

Profession: PR Assistant

Name:

Rob White

Nationality: Australian Age:

Profession: Mechanic

Amateur photographer, excellent attention to detail, creative and imaginative

Gay rights activist, outspoken, persuasive with excellent IT skills

Name:

Jorge Perez

Ex-Army Ofﬁcer, likes routine, very hardworking and fair

Nationality: Portuguese Age:

Profession: Engineer

Name:

Nukaaka Panikpak

Nationality: Greenlandic Inuit Age:

Profession: Marine Biologist

Experience of Arctic expeditions, qualiﬁed ﬁrst aider, disciplined and reserved

Business Organisations | MO DULE 2

Professional competences Arranging an interview

You need to arrange a video interview with the candidate you selected. Write an email to him/her, including this information: • say that he/she has been selected for interview; • give a date and time for the interview; • provide information about the next campaign.

Rearranging details

Work in pairs and role-play this telephone conversation. Invent all the necessary details. Swap roles.

A You have received an email from Greenpeace with details of a Skype interview. Unfortunately you cannot make it. Phone the organisation to apologise and to arrange a new time and date.

Interview questions

Look at these typical interview questions and match them with the correct answer. Which of them are good answers and which bad? Why? How could you improve the answers? 1 Tell me about a challenge you have faced. 2 What are your weaknesses? 3 How would your friends describe you? 4 Are you a team player? 5 Why should we choose you?

Interview preparation Writing a personal statement Writing a covering letter

B You work for Greenpeace, interviewing candidates. You receive a phone call from a candidate who wants to reschedule his/her interview. It is a bit difficult for you, but arrange a convenient day/time.

a b c d e

Not really. I prefer to work on my own so I can concentrate and give better results. I can’t really remember anything at the moment. Let me think for a second. I have the right qualifications, and I believe I can contribute positively to your organisation. They’d say I was a good laugh, always ready to go out and have some fun. I put things off until the last minute. However, I have started using an app on my phone to help keep a checklist and prioritise things better and I am improving.

You want to prepare for your interview with Greenpeace. With a partner, prepare and practise suitable, personal answers to the questions above that will make a good impression. Imagine you would like to do volunteer work for Greenpeace, or another NGO or charity (for example, in their local ofﬁce, on a particular campaign etc). Write a personal statement outlining your qualities, skills and values which make you the perfect candidate. Now write a short covering letter to accompany your CV and personal statement.

Tips for covering letters • As you are already sending a CV and a personal statement, make sure your covering letter does not simply repeat the same information. • You can try to make your covering letter stand out from the others by starting in a different way: a powerful statement about your beliefs would be ideal for this example. • You must make it clear that you are really interested in the organisation and motivated to work with them.

MO DULE 2 | BUSINESS CASE STUDY

MODULE

3 Marketing

and Advertising

BUSINESS in THEORY

Marketing Advertising Promotion

BUSINESS in PRACTICE

Studying the market Promotional correspondence Analysing adverts Promotional activities

BUSINESS LANGUAGE

Phraseology Vocabulary Grammar

BUSINESS NEWS

Emotions in advertising

BUSINESS CASE STUDY

Case analysis: Converse Professional competences

3 WARM UP

What do you think the purpose of marketing is? How important is it for a company?

BUSINESS in THEORY

Marketing The role of marketing Marketing starts with the customers: they should be at the centre of any business activity. Through marketing a company can identify and analyse the needs of its customers and then make the relevant decisions in order to satisfy these needs and make a profit. This means marketing comprises the following steps:

MARKETING IDENTIFYING This involves answering questions such as ‘How do we find out what the consumer’s requirements are?’ and ‘How do we keep in touch with their thoughts and feelings and perceptions about our goods or service?’. This is fundamental to market research.

ANTICIPATING Consumer requirements are constantly changing. Anticipation involves looking ahead to guess how those changes will alter customers’ needs. Marketers also need to try to anticipate what Next Best Thing (NBT) customers will be wanting, whether it is a particular service or new feature of a product.

SATISFYING The marketing process has to be pleasing to consumers in order to convince them that the product will satisfy their needs or wants. In this way, they will be persuaded to purchase or use that particular product or service.

PROFITABILITY Marketing has to be balanced in order for a business to make a profit and continue to operate. A marketing budget must be sufficient in order to function correctly and achieve the desired results, but care must be taken not to overspend and reduce overall profits for the company.

ACTIVITIES

Reading comprehension 2

Read the text and answer these questions. 1 Who is at the centre of marketing activities? 2 Why do businesses practise marketing? 3 What is the key purpose of market research?

MO DULE 3 | BUSINESS in THEORY

4 What does the acronym NBT stand for and what purpose does it serve for marketers? 5 Why is customer satisfaction important? 6 Why is it important for a company to stay within its marketing budget?

Market segmentation

WARM UP

In business, a market is the potential buying audience for either a product or a service. As markets change according to the product or service being offered it is very important for a business to know who makes up their market. Industrial markets are specific markets focusing on the needs of other businesses; consumer markets are made up of private individuals buying products and services. For example, a teenager looking to buy a desk for his/her room is a very different customer from a company looking to refurbish an office. Once the market is determined, it is broken into subgroups or segments to further understand the buying audience. The better you know your market segments, the better your sales will be. This will also improve your chances of growth and help keep more customers. Marketing strategists use the information from market segmentation not only to better target their products but also to develop new products based on the needs these market segmentations reveal. Market segmentation is the identification of portions of the consumer market and grouping them according to certain shared characteristics: demographic geographic psychographic behavioural

gender, age, ethnic background, nationality, education, income, social class or grade , family size, religion; urban or rural area, population density, region of the country; lifestyle, opinions, hobbies, interests, values; usage rate, occasion, brand loyalty, readiness to buy, benefits sought.

Do you have the same needs and wants as older members of your family? Why do you think there are differences?

One of the most common systems of social grading is the classiﬁcation A, B, C1, C2, D, E, based on occupation. The classiﬁcation scale starts with A – high level administrative, managerial and professional occupations – and progresses down to E – casual workers, the long-term unemployed and state pensioners.

ACTIVITIES

Reading comprehension B Read the text and choose the correct option. 1 The term ‘market’ refers to… A the place where consumers buy a product. B the group of consumers or organisations interested in a product. C the people involved in the purchasing decision process. 2 Market segmentation is used to… A understand customers better. B improve sales. C both of these. 3 What is geographic segmentation based on? A the area where a customer lives B the type of lifestyle a customer leads C the social class a customer belongs to

4 Consumers’ attitudes are at the basis of… A demographic segmentation. B psychographic segmentation. C behavioural segmentation. 5 What does the behavioural segmentation take into account? A customers’ brand loyalty B customers’ opinions C customers’ income level

Vocabulary 3

Marketing uses a lot of acronyms. Here are some common acronyms for describing demographic groups. Match each one to the correct deﬁnition. 1 2 3 4 5 6

DINKY YOOFS YUPPIE TINKIE GUPPIE OPAL

a b c d e f

two incomes, nanny and kids a green young urban professional young, free and single older people with active lifestyles double income no kids yet young urban professional

Now try to invent some fun acronyms for demographic groups in your country and see if the rest of the class can guess what they are.

Marketing and Advertising | MO DULE 3

WARM UP

Why do you choose one particular brand over another?

The marketing mix

Four main factors, commonly known as the 4 Ps, determine how a product will be marketed. These elements – product, price, place and promotion – can be adjusted to find the right combination that will appeal to the customer and simultaneously serve his or her needs while generating optimum profits.

MORE ABOUT... The 4 Cs is a more consumer-oriented model of the marketing mix, taking into consideration the customer’s point of view. The four factors are consumer, cost, communication and convenience which focus on what consumers want or need, the costs they incur, all the interactions with them and how and where they prefer to purchase the product or service. The 4 Cs can be considered an important part of relationship or relational marketing, the current trend where marketing strategy focuses on establishing a longterm relationship with customers instead of just concluding the sale, which is the goal of transactional marketing.

ACTIVITIES

Customer Relationship Marketing (CRM)

PRODUCT The perfect product must provide value for the customer and give customers what they want, not what producers think they want. It also needs to look good, work well and be different from competitors’ products, for example in the quality, size, design, packaging, etc.

PRICE Since price is the only element in the marketing mix that generates a revenue, pricing must be calculated to provide a profit. One pricing strategy is ‘cost-plus pricing’ which is when the cost of production, distribution and other overheads are calculated and then a profit markup is added. Other strategies take into consideration what potential customers are prepared to pay for the product or the price that competitors’ products are sold at.

PLACE A product must reach the right place, at the right time and in the right quantity for customers so it is vital for a company to choose the correct distribution channel for its products. Market and product factors, such as buyer behaviour and the type of product, as well as aspects like the size of the business and costs, will influence this choice.

PROMOTION Promotion is the way a company provides customers with information about itself and its products. It includes activities like branding, advertising, public relations, special offers, exhibitions, etc. Promotion is important to improve a company’s image, launch a new product, increase popularity of existing products, attract new customers and, naturally, increase sales.

Reading comprehension 2

revenue fatturato mark-up margine

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7

The correct mix of the 4 Ps is essential to market a product successfully. The perfect product should meet customers’ requirements. Pricing strategies never generate profits for a company. A company should always price its product lower than a competitor’s. It is important to consider the type of product when choosing a distribution channel. Promotion is not necessary for existing products but only for new ones. The 4 Cs model helps companies to focus on customers.

Writing 3 100

Choose one of the 4 Ps. Describe its importance and how it is used to market a product, giving examples.

MO DULE 3 | BUSINESS in THEORY

The extended marketing mix Nowadays, it is common to add three extra Ps to the traditional marketing mix given that marketing is much more customer-oriented than before. These additional 3 Ps are particularly relevant for the service sector.

PEOPLE Anyone who comes into contact with the customer will make an impression that can have a profound effect – positive or negative – on customer satisfaction. Employees and anyone from the company in contact with customers must be properly trained. The attitude towards the customer and the level of after-sale support reﬂect on the company and add value to the product.

PROCESS

PHYSICAL EVIDENCE

This is the element of the marketing mix that considers the systems which are used to deliver a service, although it is also linked to the people who provide the service. Clearly defined and efficient processes for things like identifying customer needs or handling orders and customer complaints will mean a consistent, good quality service. This will then lead to customer loyalty and confidence in the company.

This refers to where the service is being delivered from, so it is particularly important for retailers, hotels and restaurants for example, although the same concept can be applied to e-stores and websites. A well-designed shop layout, with a high level of presentation and excellent standards will mean walking into the shop is a positive experience for customers. A service cannot be experienced before it is delivered, so it is vital to ensure customers feel confident in the company and what it offers.

ACTIVITIES

Reading comprehension Read the text and answer these questions. 1 2 3 4 5 6

What are the three extra Ps and why were they added to the marketing mix? Why is staff training important? What does ‘process’ refer to? How can the systems used to deliver a service help customer loyalty? Is ‘physical evidence’ only significant for physical shops and places? Why/Why not? How can ‘physical evidence’ help customers have a positive experience?

Vocabulary 2

Find the English equivalents for these words and expressions in the texts on pages 100-101. 1 2 3 4 5 6

valore concorrente strategia di prezzo costi di gestione canale di distribuzione comportamento del cliente

__________________ __________________ __________________ __________________ __________________ __________________

7 8 9 10 11 12

popolarità orientato al cliente marketing relazionale soddisfazione del cliente supporto post vendita fidelizzazione del cliente

__________________ __________________ __________________ __________________ __________________ __________________

Speaking 3

In pairs, talk about what physical evidence would reassure you in these situations. • It is the first time that you buy something from an online shop that you have never heard of before. • You want a new look so have walked into a new hair salon. • You are on holiday and walk into a restaurant for lunch.

Marketing and Advertising | MO DULE 3

101

WARM UP

What do you think a company’s strengths and weaknesses could be?

SWOT analysis SWOT is an acronym that stands for strengths, weaknesses, opportunities, and threats. It is used in problem analysis and is a common tool used in the business world for marketing analysis. It takes into account both the internal and the external business environment to anticipate possible future actions that may be needed to defend or expand a company’s market position. It takes place during the first stages of planning and helps marketers focus on key issues.

Strengths They are the company’s resources and capabilities that can be used for developing a competitive advantage. Examples of strengths include strong brand names, patents, technological skills, cost advantages from proprietary know-how, good reputation, favourable access to distribution channel and production quality.

Weaknesses (or limitations) The absence of certain strengths (such as those previously mentioned) are considered weaknesses and place the company at a disadvantage.

Opportunities

Threats

They are external chances (i.e. from outside the company) to improve performances and profits, such as technological improvements, change in demographics, the liberalisation of regulations and the elimination of international trade barriers.

External elements that could cause trouble to the business may include consumer tastes moving away from the company’s products, the emergence of substitute products, new regulations, increased trade barriers, natural disasters and downturn in the global economy.

The SWOT (or TOWS) matrix shown in the table below is used to develop the company’s strategies in order to improve its situation.

ACTIVITIES

Companies may use: S-O strategies: they pursue opportunities which match the company’s strengths; W-O strategies: they overcome weaknesses to pursue opportunities; S-T strategies: they identify plans enabling the company to use Opportunities its strengths to reduce its exposure to external threats; W-T strategies: they establish a defensive plan to prevent the Threats company’s weaknesses from making it highly vulnerable to threats.

Weaknesses

S-O strategies

W-O strategies

S-T strategies

W-T strategies

Reading comprehension 2

Read the text and answer these questions. 1 Why is SWOT analysis used in marketing? 2 At what stage is it used? 3 Which are internal factors and which external?

Writing 4

4 Give two examples of strengths/weaknesses. 5 Give two examples of opportunities/threats.

Decide if the following are strengths (S), weaknesses (W), opportunities (O) or threats (T). 1 The company’s production facilities are located far from its customer base. ___ 2 The company has grown substantially over recent years, and has experienced global expansion. ___ 3 A company producing software is dependent upon another company’s research. ___ 4 New and emerging markets. ___

102

Strengths

5 To expand its brand, the company sells its name to makers of apparel, watches, sunglasses, etc. ___ 6 The company’s products are vulnerable to the uncertainty of the job market because of the weakened economy. ___ 7 A large company has significant cost advantages over most of their competitors. ___ 8 Religious, cultural and social restrictions. ___

Choose a speciﬁc product you like, a brand, a company or even your own school, and complete a brief SWOT chart.

MO DULE 3 | BUSINESS in THEORY

Product life cycle

WARM UP

Products pass through different phases during their life cycle and each stage normally requires adjustments to the marketing mix in order to face the challenges and opportunities which arise.

Introduction on the market After a period of development, probably with substantial research and development costs, the product is launched on the market. At this phase the product is promoted to create awareness. Limited numbers of products are available in few channels of distribution. Costs are very high, while sales volumes are low. Careful monitoring of a product’s growth at this stage is essential.

Growth

Maturity

During this stage, public awareness as well as sales volumes rapidly increase and the product becomes more profitable. Distribution becomes more widespread. As competitors are attracted into the market with very similar offerings, competition begins to increase. Promotion and advertising costs are high and focus upon building the brand.

At this stage, sales volumes peak and the market reaches saturation. Competition is the most intense and companies fight to defend their market share and maximise profit. Producers attempt to differentiate products, adding new features or services or improving quality. Prices normally drop due to the increased competition. Promotion is widespread and carefully monitored against what competitors are doing. Some producers may begin to leave the market due to poor profit margins.

Decline At this point there is a downturn in the market. The introduction of more innovative products or the change in consumer tastes cause sales volumes to decline. There are various possibilities available to a company: rejuvenate the product, dramatically cut costs (e.g. by finding a cheaper production facility), sell the product in an alternative market. Ultimately if a product is unprofitable, a company will withdraw it from the market.

Not all products, however, go through all phases and the length of each phase also varies enormously. Some ‘fad’ products can go straight from introduction to quick decline. Others, such as the car, have an extremely long mature stage. In addition, the decisions of market strategists can inﬂuence the different phases, both positively and negatively.

fad del momento

Brand stretching

Which phase(s) of the product life cycle do these steps belong to? Introduction 1 2 3 4 5 6 7

Growth

Maturity

Decline

Public awareness increases Sales volumes peak Withdrawal from the market Costs are very high Market share becomes stable Costs are cut Promotion

ACTIVITIES

Reading comprehension 2

What do you think the life cycle of a product is? Do you think it is the same for all products?

Speaking 3

For each of these categories, think of examples of products that are at different stages of the product life cycle. Give reasons for your choices. • fashion

• food

• technology

• transport

Marketing and Advertising | MO DULE 3

103

Market research

WARM UP

In pairs, think of a definition for the term ‘market research’. Compare your definition to the one in the first paragraph.

MORE ABOUT... Quantitative research uses statistics and numerical data. Qualitative research is more subjective and concentrates on the hows and whys of things.

Market research is the collection of data from various sources in order to obtain information regarding the needs and wants of customers and the structure and dynamics of a particular market. It is an essential part of defining a market strategy. There are two types of data sources sources:

PRIMARY DATA (also known as field research) This is research that is conceived for a specific objective and is collected first hand through observation, experiment or surveys, such as face-to-face interviews and online questionnaires. This form of research provides specific data which is extremely relevant to the company. The sample size interviewed must be large enough to provide data that accurately reﬂects the market. For this reason, field research is an expensive and timeconsuming option. SECONDARY DATA (also known as desk research) Secondary data is existing information so it is a cheaper and quicker source than field research. However, it is important to check how up-to-date, accurate, reliable and relevant to the specific needs the information actually is. Secondary data can be internal to the company, such as sales records and customer reports, or external. Examples of secondary data include statistics from trade organisations or government reports, articles and market reports. The Internet is also an important source of secondary data with sites silently tracking user behaviour and preferences, as well as selling market research reports.

ACTIVITIES

Organisations may decide to conduct market research either themselves or through an independent marketing research firm. Whatever the means, before undertaking any research project it is crucial to define the research objectives and then to analyse and interpret the data correctly in order to develop an effective marketing strategy.

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Reading comprehension 2

Read the text and complete this table. Primary data

Secondary data

Examples

• face-to-face interview • ___________________________________

• ___________________________________ • ___________________________________

Advantages

• ___________________________________ • ___________________________________

Disadvantages

• ___________________________________ • ___________________________________

MO DULE 3 | BUSINESS in THEORY

Primary research methods QUESTIONNAIRES A questionnaire is an inexpensive and fast method for gathering a large amount of data in a short period of time. The questions must be designed so that they are easy to understand and provide a clear and unambiguous outcome . Nowadays most questionnaires are online and are often to check customer satisfaction with a purchased product or to obtain suggestions, feedback and opinions. One disadvantage with questionnaires sent by post or email, is that it is a passive method relying on people to complete and send back the form.

STREET INTERVIEWS Common places for street interviews are busy streets in town centres and shopping malls. A researcher will stop a person and ask a few preliminary questions, known as screening questions, to ensure that the sample of people interviewed is representative. The interaction may end after this or continue with the full interview. Although an effective method of data collection, it is not always the most cost effective as it involves paying the researchers for their time and not every interaction turns out to be a useful interview.

PHONE INTERVIEWS When conducting phone interviews, the interviewee may be selected randomly from a database or chosen as part of a specific target market or demographic group. The interviewer’s questions need to be ordered correctly so as not to prejudice the interviewee’s views. For example, asking ‘Do you like XYZ Tea?’ before you ask ‘Which teas are you aware of?’ will prejudice the answers. A major disadvantage of this kind of research method is that many people are reluctant to waste their time answering questions and may be wary of the real purpose of the phone call.

FOCUS GROUP This is the most common form of research when a company needs to know all about consumers’ opinions and it is widely used for both services and products. The discussion among a group of about 6-12 people has to be led by a trained moderator who can guide the conversation from a general discussion to one that focuses on the specific topic. All members of the group must feel comfortable and be given a chance to speak as the interaction and exchange of ideas, opinions and attitudes are fundamental.

CONSUMER PANEL A consumer panel is made up of a selected group of consumers from a specific market sector who give their opinions on a particular product or service. Consumer panels are often used to test a product before a launch. The same people are often used on a continuous basis and they can give their feedback in person or in the form of written comments.

In order to obtain an unambiguous outcome, it is best to have a questionnaire where the recipient ticks boxes rather than giving long answers. In this way it is easier and faster to complete and will also allow direct comparability of the data.

MORE ABOUT... In order to encourage people to take part in market research, whether it is a questionnaire or a focus group, companies usually oﬀer some kind of incentive, such as the chance to win a prize or money-oﬀ vouchers to be used in their store or for their products.

PRODUCT TEST This form of research is particularly used in the consumer markets. The manufacturer selects a group of potential buyers and offers a sample for people to use, on agreement that they report back their findings. This could be done over a period of time while using the product at home or just on one day, for example food tasting outside a supermarket.

Read the text and answer these questions. 1 What are the advantages and disadvantages of questionnaires? 2 What are screening questions and why are they used in interviews? 3 What are the disadvantages of street interviews?

4 In what way can the order of questions in interviews prejudice the answers? 5 What is the difference between a focus group and a consumer panel? 6 How are product tests carried out?

Marketing and Advertising | MO DULE 3

ACTIVITIES

Reading comprehension

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WARM UP

Digital marketing – the promotion of products, brands and services using electronic media – has dramatically changed the face of marketing. It is relatively cheap, compared to traditional media, and so is the ideal tool for any business, be it the largest multinational or a start-up fashion designer selling T-shirts from a basement. It provides vast quantities of data on things like a user’s shopping habits, interests and physical movements through the use of cookies, tracking codes and data collection on apps so that a company can target a specific audience. Digital marketers can monitor and analyse this data – practically in real time – and can adjust marketing campaigns accordingly. Digital marketing techniques include internet-based activities like search engine optimisation and digital display advertising on websites, games consoles with in-game advertising, digital television, social media marketing and mobile phone marketing. Growth of the latter two areas is predicted to continue at an incredible rate thanks to the constant introduction of new software and hardware. Social media marketing allows a company to follow things like Twitter and Facebook comments to find out what people think about a product or a service, and also to develop a fan base of followers. This means they can then accurately aim advertising at an extremely specific target. For example, one American car manufacturer sent ads to anyone who had expressed an interest in a competitor’s car. Mobile marketing, given the huge number of smartphones and other hand-held devices and the amount of time users spend on them, is a great means of reaching a massive but, at the same time, targeted audience. This can be through mobile web access, but also SMS, MMS, push notifications, QR codes, mobile apps and location-based marketing. However, there are also some obstacles that might limit the success of digital marketing. There is so much competition from businesses of all kinds and sizes that it is becoming much more difficult to capture the attention of the user. The increase in the number of digital channels and devices, which often use different interfaces and protocols and which are used for different purposes by consumers, has caused problems for the creation of uniform campaigns. Lastly, it can be extremely problematic for a company to use correctly and effectively the sheer amount of data available from all these digital sources.

What digital marketing techniques have you heard of?

ACTIVITIES

Digital marketing

Reading comprehension 2

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7 8

Digital marketing costs much more than traditional marketing. It is only useful for large multinationals. Collecting data through digital channels is considered to be an invasion of privacy. Social media and mobile marketing are expected to expand. Companies use social media to know people’s opinions and ideas. It is not possible to target a precise audience with mobile marketing. Increased competition can reduce the success of digital marketing. Consumers want to use devices that limit the amount of digital marketing they receive.

Vocabulary 3

Find the verbs in the text for these deﬁnitions. 1 to select as an object of attention _____________ 2 to watch something carefully and record the results _____________ 3 to look and think about something in order to understand it _____________

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MO DULE 3 | BUSINESS in THEORY

4 to change something slightly _____________ 5 to learn or discover a fact _____________ 6 to restrict or get in the way _____________

Mobile Marketing Trends

he internet is the driving force in global advertising growth, reaching over 50% of the total advertising spend in many markets for the ﬁrst time. And it is mobile marketing that has the lion’s share with a predicted $165.7 billion total for 2019. Some of the current trends in mobile marketing, according to sector experts, are location-based marketing, wearables and linking mobiles and desktops. Location-based marketing is where a company targets a person based on their location, identiﬁed thanks to the technology in smartphones with an accuracy of 10 metres. Walmart, the American retailer, has used geo-fencing to offer discounts to people who are near their stores at a particular time of day. Other stores are using beacons that use Bluetooth to communicate with shoppers’ smartphones, for example giving information about new products or offering coupons as the shoppers move through different parts of the store. The downside of this technology is that smartphone users have to opt in to the service or download an app, have Bluetooth activated and share their location, which naturally gives rise to issues of privacy and security. The growth in interest in the wearable device market, such as Apple’s iWatch, does not so much come from trying to

engage with the wearer on the screen – they are generally too small – but with the possibility of collecting data through apps on the devices and then using this for targeted ads on the wearer’s smartphone. The ﬁnal trend is ‘cross-device targeting’ which, as the name suggests, is tracking and targeting a consumer across all his or her devices – desktop, laptop, smartphone – with a single, uniform campaign, particularly useful for increasing brand awareness. This is becoming easier thanks to developers overcoming the difﬁculties created by the different technology used for mobile and desktop advertising.

wearables riferito alla tecnologia indossabile beacons segnalatori opt in decidere di accedere

Geo-fencing is technology which creates a virtual fence around a speciﬁc geographic area. The people in that area, if they have opted in to the service, receive messages, coupons or other promotional material on their mobile.

Read the article and answer the questions. 1 How much was mobile marketing predicted to be worth in 2019? 2 How did Walmart use geo-fencing? 3 How are beacons used in stores?

4 What can be a disadvantage of location-based marketing? 5 Why is the wearable device market of interest to mobile marketers? 6 How can cross-device targeting help a company?

ACTIVITIES

Reading comprehension

Speaking 5

Discuss these questions. 1 2 3 4

What is your opinion of mobile marketing – a good idea or an annoying interruption? Are techniques like location-based marketing used in shops in your area? Do/Would you opt in to these kinds of services? Why/Why not? Do you think mobile marketing will take over from other forms of advertising in the future?

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breaches violazioni

Security and privacy

In spite of the efforts from companies and governments to secure their digital data, 2019 saw some of the biggest data breaches and high profile cyberattacks in recent times. Companies like Capitol One, First American Corp and Facebook, as well as government and healthcare organisations, suffered enormous data leaks, with personal data like emails and passwords, as well as more sensitive medical data hacked. As a result, individuals have become more concerned about how protected their data is in the hands of these companies, while the companies themselves are worried about further leaks of sensitive data and the subsequent damage to their business and image. A recent study has revealed just how insecure Americans feel about the security of their data. Confidence in government agencies being able to keep records private and secure was actually lower than that in credit card companies, 6% and 9% respectively, while more understandably 69% of those interviewed were not confident that social media could keep data secure and private. Notwithstanding this, only one in ten Americans has actually adopted any technical steps to try to protect their data. Companies, on the other hand, have taken these threats to their security very seriously and the technology to protect digital data is advancing rapidly. Previously, for example, encrypted email was a long process as users had to MORE ABOUT... exchange encryption keys in order to be able to send and read The GDPR (General Data Protection Regulation), which came encrypted email. Today these processes have been simplified fully into force in the EU in May 2018, sets the guidelines for and the speed is the same as normal email. Businesses can the collection and processing of personal information from use VPNs so that employees can securely connect to the individuals in the EU. One year after its implementation, an companyâ&#x20AC;&#x2122;s system from any location. SSL, firewalls, and European Commission report noted that most member states had set up the necessary legal framework to comply with automatic account blocks are other features used to protect the system, businesses had developed a compliance culture data. Constant monitoring of the systems, running dummy and citizens had become more aware of their rights. When attacks to test their security level, and preparing a rapid visiting a website from the EU, wherever the website is based response in the event a real attack should happen are all and even if they are not speciďŹ cally marketing goods or services to EU residents, you must be notiďŹ ed of the data the good practice too. If even the companies that offer us online site collects and expressly consent to this, usually by clicking security products, like Kaspersky, have been attacked in the on an 'Agree' button where the website discloses it collects past, it really seems that that every company, and thus every cookies. person online, is, sooner or later, going to be at risk.

ACTIVITIES

A VPN is a Virtual Private Network which hides your IP address and can be used to protect personal identity and location.

Reading comprehension 1

Read the text and explain what these expressions refer to in the context of the text. 1 high-profile cyberattacks: These

widely reported in the news.

were attacks on well-known companies and their databases which were

2 damage to a company: ______________________________________________________________________ 3 public confidence: __________________________________________________________________________ 4 email encryption: ___________________________________________________________________________ 5 VPN: ______________________________________________________________________________________ 6 dummy attack: _____________________________________________________________________________ 7 GDPR: ___________________________________________________________________________________

Speaking 2

Discuss these questions in small groups. 1 How much personal and financial information about you do you think is stored digitally somewhere by different companies and websites? 2 Are people justified in feeling concerned about the security of this data? 3 What measures can individuals take to try to be more anonymous and safer online, e.g. alternative search engines, quality of passwords etc? 4 Do you think we are going to see more or fewer data breaches and attacks in the future? Why?

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MO DULE 3 | BUSINESS in THEORY

Unsolicited offers

WARM UP

A common form of marketing is the use of unsolicited letters, brochures, hand-outs or telephone calls and unsolicited electronic messages in your email inbox, on your mobile phone, on social networks, blogs and forums. They are distributed broadly and can require no marketing research other than (email) addresses or phone numbers. Mailing lists for these purposes can be purchased from specialised companies. The aim of these unsolicited offers is to introduce goods or services and they are often accompanied by promotional offers in the form of discounts. They are almost always created to motivate the recipient to do something. It could be to fill out a form, visit a store, make a purchase, visit a website, or to place a telephone call. While many of us may consider these techniques irritating â&#x20AC;&#x201C; interrupting us as we are about to sit down to dinner or filling up our inboxes with spam â&#x20AC;&#x201C; enough people obviously take up the various offers to make it a worthwhile and cost-effective marketing method for companies.

BROCHURE A brightly-coloured folded sheet or small booklet with information about the product(s) or services, distributed by hand to homes or at events like exhibitions.

Have you ever received telephone calls, emails or letters promoting a product or a service? Do you just ignore them or do you take note?

unsolicited non richieste

HAND-OUT OR FLIER Similar in style to a brochure, but on a single small sheet, handed out anonymously at events or on the street.

TELEMARKETING

UNSOLICITED LETTER/EMAIL Normally written with strong persuasive language to encourage a particular action by the recipient. They can be sent to specific named individuals or in mass to unknown recipients. They are often called junk mail or spam.

Phone calls made by company staff, or from a call centre, to businesses or private individuals in an attempt to promote and sell products or services. This technique can also be used by market research companies to collect data, political parties to seek support and charity organisations for donations. The recipients are often randomly selected from a database or phone directory. Alternatively, they can be carefully selected from market studies or data gathered on the Internet on the basis of their demographic, geographic, psychographic and behavioural characteristics. Watch the video: Cold calls

Read the text and answer these questions. 1 Why are these types of marketing called unsolicited offers? 2 Where do companies get the details of potential customers? 3 What is the purpose of an unsolicited offer?

4 What reaction do a lot of people have to unsolicited offers? 5 What advantages does this kind of technique have for companies? 6 Can you think of any disadvantages?

ACTIVITIES

Reading comprehension 2

Written exam practice 3

ES There are many marketing tools available for a company to identify and analyse the needs of its customers. Consider the beneďŹ ts and possible drawbacks of two of these marketing tools for a small, family-run company and for a company with an international brand. Write an essay of about 200 words.

Marketing and Advertising | MO DULE 3

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Advertising WARM UP

How many advertisements do you come into contact with in a day? Where are they? How many of them do you remember well?

catchy facile da ricordare stand out distinguersi

The purpose of advertising

Working in advertising

Advertising is perhaps the most important aspect of promotion, the fourth P in the marketing mix, and is used to persuade, inform and remind. It can persuade consumers to buy or use an existing product or service; it can inform them about changes within a company or a new product or service; it can remind them about a company, thus improving its image and building brand identity. Companies generally divide their advertising into two distinct areas: • Business-to-consumer (B2C) advertising: to persuade the general public to buy the company’s products or use its services. • Business-to-business (B2B) advertising: directed at other businesses to inform them about the company and to promote its products and services.

ACTIVITIES

The first thing an advertisement has to do is to grab our attention and it can achieve this in a variety of ways: a slogan, a striking image, a catchy jingle or a memorable headline. The second thing is to provide more information about the product or service. In a print ad, this will be the body of the ad. The purpose is to create feelings of belief, trust and desire. The third aspect is to make sure that potential customers can remember the company or product and to reinforce the brand identity, for example with the logo. The final element, the call to action, may be implicit within the ad or specified explicitly, such as inviting viewers to click on a website or visit a store. Since we are surrounded by advertising in all aspects of our lives, we are perhaps becoming more resistant and less open to it. Therefore agencies and ad designers have to try to make their ad stand out in a crowd and new advertising models are continuously developed and new media options explored so as to continue to reach the target audience.

Reading comprehension 2

Read the text and answer these questions. 1 What is the purpose of advertising? 2 What is the difference between B2B and B2C advertising? 3 What are the five things that an advert should do?

4 How can an advert catch our attention? 5 How does an advert try to make us remember a product or company? 6 Do you believe that consumers today are more resistant to advertising? Why/Why not?

Vocabulary 3

Match these elements of an advert to the correct deﬁnition. 1 2 3 4 5 6

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slogan image jingle headline body logo

a b c d e f

the photograph, pictures or other visual elements in an advert the main text of a print ad, with information on the product or service a short, well thought-out sentence, usually the first part of a print ad to be read the unique symbol used by a company or brand a memorable tune or piece of music, mostly used in radio commercials a short, catchy and distinctive phrase to describe a product or a brand

MO DULE 3 | BUSINESS in THEORY

Effective advertising

Ethnic advertising

When creating an advert and defining an advertising campaign, most businesses use the services of an advertising agency. Here specialists follow all aspects from the definition of the USP (Unique Selling Proposition) and the creation of the ad, to the selection of the advertising media and the length and timing of the campaign. When creating an ad, agencies and ad designers can try to achieve the objectives of a successful advert – that it should be noticed, read, believed, remembered and acted upon – in different ways. They can use a traditional approach or try to be more original. Both of these have advantages as well as potential drawbacks. Traditional language, images and associations have been tried and tested and are known to work. On the other hand, random or unconnected images, bizarre headlines or invented words can be considered groundbreaking and modern. The downsides are that the first approach may just seem boring and over-used; the second could be too obscure to be properly understood or to catch on. Humour is another common technique and it is often considered the most successful by consumers and agencies alike, as a funny or entertaining ad is more likely to be remembered. The use of famous people as testimonials can also be considered. A famous actor, sportsperson or model has a very powerful personal image and can bring this to the advert. However, it can be an extremely expensive option and public opinion about who is ‘in’ or cool can change very fast. Gossip and scandals surrounding a celebrity also risk damaging the company’s image.

WARM UP

Think of a TV and a print ad that you have seen recently. Write down what you can remember about the two ads. Then compare your notes with a partner. Who remembered the most details? What were they? Why do you think you remembered those particular aspects?

groundbreaking innovativi

ACTIVITIES

Reading comprehension B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6

Advertising agencies only follow big clients. Advertising agencies’ services are limited to the creative aspect of an ad. A traditional approach to creating an ad does not have any disadvantages. An original ad may contain strange or made-up words. Both consumers and agencies believe humorous ads to be successful. The use of famous people in ad campaigns is in decline.

Listening 3

B Listen to this manager from an advertising agency talking about creating an effective ad and complete the notes. 1.21

Step Step Step Step Step

1 2 3 4 5

– – – – –

have a clear _________ so your message is focused. understand the _________ of your ad to make it appropriate and produce results. show how your product or service will _________ a consumer. know your USP to define your _________ and use it in your advert. _________ with the customer, be motivating and encouraging but always believable.

Speaking 4

Go back to the notes you made about the ads for exercise 1 and discuss these questions in pairs. 1 Were the ads you remembered more traditional or innovative? In what ways? 2 Did the ads use any humour? If so, do you think it was entertaining or funny?

3 Did the ads feature a famous person? Who? What ideas do you associate with him/her? 4 In general, which of the above-mentioned techniques do you prefer in an ad? Why?

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WARM UP

What kind of influence do you think these events had on advertising? • the invention of newspapers • the Industrial Revolution • World War I • the invention of television • the Internet

The history of advertising A

Over time, advertising has had to respond to changes in cultural context, business demands and technology. While word-of-mouth advertising has probably existed since man first began to trade and sell goods and services, the forms of advertising we know today came about thanks to the development of the printing press and the expansion of newspapers. Paid advertisements started appearing in newspapers in the 17th century. They were quite simple, with lots of informative rather than persuasive text, and were used to announce things like the publication of a new book or the performance of a play, as well as for personal ads like ‘lost and found’. B

With the Industrial Revolution manufacturers were able to produce more goods in less time and were no longer restricted to local markets. They needed to persuade consumers all over the country – and sometimes in other parts of the world – about the benefits of their products compared to those of their competitors. Newspapers, which had become cheaper and more widely available, were the perfect way to reach this mass market of potential customers. These first advertisements just had simple descriptions of the products, with the price. By the mid-19th century it was possible to add illustrations. The language changed too and became more persuasive. And by the late 19th century, as manufacturers faced increased competition and began to understand the importance of advertising in getting their products known and sold, the first advertising agencies were set up. They offered the services of illustrators and copywriters to produce specifically designed adverts. They began to research the company and product, as well as the target market, and also started to monitor sales in relation to advertising campaigns. C

Posters and outdoor advertising were more common in Europe than in the USA, but with the outbreak of World War I many countries started to use posters as propaganda – a way to enforce government policies and to get men to enlist to fight against the enemy. These posters often used psychological manipulation to frighten or shame the audience. With cinema and radio, there were new ways for advertising to reach a mass audience and the idea of creating a need in the consumer began to dominate advertising in the 1920s. The Great Depression negatively affected advertising spend, so advertising got tougher. It started to use key ideas such as the desire to belong, subconscious fears and sex appeal, marketing products as necessities rather than luxuries.

ACTIVITIES

Reading comprehension 2

Quickly read the text on these pages and match these titles to the correct paragraphs. 1 Ad men 2 Propaganda and persuasion

3 Newspaper advertising 4 The digital age

Read the text again and answer these questions. 1 What were newspaper ads like in the 17th century? 2 How did newspaper ads change during the 19th century? 3 What services did the first advertising agencies offer their clients? 4 What was often the subject of advertising during World War I?

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5 The Industrial Revolution

MO DULE 3 | BUSINESS in THEORY

5 How did advertising change in the 1920s and 30s? 6 What led to an increase in advertising in the 1950s? 7 What was the importance of Madison Avenue to the advertising industry? 8 What happened to advertising expenditure because of digital media?

Post-war afﬂuence, a boom in consumer spending and the perfect way to reach a mass audience – television – all meant an increase in advertising in the 1950s. At first companies sponsored, and even produced, TV programmes, then television started to offer the commercial breaks we still have today between programmes. Madison Avenue in New York became the centre of the US advertising business, and working in advertising was a well-paid and powerful profession, particularly for men. David Ogilvy, for example, set up a world-class advertising agency and introduced many ideas which are still part of advertising practice today. The same period, however, also saw Vance Packard accuse the advertising industry of using hidden techniques to manipulate and brainwash the public.

The book The Hidden Persuaders by Vance Packard was published in 1957. It explores the theme of psychological manipulation and subliminal messages in advertising to inﬂuence the public, create a desire and compel consumers to buy products that they do not want or need. It questions the morality of such techniques and also looks at their use in the world of politics.

As the twentieth century started to near its end, the competition in advertising became fiercer, with bigger and bigger agencies dealing with larger and larger clients, budgets and markets. The arrival of the Internet and World Wide Web, with endless opportunities for pop up and banner advertising, caused a big shake up in the advertising world, as did targeted ads, social marketing and viral ad campaigns. A lot of advertising spend moved from traditional media to digital media, in order to keep up with the changes in business and consumer demand.

ACTIVITIES

Speaking – Critical thinking Choose one of these statements to support, then have a class debate.

Consumers are able to make their own decisions and are not influenced by advertising. Think about: • the amount of advertising we see/hear every day; • financial investment in advertising; • today’s consumer society; • the difference between a real need and a want;

Advertising brainwashes people into buying things they do not want or need. • rational, independent decision making; • following trends and being part of a group; • advertising aimed at children.

Internet research 5

Find out about an international or national logo, slogan or advertising campaign that has stood the test of time. Write a short report answering these questions. • • • • •

Who created it? What is it like? How long has it been used? How much has it changed over the years? Why do you think it continues to be successful?

Michelin created their famous icon in 1898.

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Share of global ad spend by medium (%) 2018

Advertising media

2021

Newspapers

The choice of the media for an advertising campaign depends on several factors, including: • size, nature and location of the target market; • the product or service to be promoted; • what proportion of the target audience will be exposed to the ad; • the cost.

Magazines

3,2

4,5

Television

26,5

Radio Cinema

30,8

5,8 5,3 0,7 0,9 6,5 6,5

Out-of-home

23,4

Internet display

16,3

Internet paid search Internet classified

29,6

18,1

4 3,9

Source: Zenith

TV Press The press has a leading role in advertising campaigns. Printed adverts have the advantage that they can be kept, are often seen repeatedly and can contain more information or details than a TV ad. Their visual impact is still great even without sound or movement. Depending on the target, in an ad campaign it is possible to include international, national and regional newspapers (often a specific section like business, sport or fashion) and general interest or special interest magazines (e.g. computer, sport, hobbies). Naturally, a full colour ad in a glossy magazine is more expensive, and reaches a larger audience, than a black and white ad at the back of a local newspaper.

MORE ABOUT...

ACTIVITIES

In order to promote their services or products, B2B advertisers use the trade press – magazines and other publications focusing on speciﬁc trades or industries – in order to be able to reach the correct audience and decision makers in a cost-efficient manner.

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This is still one of the most popular choices given its high impact and wide national reach. It is effective for creating brand awareness and selling consumer products. However with the large number of satellite and cable TV channels now available, it is no longer sufficient to advertise just on the top three or four networks, but it is essential to choose the channel and programme with the specific demographic required. TV advertising is extremely expensive, especially for the prime time slots such as early evening or during sporting events, and similarly the investment needed to produce the ad itself is huge. Another downside to TV advertising is that new digital technology allows viewers to skip adverts during playback or viewing, or viewers may just take a break or channel hop during the commercial breaks.

Radio This is a cheaper alternative to TV advertising, both to purchase the airtime and to make the ad. It can be national or local but does not reach the same number of people as TV. The creation of the ad has to be carefully considered as it cannot rely on the impact of visual images.

Reading comprehension 1

Read the texts on these pages and complete this table. Advertising media press TV radio outdoor digital media

Advantages

Disadvantages

___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________

MO DULE 3 | BUSINESS in THEORY

Outdoor Outdoor advertising includes billboards, posters, street furniture and electric signs in public places such as the street, shopping centres, airports, stations and on public transport. Some are much more permanent and have become almost part of the background, while others are changed more frequently, such as on public transport, to maintain impact. The target is the general public, although the location, for example in a football stadium or near a school, can target a more specific market segment.

Digital media The most rapidly growing sector, Internet, offers targeted advertising worldwide 24/7 with banners, pop-up ads, and pay per click advertising, as well as one-to-one emails. Digital advertising is relatively inexpensive, can use sound, visuals and motion to create impact and it is easy to update and evaluate the success rate. A disadvantage is that these ads are very easy for users to ignore while surfing and to delete from their inbox. With social media and apps, advertisers are able to form a more direct contact with consumers, especially young people, creating a global community around a brand or product with consequent positive effects on sales and brand identity. Another advantage of social media is how swiftly messages can be spread. Viral ads , for example, can be posted on YouTube or Facebook where they are noticed by net surfers and shared immediately, quickly reaching millions of hits.

MORE ABOUT... There are various organisations, such as the Advertising Standards Authority (ASA) in the UK, which regulate all forms of advertising and check advertisers’ compliance with the rules. For example, there are certain products like tobacco and alcohol which cannot be advertised close to schools.

A viral ad relies on internet users passing on messages which then spread rapidly across the web, much as a computer virus would.

It is essential to find the right media mix in order to be sure that the campaign is as successful as possible and the advertising budget is well spent. The incredible growth of digital media and its huge potential means that companies need to find the right mix of traditional and digital media to stay ahead of the competition and keep in touch with consumers. In conclusion, if a consumer is engaged with an ad, he or she is more likely to buy the product or service.

ACTIVITIES

Vocabulary Which advertising media do these terms refer to? Now write a deﬁnition for each term. 1 2 3 4 5 6 7 8

prime time slot channel hopping glossy magazine trade press billboard street furniture banner pop-up ad

space in a TV programme during early evening or during sporting events

________ ________ ________ ________ ________ ________ ________

_____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________

Speaking – Critical thinking 3

In small groups, discuss which media or mix of media would be most appropriate to advertise these products and services. • a shampoo available in supermarkets • a local repair service for electrical appliances • a website selling children’s toys

• a low-cost dental surgery in your town • cruise holidays in the Caribbean • an energy drink

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Promotion WARM UP

What other forms of promotion can a company take part in?

Product placement and sponsorship PRODUCT PLACEMENT is when a company makes an agreement with the producers of a film,

music video or TV programme and gives them examples of their products to include in their production. It costs a lot of money but can be advantageous for both the advertiser and the production company. The advertiser has the benefit of its product being associated with a particular actor in a film, for example, or with a trendy TV programme which attracts a huge Mission: Promotion Possible audience. The film or TV producers can use the money Unlike TV, films have been using product placement for many to finance their ventures. The main disadvantage is years and action and spy films seem to be among the most probably for the viewer. While a lot of product placement popular genres. These films have global audiences and therefore can go almost unnoticed, when it is taken to the extreme are the perfect vehicles for global brands, mostly high-tech, luxury and car brands. James Bond in the 007 series of films and becomes so obvious that it actually interrupts the has mainly driven an Aston Martin since Goldfinger in 1964, action or programme, it is as annoying as an actual though occasionally has changed to a BMW and Range Rover commercial break. It is in fact due to the worry over too. He recently has been wearing Omega watches and N Peal editorial independence and programmes being distorted cashmere jumpers. Ethan Hunt in the Mission: Impossible and becoming vehicles for product placement that the films has used BMWs, both practice has only been allowed on British television cars and motorbikes, worn programmes since 2011. Oakley sunglasses and used Apple products. The Fast and Furious franchise of films SPONSORSHIP is another form of promotion where a naturally has featured many company provides money or other kinds of resources to car manufacturers, including an event, activity or organisation. It is also possible to Dodge, Chevrolet, Ford and sponsor TV programmes. This is done by paying a certain Mercedes Benz, as well as amount for a company name to appear in a short clip Corona beer and footwear and before the programme begins and at the end, rather than clothing brand Under Armor. for its products to be placed within the programme itself.

ACTIVITIES

Reading comprehension 2

Read the texts and answer these questions. 1 What is product placement? 2 What are the benefits of product placement for the advertiser? 3 What is the advantage for production companies? 4 Why was product placement not introduced until 2011 on British TV?

5 Why are action and spy films often chosen for product placement? 6 What kinds of brands want to place their products in these films? 7 What is sponsorship? 8 How does the sponsorship of a TV programme differ from product placement in a TV programme?

Listening 3

1.22

B Listen to this explanation of the different kinds of sponsorship and complete these notes. Sports sponsorship: TV and radio sponsorship: Arts sponsorship: Educational sponsorship:

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Events are seen (1) _________ and on TV by many people. Example: (2) _________ in the UK and Europe. (3) _________ channels offer more possibilities. Example: (4) _________ and dramas. Considered in line with companies (5) _________ identity or activity. Example: shows, exhibitions, concerts. Sponsor (6) _________ or provide equipment for schools.

Trade fairs Participation in exhibitions and trade fairs is an important publicity measure to promote goods and services on the market. In only 2-4 days at a trade show a company may find more customers, partners and resellers than over an entire year of standard methods. Attending trade shows not only helps make numerous new contacts but also helps businesses stay updated on industry trends and prepare for the future. Businesses also need to keep an eye on the competition and trade shows are perfect for checking out what competitors are up to. Some trade fairs are only open to trade visitors, that is companies and professionals in the sector, as well as the press, while others are also open to the general public. The types of trade fairs cover just about every business sector from architecture, organic food and green technology to telecommunications, IT, and oil and gas. Thanks to all the associated businesses and services such as accommodation, food, and stand construction or displays, trade fairs constitute an important form of income for the cities where major fairgrounds are situated. MAJOR TRADE FAIR CENTRES IN THE WORLD Ground FieraMilano Hanover fairground Frankfurt Trade Fair Koelnmesse Fira de Barcelona Paris Expo Las Vegas Convention Center McCormick Place Tokyo Big Sight China Import and Export Complex

City Milan Hanover Frankfurt Cologne Barcelona Paris Nevada Chicago Toyko Guangzhou

Key Trade Fairs Salone del Mobile, EICMA Hannover Messe Frankfurt Book Show, Automechanika Gamescom, Art Cologne Mobile World Congress Paris Motor Show International Consumer Electronics Show International Home and Housewares Show, Chicago Auto Show Tokyo Auto Show Canton Fair

ACTIVITIES

Reading comprehension B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7

Trade shows are another form of promotion for a company. Trade shows are particularly useful for the consumer goods industry. They offer the opportunity to see what is happening in a particular sector or industry. Exhibitors can see what their competitors are doing. All trade shows are open to the public. Trade fairs also offer business opportunities to local companies. All big cities in the world have a trade fair ground.

Internet research 2

Go online and ﬁnd out about a fair or exhibition centre in your country. Prepare a short oral presentation about it, including these points: • the most important exhibitions/trade fairs held; • whether they are open to the public or trade;

• the number of visitors; • the facilities available.

Written exam practice 3

ES What makes an advertisement effective? Why is the choice of media or promotional activity so important? Write an essay (about 200 words) to answer these questions, supporting your point of view with examples.

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3 WARM UP

Look at the questionnaire. Why are the questions with options to tick rather than open questions?

BUSINESS in PRACTICE

Studying the market Internet marketing questionnaires

ACTIVITIES

Reading comprehension 2

Look at the questionnaire and answer these questions. 1 Who is the questionnaire aimed at? 2 What is the purpose of the questionnaire?

3 How might the company use the information from question 1?

Now ďŹ ll in the questionnaire based on this situation: A friend of yours suggested you buy a sweatshirt from a website that offers a wide range of goods. The site was easy to navigate with a cool design, and offered a wide selection of shipping options at good prices. You bought the sweatshirt at a really good price but you were not at all satisfied with your purchase. The product description was misleading and the order took seven working days longer than promised.

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Focus groups Focus groups can be an excellent method of collecting qualitative data, however there are some potential drawbacks to take into consideration. The participants are free to express their views and opinions, but – due to human nature – they might adjust what they say in order to fit in better or say what they think is expected of them. If the setting is too formal or laboratory-like, it could be off-putting. The results may also be inﬂuenced by the personal opinion of the moderator or researcher.

ACTIVITIES

Listening B Listen to ﬁve extracts from a focus group discussing mobile phone service providers. Match each speaker to what they are talking about. There are three extra options you do not need. 1.23

a b c d e f g h

poor internet access the quality of customer service the transparency of contracts the choice of mobile phone models the importance of staying up-to-date the possibility to make phone calls anywhere better deals for existing customers improved services for businesses

Speaker 1 Speaker 2 Speaker 3 Speaker 4 Speaker 5

Functions 2

Look at this extract from a focus group discussing different kinds of restaurants. Complete the conversation using the expressions in the box. More than one answer is possible. Moderator: Rachel: Robert: Moderator: Robert:

Anne: Rachel: Robert: Anne: Moderator: Tom:

(1) ________________ about the atmosphere in these kinds of restaurants? (2) ________________ the atmosphere in a steak house is great. I like that ‘American’ vibe. (3) ________________, but I feel that sometimes they’re not really very authentic. (4) ________________ the food? (5) ________________ the choice is wider in a steak house, but (6) ________________ an article I read they use a lot of frozen food. A pizzeria offers much fresher food. (7) ________________. It’s healthier too. (8) ________________. That’s the biggest problem with fast food places. Everything’s fried. (9) ________________, but they are cheap. Yes. (10) ________________. And price is important. (11) ________________? (12) ________________. Price isn’t important at all. Quality should be the first thing to look at.

I think… In my opinion, According to… You’re right! That’s true! I think so too. I absolutely agree. I agree up to a point. I see what you mean. I don’t agree. I have to disagree. I totally disagree. Phraseology p. 128

Speaking 3

What’s your opinion? What about…? What do you think…?

Work in small groups. You are part of a focus group talking about tablets. Choose one of the group to be the moderator. Now share your opinions, ideas and thoughts about tablets. Use these points to help you. • design • size

• how easy it is to use • fundamental features

• optional features • things you like/dislike

• quality • price

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Promotional correspondence WARM UP What is the aim of an unsolicited letter?

ACTIVITIES

Unsolicited letters, emails and phone calls

Reading comprehension 2

Read the letter and answer these questions. 1 What are the products or services offered? 2 What is the main offer? 3 What further offer is there if you reply?

Writing 3

paraphernalia attrezzatura refurbished rinnovate

B Write an unsolicited letter or email (60-80 words). You are the Sales Manager of Pet Supplies Warehouse Ltd. Your company is a large operation that caters for all kinds of pets, from dogs and cats to reptiles and fish. You sell pet food, snacks, cages and beds, grooming equipment, toys and accessories at very competitive rates. Write an unsolicited letter or email to potential customers. Explain the benefits of buying from your company, invite them to visit your website and give all your contact details.

4 How many times are their contact details and company name mentioned? Why do you think that is?

Writing tips for unsolicited offers • Grab the reader’s attention with a strong opening statement, emphasising a discount or special offer for example. • Make the reader feel special and personally selected, using expressions such as only for you, specially selected, reserved and special customer. • Use imperatives and short sentences throughout the text so that the message is clear and effective. • Underline the advantages/special offers/benefits that you offer by repeating the information in different ways. • Mention your company name/website/address several times so that the reader will remember the details. • Use lots of different fonts, capitals, bold type and exclamation marks to create an eye-catching letter. Phraseology p. 128

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MO DULE 3 | BUSINESS in PRACTICE

B Mr Price from Pure Water calls Mrs O’Leary to promote his company’s home water treatment system. Listen to their phone conversation and choose the correct option. 1.24

1 Pure Water is offering… A a free trial of its product. B seven free bottles of water to every household. C seven families the chance to win its product. 2 What does Mr Price think of bottled water? A It does not taste very good. B It is good quality. C It is expensive and bad for the environment. 3 Mr Price claims that his water treatment system… A will save Mrs O’Leary money. B is easy to use. C will make Mrs O’Leary happier.

ACTIVITIES

Listening 4 Why does Mr Price want an appointment? A to see Mrs O’Leary’s home and family B to test the water in Mrs O’Leary’s home C to show his product 5 Mrs O’Leary’s husband… A works for the same company as Mr Price. B works for a water company. C does not like telemarketers.

Translate these sentences and expressions and use them to complete the dialogue. a ha mai notato b abbiamo un’offerta speciale riservata a Lei c non sono convinta

Mediating Texts

d lo compro spesso e soltanto una domanda ancora f non mi interessa

Telemarketer: Good morning. My name is June Robbins and I’m calling from Carlo’s. I’m pleased to tell you that (1) ________________. Customer: What kind of offer? Telemarketer: Do you buy olive oil? Customer: Well, yes. (2) ________________. Telemarketer: We offer a wonderful extra virgin olive oil delivered to your door directly from Italy. Customer: I normally buy it in the supermarket. (3) ________________, thank you. Telemarketer: (4) ________________. How much do you normally pay? Customer: I can’t really remember. Telemarketer: (5) ________________ that cheaper olive oils don’t taste so good? Well, we can guarantee a superior product at a fraction of the supermarket prices. And you only need to purchase 8 bottles a month to be able to... Customer: Sorry, (6) ________________ by your offer. Goodbye.

Speaking 6

Professional competences

Phraseology p. 129

In pairs, practise this telemarketing phone call. Remember to swap roles.

Telemarketer: You work for Frosty Foods, a company which sells frozen foods. You offer a wide selection of products, like vegetables, seafood, pizza, ready-made meals and ice cream. Clients can order by phone or Internet and delivery direct to the customer’s door is within 24 hours, at an agreed time.

Customer: Use this information to decide how to respond to the telemarketing call you receive from Frosty Foods. You live alone in a small ﬂat, with a tiny kitchen. You do not like cooking very much and prefer to eat out or get a take-away. Your nearest supermarket is 10 minutes away on foot. You have got internet access.

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WARM UP

What kind of situation might a company need to inform all its customers about?

mail-merge stampa unione

Circular letters A circular letter or email is used when a company needs to inform all its customers about a change or important event happening in the company. This could be a new address, a change in the management, the opening of a new factory, store or e-commerce website. As they are sent to all the customers, new and old, on the company’s database, circular letters also offer a marketing opportunity, a way of reminding clients of the company’s services, products or benefits. Circular letters can also be internal, sent to all staff within a company to inform them, for example, of changes in the organisational structure or various administrative matters.

• Use mail merge systems to personalise each letter with the customer’s name. Alternatively use Dear Valued Customer. • Only introduce the company if writing to a new customer. Otherwise just a reminder of your experience, quality, years of expertise or strengths is sufficient. • The first line should attract the readers’ attention. • Present the news, product or service, pointing out the main aspects, but be brief.

HIGGONSON & CO. 21 West Way Farnborough GU14 9LP Dear Valued Customer, Due to the large increase in the volume of our trade with Germany, we have decided to open a branch in Frankfurt. Mr Dieter Beckermann, who has worked with us for the last 7 years, has been appointed as General Manager. This new branch will open on 1st September and from that date all orders and enquiries should be sent to: Mr Dieter Beckermann Higgonson & Co. Stiftstraße 25 D – 60313 Frankfurt am Main Tel: (+49) 69 0000123 Fax: (+49) 69 000012 We take this opportunity to express our thanks for your custom in the past and we are sure that this new branch will lead to even higher standards in the service we provide. Yours faithfully,

Robin Wiley

ACTIVITIES

European Director

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Reading comprehension 2

Read the circular letter and answer these questions. 1 What is the purpose of the letter? 2 Who is Mr Dieter Beckermann?

MO DULE 3 | BUSINESS in PRACTICE

3 What should German customers do from 1st September? 4 What assurance does Mr Wiley give the customers?

ACTIVITIES

Vocabulary Complete the letter with the expressions from the box.

business relationship − customer service − recently appointed the coming month − valuable asset − with pleasure

Dear Mr Gibbons, It is (1) ________________________ that we inform you that we have (2) ________________________ Ms Ursula Grey as our sales representative for the South West region. She has worked in sales for over 10 years and I am sure she will be a (3) ________________________ to our company with her understanding of the sector and her excellent (4) ________________________ skills. She will contact you in (5) ________________________ to introduce herself and show you the new samples from our autumn/winter collection. We look forward to continuing our (6) ________________________ with you. Yours sincerely,

Marjorie O’Brien Phraseology 4

Match the two halves of the sentences. 1 2 3 4 5 6

We are pleased to announce that The steady growth of our business As our valued customer, This change in our sales team We will do our best It is with regret that

a b c d e f

to minimise any inconvenience during this time. will result in your orders being dealt with more promptly. has made it necessary to relocate to larger premises. we inform you of the retirement of our partner, Mr Guy Wood. you will be entitled to a 15% discount for the first week. our new store will be opening in Shanghai on 2nd February.

Writing 5

Write a circular letter to inform your customers of your new company address. Include the following points: • • • •

Phraseology p. 128

you will move on the 1st of next month; telephone, fax numbers and email addresses will not change; the move is due to the expansion of the company; apologise for any disruption to business during the move.

Write a circular letter to inform your customers of a new outlet you are opening soon. Give them the following information: • where the outlet is located; • the opening date and times; • the special offer or promotion reserved for them on that date.

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Analysing adverts WARM UP

Look at the logos on this page. Which of them do you recognise? What do you think makes a successful logo?

Features of an advert LOGO The logo is the immediately recognisable and distinct symbol which is associated with an organisation or a company. It is used in advertising, but is also seen on the company buildings, vehicles, stationery and products.

BRAND This is the name that identifies a particular product. IMAGE This is an extremely powerful element in all types of advertising, except radio which obviously relies on its auditory impact. An image is capable of creating a myriad of emotions – from making us cry to making us laugh, reﬂect and remember. Ads often make use of stereotypes as a shorthand way of communicating a set of meanings and gender stereotypes are perhaps the most common. Men are shown as practical, wearing executive suits and watches, being taller than women and are associated with heavy machinery and business decisions. Women are decorative, associated with kitchen equipment, domestic financial decisions and are often shown lying down on beds and ﬂoors. Given that a lot of our self-identity may stem from the images and messages in advertising, stereotyping however can be potentially harmful. LANGUAGE Whether it is written or spoken, language is essential to the success of L’Oreal’s global advertising slogan, for example, has changed over the years from Because I’m worth it, to Because you’re worth it.

MORE ABOUT...

ACTIVITIES

Some common words used in advertising are: suddenly, quick, hurry, now, amazing, sensational, miracle, easy, offer, bargain, challenge, improvement. Do you think these words are still eﬀective or have they lost their impact?

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an advert. Top copywriters are well-paid to come up with the next unforgettable slogan, the catchiest headline or persuasive – but not obvious – body copy or dialogue. As advertising is directly addressing a potential customer, one of the most used words is ‘you’ . Short, active words have a lot of impact and catch attention and verbs are often in the imperative form to encourage action. In outdoor advertising, for example a billboard, it is normal to have only one or two short sentences or slogans as people do not have enough time to stop and read the entire ad as they would with a magazine or a newspaper. Repetition helps reinforce the message. Other devices, such as alliteration, assonance, similes, metaphors, puns and word play are also common. However, humour must be used with caution, especially in an international campaign, as what is funny in one country might not be in another. Cultural references and foreign words can also be used, but within a carefully considered demographic target, otherwise the risk is to alienate those that do not understand the language or do not have the cultural background to understand the references.

Reading comprehension 2

Read the text and use your own words to complete these sentences. 1 A logo differs from a brand because… 2 Gender stereotypes are when men are portrayed as… and women as… 3 Stereotypes may be dangerous because…

MO DULE 3 | BUSINESS in PRACTICE

4 The word ‘you’ is used frequently in advertising because… 5 Repetition, alliteration and similes are examples of… 6 In advertising, … must all be used carefully.

Speaking Look at these pictures which show common images in advertising and answer these questions. 1 What feelings and associations do these images suggest? 2 What kind of products are they often used to advertise? 3 Are they effective or too over-used? 4 Do you think using this kind of image promotes stereotypes? Why/Why not? 5 Can using stereotypes in advertising cause offence? Why/Why not? 6 How do you think stereotypical images in advertising help or damage our view of gender in today’s society?

ACTIVITIES

Phraseology p. 129

MORE ABOUT... Attractiveness and sex appeal are often emphasised as part of the widely-believed, but ethically dubious, notion that ‘sex sells’.

Which of these slogans do you think are more effective/memorable? Why?

Writing 5

Look at these images and write a slogan and headline for a print advert to attract young people to this hotel. Compare your idea with the rest of the class and then vote on the best version.

absolutely astounding/fantastic/unique/incredible location a really adventurous/peaceful/lively/luxurious atmosphere Marketing and Advertising | MO DULE 3

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ACTIVITIES

Functions 6

Match these functions to the correct description. 1 ________________________________ This kind of ad probably appeals to professional people. People in the western world can identify with this ad. 2 ________________________________ It creates a feeling of peace and tranquillity. The atmosphere created is fun and light-hearted. The mood is quite dark and sombre. The main image conveys a sense of freedom.

Talking about the emotions − Talking about the features Talking about how an ad persuades − Talking about the target 3 ________________________________ The font highlights the strong personality of the testimonial. The colours consist of soft hues which are suitable for the romantic nature of the ad. It has a bold and aggressive colour scheme which immediately attracts your attention. The minimal language does not distract from the main message. 4 ________________________________ It makes you want to become part of a group. The ad does not actually get the message across very well. You associate the product with a positive ideal. It represents a personal ideal or goal and makes it seem obtainable.

Speaking 7

Look at the ads and discuss these questions. 1 What product/service is the advert promoting? 2 Who do you think the target audience is? 3 What images are used? What do they suggest? 4 What overall atmosphere does the ad create? How? 5 What colours are used? What ideas and feelings do they create? 6 How does the ad try to convince you to buy the product? 7 What devices are used in the headline/slogan/body? 8 Is there a lot of text/little text? What effect does it create?

In pairs, think of a recent TV commercial you can both remember and discuss these questions. 1 2 3 4 5 6

What was the ad promoting? Were there famous actors or testimonials? Was it a one-off ad or part of a series or storyline? What music was used? Was it part of a campaign you have also seen in print/online/outdoor or heard on the radio? What is your opinion of the overall ad and its effectiveness?

In small groups, discuss how these products are typically shown in TV commercials in your country and how interesting and effective you ﬁnd them.

chocolate bar − trainers − smartphone − energy drink − perfume − car insurance

Writing 10 Find an advert that you particularly like (print/outdoor/digital/TV). Write a short analysis of the features of the advert, saying why you like it and what makes it effective. If possible, include a copy/photo of the ad.

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Promotional activities WARM UP

Promotion at a fair

What do you think

If you work for a company that attends fairs and exhibitions, it might be necessary working at a fair or exhibition is for you to be part of the team on the stand, greeting and meeting potential business like? partners and clients or members of the public. Given the international nature of most fairs, it is likely you will do this in English or another foreign language. • Have a pleasant manner. • Smile and greet the visitor to the stand warmly. Whatever the size of the stand, it needs to • Be positive and have an enthusiastic tone of voice to create a rapport. have eye-catching displays, such as posters • Use a mixture of closed questions (for example ‘Are you interested in a new or screens, and promotional material like printer?’) and open questions (for example ‘What size office is the printer for?’) leaﬂets, brochures or gadgets to hand out. • Listen carefully so you can tailor what you say to the person’s needs. • Be fully knowledgeable about the product/service. The people working on the stand need to be • Where necessary, get contact details, such as a business card, to follow up the friendly and welcoming at all times. potential contact after the event.

ACTIVITIES

Reading comprehension Read the texts and answer these questions. 1 2 3 4 5

If you work at a stand on a fair, what duties could you have? Why is it important to know one or more foreign languages for this? How can you make your stand attractive to potential clients? Why do you think it is important to use a mixture of open and closed questions? Which tips do you think are the most important? Why?

Listening 3

1.25 Listen to two experts talking about how to be successful at a trade show. Decide if the following statements are True (T) or False (F).

T 1 2 3 4 5

Stands at trade fairs are often booked up very quickly. The location of your stand within the fair is not important. There is often a financial advantage if you book in advance. Networking is possibly the most important thing to do at a trade fair. There is no need for specific staff training for a trade fair.

Phraseology 4

Match the two halves of the sentences. 1 Which areas are 2 What’s your opinion 3 Would you like 4 Let me give you a leaﬂet 5 Can I have your card so 6 If you fill in this form with your details,

Speaking 5

a b c d e f

I can send you some more details? your customers most interested in? we’ll enter you into our competition. to take one of our brochures? on the trend for smart speakers? which explains our services.

Professional competences

In pairs, choose one of the options and act out the situation. Then swap roles.

Marketing Assistant: You are at a trade fair to promote your interior design/swimming pool company. Talk to the potential client. Trade Fair Visitor: You are at a trade fair. Talk to the person on the stand to find out more about the company and its services/products.

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3 Phraseology

BUSINESS LANGUAGE More business language practice

PCTO

Written communication CIRCULAR LETTERS Keeping customers informed

• The growth of our business has convinced us/made it necessary to move to/acquire new and larger premises. • We have recently opened a new shop/store/showroom at…/in… • Kindly/Please take note that our new address is/our new factory Street, opposite the station. will be situated at… • The new department/branch will be opened/will open on… • You may be interested to know that our factory has been • The new agency will be/has been entrusted to Mr/Mrs/Miss/Ms… extended.

You own a shop selling vinyl records and CDs. Write a short circular letter to your clients to inform them you now offer online sales. Invite them to visit your website to take advantage of your special offer. UNSOLICITED OFFERS Attract attention • We’d like to make you an exceptional oﬀer that you really can’t refuse. • We know that what our customers want is… • Have you ever thought about…? • We are writing to inform you about a very special oﬀer reserved for our best customers. • We want to help you save up to...%! Emphasise the product or offer • We’re delighted to tell you about our new… • It is our great pleasure to introduce our new range of… • This fantastic product is available for a limited period. • These computers have been specially designed for/to…

Translate these sentences. 1 2 3 4 5 6

• If you order these goods within the next … days, you will be able to benefit from an extra …% discount. • This offer is valid with effect from today to the end of next month. / Our special offer is valid only for orders received by … Suggest further steps • For more information call us at… / on... • You can find full details of all our products… • If you would like to know more about this product, please contact us at the address below. • Contact us promptly to place your order. • We know you will take advantage of this exceptional deal and look forward to receiving an order from you.

Mediating texts

Oral communication FOCUS GROUPS Asking for and giving an opinion

Agreeing/Disagreeing

• What do you think about…? • What’s your opinion of…? • I don’t think it’s/that’s a good idea. • In my opinion, it’s a good/not very good project. • Personally, I feel/think/believe it’s… • According to recent reports/the latest statistics/experts in this ﬁeld…

3 128

Work in small groups. You are part of a focus group organised by your local council on facilities for young people in your area. Discuss what facilities are available and how they could be improved.

MO DULE 3 | BUSINESS LANGUAGE

UNSOLICITED PHONE CALLS Telemarketer

Customer

• I’m pleased to tell you that you have been selected for… • I can give you a no-obligation demonstration… • Are you interested in saving money on your food/electricity/ heating bills? • Have you ever thought about…? • Also don’t forget that this will save you money.

• I’m not interested, thank you. • Look, I have to go now. • I’ve already said that I don’t want to change/buy... • I’d like to know more about your company/product. • How much does it cost? • What does it involve?

In pairs, practise this phone conversation.

Professional competences

Telemarketer You are promoting LitePhone’s home telephone and internet packages. The cheapest package is £15.99 per month for unlimited internet access and 500 free minutes (excluding mobile and international calls).

Customer Use this information to respond to the call from LitePhone. You use your mobile phone for business and personal calls/texts and your home phone mostly for international calls. Your current internet and phone package is £22 per month.

AT A FAIR Marketing Assistant

Visitor

• I see you’re looking at our new…. • Which product is currently most popular? • Here’s a leaﬂet with all the details. • I’ll contact you to organise a demonstration.

• We’re looking for a new supplier. • Could you tell me a little more about this? • That sounds very interesting. • Have you got any samples I can take with me?

In pairs, practise this conversation at a fair.

Professional competences

Marketing Assistant: You are promoting your company’s laptops and notebooks. Talk to the potential client.

Visitor: You are looking for new IT suppliers. Find out more about the company’s products.

ANALYSING ADVERTS Talking about the target

Talking about the features

• This kind of ad appeals to… people. • People in… can identify with this ad.

• The font highlights… • The colours consist of… and are suitable for… • The language used emphasises...

Talking about the emotions • It creates a feeling of… • The atmosphere created is… • The mood is… • It conveys a sense of…

Talking about how an ad persuades • It makes you want to… • This ad gets the message across… • You associate the product with…

Work in pairs. Think of a recent print or TV ad and describe it to your partner. Talk about the images, atmosphere, type of language and other features. You can mention the type of product or service but NOT the brand or company name. How long did it take for your partner to guess the advert?

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Vocabulary WORD FORMATION (3) Some common suffixes for forming adjectives are: -able, -ible, -ous, -ive, -ful and -less.

Form the adjectives using these roots and write them under the correct column. Five of them can be used in more than one column. You may need to change the spelling.

accept − access − advantage − adventure − attract − believe − compete − care − create danger − effect − hope − humour − inform − meaning − profit − success − use − value -able/-ible

-ous

-ive

-ful

-less

________________ ________________ ________________ ________________ ________________

________________ ________________ ________________ ________________

________________ ________________ ________________ ________________ ________________

ABSOLUTE ADJECTIVES astonishing

brilliant

fascinating

furious

gorgeous

tiny

2 Use the absolute adjectives from the table above to replace the gradable adjectives in italics in the sentences below. 1 That new advert from Audi is good. 2 I find it surprising that ad agencies continue to use happy, smiling women to promote cleaning products. 3 Cold callers who ring while I’m eating make me angry.

4 Digital marketing techniques are interesting and are sure to develop even more in the future. 5 Personally, I think that only a small percentage of unsolicited letters achieve a concrete result. 6 Even if the women used to promote beauty products are already beautiful, their images are often airbrushed and photoshopped.

INTENSIFIERS

3 Choose the correct alternative. Then write 5 sentences of your own.

very – before gradable adjectives absolutely/completely/simply – before absolute adjectives really – before all adjectives not at all – with negatives

What did you think of the new ad? 1 It was absolutely/very fantastic. 2 It was very/simply perfect. 3 It wasn’t convincing at all/very. 4 It was very/completely good. 5 It was really/at all humorous.

VERBS FOR MARKETING/ADVERTISING PURPOSES analyse

develop

launch

monitor

persuade

promote

reach

satisfy

4 Complete these sentences with a verb from the table above. 1 One of the purposes of advertising is to ___________ consumers to buy a product. 2 A product has to ___________ a customer’s needs or wants. 3 A product presentation is one way to ___________ a new product on the market. 4 The fourth P of the marketing mix is how to ___________ a product or service.

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5 One of the roles of a marketing department is to ___________ the competition. 6 It is important to ___________ market research data in order to ___________ an effective marketing strategy. 7 Choosing the correct advertising media will help a company ___________ its target audience.

Grammar 1

MODAL VERBS

Complete the second sentence so that it means the same as the first, using no more than three words.

Must is used to express obligation while mustn’t is used to express prohibition. A company must consider all 4 Ps of the marketing mix. You mustn’t forget the meeting with the ad agency tomorrow.

Can, could and may are used to talk about permission, possibility or impossibility. Might indicates a remote possibility. Could you complete this questionnaire please? The results of the survey may be ready tomorrow. Should and shouldn’t are used to give advice and make suggestions. Ought to is also possible. We shouldn’t launch the new product until the holiday season. That company ought to use social media. Needn’t is used to talk about the lack of necessity. We needn’t leave now – the presentation doesn’t start until 2 p.m.

Video tutorial 6

Write six sentences comparing these forms of advertising media: print, outdoor, radio, digital media. Use the adjectives in the box.

cheap − popular − effective − dynamic easy to evaluate − suitable − traditional 1

Print ads are more effective than radio ads because of their visual impact.

We use the superlatives to compare people or things within a group or category. Digital media is the fastest growing sector in advertising. Advertising is perhaps the most important aspect of promotion. What do you think is the least eﬀective technique in print ads? Reducing your marketing budget is the worst thing in the world to do.

Video tutorial 7 Translate these texts.

We use the comparatives to compare people or things. Radio advertising is cheaper than TV advertising. Social networks are becoming much more important for modern businesses. The better you know your market, the better your sales will be. Competition is not as ﬁerce as it once was in this sector. Secondary research can be a lot less expensive than primary research.

SUPERLATIVES

COMPARATIVES

Mediating texts

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BUSINESS NEWS

Emotions in advertising

Should AI Analyse Our Emotions? It is early July, almost 30 °C outside, but Mihkel Jäätma is thinking about Christmas. In a coworking space in Soho, the 39-year-old founder and CEO of Realeyes, an ‘emotion AI’ startup which uses eye-tracking and facial expression to analyse mood, scrolls through a list of 20 festive ads from the previous year. He settles on The Boy and the Piano, the offering from UK department store John Lewis that tells the life story of Elton John backwards, from megastardom to the gift of a piano from his parents as a child, accompanied by his timeless heartstring-puller Your Song. He hits play, and the ad starts, but this time two lines – one grey (negative reactions), the other red (positive) – are traced across the action. These follow the second-by-second responses of a 200-person sample audience who watched the ad and allowed Realeyes to record them through the camera of their computer or smartphone. Realeyes then used its AI technology to analyse each individual’s body language and facial expression, based on American psychologist Paul Ekman’s list of basic emotions: anger, disgust, fear, happiness, sadness and surprise. The company did this with all the 20 Christmas ads, watching 4,000 people, before rating each commercial for attention, emotion, sentiment and finally giving it a mark out of 10. Realeyes assigned the John Lewis commercial a score of 7.8 out of 10, placing it 12th out of the 20 Christmas ads they tested. This is clearly a big deal for John Lewis: their Christmas campaign is by far the most important of the year. But

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what difference does it make to us? Emotion AI is already used in retail. Cameras track you as you move through shops, they see how you react to different products or what you think of in-store advertising displays. The company LandSec had cameras in London’s Piccadilly Circus to analyse the approximate age, sex and mood of the people standing near the famous Eros statue so that they could display advertising on the Piccadilly Lights that the audience were more likely to find relevant and interesting. There are obvious advantages to our machines being more sensitive to our needs. It should mean a better, more intuitive service, less time wasted. But emotion AI raises concerns, too. Do we really want our emotions to be machinereadable? How can we know that this data will be used in a way that will benefit citizens? For Andrew McStay, Professor in Digital Media at Bangor University and an author on emotional AI, there are doubts about whether it is even possible to accurately interpret emotions simply by analysing a person’s face. One example: you might scowl when you’re angry, but also when you are concentrating or have a headache. ‘From the point of view of ad testing, it doesn’t really matter too much because it’s not terribly important,’ he said. ‘But when you start thinking about it in the context of where life decisions are made about a person, I find that very problematic.’ Adapted from The Guardian, 2019

Reading comprehension 1 INVALSI 1 2 3 4 5 6

Read the article and answer the questions using no more than four words.

Who is Mihkel Jäätma? What is he analysing? Why is he doing this? How is emotion AI used in retail? Why might emotion AI be advantageous for us? What might be worrying about emotion AI? (Give two answers)

Listening 2

1.26 INVALSI Listen to an industry expert talking about using emotions in advertising and match the beginning and end of the sentences. There are two extra endings that you do not need.

1 2 3 4 5 6

Emotions can be used to Your emotional reaction to an advert can Seeing groups of friends in an advert creates Adverts should avoid Using fear in an advert might Consumers can feel connected to a brand through

A B C D E F G H

convince you to buy a particular product. repeating the same emotions all the time. using fake displays of emotions. their emotional response. a sensation of warmth and positivity. help someone to change their lifestyle. produce effective adverts. negative associations in the viewer.

Speaking 3

Discuss these questions in small groups. 1 2 3 4 5

What type of commercial can elicit strong emotions in you? Is it correct for companies to use strong and powerful images which might affect viewers so much? Do you feel that music is also powerful in an advert or just the words and images? Why? Do you think that emotion AI will help advertisers to improve their adverts? In what other ways do you think emotion AI could be used in marketing and promotion?

Writing 4

B You have received an email from Suzie Sharp at ‘Grab’ Advertising Agency in London. She wants to meet you to discuss a television ad for your range of eco-friendly, street fashion clothes. Read this extract from her email and reply using the notes.

We need to decide some more details for your ad, especially the feelings you which to concentrate on – saving the planet or being trendy. I suggest we have a meeting where I can show you some ideas. When are you free? In your reply (60-80 words) include these points. • • • •

thank her for her letter; ask her opinion on the advantages of the two proposals; tell her you are happy to meet her in your office; suggest a date and time.

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3 Case presentation

BUSINESS CASE STUDY

Case analysis: Converse You work for an advertising agency and have just received this brief. Who is the client? What product do they want to advertise? Who is their general target? And for this campaign?

Converse was founded in 1908 as a rubber shoe company. It soon started to make canvas basketball sneakers which they named All Star. Originally made for the basketball court, they quickly became popular in everyday life too. Today the Chuck Taylor All Star remains one of the company’s key products, together with sportswear and footwear under the names All Star, Jack Purcell and Cons. Converse sneakers are particularly popular with the 15-26 age group, male and female, although older adults still appreciate the individual style. There is also a range for children. The company would like the campaign to advertise Converse Renew, a range made of recycled plastic bottles and denim. They wish to focus on young teens and adults who are environmentally conscious but don't want to compromise on style and fashion.

Business maze DECISION MAKING

Go through the maze and choose the best option for you. Follow the instructions at each step and keep your score. Start at A.

A Decide the media mix for your campaign. A Print campaign. Go to 1. B Print and TV campaign. Go to 5. C Print, TV and outdoor campaign. Go to 7. B Are you going to have a testimonial for your campaign? A Yes, a famous musician or actor. Go to 12. B Yes, a young athlete who is at the start of his career. Go to 2. C No, we won’t have a testimonial. Go to 9. C Are you going to stick with the slogan ‘Shoes are boring. Wear sneakers.’ or create a new one? A Keep the same slogan as it is an important part of their identity. Go to 18. B Think of something new. It’s time for a change. Go to 10. D You have got a problem. Your best designer has just resigned. What do you do? A Continue with the rest of team. Go to 27. B Quickly hire another experienced designer. Go to 13.

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MO DULE 3 | BUSINESS CASE STUDY

E It is time to launch the campaign. What do you do? A Start the campaign simultaneously in all media. Go to 23. B Start with teaser ads in print and on TV before the main campaign. Go to 14. C Start with TV, and after a month consolidate with the print (and outdoor) campaign. Go to 17. F How are you going to divide the budget between production costs/media buying costs? A 50/50. Go to 3. B 30/70. Go to 15. C 10/90. Go to 25. G What overall style have you chosen for your ads? A Fairly traditional, with lots of close ups of the sneakers. Go to 4. B Totally original, with wild art, graphics and music. Go to 20. C Something humorous and witty. Go to 19. H The results of the campaign have been disappointing so far and Converse is threatening to change agency. What do you do?

A Fire the account manager who was in charge of the campaign. Go to 16. B Organise some positive editorial coverage through your press contacts. Go to 22. C Nothing. The campaign is nearly over and the client has already paid. Go to 26. I Converse has just contacted you and wants to add something extra to the campaign that is running. Which do you choose? A Sponsorship of a music festival. Go to 6. B Product placement in a TV talent show. Go to 11. C A mobile marketing campaign. Go to 24. J The press is full of news about a scandal your testimonial has been involved in. What do you do? A Nothing. These things blow over and can still be considered publicity. Go to 21. B Drop the testimonial from the campaign immediately and issue a press statement to protect your client. Go to 8.

1 Using only print is too limited and won’t reach all the audience your client wants. Lose one point and go back to A. 2 A lot of people are interested in this athlete. You did well to get him and his clean, friendly image will benefit the campaign. Get three points. Go to G. 3 If you spend so much on production costs, you will only be able to afford a short campaign and without primetime slots on TV. Lose two points. Go to B. 4 Lose one point for choosing the safe route. Product close ups are good, but traditional isn’t really the image associated with Converse. If you are sure of this decision, go to C. Otherwise go back to G, but lose another point. 5 This classic campaign strategy will give good coverage and results. Get two points. Go to F. 6 If you chose a testimonial (either one) for your campaign, lose two points as they are not happy with this association. Go to J. If you do not have a testimonial, get one point and go to H. 7 A complete, but expensive campaign choice. Get one point. Go to F. 8 A quick, decisive move and the best way to limit any negative impact the scandal could cause. Get two points. Go to H. 9 Many sneaker brands like to be associated with famous people, so it is good to be different and focus entirely on the product. Converse seems satisfied. Get two points. Go to G.

14 Teaser ads are a great way to gain interest and get people talking. Get three points. Go to I. 15 The client will want to see the accounts so make sure you don’t waste money on unnecessary things. Get two points and go to B. 16 The manager was not to blame for all the decisions made. Everyone should take responsibility. Converse was not happy about how you dealt with things and left your agency. Lose three points. Now add up your score and go to the conclusion. 17 With this method, your campaign will last longer and the impact will be greater. Get two points. Go to I. 18 The slogan is easily recognisable and recall is high for the general public. It is best not to change a successful formula at this stage. Get two points. Go to E. 19 Converse’s image is young and fun, so this approach will work well. Get one point. Go to C. 20 Your design team is the best in the business so this is an excellent choice. Get two points. Go to D. 21 It is mainly Converse’s image at risk, but there are likely to be repercussions on your agency’s reputation too. Lose three points. Go to H. 22 The client appreciated your effort and you managed to bring the campaign back on track through your quick thinking. Overall the campaign was successful and Converse is satisfied. Get two points. Now add up your score and go to the conclusion.

10 A bold decision. You will have to work hard to get Converse to accept this change. Get one point. Go to E.

23 A traditional approach which will create a bold impact and get the product immediately noticed. Get one point. Go to I.

11 A good idea in theory, but talent shows have been around for too long and no longer have the impact on your target audience that they once had. No points. Go to H.

24 Mobile marketing is right on trend, but your agency has not got the experience and know how to make this particular kind of campaign successful and deliver results. Lose one point. Go to H.

12 A very expensive choice. If you decided to split your budget 50/50, you will have enough money so get one point and go to G. Otherwise go back to B and lose 2 points.

25 This is a very small amount to invest in production costs. Be careful not to end up with a cheap looking advert. Get one point. Go to B.

13 It was not cheap to find a new person, but it was worthwhile as he/she can maintain the same high design standards and keep the campaign on track. Get three points and go to C.

26 This is absolutely not a good business decision. Go back to H again and lose two points. 27 Converse does not like the design work your team has come up with. Lose three points and go back to D.

CONCLUSION Below 6 points: This was not a very successful campaign overall. You made several poor decisions and did not know how to deal with the problems that arose during the campaign. Perhaps you needed more teamwork and discussion in order to find better solutions.

7 -12 points: The results of your campaign were satisfactory, but you did not excel. If you want to keep the client for next year, you will have to work hard and learn how to be a little more innovative in your approach and react promptly in this fast-paced industry.

Over 12 points: This was an extremely successful campaign. Your ideas were excellent, well thought out and you dealt with any problems efficiently. You are ready to work with even more international clients now, or maybe it is time for a change and you should set up your own advertising agency. Marketing and Advertising | MO DULE 3

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Professional competences Organising a team meeting

You are the Creative Director of an advertising agency who wants to win the Converse account. Send an email to your creative team and tell them: • • • •

how you heard about Converse’s decision to change agency; why you think your agency can win; when you want to hold the first team meeting; what the team needs to do.

You are part of the creative team and receive the above email from your Creative Director. You cannot attend the meeting so write a reply, including these points: • apologise and say why you cannot go to the meeting; • ask for notes from the meeting; • show your enthusiasm to be on the design team.

Understanding a message Name of product Styles available Details Campaign target Key words Media mix

1.27 Listen and complete the notes regarding the creative team meeting.

Converse Blank Canvas – service to (1) ____________ your own sneakers online. Hi Top, Low Top, Mid and Slip You can choose the (2) ____________ of all the parts, including the rubber, laces, eyelets and stitching, and can also add (3) ____________ or other message. UK, male/female, age (4) ____________ individuality, style, adaptability, freedom from fashion, (5) ____________ TV (15” spots) and outdoor (billboards in (6) ____________ areas) www.converse.com/landing-design-your-own

Designing an advert CREATIVE THINKING

Design your ad for Converse Blank Canvas to be shown on either television or billboards.

How to make an ad effective To grab attention, you can use: colours; images; originality; humour; a testimonial; music, special effects. To provide information, you can use: spoken and written language – slogan, body copy, tagline, dialogue, voiceover; product images; a storyline. To make people remember, you can use: logo, slogan, repetition, emotion. To get people to act, you can use: an implicit message, website address, retail outlets, price.

Pitching for the business

Present your ad, explaining the reasons for your ideas, and try to convince Converse to choose your ad design over those from competing agencies. You have a maximum of ﬁve minutes per group. At the end of all the presentations, vote for your favourite ad.

How to deliver a good pitch • Be passionate about what you have created, so that your audience can feel and catch your passion and enthusiasm. • Include a mock-up of your creative design so they can see your ideas. • Mention how your ad will reach the client’s target audience and the other benefits the client will have by choosing your design.

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MODULE

4 International Trade

BUSINESS in THEORY

The global market Trading procedures Trade organisations

BUSINESS in PRACTICE

Enquiries Replies to enquiries

BUSINESS LANGUAGE

Phraseology Vocabulary Grammar

BUSINESS NEWS

The economy of fakes

BUSINESS CASE STUDY

Case analysis: Garofoli Vini Professional competences

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4 WARM UP

What do the graphs below show? Are the values higher for goods or services? How do the different areas compare? Do they all export more than they import?

BUSINESS in THEORY

The global market Importing and exporting International trade is the process of importing and exporting goods and services between countries. An export is a product or a service sold from its country of origin to any other country while an import is a product or a service brought into a country from the global market. These imports and exports can be visible (for trade in goods such as food, raw materials and manufactured goods) or invisible (for trade in services such as banking, insurance and tourism). Companies and countries can trade internationally for the following reasons: • to purchase goods they cannot produce themselves or to get them at a cheaper price; • to increase choice for consumers; • to increase proﬁts by selling in a new market.

As well as the risks associated with all trade, international trade can also face: • economic risks, such as ﬂuctuations in the exchange rate; • political uncertainties, such as war, changes in government policies, etc.; • legal difﬁculties due to the differences in the legal systems; • other problems caused by delays, cultural differences, language barriers or even natural disasters like earthquakes. 2018 Imports and exports in goods

2018 Imports and exports in services

Values in millions of US Dollars

2500000

1000000

2000000

800000

1500000

600000

1000000

400000

500000

200000

ACTIVITIES

0 ITALY

USA

ITALY

USA

IMPORTS

476,802

649,808

2,561,667

IMPORTS

126,469

257,113

567,322

EXPORTS

532,615

459,905

1,674,330

EXPORTS

123,270

396,694

826,982

Source: OECD (2019), Main Economic Indicators: Balance of payments

Reading comprehension 2

Read the text and underline the correct alternative. 1 A company imports/exports its products when it sells them worldwide. 2 Visible exports and imports are tangible/intangible. 3 A person going abroad on holiday is an example of visible/invisible trade. 4 Consumers have more/less choice thanks to international trade.

5 Changes in the value of currencies affect/ do not affect foreign trade. 6 Political stability/unrest represents a risk to international trade. 7 Speaking the same/a different language can be problematic for trading abroad.

Say if these examples are visible or invisible imports/exports.

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MO DULE 4 | BUSINESS in THEORY

UK imports and exports The top ten trading partners for the UK £ millions, 2018

IMPORTS OF GOODS

EXPORTS OF GOODS

Germany

68.342

United States

49.182

United States

44.466

Germany

35.506

China

42.560

Netherlands

25.852

Netherlands

41.706

France

24.033

France

27.555

Irish Republic

21.159

Belgium

25.956

China

20.752

Norway

20.104

Switzerland

19.150

Italy

19.437

Belgium

14.212

Spain

15.745

Spain

10.467

Irish Republic

13.717

Italy

10.458 Source: HMRC, Overseas Trade Statistics

Top five UK goods (2018) Exports

Imports

Exports

Imports

Cars

Other business services

Travel services

Medicinal and pharmaceutical products Mechanical power generators Crude oil Aircraft

9.5% 7.1% 7% 5.8% 4.3%

Reading comprehension

Medicinal and pharmaceutical products Refined oil Mechanical power generators Clothing

6.7% 5% 4.6% 4.2% 4.1%

28.7% 21.7%

Financial services Travel services Transport services Telecomms, computer and information

13.7% 10.7% 7.3%

32.2%

Other business services

23.1%

Transport services Financial services Telecomms, computer and information

13.6% 10.5% 7.3%

Source: ONS UK Trade (July 2019)

Look at the above information regarding the UK’s import and export situation and complete this text. The UK is a net importer which means that its imports are greater than its exports. In the first two tables, we can see the UK’s top trading partners for the year (1) ________. For many years Germany has been the UK’s largest trading import partner by value and, in 2018, the value was (2) ________. The USA was the dominant trading partner for exports, with a value of (3) ________. After Germany, the second and third biggest import partners are (4) ________ and (5) ________. Italy is in (6) ________ position. For exports, (7) ________ is in second place after the USA, with £35.506 million. Italy is the tenth export partner.

ACTIVITIES

Top five UK services (2018)

The bar graphs show the top categories of goods and services for UK imports and exports for 2018. (8) ________ are the top commodity for both export and import of goods, while (9) ________ is in fifth for position for exports, with 4.3%, and clothing in fifth position for imports, with 4.1%. Other export commodities include medicinal and pharmaceutical products, mechanical power generators and crude oil. Financial services represent (10) ________ of exports for services and 10.5% for imports. In top position for imports of services, we find (11) ________, with 32.2% of the total. Telecommunications, computer and information rank fifth in exports and imports of services, with (12) ________ for both. Other business services and transport services complete the two rankings.

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WARM UP

What is the purpose of an economic indicator?

Economic indicators Economic indicators are regularly produced statistics which are used by governments, banks and businesses to evaluate current and future trends in a country’s economy. Some of the most important economic indicators are the balance of trade and payment, GDP, industrial production, employment and unemployment rates, consumer price index, income and inﬂation.

BALANCE OF TRADE

Visible exports –

The balance of trade (BOT) is the difference in monetary value between the Visible imports = total visible exports and total visible imports of a nation during a speciﬁc BALANCE OF TRADE period of time. If a nation exports more than it imports, it has a trade surplus. If the opposite is true and the value of the goods it imports is greater than the value of the goods it exports, it has a trade deficit – also known as a ‘trade gap’.

BALANCE OF PAYMENT

Balance of trade Values in millions of US Dollars Country

2017

2018

Italy

61,985

55,685

United Kingdom

-176,463

-184,187

United States

-805,199

-887,338

Balance of payments Values in millions of US Dollars Country

2017

2018

Italy

50,577

51,022

United Kingdom

-88,035

-108,896

United States

-439,64

-490,978

Industrial production index Country

2017

2018

Italy

105.53

106.12

United Kingdom

102.05

103.10

United States

100.32

104.27

The balance of payments (BOP) is a record of all monetary transactions between a country and the rest of the world. It refers to both invisible and visible trade. The BOP usually summarises international transactions for a year and is indicated in the currency of the country. It can be positive (a surplus) or negative (a deﬁcit). Transactions are either marked as a credit or a debit: CREDIT • Exports of goods and services • Income receivable from abroad • Transfers from abroad • Increases in external assets • Decreases in external liabilities

(Invisible exports – Invisible imports) + Balance of Trade =

Source: OECD (2019), Main Economic Indicators: Production and sales

assets and liabilities attività e passività

140

DEBIT • Imports of goods and services • Income payable abroad • Transfers abroad • Decreases in external assets • Increases in external liabilities

BALANCE OF PAYMENTS

INDUSTRIAL PRODUCTION INDEX This indicator shows the production output from various industrial activities, like mining, manufacturing, electric and gas industries. The IPI shows the level of growth within these industries as a whole, consequently it also provides indications as to how the individual companies in that particular industry are performing.

MO DULE 4 | BUSINESS in THEORY

GDP AND GNP The Gross Domestic Product (GDP) and Gross National Product are both useful for measuring the direction and success of a country’s economy, although GDP is the most commonly used. GDP represents the total value of all goods and services produced over a year by the economic resources of that nation regardless of the producer’s nationality. GDP differs from GNP because it includes foreign investors whereas GNP only includes that nation’s investment incomes. Usually, GDP is expressed as a comparison with the previous year. For example, if the year-to-year GDP is up 3%, this means that the economy has grown by 3% over the last year. When GDP shows growth from one year to the next, it means companies are making and selling products. Businesses need to hire workers to meet the demand for more goods. Higher employment means more money in circulation to spend on goods, creating more demand. This makes a healthy economy. Conversely, negative growth in GDP is one of the main factors economists use to determine whether an economy is in recession . Gross domestic product Values in millions of US Dollars Country

2015

2016

2017

2018

2,237,096

2,367,211

2,480,872

2,515,781

United Kingdom 2,738,206

2,819,115

2,965,796

3,024,525

18,715,040

19,519,424

20,580,223

Italy

United States

18,224,780

Source: OECD (2019), Gross domestic product (GDP) (indicator)

UNEMPLOYMENT The unemployment rate – the number of people who are able and allowed to work but are without a job – is normally expressed as a percentage of the total available work force. A high rate is a negative economic factor.

Unemployment rate Total, % of work force Country

2017

2018

Italy

11.21

10.60

United Kingdom

4.33

3.99

United States

4.35

3.90

Source: OECD (2019), Labour market statistics, Unemployment rate (indicator)

ACTIVITIES

Reading comprehension

The ﬂuctuations that an economy faces over a period of time are known as a business or economic cycle. This is a pattern of a period of recession (decline) which then alternates with a period of recovery (growth). The highest point of growth is referred to as the peak, while the trough is the lowest point. During times of recession, the economy contracts and economic indicators like employment and industrial production decrease. In a period of recovery, the economy expands and these economic indicators increase. Stagnation, on the other hand, is when an economy shows no or very little economic growth over a long period.

Read the texts and answer these questions. 1 What is the difference between the balance of trade and balance of payments? 2 What is meant by the terms surplus and deficit? 3 How can the IPI help to understand industrial companies’ performances? 4 What is the difference between GDP and GNP? 5 Which one is used more often?

6 How is GDP usually expressed? 7 What is a business cycle? 8 How do economic indicators change during a recession? 9 What is stagnation? 10 In a recession, is the unemployment rate likely to be high or low?

Vocabulary 3

Find the English equivalent of these words in the texts on these pages. 1 2 3 4 5 6

tasso di occupazione indice dei prezzi al consumo bilancia commerciale eccedenza debito bilancia dei pagamenti

___________________ ___________________ ___________________ ___________________ ___________________ ___________________

7 8 9 10 11 12

entrata PIL PNL recessione valle stagnazione

___________________ ___________________ ___________________ ___________________ ___________________ ___________________

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Inflation

Inflation (CPI) Total, annual growth rate (%) Country

2016

2017

2018

Italy

-0.094

1.227

1.137

United Kingdom

1.000

2.600

2.300

United States

1.262

2.130

2.443

Inflation – the general increase in the prices of goods and services – has an effect not only on what we pay for certain items but also on the interest rate on savings and mortgages, and on the level of state pensions and benefits. Inflation is generally measured by the consumer price index (CPI), according to international standards which allow comparability between economies.

MORE ABOUT...

ACTIVITIES

A shopping basket Just as you might fill a shopping basket with different goods in a supermarket or online store, the consumer price index is based on a basket of goods and services to represent what people typically purchase. It includes food items like bread and fruit, entertainment such as a cinema ticket or a meal in a restaurant, and services, for Action cameras were added to the UK basket in 2018. example electricity and telephone bills. Each item in the basket is given a weight to reflect its importance as part of a person’s budget and the items remain the same for a year. After this, they can be removed or changed in order to reflect the changes in lifestyle and habits. The CPI does not reflect how much people spend on the various items, but the change in price of the individual items which is then reflected in the overall price of the basket. In the UK, the Office of National Statistics publishes monthly figures for this index.

With a rise in inflation, the purchasing power of a currency falls. For example, with inflation at 5%, what you were able to buy for £1 last year, will cost you £1.05 this year. This means that if wages do not increase at the same rate as inflation, consumers have less purchasing power and therefore might have to become more careful about how they spend their money. The long-term effects of this can be lower economic output, decline in standards of living, less lending from banks, difficulty in competing with imports and the devaluation of currency. In order for a country’s economy to run as smoothly as possible, it is important for inflation to remain at a steady rate and for this reason most central banks try to avoid severe inflation or severe deflation and maintain the rate at around 2%, generally considered to be the rate of a growing economy.

Reading comprehension 1

Read the text and underline the correct alternative. 1 Inflation is the increase/decrease in the price of goods and services. 2 Using the CPI means that economies and inflation in different countries can/can’t be compared. 3 The purchasing power of a currency falls/rises when inflation is high. 4 When inflation is high, people generally spend more/less money.

5 The devaluation of a currency can happen when there is long-term/short-term high inﬂation. 6 Central banks prefer to have stable/fluctuating levels of inﬂation. 7 The CPI shopping basket contains goods but not/and services. 8 The items included in the basket have the same/a different importance.

Vocabulary 2

Find the English equivalent of these words in the text. 1 mutui 2 potere d’acquisto 3 valuta

142

___________________ ___________________ ___________________

MO DULE 4 | BUSINESS in THEORY

4 produzione economica ___________________ 5 svalutazione ___________________ 6 deﬂazione ___________________

What is Deflation?

eflation, at first sight, looks like pretty good news. Essentials like petrol, food and transport are cheaper, yet for those who produce the oil, or the farmers who make the milk, this is not good news at all. But first of all, we need to understand what constitutes deflation and whether it could just be called negative inflation. Economists generally define negative inflation as something short-term, while deflation is longer-term. The governor of the Bank of England has said, ‘A temporary period of falling prices should not be mistaken for a damaging spiral of deflation.’ In these particular cases, he said, negative inflation can be ‘unambiguously good’. That is because lower petrol and food prices are good for everyone. Even the farmer gets some benefit, because he too buys food and fuel. If we spend less on filling up our tanks and doing the supermarket shop, we have money to spend on other things so businesses from fashion stores to fun-fairs should benefit. But if negative inflation is unambiguously good in cases like these, when is it bad? Food and fuel are things we all need to buy immediately. But other goods – like televisions or cars – are discretionary. If the price starts to go down for any sustained period, we could save money by buying them later. If we delay our spending, which amounts to around 70% of all economic activity, the economy will slow. Negative inflation and even more, deflation, is not good news if you are a borrower. Imagine you take

out a mortgage, and your fixed monthly repayment is £500. In an era of deflation, your wages might even go down. In which case, your £500 becomes a larger proportion of your salary – and paying it off becomes more painful. It’s not just people affected by this. Governments with large deficits experience exactly the same thing – and thus long for some inflation. In a time of rising prices, it is easy for companies to put up wages. But it is also easier for them to give below-inflation pay rises. If inflation is 3%, a pay rise of 2.5% still feels like a pay rise. But if inflation is zero, or negative, it is hard to cut salaries. Doing so may be necessary, but it is bad for morale and productivity. Deflation also affects interest rates. The longer that inflation is below a central bank’s target, the longer it will be before a rise in interest rates. But more than that, the longer we have zero or negative inflation, the more likely it is that the next move in interest rates will be down, rather than up. Source – BBC News – © BBC

3 INVALSI 1 2 3 4 5 6

Read the article and answer the questions using no more than four words.

What is the difference between negative inflation and deflation? What happens to prices with negative inflation? If consumers stop spending, what can happen? Who is deflation bad news for? (2 answers) What risks are there if a company reduces employees’ wages because of deflation? What effect can a long period of deflation have on interest rates?

International Trade | MO DULE 4

ACTIVITIES

Reading comprehension

143

Protectionism

MORE ABOUT... Embargoes The longest trade embargo is that of the USA on Cuba which started in 1962. Even though diplomatic ties were restored and travel restrictions were reduced during Obama’s presidency, the majority of imports and exports between the two countries continue to be prohibited. This costs the USA an estimated $1.2 billion annually.

retaliate vendicarsi

Dumping is when one country exports a large number of goods to another country at prices which are much lower than in the domestic market or even below cost price. This is a form of unfair competition aimed at taking over a particular market sector in the importing country. Dumping may force domestic producers out of business and damage the local economy.

Restrictions based on health and safety regulations, as well as quality standards, are normally aimed at protecting consumers, for example from unsafe toys or contaminated food. However if these regulations are more stringent for foreign manufacturers than for domestic ones, it can be considered a form of protectionism.

ADVANTAGES • Domestic firms are protected from foreign competitors. • It creates employment for domestic workers. • Reducing imports improves the balance of trade. • It protects against dumping. • It defends key industries needed for vital national interests. • New industries are helped until they become established and are able to compete.

ACTIVITIES

Protectionism is when a government tries to help industries in its own country against overseas competition by taxing or restricting imports of foreign goods. Some protectionist measures are: • tariffs: taxes on imported goods; • quotas: ofﬁcial limits on the number or amount of imports; • subsidies: money paid by a government to domestic industries to reduce production costs and prices; • embargoes: partial or complete restrictions on particular imports/ exports or a ban on all trade with a particular country, usually for political reasons; • anti-dumping duties: a tariff on foreign imports which are priced below fair market value.

DISADVANTAGES • Increased trade opens new markets for businesses to sell their products. • Foreign governments may retaliate. • It protects inefficient domestic industries from competition. • Companies are not stimulated to be innovative and improve their products or services. • Consumers have less choice and pay more for products that may be inferior. • It creates high unemployment among workers who owe their jobs to exports.

Reading comprehension 1

Read the text and answer these questions. 1 What is the difference between a tariff and a quota? 2 How does a tariff help domestic manufacturers and industries? 3 What effect do subsidies have for a consumer?

4 How do embargoes restrict free trade? 5 How does dumping damage international trade? 6 In what circumstances can health and safety regulations be seen as a kind of protectionism?

Speaking 2

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Divide into two groups. One group supports free trade and the other is in favour of protectionism. Have a class discussion using the above points to help put forward your views.

MO DULE 4 | BUSINESS in THEORY

Customs Customs have an important role to play in international trade. The amount of cross-border trade and the speed at which it happens, together with the often complicated supply chain and number of people involved, means that the work of customs administrations is particularly complex. One of the main roles of customs administration is to control goods and the applicable customs duties on imports. No customs duties are usually payable for imports between member nations of a trading bloc, whereas trading with countries outside the bloc, ‘third countries’ as they are often known, is subject to customs duties. Nowadays, customs officials are not only responsible for these fiscal aspects, but are becoming increasingly involved in security, safety and environmental matters, often working together with the police and immigration authorities against drug trafficking, terrorism and organised crime.

WARM UP

Write down the ﬁrst ﬁve words that come to your mind when you hear the word ‘customs’.

duties dazi

MORE ABOUT... In the UK HM Revenue and Customs is the authority which is responsible, amongst other things, for facilitating international trade and protecting the economic and fiscal security of UK borders. It collects VAT, customs and excise duties and also UK trade statistics. Border Force is part of the Home Oﬃce and is a law enforcement command which secures UK borders by carrying out immigration and customs controls for people and goods which enter the UK at ports and airports.

Reading comprehension Read the text and match the two halves of the sentences. 1 2 3 4

The increase in international trade Goods imported within a trading bloc Customs duties must be paid when Customs officials also collaborate 1.28

a b c d

are not subject to customs duties. with other authorities for security issues. has made customs work more complicated. importing from countries outside a trading bloc.

ACTIVITIES

B Listen to an interview with an EU customs ofﬁcer and choose the correct option.

1 Each year EU customs administrations check… A more air cargo than sea cargo. B more sea cargo than air cargo. C the same quantity of sea and air cargo. 2 Dobbs believes it is important for customs to… A increase controls on trade. B make trade easier. C increase the amount of trade. 3 Customs have to guarantee… A the smooth flow of citizens. B the smooth flow of controls. C the smooth flow of trade.

4 What first started in 2008? A The single customs administration in the EU. B The increase in methods of communication between administrations. C The upgrading of procedures and methods within the sector. 5 Customs are working towards a… A paperless environment. B borderless environment. C clean environment.

Written exam practice 4

ES International trade is fundamental for nearly all businesses nowadays. Write a short essay to explain the difference between visible and invisible imports and exports and how governments can intervene to control them. Use examples that you have studied or heard about in the news to illustrate your points.

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The Role of CBP

ACTIVITIES

n the USA, US Customs and Border Protection is part of the Department of Homeland Security and it is in charge of the management, control and protection of the nation’s borders, both at official ports of entry and along all the borders. Its role is to facilitate trade and travel by enforcing the laws that protect the country’s security, and to ensure economic prosperity. To facilitate travel, CPS has implemented and improved Trusted Traveler Programs, biometric technology and automated systems to make welcoming international visitors to the USA more efficient are teams of agricultural specialists to check animal In the USA, the fiscal and straightforward. Over the and plant imports in order to restrict diseases and year (FY) does not last five years, the number of pests that could damage US crops, livestock and the necessarily correspond to the calendar year. international visitors has steadily environment. In FY2018 CPS handled $2.65 trillion For the US federal increased and, in FY2018, CBP in imports and collected around $52 billion in duties, government, it runs officers dealt with more than taxes and other fees. from October 1st to Source: cbp.gov 413.8 million travellers at air, September 30th. land and sea ports of entry. For trade, CBP has the dual role of facilitating Duties International Arrivals legitimate trade and protecting the country’s 420,000,000 $45,000,000,000 revenue. It is responsible for enforcing trade 400,000,000 $40,000,000,000 laws for all goods before they arrive at US ports 380,000,000 $35,000,000,000 of entry, once they arrive and also after the 360,000,000 $30,000,000,000 goods are released onto the market. This needs FY16 FY17 FY18 340,000,000 to be done to protect against unsafe products FY16 FY17 FY18 and unfair trade practices. For example, there

Exam practice - Comprehension & interpretation 1

ES Choose the option which ﬁts best according to the text. 1 Where does CBP operate? A At the major air, sea and land ports in the USA. B At the official border entry points into the USA. C At any point where entry into the USA can be attempted. D Along the nation’s land borders to the north and south. 2 How is the CBP trying to streamline arrivals for visitors to the USA? A By increasing the number of staff working at airports. B By introducing new and improved systems and technology. C By reducing the number of checks for international visitors. D By removing some of the restrictions previously imposed.

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3 When does the responsibility of CBP for goods arriving in the country end? A When the goods arrive at the port of entry. B Only once the goods have been inspected at customs. C When they have been released from customs. D It continues even after the goods are on the open market. 4 Why does CBP need specialists in agriculture? A Agricultural imports can pose serious risks to the country. B Imports from the agricultural sector provide the highest revenue. C Agricultural products represent the sector with the highest percentage of unsafe products. D The government is investing heavily in environmental protection schemes. 5 Look at the two bar charts and write a short paragraph to explain the data which is represented and the trends shown.

Trading procedures WARM UP

Trading within the EU

Most goods can move freely within the EU without having to pay any customs duties. Some goods however are subject to excise duty, e.g. alcohol or tobacco, or licence requirements, such as agricultural products. As of 1st January 1993, VAT (Value Added Tax) is not collected on trading between VAT registered traders in EU member states. Instead it is paid in the member state of destination, at the rate in force in that country. For example, if a German company acquires goods from a VAT-registered Italian business, the German business pays VAT in Germany at German rates. If the German company dispatches Germany goods to the Italian business, the VAT is paid by the Italian customer in Italy at Italian rates. With this change in VAT administration, it is obviously important for companies to be able to check the validity of the VAT identiﬁcation number of a business they wish to trade with. The VIES system (VAT Information Exchange System) allows companies to do this quickly and easily. Since businesses exporting within the EU have to complete a VIES statement every month or every quarter, this system also permits VAT administrations to check the ﬂow of intraCommunity trade and uncover any discrepancies in payment. INTRASTAT (International Trade Statistics) is the system for collecting statistics on the trade in goods (not services) between EU member states. Importers and exporters may be required to complete an INTRASTAT Supplementary Declaration if the value of their arrivals or dispatches exceeds an annual value threshold.

What nationality are you? Can you move freely within the EU? What about goods?

excise duty accisa

Movements of goods between EU member states can be referred to as arrivals (acquisitions, purchases or imports) and dispatches (removals, sales or exports).

Read the text and complete these sentences. 1 Within the EU, the majority of goods… 2 Excise duty is payable… 3 Since 1993, VAT…

4 VAT is payable… 5 The VIES system allows traders to… 6 EU trade statistics…

ACTIVITIES

Reading comprehension

Vocabulary 3

Find the synonyms of these words or expressions in the text. 1 valid 2 three months 3 movement

_______________ _______________ _______________

4 irregularities 5 goes over 6 upper limit

_______________ _______________ _______________

Writing 4

Write a short paragraph explaining the regulations regarding customs and VAT for intra-Community trade.

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WARM UP

Can you guess what information a Certiﬁcate of Origin contains?

issued emesso compliance conformità

MORE ABOUT... ISO country codes

ACTIVITIES

ISO 3166-1 are codes published by the International Organization for Standardization (ISO) representing the names of countries and their principal subdivisions. The names of countries are represented by a two-letter code (alpha 2), such as FR for France, DE for Germany, IT for Italy, US for the USA and GB for the United Kingdom. These codes are used in oﬃcial documents by many organisations, businesses and governments – from postal services and passport authorities to international banking and customs authorities as they save time and energy and can help reduce errors.

148

Trading outside the EU There are two main documents needed for trading between an EU member state and a third country.

SAD (Single Administrative Document) This is the main document required to record the movement of goods and declare imports to Customs. It was introduced in order to reduce the amount of administrative documentation and to standardise the procedure across the EU. It is also in use by EFTA (Switzerland, Norway, Iceland and Liechtenstein). These documents can be submitted both electronically and manually. Goods need to be classiﬁed under the correct ‘class’ or commodity code and there may be penalties if this is not done correctly.

Certificate of Origin The percentage of duty that you must pay on imported goods often depends on where they come from. Most countries and trading blocs have systems to allow goods from specific countries to pay reduced or no duty. For this reason it may be necessary to present a Certificate of Origin, issued by the competent authorities in the exporting country, as proof of the country of origin. It is important to know the country of origin and the duties that are to be paid on the goods will affect the importer’s selling price as well as the exporter’s competitiveness with overseas customers. When exporting and importing goods it might also be necessary to supply other documentation, for example, a certificate of compliance with safety standards or an export licence for restricted products like medicines, chemicals, artwork or military material.

Reading comprehension 2

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6

The SAD system has speeded up the process of importing goods. The SAD is used only by EU member states. It is important to indicate the correct code for the goods on the SAD. The origin of the goods can have an effect on the amount of duty to be paid. When importing goods, a Certificate of Origin is always necessary. Export licences are only needed for restricted products.

MO DULE 4 | BUSINESS in THEORY

1.29

B Listen to this conversation and complete the missing information on this CertiďŹ cate of Origin.

International Trade | MO DULE 4

ACTIVITIES

Listening

149

WARM UP

What is a sales contract? Why do you think it is important for doing business?

Sales contract terms A contract is an agreement between two or more parties, often a seller and a buyer. It is a document which is binding and legally enforceable. It can be prepared either by the seller or the buyer, and it is called a sales contract or a purchase contract respectively. Most contracts contain the following main clauses:

DESCRIPTION Name and description of the products or services offered. QUALITY The quality standards that the goods must comply with.

QUANTITY Units of calculation include number, area, length, volume and weight. Gross weight is the total weight of a product and its packaging; net weight refers to the weight of just the product without the packaging.

PACKING The way the goods should be packed and the material to be used to protect the goods during transportation.

PRICE The price agreed for the goods or services. Unit price refers to the price for a single unit of measure (pound, kilogram etc.).

PAYMENT How and when the goods are to be paid for. DELIVERY The place of delivery, the time of delivery

ACTIVITIES

and who is responsible for the costs, most often indicated using Incoterms (see page 152).

INSURANCE What insurance cover there is, for loss or damage for example, and who is responsible for paying for the insurance. WARRANTY OR GUARANTEE The seller promises the buyer that a product is reliable and free from known defects and that they will, without charge, repair or replace defective parts within a given time limit and under certain conditions.

CLAIM If the goods are inconsistent with the contract specifications, the buyer is entitled to make a claim against the seller. ARBITRATION If there is a dispute between the parties, this part of the contract specifies which entity will be responsible for settling the issue. FORCE MAJEURE This clause exempts the contracting parties from fulfilling their contractual obligations for causes that could not be anticipated and/or that are beyond their control, without having to pay any compensation or penalty. Force majeure events include certain natural disasters such as fire, floods, storms, earthquakes, binding vincolante and social disturbances like war, enforceable esecutorio strikes and sanctions.

Reading comprehension 2

Read the text and decide if these sentences are true (T) or false (F). Correct the false ones. T 1 2 3 4 5 6 7 8

A contract is always prepared by the selling party. If goods have to comply with certain standards, it is indicated under the heading ‘quality’. The net weight is always less than the gross weight. Incoterms are the standard way of indicating delivery conditions. Insurance is always paid for by the purchasing party. A guarantee offers protection to the purchaser against faulty goods. The organisation responsible for settling disputes is mentioned under the heading ‘claim’. The force majeure clause can only refer to natural disasters.

Vocabulary 3

Find the English equivalent to these words in the text. 1 2 3 4

150

affidabile gratuitamente sostituire reclamo

__________________ __________________ __________________ __________________

MO DULE 4 | BUSINESS in THEORY

5 6 7 8

lite inondazioni terremoti scioperi

__________________ __________________ __________________ __________________

Example of contract

WARM UP

CONTRACT FOR THE SALE OF GOODS PARAGRAPH 1

Dumbarton Leather Factory Ltd., hereinafter referred to as Seller, and Bramieri Valigerie s.r.l., hereinafter referred to as Buyer, hereby agree on this 5th day of April, in the year 20.., to the following terms.

A. Identities of the Parties PARAGRAPH 2 Seller, whose business address is 67 Westriver Street, in the city of Shefﬁeld, UK, is a leather goods manufacturer. Buyer, whose business address is Corso Garibaldi 32, in the city of Milan, Italy, is a leather goods retailer. B. Description of the Goods PARAGRAPH 3 Seller agrees to transfer and deliver to Buyer, on or before 15th May 20.., the belowdescribed goods: Description Leather handbags Wallets Suitcases

Item No. LH 2564 WA 6852 SU1648

Colour Red Brown Brown

Pieces 50 100 30

Look briefly at the contract to find the answers to these questions. 1 What does Dumbarton Leather Factory Ltd. manufacture? 2 What has Bramieri Valigerie s.r.l. ordered?

Unit price £ 25.00 £ 8.00 £ 35.00

C. Buyer’s Rights and Obligations PARAGRAPH 4 Buyer agrees to accept the goods and pay for them according to the terms further set out below. PARAGRAPH 5 Buyer agrees to pay for the goods half upon receipt, with the remainder due within 30 days of delivery. PARAGRAPH 6 Goods are deemed received by Buyer upon delivery to Buyer’s address as set forth above. PARAGRAPH 7 Buyer has the right to examine the goods upon receipt and has 15 days to notify any claim for damages based on the condition, quantity or quality of the goods. Such notice must specify in detail the particulars of the claim. Failure to provide such notice within the requisite time period constitutes irrevocable acceptance of the goods. D. Seller’s Obligations PARAGRAPH 8 Transport costs are at Seller’s charge. Until received by Buyer, all risk of loss to the above-described goods is borne by Seller. PARAGRAPH 9 Seller warrants that the goods are free from any and all security interests, liens, and encumbrances. E. Attestation PARAGRAPH 10 Agreed to this 5th day of April, in the year 20..

Mark Holland

By: Mark Holland Ofﬁcial Title: Sales Manager On behalf of Dumbarton Leather Factory Ltd., Seller I certify that I am authorized to act and sign on behalf of Seller and that Seller is bound by my actions.

Francesco Bramieri

By: Francesco Bramieri Ofﬁcial Title: Owner On behalf of Bramieri Valigerie s.r.l., Buyer. I certify that I am authorized to act and sign on behalf of Buyer and that Buyer is bound by my actions.

hereinafter in seguito security interests transazioni garantite liens diritti di garanzia encumbrances intralci, debiti

ACTIVITIES

Reading comprehension Now look at the contract in more detail and decide if these sentences are true (T) or false (F). Correct the false ones. T 1 2 3 4 5

The goods are to be delivered to Milan by 20th May. The total price for 50 handbags is £25.00. The buyer will make two separate payments for the goods. It is not possible to make a claim if the goods are damaged. Transport and insurance will be paid by the seller.

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WARM UP Have you heard of the term ‘Incoterms’? What does it stand for? Why do you think terms and conditions are important for trade? What can they deﬁne?

ACTIVITIES

Incoterms Devised and published by the International Chamber of Commerce (ICC), Incoterms – or International Commercial Terms – are the standard trade definitions most commonly used in international sales contracts. First published in 1936, they are updated regularly and Incoterms 2020 have been operative since 1st January 2020. Incoterms make international trade easier and help traders in different countries to understand one another as they define exactly the obligations, costs and risks for both buyer and seller in all areas including loading and unloading, transport, insurance and customs. Before confirming an international sales contract, it is necessary for the parties to agree upon who will organise the various elements of the delivery, who will pay for what and the point where the risks and responsibilities pass from the seller to the buyer. Difficulties can arise because of differences in languages, laws and delivery or transport systems so the Incoterms help avoid any confusion and conflict which could result in delays, lost goods and additional or legal costs. Choosing a suitable Incoterm may depend on several factors. Company policy may be to use always the same term in order to keep things simple when dealing with different clients. The seller may have more purchasing power, due to multiple shipments with a freight company, so can negotiate a better deal than the buyer. The type of goods and their value will also influence the choice of an Incoterm.

Reading comprehension 2

Read the text and look at the table on page 153. Then answer these questions in pairs. 1 2 3 4 5

Who decides the definition of Incoterms? How long have these terms existed? How long have the most recent terms been valid? Why are they useful for international trading? What factors can inﬂuence the choice of Incoterm for a company? 6 Do you think the choice of an Incoterm affects the price of a sales contract? How?

Which Incoterm has the most obligations for the seller? 8 Which Incoterm has the most obligations for the buyer? 9 In which Incoterms is the seller responsible for insurance? 10 In which Incoterm is the buyer not responsible for the goods clearing customs?

Vocabulary 3

Match these words with their deﬁnitions. 1 2 3 4 5 6 7 8 9 10

152

insurance carrier freight quay to bear delivery to load/unload terminal to clear shipment

a b c d e f g h i j

MO DULE 4 | BUSINESS in THEORY

the system of transporting goods by ship, aircraft, train or lorry to put a lot of things into a vehicle or a ship/to take them out to accept, assume a place where goods are loaded or unloaded an arrangement with a company in which you pay them money and they pay the costs if something bad happens to satisfy the official conditions of something, e.g. customs a consignment of goods a company that moves goods from one place to another the place where ships and boats can load/unload in a port the act of bringing goods to a particular person or place

International Trade | MO DULE 4

Risk

DDP (Delivered Duty Paid)

DPU (Delivered Place Unloaded)

DAP (Delivered At Place)

CIP (Carriage and Insurance Paid to)

CPT (Carriage Paid To)

CIF (Cost, Insurance and Freight)

CFR (Cost and Freight)

FOB (Free On Board)

FAS (Free Alongside Ship)

FCA (Free Carrier)

EXW (Ex Works)

Cost

Customs

Insurance

Seller

Carriage

Named Place

CARGO

Port

Transport

Port

CARGO

Named Place

INCOTERMS 2020 Carriage

Customs

Unloading

Buyer

SEA FREIGHT

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Trade organisations WARM UP

What is a trading bloc? What is its purpose? Read the ﬁrst paragraph to check your ideas.

Trading blocs A trading bloc is made up of a group of nations in a particular geographical area which have grouped together in order to promote free trade, remove trade barriers among member nations and adopt a common trade policy for the rest of the world. In this way national markets, acting as one with other countries in the agreement, can remain competitive on a global level and continue their economic growth. The most important trading blocs are:

EU (European Union)

At the end of 2019, there were 28 member states with several other countries as candidates or potential candidates for entry into the EU. The member states were Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, the United Kingdom.

EFTA (European Free Trade Association)

It is an intergovernmental organisation set up for the promotion of free trade and economic integration to the beneﬁt of its four member states: Iceland, Liechtenstein, Norway and Switzerland.

NAFTA (North American Free Trade Agreement)

Its member states are the United States, Canada, and Mexico. NAFTA took effect on January 1, 1994 creating the world’s largest free trade area. Major industries affected by the agreement include agriculture, automobile and textile manufacture, telecommunications, ﬁnancial services and energy. A new trade agreement, USMCA, is in the process of being ratiﬁed by the three countries.

APEC (Asia-Paciﬁc Economic Cooperation)

APEC began in 1989 and is the only inter-governmental group in the world operating on the basis of non-binding commitments, open dialogue and equal respect for the views of all its 21 members. It has no treaty obligations: decisions are reached by consensus and commitments are undertaken on a voluntary basis. APEC’s mission is to facilitate economic growth, trade, investment and cooperation in the Asia Paciﬁc region. Its members are Australia, Brunei Darussalam, Canada, Chile, People’s Republic of China, Hong Kong, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Chinese Taipei, Thailand, the United States of America, Vietnam.

MERCOSUR (Mercado Común del Sur – Southern Common Market)

This trade agreement was founded in 1991 with the Treaty of Asunción. Its members are Argentina, Bolivia, Brazil, Paraguay, Uruguay and Venezuela. It has three ofﬁcial languages: Spanish, Portuguese and Guarani.

OPEC (Organization of the Petroleum Exporting Countries)

ACTIVITIES

This is an intergovernmental organisation made up of fourteen countries which produce oil – Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela. Its mission is to coordinate and unify the petroleum policies of the member countries and to ensure oil markets remain stable.

154

Reading comprehension 2

B Read the texts and answer these questions. Which trading bloc(s)… 1 has 28 member states? 2 has 10 member states? 3 does not have treaty obligations? 4 has three official languages? 5 is the largest free trade area?

MO DULE 4 | BUSINESS in THEORY

6 7 8 9 10

ASEAN (Association of South-East Asian Nations)

This association was founded in 1967 by Indonesia, Malaysia, Philippines (the), Singapore and Thailand. Apart from improving economic growth and trade, the association’s aims are to also promote social progress, cultural development and peace in SouthEast Asia. It has ten member states: Brunei, Cambodia, Laos, Myanmar and Vietnam, in addition to the 5 founding members.

COMMONWEALTH Headed by Queen Elizabeth II, this is an association of 53 countries, which are linked by their history and language to the United Kingdom. The association promotes democracy, economic development, education, freedom and opportunity for all.

is Switzerland a member of? is the USA a member of? has social progress as one of its aims? has a monarch as its head? has members linked by a product rather than location?

International trade organisations

Bretton Woods

The World Bank

The International Monetary Fund Headquarters: Washington DC, USA Founded: 1945 Members: 189 member countries The aim of the IMF, a specialised agency of the UN but with its own charter and finances, is to promote global growth and economic and exchange rate stability. It advises member countries on their economic health and potential future risks and provides financing for member countries in economic difficulties. It also helps developing nations reduce poverty and become more economically stable. The idea for the IMF was conceived at the 1944 UN Conference in Bretton Woods (USA). The participating countries believed that it was necessary to form an organisation to encourage international economic cooperation after World War II so as not to repeat the economic policies that were partly responsible for the Great Depression. The Great Depression p. 355

Headquarters: Washington DC, USA Founded: 1944 Mission: Help reduce poverty The original aim of the World Bank was to help reconstruction and development after World War II and it was established, like the IMF, during the Bretton Woods UN Conference. Its mission today is to alleviate poverty. The World Bank Group is made up of ﬁve organisations which work together towards this objective by providing ﬁnancial and technical assistance to developing countries. They provide low-interest loans and grants which are invested in areas like education, infrastructure, health and agriculture.

The World Trade Organization Headquarters: Geneva, Switzerland Founded: 1995 Members: 164 countries The WTO is the only international organisation dealing with the global rules of trade between nations. Its main function is to ensure that trade ﬂows as smoothly, predictably and freely as possible. The organisation and all its agreements are based on the principle of negotiation and a lot of its work has developed from previous negotiations called the Uruguay Round and the General Agreement on Tariffs and Trade (GATT). The WTO is responsible for administering WTO agreements, dealing with any trade disputes and monitoring national trade policies. It also provides help and training for developing countries.

Headquarters of the WTO in Geneva

Read the texts and answer these questions. 1 How long has the IMF been in existence? 2 Why was it established? 3 How has the aim of the World Bank changed since its foundation?

4 How does it help developing countries? 5 Where is the WTO located? 6 What principle is behind the WTO and its operations?

ACTIVITIES

Reading comprehension

Internet research 2

Find out about the current head of one of these international organisations. Write a proﬁle of this person, including this information: • some biographical data (e.g. age, nationality, education); • previous experience within the organisation or with other organisations/companies; • any noteworthy events/resolutions/conﬂicts during his/her leadership.

Oral exam practice 3

www.imf.org www.worldbank.org www.wto.org

Mediating concepts

ES Prepare a short presentation (3-5 minutes) about trading blocs and international trade organisations following these guidelines: • define a trading bloc and its purpose; • describe two important trading blocs, their member countries and activities; • give details of the foundation, role and activities of one international trade organisation.

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4 WARM UP

What methods can potential clients use to make an enquiry to a company? What sort of information might they request?

BUSINESS in PRACTICE

Enquiries Written enquiries A general enquiry is normally a request for information and literature about a product or service and it is often the ﬁrst form of contact with a company. A speciﬁc enquiry, often following on from previous correspondence or contacts, is often for a quotation or more precise details regarding sales terms. Written enquiries can be sent by letter, fax or email, as well as through an online enquiry form on a company’s website.

Grant Mason <g.mason@thegallery.co.uk> • If it is the first time you contact the company, say how you found out about the company and give some details about your business. • Be sure the enquiry is addressed to the appropriate person or department in the company. • Your enquiry should include all your contact details. • An enquiry is also a form of presentation of yourself and your company, so it must be polite and well written in order to make a good impression.

info@greatdanedesigns.com 21 August 20.. Request for catalogue Dear Sir, We were given your name and address by the Californian Jewelers’ Association. We are an independent jewellery store in York, England, and we are looking for a new supplier of contemporary jewellery, in particular unisex rings. Therefore we would be interested in receiving your catalogue, with details of your range of products, and a current price list. We would also like to know if you can supply individual pieces made to our own or our clients’ designs and what would be the necessary time and cost for this. In your reply, please could you also indicate any minimum order quantities, your terms of payment and your usual overseas delivery time for standard catalogue pieces. If your prices are competitive and we ﬁnd your products’ quality and design suitable for our clientele, we can envisage placing regular orders with you. We look forward to receiving your reply. Yours faithfully, Grant Mason Purchasing Manager

ACTIVITIES

THE GALLERY LTD. 87 Bromley Road York Y0P 5TF United Kingdom Tel. +44 (0)1904 455720 Fax + 44 (0)1904 455721

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quotation preventivo

Reading comprehension 2

Read the email and answer these questions. 1 How did Mr Mason hear about Great Dane Designs? 2 Why is Mr Mason writing to Great Dane Designs?

MO DULE 4 | BUSINESS in PRACTICE

3 What would he like to know from the American company? 4 What would he like to receive from them?

Read this letter and put the sentences in the correct order.

Via delle Rose 136 – 20124 Milano Tel. +39 02 0000000 • Fax +39 02 000001 vinieliquori@libero.it

ACTIVITIES

Reading comprehension

Milano, 14th May 20.. Cape of Good Hope Vineyards Broadway Blvd. 5452, Stellenbosch South Africa TO THE ATTENTION OF MR JOHN VAN DER SPAER Dear Mr Van Der Spaer, Please could you also indicate your export terms and payment conditions? We visited your stand at the Vinitaly exhibition in Verona last April and had an opportunity to taste your excellent wines. We would be interested in placing an initial order for 5 cases of each of these wines and would like to know if you can offer us a 15% new customer discount. In Verona we were very impressed by the quality and taste of your Chardonnay, Sauvignon Blanc and Shiraz wines. We would now like to increase our offer of fine wines by importing a selection of them from the Cape area. We are importers and distributors of fine wines in Italy, from good everyday wines to the most sought-after collector’s wines. We look forward to hearing from you soon. Yours sincerely,

Gianni Calegari Purchasing Manager

Read the letter again and answer these questions. 1 Why is Mr Calegari writing to Mr Van Der Spaer? 2 What is the business activity of Cape of Good Hope Vineyards?

3 What is Mr Calegari asking Mr Van Der Spaer? 4 What other information does he request?

Vocabulary 5

Fill in the gaps using the words and expressions from the box.

sincerely − looking forward information − cost − reply I am writing − Could you send Enquiry − advertisement I would like

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ACTIVITIES

Phraseology 6

Phraseology p. 166

Mediating texts

Translate these expressions and then use them to complete the email. a Vi chiediamo gentilmente di mandarci b vorremmo c abbiamo visitato

d una Vostra sollecita risposta e cordiali saluti f vorremmo sapere

John Wilde <john.wilde@wildeoptics.co.uk> Ken Liu <ken.liu@guangzhoulenses.com> 26 February 20.. 04.52 p.m. Quotation request – Sunglasses Dear Mr Liu, (1) _____________ your website and we have found some items that interest us. (2) _____________ to place a quotation request and to this purpose (3) _____________ your best quotation for the following items: Men’s sunglasses Women’s sunglasses Unisex sunglasses

No. 4550 No. 4580 No. 4600

100 pieces 50 pieces 20 pieces

Please quote the above quantities FOB Guangzhou port. (4) _____________ your best delivery time and payment terms. We look forward to (5) _____________. (6) _____________, John Wilde Managing Director Wilde Optics & Co. Ltd. 225 Sussex Road – Chester CH1 2LB (UK) Tel. + 44 1245 289564 Fax + 44 1254 289569 www.wildeoptics.co.uk

Reading comprehension 7

Read the email again and decide if these sentences are true (T) or false (F). What is Mr Wilde asking to know about the trial order listed in the above email? 1 When the goods are to be paid for. 2 How goods will be shipped. 3 The price of goods. 4 How the goods are to be paid for. 5 When goods are expected to be shipped.

Phraseology 8

Mediating texts

Translate these expressions. 1 In riferimento alla Vostra email, Vi chiediamo di volerci presentare la Vostra migliore offerta per i seguenti articoli. 2 Vi preghiamo di indicare i prezzi franco fabbrica. 3 Nel caso i Vostri prezzi siano competitivi, potremmo passarVi un ordine considerevole. 4 Potreste informarci delle Vostre condizioni di pagamento per i clienti esteri?

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5 In attesa di ricevere una Vostra sollecita risposta… 6 Vi chiediamo di indicarci la prima data di consegna. 7 Vi saremmo grati se poteste inviarci il Vostro ultimo catalogo con listino prezzi. 8 Vi chiediamo la possibilità di concederci uno sconto del 10% per i nuovi clienti.

Phraseology p. 166

Write an enquiry letter. You are the Purchasing Manager of The Ironmonger’s, a chain of ironmonger’s shops in the UK, with headquarters located at 87 Roswell Road, Bristol BS1 7TF. Write a letter to Heston Hammers, 156 Victoria Industrial Estate, Nottingham NG7 3RD, a manufacturer of hammers, whose address you found on the Internet, including these points: • say where you found their address; • ask to receive their catalogue and price list; • enquire about payment terms and standard delivery times; • ask for the name and phone number of their agent in the Bristol area.

ACTIVITIES

Writing

10 Write an email following these guidelines. You can invent the rest of the details. You are the owner of the store Easy Electronics in Birmingham, UK, and you have already been in contact with the company F.D.J. in Mumbai, a producer of electronic equipment. You have received their catalogue and price list. Write an email and include these points: • refer to your previous correspondence; • say you are interested in ordering 20 of their sat navs, model FV154; • ask for a new client discount; • say you need the goods by the end of the month.

B Look at this information, then write a fax (120-140 words), using all your notes. You work for a telecommunications company in Swansea, Wales, and are urgently looking for a venue for your sales team meeting. You have seen this advertisement for a hotel in your local paper.

CARDIFF ARMS HOTEL Cost from airport? Extra charge for late night pick up?

Type of refreshments provided during meeting?

Are you looking for somewhere to hold a wedding reception, a business meeting or a large conference? Here at the Cardiff Arms, we can offer reception and conference rooms for up to 200 people. Easily accessible from the airport and motorway, we can also organise transport and local tours for guests.

Need meeting room for 10 people.

Available for Monday next week (plus 3 single rooms for Sunday night)?

Please contact Ms Hamilton on 029 55631 or email conf@cardiff.arms.co.uk for more information about our facilities and availability.

B Look at this information, then write an email (120-140 words), using all your notes. You are the owner of a furniture shop in Newcastle, UK, and are looking for new items for your second shop which is opening soon. You are interested in these bookcases made in the USA.

What about delivery times? Urgent for new shop opening in July.

Saw products on a trip to New York. Discount for first order of 5 items possible?

Bookcases Item 45JK Item 47LK Item 49MK

Price USD 450.99 each* Price USD 550.99 each* Price USD 690.99 each*

Available in white, black, natural Available in white, black, grey, natural Available in natural

*5% discount applied for orders of more than 10 items.

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Online enquiry forms

ACTIVITIES

Online enquiry forms automatically and immediately reach the correct department or person. They are quick and easy for both the person making the enquiry and for the company.

• Remember to ﬁll in all the required ﬁelds and check that details such as email addresses and contact phone numbers are correct. • Make sure any message is concise and clear.

Reading comprehension 1

Look at the online enquiry form and answer these questions. 1 What is the name of the company? Does it offer a service or a product? 2 Is this form aimed at private customers or companies? 3 Which fields must be filled in?

4 Why do you think it is necessary to specify the type of enquiry? 5 Are there any limits to the message you can write? 6 Can the company automatically contact the enquirer in the future?

Writing 2

160

Now look at this memo that Neil Tilsley has left his assistant and complete the online enquiry form.

MO DULE 4 | BUSINESS in PRACTICE

ACTIVITIES

Telephone enquiries It is also possible to make enquiries by telephone. It is usually quick and immediate but sometimes it may be necessary to conﬁrm your enquiry and/or details by fax or email. International phone enquiries may be more difﬁcult due to different time zones or language barriers.

Listening 1

Charles Winslow of The Garden Store calls Perfect Lawn Co.

Pilates course

Lawn mower

When: 9.30 a.m. and 4 p.m. on (1) __________

model No.:

(5) __________

No. of units:

(6) __________

Cost:

Speaking

(3) __________ including access to (4) __________ and Jacuzzi.

Estimate comprises: goods, packaging, insurance and (7) __________ shipment Delivery:

(8) __________ working days

Kevin Grisham from Expert Solutions in Florida calls Marcia Newell, who works for the exhibition My Home in the UK.

Expert solutions (9) __________ exhibitor Sector:

(10) __________ and outdoor lighting

Proposal: stand near entrance in (11) __________ Size:

(12) __________ square metres

Phraseology p. 167

Professional competences

Work in pairs. Practise these phone conversations. Remember to swap roles.

Caller

Receiver

You are a photographer interested in buying a professional digital camera. Call Nikon and: • request a copy of their catalogue for professional cameras; • ask for the nearest retailer – you live in Edinburgh; • say you are interested in their magazine.

You work for in the Customer Services department of Nikon. • Your catalogue is available in printed form or online at your website. • There is a small retailer in Queen Street in Edinburgh or a larger retailer in Glasgow with a wide range of professional cameras. • Offer the caller a free subscription to your monthly e-magazine. Get his/her details.

Caller

Receiver

You are a buyer for Auntie’s Antiques. You have a catalogue from Shalton Furniture. Call the company and: • ask if the special offer on bedroom furniture is still valid; • enquire if model 345 is still available; • ask if it is possible to deliver by the end of next week; • say you are happy to receive details of other special offers.

You work for Shalton Furniture. • The special offer on bedroom furniture has expired. • You have model 345 available in your warehouse. • Delivery can be carried out in five working days. • Try and interest the client in your new offers for dining tables and chairs.

Oral exam practice 3

B Listen to three phone enquiries and complete the missing information.

Leah Watts calls ACTIVE, a local gym.

Course length: (2) __________

1.30

Mediating concepts

ES Prepare a short presentation (3-5 minutes) about making enquiries. Include these points: • the different forms of enquiry and their characteristics; • what information to include in an enquiry.

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Replies to enquiries WARM UP

Written and oral replies

What do you think you should include in a reply? Read and check your ideas.

It is important to answer all enquiries promptly by letter, fax, email or phone call. This shows the potential customer that you value them and that your company is professional and reliable. In this way they are more likely to remember – and therefore buy or use – your products and services. This is the reply from Great Dane Designs to The Gallery (page 156).

When replying to enquiries, apart from being polite and friendly, it is standard practice to: • refer to the initial enquiry made; • express your appreciation for the interest and maybe give additional information about your organisation, products or services; • cover all the points or questions in the enquiry; • make an alternative suggestion or a counteroffer if you are unable to satisfy a customer’s request, such as for a specific product or discount; • close by offering any other assistance and by encouraging further contact.

j.kinear@greatdanedesigns.com g.mason@thegallery.co.uk 22 August 20.. Your enquiry Dear Mr Mason, Thank you for the interest shown in our company and your enquiry about our jewelry. We are well known for our original and contemporary designs which particularly suit young people of both sexes. One of our rings was recently featured in American Vogue and we have received a lot of positive feedback from this. I have attached our current catalog and price list to this email, and you can see a selection of press articles on our website. I have also sent by courier a hard copy of our catalog and a brochure with photographs of some of our made-to-order designs. The time needed to create these unique pieces can vary from 2 to 6 months, and it is not possible to give any indication of price until we have received your design speciﬁcations. We would like to inform you that there is no minimum order for our standard pieces. We require payment by bank wire on receipt of the order, and we can guarantee delivery within 10 working days. We thank you once again for your interest in our company and please do not hesitate to contact us for any further information.

ACTIVITIES

Sincerely, Janice Kinear Sales Manager Great Dane Designs

Phraseology pp. 166-167

Reading comprehension 2

Read the introductory text and answer these questions. 1 In what ways can you reply to an enquiry? 2 Why should you reply promptly to an enquiry? 3 What do the opening and closing parts of the reply usually refer to?

4 What kind of additional information might be included in the response letter? 5 If your reply is negative, what should you do?

Read the email and answer these questions. 1 Does Ms Kinear reply to all of the requests or questions in the original letter of enquiry?

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jewelry (US) / jewellery (UK)

MO DULE 4 | BUSINESS in PRACTICE

2 If not, what requests or questions has she not replied to? 3 What is Ms Kinear’s explanation for not replying to this point?

ACTIVITIES

Reading comprehension Read this email and put the sentences in the correct order. This is the reply from Cape of Good Hope Vineyards to Vini e Liquori (page 157).

John Van Der Spaer <vanderspaer@goodhopevineyard.com> Gianni Calegari <vinieliquori@libero.it > 3 June 20.. 09.53 a.m. conditions.doc (35.8 KB) Your enquiry Dear Mr Calegari, The reason for this is that we already have very competitive prices for our wines. We are glad to hear about your interest in our products. We wish to thank you for your letter dated 14th May 20.. concerning our wines from the Cape area. However, since we feel that it is important for us to enter the Italian market, we are willing to offer an exceptional 7.5% discount on your ﬁrst order. We hope that our offer is satisfactory and we look forward to doing business with you. For future larger orders, our normal quantity discounts will apply. These can be found in the attachment, together with our standard shipment and payment terms. We regret to inform you that we are unable to offer a 15% new customer discount. Yours sincerely, John Van Der Spaer

Vocabulary 5

Fill in the gaps using the words from the box. This is the reply from Guangzhou Lenses to Wilde Optics (page 158).

email − questions − quotation shipment − certiﬁcation − opportunity order conﬁrmation − date

Ken Liu <ken.liu@guangzhoulenses.com> Wilde Optics Ltd. <john.wilde@wildeoptics.co.uk> 27 February 20.. 06.25 a.m. Re: Quotation request – Sunglasses Dear Mr Wilde, Thank you for your (1) ____________ dated 26th February 20.. We are glad to send you the (2) ____________ requested as follows: Men’s sunglasses Women’s sunglasses Unisex sunglasses

No. 4550 No. 4580 No. 4600

100 pieces 50 pieces 20 pieces

USD 35.00/piece USD 42.00/piece USD 50.00/piece

- Lenses comply with E.U. norms and standards and (3) ____________ will be provided - FOB Guangzhou port, China - (4) ____________: approximately 20 days after the (5) ____________ of order - Payment: T/T 30% down payment, 70% upon receipt of copies of shipping documents by fax or email If you have any further (6) ____________, please feel free to contact us. We thank you for this (7) ____________ to quote and look forward to receiving your (8) ____________. Yours sincerely, Ken Liu Export Sales Manager GUANGZHOU LENSES IMPORT & EXPORT CO. LTD. Hong Kong Road 7958 – Guangzhou, China Tel.: 86 58 2598 6251-4 – Fax: 86 58 2598 6259 – www.guangzhoulenses.com

comply with sono conformi a

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ACTIVITIES

Listening 6

B Mary Stewart at the School of Languages calls Jane Brett at Brett & Warwick Ltd. in response to her fax enquiry about Spanish courses (page 157). Listen to their phone conversation and choose the correct option. 1.31

1 When and where would Jane Brett like the course to be held? A at the language school after office hours B at her company offices during working hours C at her company offices after work 2 Mary Stewart wants to know if the students… A are at the same managerial level. B have the same knowledge of Spanish. C work in the same department. 3 When will the assessment test be held? A after the 20th October B before the 20th October C during the first lesson

4 According to Mary Stewart, … A classes of ten or less are the most successful. B group lessons give better results. C students of different levels can learn together. 5 Why will Mary Stewart send an email? A to request payment for the course B to organise the assessment tests C to confirm the information they talked about

Writing 7

Now complete Mary Stewart’s email.

Dear Ms Brett, (1) ________________ earlier today, I (2) ________________ the details of our offer for Spanish courses for your company. (3) ________________ a six-month course starting on 20th October, with lessons twice a week on Monday and Thursday at your premises. Assessments will be carried out in advance. The cost per student is £600. This includes all course and study books for the students. (4) ________________ 50% payment in advance and the remaining amount by mid course. (5) ________________, all our teachers are qualiﬁed native speakers and have many years experience of teaching, particularly in a business environment. It would be helpful if there were photocopying facilities available, as well as a projector and internet access. (6) ________________ for your interest in our school and I look forward (7) ________________. (8) ________________, Mary Stewart

Write a reply to an enquiry letter.

Phraseology pp. 166-167

You work for Heston Hammers in Nottingham. Reply to the letter of enquiry from The Ironmonger’s in Bristol (page 159, ex. 9). Include the following points: • thank the writer for their interest in your company; • say that your company has been the market leader for 35 years; • inform them that your payment terms are 10 days from receipt of order and that delivery is within 12 working days for goods in stock; • say that you have given the company’s details to your agent for Bristol (Ms Caroline Meers, tel. 0788 453217) and that she will contact them soon; • attach a copy of your catalogue to the letter.

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MO DULE 4 | BUSINESS in PRACTICE

Write an email. You work in the sales department of FDJ. Write a reply to the email you received from Easy Electronics in Birmingham (page 159, ex. 10). Start and end your email in a suitable way and include the following points: • say that model FV154 will be available at the end of next month; • suggest model FV164 as an alternative – it has more features and is available immediately; • inform them that you cannot offer a new client discount but are willing to offer the better model at the same price for this order.

ACTIVITIES

Writing

B Look at this information, then write an email (120-140 words), using all your notes. You are the manager of the Grand Orchid Hotel in Phuket, Thailand. You received this enquiry about group bookings from a travel agency in Germany.

Sorry, maximum 25 people because…

Discount of 25% on bookings of over 7 days.

New updated website launched last week.

We visited your website last month and are interested in offering your hotel to our clients. We would be grateful if you could let us know if you can accept bookings for parties of 30 or more people and the discount you can apply. Could you also kindly send us some information regarding tours that you can organise in the area for our clients? Looking forward to receiving your reply. Kind regards, Wolfgang Stein What age group? Different tours for young travellers, families or older people.

B Look at this information, then write a fax (120-140 words), using all your notes. You work for an American company which produces baseball equipment, clothing and accessories. You received this enquiry from a sports retailer in the UK.

Yes, our UK sales have increased 34% this year. Download from our website…

There is great demand for baseball clothing and equipment now in the UK and we would like to be able to offer your products in our shops. Please send us your catalogue and price list, together with information regarding delivery times. We hope that this letter will be the start of a successful business relationship. Yours sincerely, Janice Smith

Suggest meeting at next month’s sports trade show in London.

Oral exam practice

Location? We already have exclusive contract for London and South East.

Mediating concepts

12 ES Prepare a short presentation (3-5 minutes) about replying to enquiries. Include these points: • the different forms of reply and their characteristics; • what information to include in a reply.

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4 Phraseology

BUSINESS LANGUAGE

PCTO

More business language practice

Written communication ENQUIRIES Source of address/information

Reason for writing/speciﬁc request

• We were given your name… • We recently had the opportunity to meet representatives of your company… • At the trade fair in… we were very impressed by… • We have visited your stand/website… • I saw your advertisement in… on 30th April 20.. • We have seen your advertisement in the latest edition of… • Your firm was recommended to me/us by… of … • Thank you for sending your material describing…

• I am writing in relation to/to enquire about… • I am writing to ask for more information about… • We are interested in receiving… • We would be grateful if you would/could send us/let us have your pricelist/catalogue/quotation, together with information on delivery times and payment terms. • Could you please send us/let us know if… • Please let us know full details of your prices. • We would also like to know if you grant/are willing to give a special discount on trial orders. • We would like to know your best quotation for…

Information about the writer’s company • We are the leading/largest importers of… • Our company specialises in… • We are a large manufacturing company based in… • Our company is a well-known… • We have been operating in the market since… • We are dealers/wholesalers/retailers in… and think there is a promising market in our area for the types of articles you manufacture. • We are importers and distributors of…

Reference to reply/future business • We look forward to hearing from you. • We hope to start a mutually advantageous business relationship. • We look forward to receiving a prompt reply. • We look forward to receiving… as soon as possible. • Hoping for a prompt reply. • Thanking you in advance for your kind assistance. • If you can guarantee prompt delivery and regular supplies/ If we find your terms competitive and your samples up to our expectations, we will place regular orders with you.

You work for the buying department of a large department store. Write a letter of enquiry to a manufacturer of children’s toys using these prompts: • see / internet site • like / traditional wooden toys / big potential market

• complete catalogue and price list • sample of two toys for quality • delivery times?

You work in a small law office. Write a letter of enquiry to an office cleaning company asking about their services. Include these points: • hai visto la pubblicità sul giornale locale • sei interessato alla pulizia dei vostri uffici (sala riunioni, reception e bagni)

• chiedi costi e disponibilità per una volta alla settimana, preferibilmente venerdì

REPLIES Opening paragraph/reference to enquiry • Many thanks for your letter/enquiry/email/fax of… • Thank you for your letter/enquiry/email/fax about… • In reply to/With reference to your letter/enquiry/email/fax of… • Thank you for your recent email enquiring about… • We were very pleased to receive your letter of… asking about… • We are glad to hear about your interest in our products. Positive reply – information about activity and products • We have a reputation for… • All our products comply with European standards…

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• Our goods are made to the highest standards. • Our firm specialises in… • These new products are in great demand/widely requested on the market. • We have the pleasure of informing you that we can supply all items from stock/the goods immediately. • We feel confident that your customers will be satisfied with this new product. • We intend/are going to run/launch an advertising campaign in your market/in September.

REPLIES Positive reply – quotations and sales term • We are pleased to quote… • Our prices are quoted FOB London/for delivery CIF Liverpool/ ex-works/subject to a trade discount of 20%. • We accept payment by… • Our usual terms are by draft at 60 days/one month from date of invoice/…% discount for cash payment. • For quantities exceeding… we can offer you a special discount… • As you can see from our catalogue.../We can certainly supply...

Counter-oﬀer • May we suggest… as an alternative? • We would like to suggest the following replacement model. • However, we would be willing to... Closing paragraph

Positive reply – reference to enclosures/attachments • We enclose/attach an order form/a copy of the contract/our catalogue and current price list… • Please find enclosed/attached our catalogue and price list/the quotation you requested/our pro-forma invoice… • We have already sent you the samples you requested by courier. Negative reply • We regret that… • We are not in a position to grant any further discount but… • We regret to inform you that this model is no longer in production/is not available from stock.

• Unfortunately we are afraid we cannot/we are not able to… • The reason for this is that the prices are already at the lowest level possible… • This is due to the fact that…

• Trusting this answers your questions… • Should you have any further queries, please do not hesitate to contact us. • Please do not hesitate to contact us if you require other details. • We hope/are sure that you will take advantage of our exceptional offer. • We hope/are sure that these goods/our products will meet your/your customers’ requirements. • We look forward to receiving your first order. • We look forward to the pleasure of serving you/counting you among our customers.

Write a reply to the letter in exercise 1 p. 166, using these prompts: • thanks / in business / over 25 years • catalogue / samples in post / EU standards

• price list attached / but increase next year • most articles in stock for immediate delivery

Oral communication TELEPHONE ENQUIRIES AND REPLIES Reasons for phoning

Positive response

• I’d like to have some information about... • I’m calling to enquire about… • I’d like to know if…

• Yes, of course, that would be possible. • I can confirm that we have the items in stock/in our warehouse. • It shouldn’t be a problem. I’ll just check for you. • Yes, we offer two different packages that would suit your requirements. • I’d just like to confirm that we have sent our price list/catalogue/ sample products by mail.

Other requests • How much does it cost? • Does it also include…? • What does this price include? • Do you ship…?

Negative response

Ending the conversation • I’ll think about it. Thanks. • Can I get your email? • OK, thanks for your detailed information. I’ll let you know by… • Thanks very much for your help. Reference to an enquiry • I’m phoning about your letter/email/enquiry about… • It’s about your enquiry regarding…

In pairs, practise this phone conversation.

• I’m sorry but… • I’m afraid we can’t… because… • Unfortunately that is not possible at the moment due to… Counter-oﬀer • Have you thought of…? • Can I suggest you consider…? • Why don’t you…?

Professional competences

A You work for Greenfield Health and Beauty Spa and receive a call from a customer interested in a weekend spa package. Prices start from €289 for a basic package of one night, two meals, one treatment and use of the sauna and pool. Gym access is extra.

B You are interested in a weekend spa package and call Greenfield Health and Beauty Spa for information. You want to stay one or two nights. Ask for the cost and what is included, and if there is a gym. Say you want some time to decide before booking.

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Vocabulary VERB PATTERNS: VERB + PREPOSITION Some verbs are followed by specific prepositions and this pattern cannot be changed.

Choose the correct preposition from the box to complete these sentences.

in − with − for − on − from − of (x 3) − to (x 2) 1 With the Incoterms CIF and CIP, it is the seller who pays _____ the insurance. 2 The amount of duty to be paid on imported goods can depend _____ where they come from. 3 The importer was suspected _____ importing goods without the proper authorisation. 4 The international community disapproved _____ the government’s decision to impose a trade ban. 5 Would it be possible for you to supply us _____ 200 cases per month?

6 We regret _____ inform you that we are unable to accept your request for a discount. 7 The company specialises _____ analysing economic indicators. 8 The accountants were accused _____ falsifying the financial reports. 9 We look forward _____ doing business with you in the future. 10 The government introduced quotas to protect its national industry _____ overseas competition.

COLLOCATIONS WITH TRADE trade + noun trade | agreement / balance / barriers / deficit / embargo / gap / policy / statistics / surplus adjective + trade domestic / export / fair / foreign / free / global / illegal / import / international | trade

2 Look at the collocations with the word trade and choose the most suitable to complete these sentences. 1 Kennedy introduced a _________ with Cuba in 4 A trading bloc is a group of nations which want 1962. to collaborate together to promote _________, 2 _________ is the process of importing and remove _________ and adopt a common exporting goods and services between countries, _________. while _________ is the buying and selling of 5 INTRASTAT is an organisation which collects goods and services in a national market. _________ from EU member countries. 3 A _________ is when a nation exports more 6 A lot of the coffee sold in the UK comes from than it imports. The opposite situation creates _________ companies. a _________. PHRASAL VERBS break off

carry on

deal with

fill in

find out

look up

go over

go up

3 Replace the underlined words with a phrasal verb from the box above. 1 Please complete this form in black or blue ink. 2 Can we look at the terms of this sales contract again to check they are correct? 3 It’s important to handle all enquiries promptly. 4 We need to get information about any changes to the EU regulations. 5 UK exports are expected to increase next quarter. 6 What will happen if the two nations suddenly end trade negotiations? 7 If you don’t know what CFR means, find the information on the Internet. 8 Could you continue with this report while I check some figures?

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MO DULE 4 | BUSINESS LANGUAGE

______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________

Grammar 1

PAST SIMPLE VS PAST CONTINUOUS We use the past simple to talk about finished actions in the past. The goods took two weeks to get through customs. The company didn’t increase its exports last year. We use the past continuous to talk about actions that were in progress in the past. They were discussing the implications of the embargo. It is often used in conjunction with the past simple. While the company was trying to get established in the South American market, the import regulations changed.

Video tutorial 8

Complete these sentences using either the past simple or past continuous of the verbs in brackets.

1 The NAFTA agreement between the USA, Canada and Mexico _______ into effect in 1994. (come) 2 How much _______ the country _______ in goods between 2016 and 2018? (export) 3 The country’s trade gap _______ last year. (not increase) 4 Police and customs officials _______ together when they _______ the criminals. (work, catch) 5 What _______ in the world economy this time last year? (happen)

2 Change these sentences into the passive form.

PAST SIMPLE PASSIVE

1 When did they establish the World Bank? ______________________________________________________ 2 They issued the latest Incoterms in 2020. ______________________________________________________ 3 The National Statistics Office published the GDP figures in July. ______________________________________________________ 4 When did they found the MERCOSUR trade agreement? ______________________________________________________ 5 They didn’t release the shipment. ______________________________________________________

We use the past simple passive to emphasise what happened and not who did the action. We can use by to indicate the agent. The idea for the IMF was conceived at the 1944 UN Conference in Bretton Woods. When were the rules regarding VAT on intracommunity trade changed? The SAD was introduced by the EU to reduce the amount of administration.

3 Use these prompts to make complete

PRESENT PERFECT SIMPLE

sentences using the present perfect or past simple.

We use the present perfect simple to talk about: • past experiences when the time is not specified We have received your catalogue and price list. The company hasn’t imported this type of product before.

1 you / deal with / this client / before? / yes, we / work / together / last year 2 he / not fill in / Certificate of Origin / yet 3 government / introduce / subsidies / for national industries / this year 4 sales / increase / this month? / no, but they / go up / last month 5 the company / make changes / its policy / recently

• when the period of time is not finished at the moment of speaking The economy has grown by 3% this year. Have exports gone up this quarter? Yes, they have. • past actions, with a result in the present Interest rates have gone up. Compare the present perfect and past simple: UK imports have risen. They went up by 5% last month.

Video tutorial 9

4 Translate these texts. Mediating texts US imports of foreign oil are rising again after a long decline. US crude imports declined 20% last year during the domestic energy boom. However, they have recently started to rise again. Total crude-oil imports rose for three consecutive months during the second quarter of the year. According to the most recently available data from the Energy Information Administration which was published last week, there has been an increase of 1.7% so far this quarter. Imports of light crude, on the other hand, have grown more rapidly.

L’economia italiana nel terzo trimestre dell’anno è cresciuta dello 0,2% contro il +0,4% del primo trimestre e il +0,3% del secondo. Il dato su base annua è il migliore degli ultimi tre anni, ma gli addetti ai lavori si aspettavano una crescita più ingente. L’Italia non riesce a mantenere il passo dei vicini europei che nello stesso periodo hanno registrato una progressione dello 0,3%. L’Istat sottolinea che la crescita del PIL italiano nel terzo trimestre è stata aiutata dal mercato interno, mentre il commercio estero è stato più lento.

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BUSINESS NEWS

The economy of fakes

Fighting Fakes W

ho hasn’t seen a fake bag, watch, pair of jeans or sunglasses for sale by a street vendor or in a market somewhere? And how many of us have been tempted to get a ‘designer’ product at a ‘bargain basement’ price? Today buying counterfeit products has never been easier: thanks to the Internet you are only a few clicks away from getting that knock-off Louis Vuitton handbag delivered directly to your door. By their very nature, counterfeit sales are hard to quantify. In 2018, American officials seized fake goods with a value of $1.4 billion. Clothing and accessories were the most frequently seized, followed by footwear, watches, jewellery and handbags. However, this represents only a fraction of the nearly $2 trillion that is estimated to be the total value of fakes sold each year. And it is the proliferation of fakes sold online which is making things more difficult for law enforcement officers who are combatting counterfeits. Intercepting bulk shipments of fake goods when they are sent around the world by container ship is difficult enough for customs officials, so imagine what it is like when dealing with millions of separate parcels being delivered by postal or courier services to private addresses as a result of online purchases. Shipping in containers across borders means a lot of documentation needs to be produced, such as the ship manifest and bill of lading, and these are easier for customs officials to trace and check. With postal and courier services, the documentation requested is much more simple and it is a lot easier for the sellers to

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misrepresent the goods or falsify the description of the contents of the small packages. A report by the OECD states that China is by far the biggest country of origin of fake goods, but also places like India, Malaysia, Thailand Turkey and Vietnam are heavily involved in the production of counterfeit items. So what can be done? Luxury brands, rightly horrified by their designs being copied and falsified, want to do everything possible to maintain their reputations for quality and exclusivity, as well as their profits. For this reason, many of them have tried to fight against the factories that produce the fake handbags, sneakers or jackets, but if they manage to get one closed down another will start up again almost immediately. So now many have started to fight against the third party websites that sell the products online, particularly the platform Taobao, which is owned by Chinese e-commerce giant Alibaba. Here there are large scale counterfeiting operations which sell hundreds of fake goods at a time, although Alibaba claims to constantly control sellers and delete any suspected of selling fake merchandise. Amazon has also been accused of allowing counterfeiters to operate through their Marketplace option, where third parties pay a percentage of their revenue for being able to use the Amazon infrastructure to sell direct to consumers. knock-oﬀ falsa, riprodotta

Reading comprehension 1 INVALSI

Read the article and choose the correct option.

1 Why is it so difficult to quantify the number of fakes in the world? A The various authorities do not collaborate on collecting official figures. B Counterfeiting is a fraudulent activity and so cannot be easily measured. C Companies do not like admitting the extent of their problems with fake products. D The quality of fake goods is so high they are indistinguishable from the original. 2 Why are online sales causing problems in the war against fakes? A Senders are using illegal courier services which produce false documentation. B Customs officials have no authority to check deliveries to private addresses. C The huge numbers of parcels makes carrying out checks nearly impossible. D The origin of packages ordered online cannot be traced. 3 Which reason is not given for why luxury brands want to fight against counterfeit products?

A B C D

To To To To

protect their customers. secure their revenue. preserve the brand status. safeguard their intellectual property.

4 Why is the battle by luxury brands against the factories ineffective? A They are the same factories that produce the authentic goods. B They do not have the support of the local authorities. C There are too many to succeed in making a difference. D New production sites quickly replace any that are closed. 5 The accusations against third party websites are ofâ&#x20AC;Ś A deliberately avoiding requests to delete fake sellers from their websites. B knowingly allowing counterfeiters to use their websites to sell fake goods. C running their websites in a fraudulent manner. D not refunding consumers if they purchase fake merchandise.

Listening 2

1.32 B Listen to this report from the United Nations Office on Drugs and Crime (UNODC) about the effects of counterfeit goods and fill in the missing information.

Economic losses Environmental impact

For company and (1) ____________ Contamination of the (2) ____________ and ____________ Air pollution from (3) ____________

Ethical impact

Exploitation of workers with (4) ____________ and unregulated jobs Contribution to (5) ____________ and illegal activities

Health and safety impact

Fake products, like perfumes and medicines, can be (6) ____________ (7) ____________ of medicines in developed world are likely to be fake Fake (8) ____________ may contain toxic products

Speaking 3

Discuss these questions in pairs. 1 2 3 4

What fake products are most commonly found in your country? Where can they be bought? Have you bought or would you intentionally buy a fake? Why/Why not? What about illegally downloading or copying music, films or software? Do you think there is a big difference in quality between a fake product and a genuine one?

Writing 4

F Now write an essay (about 140-190 words) using all the notes below and giving reasons for your opinions. It is not ethical to intentionally buy fake goods. Do you agree? Write about: damage to the economy; reputation of the company; personal status.

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4 Background

BUSINESS CASE STUDY

Case analysis: Garofoli Vini Read this proﬁle of Garofoli Vini. Where is the company located? What different wines does it produce? Where are they sold?

The origins of the Garofoli winery date from the end of the 19th century, when Antonio Garofoli had already begun the production and sale of local wines in the Castelfidardo area of the Marche, Italy. Today Garofoli Vini is a joint-stock company, with the fifth generation of Garofoli family members working in the company. Garofoli’s wines are produced in two locations in the Marche region – Serra de’ Conti mainly for the Verdicchio dei Castelli di Jesi white wine, and Castelfidardo mainly for the Rosso Conero and Rosso Piceno red wines. As well as these ‘DOC’ wines, the winery also produces ‘IGC’ Marche wines, sparkling wines, table wines and some speciality wines like passito. Annual production amounts to about two million bottles, of which around 40% are sold on the domestic market and the remainder on markets throughout the world, including Europe, the USA, Brazil and Asia.

www.garofolivini.it

Case presentation

Read about the Japanese market for importing wines. Why could it be an important market for Garofoli Vini? Which two ways could the company use to sell its products in Japan?

In Japan, there is a growing interest in Italian food and wine, not only when eating out in restaurants but also at home, so many supermarkets and food stores are increasing the number of Italian products for sale. Figures seem to suggest that the consumption of wine pro capita has increased over the last few years and France, Spain, Italy and Chile are the biggest exporters of wine to the country. For EU companies wishing to export to Japan, the local authorities have stringent hygiene and safety controls to respect, especially when it comes to food and wine, as well as requiring all the relevant documentation, such as the certificate of origin. A company can decide to sell to Japanese clients directly, taking care of these procedures personally, or it can decide to use an importer, sometimes with an exclusive contract, to sell and distribute its products. The decision between these two methods will depend on many factors such as the volume of business and the knowledge within the company of the Japanese market, language and import rules. 172

MO DULE 4 | BUSINESS CASE STUDY

Case analysis Step one BRAINSTORMING

List the advantages and disadvantages of exporting to Japan using an importer. What about dealing directly with clients? Use the ideas in the previous text and in the box below to help.

language barriers − cultural differences − bureaucracy import/export regulations − customs difﬁculties − market knowledge client base − promotion/marketing − commission Importer

_________________________________________________________________ _________________________________________________________________

Direct

_________________________________________________________________ _________________________________________________________________

Importer

_________________________________________________________________ _________________________________________________________________

Direct

_________________________________________________________________ _________________________________________________________________

Advantages

Disadvantages

Step two DECISION MAKING

Decide which method Garofoli should choose for exporting their wines to Japan. Think about: • the ease of doing business; • the volume of business; • the potential to increase sales.

Step three

Outcome

Tell the class what you decided. How many other groups made the same decision? Read what Garofoli Vini decided to do. Did you make the same decision?

Garofoli Vini has been exporting wine to Japan for more than 30 years and has used the same importer for the last 20 years, guaranteeing exclusivity. This has worked well for the company and in this time they have seen a steady increase in business. The importer is one of the most prestigious in Japan, with good penetration of all the market segments, and has established a solid client base for Garofoli wines. Today Japan is the fourth biggest market for the company and they sell about 100,000 bottles a year, with a slight majority of red wine. They also have a lot of contacts with restaurant owners in Japan who often come to visit the winery in Italy to know the products and the territory where they are produced.

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Professional competences Writing a letter of enquiry

You own three restaurants in Tokyo and would like to ﬁnd out more about importing some of Garofoli’s wines. Write an email to the company, including these points. • say where you saw their wines; • explain something about your restaurant business; • request further information and prices.

Replying to a letter of enquiry

You work in the international sales department of Garofoli Vini. Write a reply to the above enquiry, following the notes your Italian manager made.

• ringraziare per l’interesse, dare dettagli del nostro importatore in esclusiva (mettere in CC) • dare il solito breve profilo di noi e dei vini, allegando la brochure aziendale con il listino prezzi • invitare il cliente a visitare la cantina in Italia

Following up an email

You have not heard anything back from the client nor from your importer regarding the enquiry, so your manager has left you this note.

Puoi scrivere all’importatore, per cortesia, e chiedere se hanno ricevuto la nostra email e se hanno preso contatto con il cliente? Lo conoscono già? Potrebbe essere interessante per noi? Hanno bisogno di altro da parte nostra? Ricorda loro che devono contattare i clienti subito e tenerci sempre informati.

Making a phone call

Role-play this conversation. Invent any necessary details.

A You work for the Japanese importer. Call your contact at Garofoli Vini to inform them that the restaurant owner is planning a trip to Italy to choose a new selection of wines to serve at his restaurants. Ask for suggestions regarding the best time for the visit.

Confirming the details of a visit

B You work for Garofoli Vini. Your Japanese importer calls you regarding the restaurant owner you have been in contact with. Ask for more details about the type of restaurants he owns and how important the business could be.

Write an email to the client to conﬁrm the following details regarding their visit to Garofoli Vini in Italy. • Prenotazione effettuata presso albergo 4 stelle a Recanati, cittadina storico/culturale vicino alla sede della Garofoli Vini • Appuntamento presso la nostra sede di Castelfidardo il 15/9/20.. alle ore 10.00 • Prevista una visita guidata a un vigneto e alle cantine • Pranzo con degustazione dei nostri vini e prodotti tipici della zona

Welcoming a client

The Japanese restaurant owner has just arrived at Garofoli Vini in Italy. Take one of these roles each and role-play welcoming the visitor to the company. A Japanese restaurant owner

B Marketing manager

C Senior viticulturist

Tips on welcoming visitors • Introduce yourself, and any others, giving the position and role in the company. • Suitable topics of conversation for small talk could be asking about the ﬂight/hotel/weather etc., but avoid any topics that could be controversial, like politics. • Be sensitive to any cultural differences or any difficulties with language.

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MODULE

5 Transport

and Insurance

BUSINESS in THEORY

BUSINESS in PRACTICE

Types of transport Transport documents Invoices Insurance Placing an order Replying to orders Modification and cancellation Sending goods

BUSINESS LANGUAGE

Phraseology Vocabulary Grammar

BUSINESS NEWS

Insurance claims

BUSINESS CASE STUDY

Case analysis: Swift Transport Professional competences

175

5 WARM UP

What different forms of transport can you think of? Which are for people, goods or both?

perishable deperibile haulage autotrasporto sealed sigillati freight merce trasportata

A tonne-kilometre, abbreviated as tkm, is a unit of measure of freight transport which represents the transport of one tonne of goods over a distance of one kilometre.

BUSINESS in THEORY

Types of transport Transport is how goods and people are moved from one place to another. The main forms of transport for goods are by land (road, rail), by water (inland waterways, sea), by pipeline and by air. For a company which needs INLAND FREIGHT TRANSPORT, 2017 to move anything from raw Roads Railways Inland materials to finished products, waterways the choice of the best method (% of total inland tkm*) of transport depends on many factors including: EU (28) 76.7 17.3 6.0 • the size and weight of the United Kingdom 90.4 9.6 0.1 goods; • the type of goods, e.g. Italy 86.4 13.6 0.0 valuable, perishable or France 87.2 10.5 2.4 fragile; • the cost; Germany 73.4 17.8 8.8 • the distance from A to B; Netherlands 49.4 5.9 44.7 • the time needed.

Transport by land

Source: Eurostat 2017

Road Road transport or road haulage is the most common form of land transport. Over short and medium distances it is relatively fast and convenient, which makes it particularly suitable for perishable goods such as fresh food produce. Goods can be loaded and unloaded at any destination so it is extremely flexible. However, due to the limited carrying capacity, it is not so economical for long distances. A company can use its own transport services, such as vans for local deliveries, or can use the services of a courier or a road haulage firm which can deliver goods both nationally and internationally. A TIR lorry (from the French Transports ADVANTAGES Internationaux Routiers) is normally used when • door-to-door delivery transporting goods across • fairly fast multiple borders. The • relatively cost-effective goods are loaded into containers which are DISADVANTAGES sealed at their point of departure and therefore • air pollution and do not need to be environmental damage inspected by customs • limited capacity/weight officials until the final • delays due to congested roads, bad weather destination.

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MO DULE 5 | BUSINESS in THEORY

The Chunnel

Rail

MORE ABOUT...

Although the use of rail as a method of transport has declined in favour of road transport, it is a very efficient and cost-effective way of transporting heavy and bulky goods over long distances. It is less flexible than road transport, operating to fixed time schedules, and goods need to be transferred at both ends of the journey. Container trains have solved this problem for some goods since containers can easily be loaded to ships or lorries to continue on to their destination.

The Gotthard Base Tunnel opened in 2016. It runs for 57 km under the Swiss Alps, making it the world’s longest railway tunnel and the deepest traﬃc tunnel. It represents an enormous engineering masterpiece, took 17 years to complete and cost €11 billion to complete. It is part of the Swiss Alptransit project to transfer freight traﬃc from roads to the railway.

DISADVANTAGES

ADVANTAGES • low-cost and environmental impact • low-accident rate • suitable for large quantities and long distances

Pipeline

• slow • limited by the rail network coverage • size limits (due to bridges and tunnels)

Pipelines can be thousands of miles long and go underground and under the seabed between cities, countries and continents. They are used to move liquid and gas, such as petroleum and natural gas, from the production fields to refineries, to ports and directly to clients.

DISADVANTAGES

ADVANTAGES • convenient • economical • not affected by external conditions

• only for liquids and gases • high installation and maintenance costs • risk of severe environmental damage in case of leaks

bulky voluminosi leaks perdite

Read the texts and answer these questions. 1 Which factors can influence the choice of transport? 2 Which is the most common form of transport by land? 3 Why is road transport flexible? 4 What is a TIR lorry and when and how is it used?

5 Which is the most suitable form of land transport for long distances? Why? 6 What is a container train? 7 What kind of products can be transported by pipeline?

ACTIVITIES

Reading comprehension

Vocabulary 3

Match each word with the correct definition. 1 2 3 4 5 6

convenient economical suitable flexible cost-effective limited

Speaking 4

a b c d e f

giving good value for money right or appropriate for a particular person, purpose, or situation effective or productive in relation to its cost restricted in size, amount, or extent situated to allow easy access able to be easily modified to respond to altered circumstances

Mediating texts

In pairs, analyse the data regarding freight transport presented in the table on page 176. Use these questions to help you. 1 Which form of inland freight transport is the most common in Europe? 2 What percentage of freight is transported by inland waterways in the UK and Italy? How does this compare to the EU 28 average? 3 Which country uses inland waterway transport the most? Why do you think that is? 4 Which country uses rail freight the most? And the least? What could be the reasons for this?

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Transport by water

cargo carico

Inland waterways

Intermodalism is a system where cargo containers can be moved easily between diﬀerent ‘modes’ of transport, typically ships, lorries and trains. Since the cargo does not need to be unloaded from the container every time it is moved from one form of transport to another, it is very eﬃcient and fast.

Transporting goods by canal or river is a cheap form of transport, but it is slow. Britain has a large network of canals, built during the Industrial Revolution to link the north and south of the country, but road and rail transport have taken over as they are much faster. There are 37,000 km of inland waterways in Europe, such as the Rhine and the Danube, which connect major cities and industrial areas, so there is significant potential to increase the share of freight transported by inland waterways within Europe.

ADVANTAGES • not congested • low-environmental impact

DISADVANTAGES • slow • not fully integrated as part of intermodal transport

Sea and ocean transport Sea freight refers to the movement of goods by ship across seas and oceans and it is the most widely used form of transport for international trade. It can be divided into two types: • coastal shipping, which is between the main ports within the same country; • overseas shipping, which is between ports in different countries. Overseas shipping is an economical means to transport a wide range of goods, from raw materials to plant machinery and vehicles since virtually ADVANTAGES no weight or size restrictions apply. Goods are normally packed in containers which means they can be loaded • cheap and unloaded onto the ship quickly and cheaply. The • suitable for long distances • capable of carrying large merchandise is well protected during transport, which volumes reduces damage and the risk of loss or theft.

MORE ABOUT...

ACTIVITIES

A liner is a ship which belongs to a regular shipping company and carries passengers and cargo. Liners operate over set routes, with fixed timetables. A tramp is a cargo ship which is chartered by a company for its shipment needs. The cost, departure date and other details are decided between the tramp’s owner and the company.

178

DISADVANTAGES • slow • affected by bad weather • huge environmental impact in case of accident

Reading comprehension 1

Read the texts and decide if these sentences are true (T) or false (F). Correct the false ones. T 1 2 3 4 5 6 7 8

In the UK, canal transport was used during the Industrial Revolution. It is still a popular form of transport today. Inland waterways in Europe are used to their full potential. Transport by water is generally cheaper but slower than other forms. Sea freight is the most common form of transport for international trade. Only lightweight goods can be transported by sea. Containers help reduce risks during transport. Intermodal transport is where there are multiple destinations for cargo.

MO DULE 5 | BUSINESS in THEORY

Container ports Modern ports cover vast areas of water and land and handle hundreds of thousands of tonnes of cargo every year. In order to work efficiently and cost-effectively, the goods must be loaded and unloaded quickly and the ships free to leave as soon as possible. The use of containers facilitates freight transportation and the loading and unloading process. Made of steel, they are of a standard size, normally 20 foot or 40 foot long. Different types, such as open top, refrigerated and ventilated containers, also exist. When transporting goods it is possible to have a Full Container Load (FCL) where the container holds only the goods of a single customer. In this case, the container is usually loaded and sealed at origin and then opened at its final destination. The other possibility is a Less than Container Load (LCL), when the goods of more than one customer are grouped together into a container. Two methods used for unloading and loading operations are: • Lift-On Lift-Off (often abbreviated to Lo/Lo). The loading and unloading of ships is carried out by cranes and derricks which can lift the cargo, often containers, on and off the ship. • Roll-on Roll-off (often abbreviated to Ro/Ro). This system is used on ships which have a ramp, so that vans, lorries or railroad cars with their cargo can be driven on and off the ship. It is also used for cars on passenger ferries.

cranes and derricks gru di sollevamento

Read the text and complete these sentences. 1 … make freight transportation easier. 2 They are of a standard size although … exist. 3 If a customer has enough goods to fill one container, it is called a…

Speaking 2

ACTIVITIES

Reading comprehension 4 With a FCL, a container is not normally … between its origin and destination. 5 If several customers have goods in a container, it is called a… 6 Ro/Ro and Lo/Lo are two examples of…

Mediating texts

In pairs, analyse the information in the table and answer these questions. 1 What information does the table give? 2 What years are compared? 3 In what unit of measurement is the data presented? 4 Which port was the biggest in 1989? What position did it hold in 2018?

5 Which port was the biggest in 2018? And what position did it hold in 1989? 6 What volume of freight did it handle in 2018? 7 What differences do you notice about where the busiest ports are in 1989 and in 2018? 8 What do you think the reasons for this are?

WORLD’S LARGEST CONTAINER PORTS 1989 Hong Kong Singapore Rotterdam (Netherlands) Kaohsiung (Taiwan) Kobe (Japan) Busan (South Korea) Los Angeles (United States) New York/New Jersey (United States) Keelung (Taiwan) Hamburg (Germany)

Volume, million TEUs

2018 4.5 4.4 3.9 3.4 2.5 2.2 2.1 2.0 1.8 1.7

Shanghai (China) Singapore Shenzhen (China) Ningbo-Zhoushan (China) Guangzhou Harbor (China) Busan (South Korea) Hong Kong, S.A.R. (China) Qingdao (China) Tianjin (China) Jebel Ali, Dubai (United Arab Emirates)

42.01 36.60 27.74 26.35 21.87 21.66 19.60 18.26 16.00 14.95

TEU stands for ‘Twenty-foot Equivalent Unit’. This is the industry standard to measure containers and refers to the standard 20 foot container (20 ft long x 8 ft wide or 6.09 metres x 2.4 metres).

Source: World Shipping Council, 2019 Transport and Insurance | MO DULE 5

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Watch the video: Lufthansa Cargo

Transport by air Air freight is the fastest mode of transport. It has always been used for high value commodities, fragile, perishable and urgently needed goods since it can guarantee such a quick delivery. The commercial life of perishable goods is short, so it is really only air freight that can guarantee moving the goods from producer to consumer in a sufficiently short time for the product to be sold. The costs involved are high, but this can be justified if the final consumers pay a premium. Similarly for other goods, the advantages of quick, safe air freight and savings in terms of packing and insurance, can offset the higher transportation costs. For these reasons, there has been an increase in the number of airlines operating cargo aircraft in recent years.

ADVANTAGES

oﬀset compensare

DISADVANTAGES

ACTIVITIES

• fast • quick administrative process • safe and secure

• expensive • risk of delays caused by bad weather and strikes • only suitable for small, lightweight goods

Reading comprehension 1

Read the text and answer these questions. 1 What kind of goods are often transported by air? 2 Why is air transport particularly suitable for perishable goods?

3 Is the final price that consumers pay affected by this choice of transport? How? 4 In what ways can using air transport save other costs? 5 How can bad weather affect air transport?

Listening 2

1.33 Listen to this description of Hong Kong

International Airport and complete these notes.

HKIA

• the world’s busiest cargo hub since (1) __________, replacing (2) __________ International Airport • increase in cargo volume due to rising (3) __________ from Pearl River Delta • (4) __________ geographic location at the heart of Asia Pacific region • (5) __________ major airlines fly to more than (6) __________ destinations • HACTL terminal: can handle 2.6 million (7) __________ of cargo and covers 17 (8) __________ of land • DHL Central Asia Hub: capacity for 35,000 (9) __________ and 40,000 (10) __________ per hour

Speaking 3

In pairs, decide which is the best method of transport for these situations. Consider all the forms of transport presented and give your reasons. 1 books from an e-commerce website to its international, private customers 2 vans from a manufacturing plant in the north of England to a showroom in the south of the country 3 crude oil from Egypt to Europe 4 bananas from Brazil to a wholesaler in the USA

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MO DULE 5 | BUSINESS in THEORY

5 large, antique furniture from a wholesaler in India to a retailer in London 6 components from Detroit, USA, to an industrial plant in the south of Germany 7 leather goods from a manufacturer in Florence to a selection of retailers in the north of Italy

Freight forwarding

DHL, one of the world’s largest logistics networks

The freight forwarding industry provides a range of services to companies for the transport of their goods around the world, as quickly, securely and affordably as possible. Freight forwarders, whether they are large organisations or individuals, can offer domestic and/or international services. They may deal with all forms of transport and goods or they may be specialised in a particular country, form of transport or type of goods.

Freight forwarders are experts in supply-chain management and provide the following services: • finding the best form of transport and route for each shipment based on the specific needs; • negotiating the best cost. Freight consolidation – i.e. putting together different shipments from different companies – is one way that they can reduce freight costs; • preparation of shipping and export documents, also for exceptional circumstances and products; • ensuring compliance with international customs procedures; • advice and assistance regarding insurance and any claims if goods have been damaged or lost in transit. They often offer other supply-chain services such as warehousing and packing. They can pick up the goods from the shipper, see that they are packed appropriately and store them until shipment. The advantage for a company of using a freight forwarder is clear: the company is free to concentrate on its core-business allowing an experienced and specialised company to claim (qui) richiesta di risarcimento take care of the logistics of transporting the goods to the right place, in good condition, on time and at the right price.

ACTIVITIES

Reading comprehension Read the text and answer these questions. 1 2 3 4

What is a freight forwarder? Do all freight forwarders work internationally? How can a freight forwarder reduce freight costs? What kind of documents and processes do they deal with?

5 What warehousing and packing services do they offer? 6 Why do companies use the services of a freight forwarder?

Listening 2

B Listen to this employee from a freight forwarding company talking about the industry and choose the correct option. 1.34

1 According to the speaker, freight forwarding is a part of international trade which is… A not important. B often overrated. C not often considered. 2 When did he start working in the freight forwarding industry? A more than 17 years ago B when he was 17 C less than 17 years ago 3 Today, moving freight from A to B is… A still an important part of his job. B no longer part of his job. C only a small part of his job.

4 How has technology improved the industry? A It is possible to communicate more easily with clients. B The exchange of data is faster and more correct. C Clients can handle all the processes themselves. 5 What does the speaker say about environmental issues? A The public is wrong to blame the transport industry for pollution. B The transport industry could do more in the battle against pollution. C The press only focuses on the negative environmental impact of the industry.

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Means of transport

ACTIVITIES

Below are some of the most common means of transport for moving goods by road, rail, sea and air. The choice of which one or ones to use when transporting goods depends on the distance to travel, the time and the type of goods.

Vocabulary 1

Lorry is truck in US English.

Match each means of transport with the correct picture.

articulated lorry − barge − cargo plane − container ship − goods train ferry − lorry − road tanker − road train − tanker − van

E D G

I J

182

MO DULE 5 | BUSINESS in THEORY

Packing

MORE ABOUT...

To ensure their safe transit and delivery, goods have to be protected and packed suitably according to the length of the journey, the means of transport used and, most importantly, according to the type of product. Each package or container also has to be sealed accurately in order to reduce the risk of damage, loss or theft.

drum − packing peanuts − sack − bubble wrap − bale pallet − carton − barrel − crate − shrink wrap

Match these words with the correct picture and definition.

wooden or plastic platform

protective case or framework

box made out of cardboard

cylindrical metal container

ACTIVITIES

Vocabulary

The packing list is a detailed document which lists the contents of each package or container in a shipment, together with the weight and dimensions. It is used to check the accuracy of the cargo throughout the shipping process.

large bag made of woven material

closely-pressed package

wooden cylindrical container

sheets of plastic filled with pockets of air

film of plastic which is wrapped around goods

small pieces of polystyrene

Labelling It is also important that goods are clearly labelled. Naturally the consignee’s name and address, and any other particular indications requested by the buyer, must be clearly marked. In addition to this, there are internationally recognised symbols which are used to indicate the nature of the goods and how they should be handled, particularly important when dealing with fragile, dangerous and hazardous goods.

Match these symbols with the correct definitions. 1 2 3 4 5

Fragile – Handle with care This way up Keep dry Keep away from heat Do not stack

6 7 8 9 10

Do not tilt Do not use hooks Toxic Explosive Flammable

ACTIVITIES

Vocabulary

Find the English equivalent of these verbs in the texts above. 1 proteggere ____________ 2 imballare ____________

3 sigillare ____________ 4 avvolgere ____________

5 etichettare ____________ 6 maneggiare ____________

Speaking 4

In pairs, decide the best form of packing and any necessary labels for these goods. Give your reasons. • crystal wine glasses • cotton fabric

• bottles of olive oil • rice

• plasma TVs • an antique painting

• vegetables • kerosene

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WARM UP

Which form of transport do you think damages the environment the most? In what ways?

The environmental impact of freight traffic Individual companies may or may not take environmental issues into consideration when choosing how to ship their goods, but there is no denying that the total volume of freight transport around the world has a massive impact on the environment. Leaving aside environmental disasters, such as spills of toxic waste or leaks in oil pipelines, each mode of transport pollutes our air and water to a lesser or greater extent.

Aviation Aviation is one of the fastest growing sources of greenhouse gas emissions. It also creates noise pollution, particularly damaging in residential areas located near major airports. Although the air transport industry has made improvements to aircraft technology and efficiency, the reductions in GHG (Greenhouse gases) have not been sufficient to compensate for the rapid growth of global air traffic, both passenger and cargo. Passengers, in fact, are often invited to offset the emissions caused by their flight, by paying a surcharge which will be invested in green initiatives.

Road transport Heavy goods vehicles are responsible for more harmful pollution than any other form of transport. They emit particulates, that is microscopic specks of soot and other matter invisible to the naked eye, which may cause asthma, lung cancer and cardiovascular issues. Vehicles also contribute to the increase of greenhouse gas emissions, as well as noise pollution. To reduce emissions and also to save money, smart logistics and GPS systems can be used to ensure that vehicles use the best routes for multiple deliveries and that there are fewer ‘empty’ return journeys. Many vehicle manufacturers are also looking into ‘platooning’, where all the movements of a convoy of lorries are controlled by a lead driver in order to increase fuel efficiency and reduce emissions.

Sea transport Sea freight is significantly more environmentally friendly than air and road freight. Ships use less fuel compared to aircraft and lorries so the amount of fossil fuel combustion is much lower, with obvious environmental benefits. Sources of pollution can be the illegal dumping of plastics or other non-biodegradable products while at sea, as well as accidental spills of oil, toxic materials or cargo while at sea or during loading/unloading in port.

Cargo ship over 8,000 dwt

Articulated lorry

ACTIVITIES 184

50 Cargo plane 747-400 1,200 km ﬂight

100

This is the most environmentallyfriendly form of transport. Studies show that it is between three and ten times less CO2 intensive than road or air transport. The most negative impact comes from the construction of new lines and the maintenance of the existing network, as well as from accidents like leaks and spills of dangerous goods.

Cargo ship over 2,000-8,000 dwt specks of soot granelli di fuliggine dumping scarico spills fuoriuscite

Rail transport

200

300

540

400

CO2 grams per tonne-km

Reading comprehension 2

B Read the text and write which form(s) of transport these sentences refer to. 1 2 3 4 5 6 7

responsible for greenhouse gas emissions disasters cause severe damage creates noise pollution the best form of transport for the environment illegal practices can harm the environment improved technology can help reduce negative effects causes the emission of particulates

MO DULE 5 | BUSINESS in THEORY

500

_________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________

Sailing the High Seas It is estimated that around 90% of the goods we buy have at one point travelled by sea, and while shipping is the most The environmentally friendly form of cargo transport, 1 International Maritime Organisation – the regulatory body for the global shipping industry - has committed to reducing emissions by 50% by 2050, so researchers, private businesses and organisations are looking at ways of achieving this goal with new, commercially viable and zero emissions technologies. 2 : before moving on to coal and then diesel power, our ancestors explored, traded and sailed the seas powered by the wind. And it is wind power that is the object of several ongoing projects. The wind assisted ships of the future, however, are going to look very different to the sailing ships of the past. The Smart Green Shipping Alliance is researching and designing a new model of ship where at least 50% of the propulsion comes They are working with everyone from wind power, 3 involved in the shipping system, from insurers and ship owners to yacht designers and the cargo owners themselves, 4 Given that designing and building new ships has a huge cost, as well as its own environmental impact, they are simultaneously looking at ways of retroﬁtting sailing technology on existing ships. The sails, which could reduce fuel consumption by 20%, need to be manoeuvrable and retractable in order to not get in the way during loading and unloading operations and while entering and leaving ports. A Danish company is testing giant

rotating cylinders on one of its tankers. When they spin, these tall cylinders pull the air around them which creates higher Here too, the company pressure on one side than the other, 5 considers a 20% reduction in fuel to be likely. The types of ship which are most suitable for this technology are bulk carriers and tankers which have the space on deck to retroﬁt the sails. Container cargo ships, on the other hand, with the huge stacks of containers on deck, do not currently have the room to install this type of technology. In addition to these wind-assist hardware solutions, companies , it is easier are also working on the necessary software. 6 to predict the expected wind along different trade routes at different times of the year, so the software needs to be able to calculate and use this data for the daily navigation, as well as for things like calculating fuel costs and savings.

3 INVALSI

Read the article and choose the correct sentence for each gap. There are two extra sentences that you do not need.

A B C D E

in order to understand every stage and need of the industry thus pushing the ship forward so they damage the ocean’s fragile ecosystem one idea is to bring sea transport full circle and back to its origins with the aim of eventually reducing carbon emissions to zero by a combination of clean fuel and sailing technology F thanks to global weather analysis and satellite technology G it still emits about 3% of global CO2 and other greenhouse gas emissions H due to the increased costs

ACTIVITIES

Reading comprehension

Internet research 4

Find out about a recent ecological disaster caused by a form of freight transport (tanker, pipeline, rail accident, etc.) and write a short report outlining what happened, the immediate impact and future consequences for the environment.

Oral exam practice 5

Mediating concepts

ES Prepare a short presentation (3-5 minutes) on the different forms of freight transport. Include these points: • the major advantages and disadvantages for a company of each form; • the frequency of use and for what kinds of goods, providing examples; • the environmental impact.

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Transport documents WARM UP

Why do you think transport documents are necessary? What kind of information is indicated on them?

Official transport documents must contain details and instructions relating to the transport and consignment of the goods. They usually show: • the names of the consignor and consignee; • the point of origin of the consignment and the destination; • the route and method of shipment; • the arrangements for the payment of freight. Copies are generally kept by the consignor, consignee and carrier.

The road/rail consignment note

CMR and CIM derive from the French Convention relative au contrat de transport international de Marchandises par Route and Convention Internationale concernant le transport des Marchandises par chemin de fer, i.e. the conventions for the international carriage of merchandise by road and by rail.

ACTIVITIES

For road transport within the EU, the necessary document is called road consignment note or CMR and it confirms that the carrier has received the goods and that a contract of carriage exists between the trader and the carrier. For rail transport, the necessary document is called rail consignment note or CIM .

Vocabulary 2

Read the introductory text and choose the correct word to match these definitions. 1 2 3 4

the the the the

act of sending the ordered goods person who dispatches the goods, normally the seller person who receives the goods, normally the buyer company responsible for transporting the goods

Reading comprehension 3

186

Complete the CMR on page 187 with this information.

_______________ _______________ _______________ _______________

Seller: Hurlinton & Meads, 58 Grosvernor Square, Bristol, UK Buyer: Hans Müller GmbH, Arabellastr. 92, Berlin, Germany Goods: TV sets loaded on 10 pallets Total gross weight: 2,010 kg

MO DULE 5 | BUSINESS in THEORY

Carrier: TransEurope Express, 86 West Industrial Estate, Bristol Registration plate No.: CV55PLO Date of issue: 15th April 20.. Place of issue: Bristol Annexed documents: Invoice No. 742

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The bill of lading The bill of lading (B/L) is the document used for sea freight and it serves as a document of title , a contract of carriage and a receipt of goods. As a receipt, it states the condition of the goods when they are loaded on the ship. As a document of title, it enables the consignee to receive, retain, sell or otherwise dispose of the document and goods by endorsing it to a new consignee. There are two types of bill of lading: • a clean B/L: the carrier declares the goods have been received on board in apparent good order and condition; • a foul B/L: the carrier declares the goods (or packaging) looked in unsatisfactory condition when loaded on board.

TBSL 0042 Coffee Export sa Rva Pedro Alves 270 Santos, Sao Paulo, Brazil

To order

C. J. Parker & Sons 265 Main Street 27047 Greensboro, NC, USA

Sea Lion/V050N

Santos, Brazil

Norfolk, VA, USA

27047 Greensboro forwarding 594 Livingston Road 27409 Greensboro, NC, USA Phone (336)852-5484 Fax (336)852-5490

THCU7425658/986475/40’

1 (ONE) X 40’ CONTAINER SAID TO CONTAIN

CE0589 P/NO. 1-20

20 PALLETS - BAGS OF WHITE REFINED SUGAR

20,000 KGS

FREIGHT COLLECT

bill of lading polizza di carico document of title documento rappresentativo di merce clean (qui) senza riserva foul (qui) con riserva

As arranged

Destination

ACTIVITIES

A document of title is a formal commercial document or shipping document that confers and/or proves ownership.

188

Reading comprehension 1

Three (3)

Santos, 12.18.20..

Ricardo Coelho

12.18.20..

Transbraz Shipping Line

Professional competences

Look at the B/L and answer these questions in pairs. 1 2 3 4

Who is the consignor? Which port are the goods being shipped from? Which port will they be delivered to? What is the name of the ship?

MO DULE 5 | BUSINESS in THEORY

5 6 7 8

What goods are being shipped? How are they packed? How much do they weigh? When were they loaded on board?

The air waybill

ABC Co 1-8-1 Nihonbashi Chuo Ku Tokyo Japan

ALL NIPPON AIRWAYS CO., LTD Shiodome City Center 1-5-2, Higashi-Shimbashi, Minato-ku, Tokyo 105-7133, JAPAN

Grayson Co 1566 Cassil Place Los Angeles CA 90028 PRIO EXPRESS

NARITA NH006/01OCT2008 Los Angeles

FAX: 340-123-4568

5.0

Contact Person: Mr. John Knowles

5.0

k M

14,000

IC PARTS

The air waybill (AWB) is the document used when transporting freight by air. It serves as a receipt of goods by the airline and as a contract of carriage. It is non-negotiable . It includes a description of the goods, instructions, conditions of carriage, limitations of liability and applicable transportation charges. air waybill lettera di vettura aerea

5.0

Non-negotiable means that the AWB is a contract for transportation only and does not represent the merchandise mentioned.

14,000

USD 14,000

In pairs, look at the AWB and find this information: 1 2 3 4

name of the airline consignor consignee goods (type, size, weight, quantity)

Oral exam practice 2

Professional competences ______________ ______________ ______________ ______________

5 6 7 8

point of origin destination insurance total value

______________ ______________ ______________ ______________

ACTIVITIES

Reading comprehension

Mediating concepts

ES Prepare a short presentation (3-5 minutes) about international transport documents, explaining which documents are needed and the information they contain.

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Invoices WARM UP

Do you know what information is usually contained in an invoice?

The invoice

In addition to being accompanied by transport documents, goods in transit also travel with an invoice. An invoice is a non-negotiable commercial document issued by a seller to a buyer, in both national and international transactions. It can be paper-based or also electronic (e-invoice). An invoice includes the following information: • the name and address of both buyer and seller; MORE ABOUT... • the date of issue and a unique invoice number; E-invoicing has been mandatory in Italy since 1st • a description of the goods or services, including the quantity, January 2019, except for some categories of small weight and/or volume of the shipment, type of packaging, unit businesses. There is specific software and a system for price, total price, any discounts and insurance; their transmission. The aim of e-invoicing is to simplify • payment terms and tax information; fiscal and administrative processes and also to tackle VAT evasion. • shipment and delivery terms.

CAR TUNE Tel. 01664 665000 Hopping Hill, New Dunstone Northampton NN6 5PD

CAR TUNE

INVOICE Invoice number

P 49043847 Invoice date

13.08.20.. Consignee (if different than buyer):

Buyer

Richard Smith & Sons, 84 Aldwick Road, Mexborough S64 9BS

Bankers:

Buyer’s account No.

Order No.

C49001

SR107

Country of origin of goods

Country of ﬁnal destination

Port/Airport of loading

Terms of delivery and payment

Port/Airport of discharge

Place of delivery

E.T.A. (Estimated Time of Arrival)

16.08.20.. Quantity

Unit price

Invoice total

F1320901 102092 wheel cover

£14.82

£29.64

Invoice numbers attached

Cost of consignment and services as indicated on attached sheet.

ACTIVITIES

Description of goods/services

Reading comprehension 2

Read the text and answer these questions. 1 What is an invoice? 2 Who is it issued by?

3 What information does it contain regarding the goods or services?

Look at the above invoice and find this information: 1 the seller’s name and address ___________ 2 the buyer’s name and address ___________ 3 the invoice number ___________

190

wheel cover copricerchio

MO DULE 5 | BUSINESS in THEORY

4 how many wheel covers have been bought 5 the unit price 6 the invoice total

___________ ___________ ___________

The pro-forma invoice A pro-forma invoice contains the same information as a commercial invoice but the goods shown on it are not dispatched to the customer. They are held until either payment or further instructions have been received. In the export trade it is frequently the customer who asks for the pro-forma invoice, because it gives him complete information of all costs and charges which he may need in order to apply for an import licence or for the currency in countries where import restrictions or currency restrictions are in force. cushioned imbottite plywood compensato

ACTIVITIES

Reading comprehension Read the text and the pro-forma invoice and answer these questions. 1 What is the difference between a pro-forma invoice and a commercial invoice? 2 Who normally requests a pro-forma invoice? 3 When might a pro-forma invoice be necessary?

4 Why do you think Wilde Optics has requested this pro-forma invoice? 5 What is the total amount of the pro-forma invoice? 6 What are the payment and shipment conditions?

Vocabulary 2

Find the English equivalent to these expressions in the pro-forma invoice. 1 descrizione della merce 2 articolo 3 prezzo unitario

Oral exam practice 3

________________ ________________ ________________

4 totale 5 condizioni di vendita 6 caparra

________________ ________________ ________________

Mediating concepts

ES Prepare a short presentation (3-5 minutes) to explain what an invoice is, the different kinds and the kind of information included.

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Insurance WARM UP

What is the purpose of insurance? What kind of things is it possible to insure?

What is insurance?

ACTIVITIES

Insurance is the way in which people and businesses protect themselves against risks. Individuals and businesses want protection from the financial consequences of something unexpected or unpleasant happening. Insurance transfers the mortgage ipoteca take out richiedere risk from them to someone else, the insurance company. policyholder assicurato In the UK, some kinds of insurance are compulsory for individuals, like motor taste bud papilla gustativa insurance for driving a car or buildings insurance if you have a mortgage on your home. Other kinds of insurance, such as protection against theft, accident or illness, are optional. Similarly, for business there are compulsory and optional insurances. Compulsory insurances are employer’s liability insurance and motor insurance (see page 194), while optional ones include protection against theft, damages, fire, etc. When a person or a business wishes to take out insurance, they can either contact an insurance company directly or they can use an insurance broker. This is an independent company or individual who advises on and then sells the best policy. The client then pays a fee, or premium, to the insurer which underwrites the policy, that is the insurance company which takes on the risk. The details of what is covered and in what circumstances are all set out in the insurance policy, which has to be renewed periodically, normally every year. If a policyholder makes a valid claim, the insurer will pay out the amount of compensation agreed. Insurance companies, like most other business, are profit-making organisations so they invest the premiums they receive and naturally hope that they do not have to pay out more in claims than they get back in premiums in a year.

Reading comprehension 2

Working in the insurance sector

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7 8

Insurance is a kind of financial protection for both individuals and businesses. A driver must have motor insurance for his/her car. A company is not obliged to have any kind of insurance. Insurance brokers work for insurance companies. Insurance premiums increase annually. It is necessary to renew insurance policies. Most insurance claims are for theft. If an insurance company had to pay out a lot of claims, it could lose money.

Vocabulary 3

Match each word with the correct definition. 1 2 3 4 5 6 7 8 9

192

premium policy policyholder underwrite risk insurer broker claim compensation

a b c d e f g h i

the money awarded to a victim of loss/damage by an insurance company a demand for money under the conditions of an insurance policy the amount of money to be paid for an insurance contract the person or company that issues the insurance contract the person or company who offers advice and sells insurance company the insurance contract a possibility of harm or damage, physical or financial to sign and accept liability the person/business in whose name the insurance contract is held

MO DULE 5 | BUSINESS in THEORY

Ghost Brokers M

otorists should steer clear of cheap insurance deals sold in pubs, clubs, university campuses and on questionable websites, a trade body has said. So-called ‘ghost brokers’ sell cheap, but bogus, motor insurance policies, leaving drivers at risk of big bills if they happen to be involved in an accident. The Association of British Insurers (ABI) said that unauthorised insurance advisers were looking for business in pubs and clubs. They also advertised in some newsagents, via social media, and on ‘professional-looking’ websites. Several cases have been investigated by the industry’s team studying large-scale operations, and similar ghost sales are being have also been seen in other industries. Evidence in the US, for example, points to individuals selling cheap airline tickets, some of which are bought on stolen credit cards. The seller has disappeared by the time the traveller realises the ticket is invalid. Young drivers and students are often victims of these motor insurance ghost brokers as they try to save money on the high premiums they have to pay because of their lack of driving experience. But it is not only this category of drivers who are affected: basically anyone looking for a good deal is equally in danger of ﬁnding themselves with an invalid policy. This puts them at risk of having

their vehicles seized or facing prosecution, especially following an accident. The director of identity and fraud solutions at Experian has said his team has helped insurers and others to identify how and where fraudsters were operating. For example, they can pinpoint when multiple transactions have come from the same device, or when the same address has been used numerous times. The ABI says that drivers should still shop around for a good deal, but need to check the authorisation and reputation of the provider carefully. When choosing your car insurance, just like anything else, it’s probably best steer clear of tenersi alla to remember the old adage: ‘If a larga da deal seems too good to be true, bogus fasulle it probably is.’ pinpoint individuare Source – BBC News – © BBC

In order to pay lower insurance premiums, many young and inexperienced drivers are using black box insurance. A small box is fitted to the car and records speed, distance travelled, style of driving and time of day. On the basis of this information, the company can change the policy every month, rewarding safer drivers with lower premiums.

B Read the article and choose the correct option. 1 Which of these statements about ghost brokers is true? A They only operate in the insurance sector. B They belong to the Association of British Insurers. C They find potential clients through a variety of methods. D They use questionnaires on websites to attract clients. 2 If you are an inexperienced driver, … A you are more likely to buy an invalid policy than other drivers. B insurance is more expensive. C you can easily find cheap insurance deals. D you have to pay a premium to drive certain vehicles.

3 If you are in an accident and have invalid insurance, … A you have to pay for any damages yourself. B you are not allowed to drive that vehicle again. C you risk not being able to get insurance cover in the future. D you could have legal problems.

ACTIVITIES

Reading comprehension

4 Experian's team has helped insurance companies by… A identifying one-off transactions. B getting people’s money back. C uncovering suspicious activity from an identical source. D telling police the location of ghost brokers. 5 The saying at the end of the article means that good deals… A are not always what they seem to be. B always carry risks. C are not possible when buying insurance. D never turn out well in the end.

Speaking 5

Discuss these questions in class. 1 Are ghost brokers and sales a problem in your country? If so, in which sectors? 2 Are there any other insurance scams that are common? What are they? How do they work?

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Business insurance As mentioned previously, there are two types of compulsory insurance for businesses in the UK: • Employers’ liability insurance. This insures all company employees against injury, disease or death as a result of their employment, workplace conditions or practices. • Motor insurance. This is compulsory if the company owns and operates any kind of vehicle on public roads. However, no modern business would operate solely with compulsory insurance. If something went wrong – a fire in a production plant, the theft of goods, injury to a customer – it would cost the company a great deal of money and it could even force them out of business. Therefore it is normal to take out insurance policies to cover further risks and liabilities. The different kinds of business insurance can be divided into three main areas:

Protection against loss or damage

ACTIVITIES

It is important for a company to protect both its property and its trade from damage and loss, so there are many policies for this area including: • buildings and contents insurance against fire, lightning, explosion, floods, etc; • cover against electrical and mechanical breakdown of machinery, including computers; • contents insurance against theft, which can also include a money policy to cover cash, cheques, postage stamps and other negotiable documents; • insurance of goods in transit; • cover against business interruption and loss of income; • trade credit cover, which may be particularly important for exporters and covers bad debt due to default and insolvency; • legal expenses insurance.

A business has legal responsibilities towards its employees, the public and customers. In addition to the compulsory Employers’ Liability insurance, a company can take out insurance for: • public liability which covers its legal liabilities for death or injury to people and damage to property arising from its business activities; • product liability which covers damage or injury arising from defects in product design and manufacture.

Personal protection for owners and employees The temporary or permanent loss of a key person in a business – due to illness, injury or death – can have a significant effect on a business, so there are polices which can help reduce this impact. These include: • personal accident and sickness insurance, particularly important for small companies and the self-employed; • income protection insurance; • private medical insurance; • life insurance and pensions.

default inadempienza

Reading comprehension 1

Read the text and answer these questions. 1 What types of insurance are compulsory for businesses? 2 How can equipment and machinery be insured? 3 Is it possible to insure cash?

Listening 2

4 What is trade credit insurance? 5 Why are product and public liability insurance so important? 6 What personal insurance is important if you work for yourself? Why?

B Listen to five people talking about insurance. Match each speaker to what he/she is talking about. There are three extra options you do not need. 1.35

1 2 3 4 5

194

Protection against legal liabilities to third parties

Speaker 1 Speaker 2 Speaker 3 Speaker 4 Speaker 5

MO DULE 3 | BUSINESS in THEORY

a b c d e f g h

working for an insurance company complaining about an insurance company choosing an insurance policy selling an insurance policy taking out compulsory business insurance criticising the lengthy claim procedure commenting on the cost of insurance premiums taking out business interruption insurance

Marine insurance Marine insurance, one of the oldest forms of insurance, can be divided into the following categories for shipowners: • cargo – this specifically insures the cargo of the ship and any passengers’ possessions; • hull – the insurance of the actual vessel against damage due to collision, bad weather etc.; • liability – to cover any liability towards any third parties; • freight – to cover the loss of freight money.

The MSC GULSUN is the world's largest container ship.

Exporters and importers doing international business need to organise their own marine insurance against the risks of loss or damage to their goods in transit, from the time they depart the shipper’s hull scafo warehouse to the moment of delivery at the consignee’s premises. There are many grounding incaglio, different policies, with varying conditions and exclusions, but the principal forms are: arenamento • voyage policy which offers insurance cover for one particular voyage; • time policy which is valid for a specified time period, usually a year; • valued policy where the value of the cargo and consignment is indicated in the policy, so the amount of any compensation is known in advance; • unvalued policy where the value of the cargo and consignment are not indicated in the policy, so the amount of compensation will be agreed after a claim is made; • floating policy where a total insured amount is specified and the details of the ship, voyage etc. are declared at the moment of departure. The policy is open and can continue until the amount is used up. This is the most common policy for companies which make frequent shipments.

Read the text and answer these questions. 1 What is the difference between cargo and hull insurance for shipowners? 2 Why is liability cover necessary? 3 Why do exporters and importers need to take out cargo insurance?

Speaking 2

ACTIVITIES

Reading comprehension

Mediating texts

In pairs, analsye the information in the two tables. Use these questions to help you. 1 What information is shown in the two tables? 2 What time period do they cover? 3 What was the main cause for losses over this period? And what type of vessel was most frequently lost? 4 Which year had the worst results overall? 5 Looking at losses by type of vessel, which category showed the most dramatic changes and which remained fairly stable? 6 Looking at the causes, what do you notice about 2018?

4 What is the difference between a time and a voyage policy? 5 How do valued and unvalued policies differ? 6 Why is a floating policy most suitable for companies carrying out a lot of shipments?

Top 5 vessel types lost 2014 2015

2016 2017

2018

Cargo Fishery Bulk Passenger Chemical/Product

34 10 5 11 7

15 11 2 3 1

31 15 5 10 2

40 16 13 7 3

Top 6 causes of loss 2014 2015 Sunk Grounded Fire/explosion Machinery damage/failure Collision Hull damage

55 8 7 6 4

2016 2017

2018

50 18 6

66 20 9

48 20 12

60 15 8

30 9 4

2 5

7 2

2 4

1 5

1 1

Source: Lloyd’s List Intelligence Transport and Insurance | MO DULE 5

195

With the arrival of coffee in Europe in the 17th century, the coffee house became a kind of cultural centre in many European cities. People from different social classes could discuss and debate politics, art and business. Likeminded people often gathered together in the same coffee house, so that each one soon became associated with a particular political viewpoint or field of business.

Reinsurance is when an insurance company, in order to lower its own risks and potential financial losses, transfers part of its portfolio of risks to other parties.

Focus on Lloyd’s The story of Lloyd’s began in a small coffee house in the City of London in 1688. Edward Lloyd’s coffee house was a favourite meeting place for ships’ captains, merchants and shipowners and it had a reputation for trustworthy shipping news. Then, as London’s importance as a trade centre grew, it became recognised as the place for obtaining marine insurance. From those modest beginnings, Lloyd’s has been a pioneer in insurance and has grown over 300 years to become the world’s leading insurance market. Lloyd’s, in fact, is not an insurance company which directly sells insurance, but an insurance market where its members can meet potential clients and join together as syndicates to insure risk. The risks Lloyd’s covers can be grouped into 7 main categories: casualty, property, marine, energy, motor, aviation and reinsurance . There are two distinct parts to Lloyd’s: the market and the Corporation of Lloyd’s. The market structure encourages innovation, speed and better value, making it attractive to policyholders and participants alike. Immediate access to decision-makers means that answers on whether a risk can be placed are made quickly, enabling the broker to provide fast, good-value solutions. The Corporation oversees and supports the market and promotes Lloyd’s around the world.

BUSINESS FLOW DISTRIBUTION CHANNEL POLICYHOLDERS

>Brokers >Coverholders >Service companies

POLICYHOLDERS request insurance cover Businesses, organisations, other insurers and individuals from around the world want to protect themselves against risks that could affect them. They approach a broker and explain their individual needs.

BROKERS place the risks Most of Lloyd’s business is placed with the assistance of a broker. In addition to being regulated by their national regulator, brokers must also meet Lloyd’s own eligibility criteria. Brokers use their specialist knowledge to negotiate competitive terms and conditions for clients. Currently there are over 180 firms of brokers working at Lloyd’s, many of whom specialise in particular risk categories.

COVERHOLDERS place the risks Coverholders are companies authorised by a managing agent to enter into contracts of insurance and/or issue insurance documentation, on behalf of the members of a syndicate. A service company is an approved coverholder.

ACTIVITIES

Focus on Assicurazioni Generali

196

Reading comprehension 1

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7 8 9 10

Lloyd’s is the leading insurance company in the world. Edward Lloyd was the creator of marine insurance. The Market and Lloyd’s Corporation have two separate roles. Brokers are the people who negotiate insurance deals for policyholders. Coverholders specialise in certain categories of risk. Underwriters must have a minimum of five years’ experience. Underwriters cannot decide risks and conditions without consulting their syndicate. Most of the negotiations at Lloyd’s take place in person. Managing agents are responsible for the brokers. The rules regarding members who can provide capital were changed in 1994.

MO DULE 5 | BUSINESS in THEORY

Lloyd's building was designed by the architect Richard Rogers and took eight years to build.

CORPORATION OF LLOYD’S CAPITAL FLOW Syndicates Managing agents

THE MARKET

MEMBERS >Corporate > Non-corporate

SYNDICATES write the insurance risks A Lloyd’s syndicate is made up of one or more members that join together as a group to accept insurance risks. Syndicates cover either all or a portion of the risk and are staffed by underwriters, the insurance professionals on whose expertise and judgment the market depends. They decide on behalf of its members which risks a syndicate will underwrite and on what terms. Much of Lloyd’s business is conducted in the busy Underwriting Room, where face-to-face negotiations with brokers take place.

MANAGING AGENTS

ACTIVITIES

manage the syndicates These are companies set up to manage one or more syndicates. The managing agent employs the underwriting staff and handles the day-to-day running of a syndicate’s infrastructure and operations.

MEMBERS provide the capital Members of Lloyd’s provide the capital to support syndicates’ underwriting. Members include some of the world’s major insurance groups and companies listed on the London Stock Exchange, as well as individuals and limited partnerships. trustworthy affidabile

Before 1994, when Lloyd’s admitted corporate members, policies could only be underwritten by individual members with unlimited liability.

Internet research 2

www.lloyds.com

Find out about an important event in the history of Lloyd’s (e.g. The Titanic, the 1906 San Francisco earthquake). Write a report on what happened, how Lloyd’s was involved, the insurance premiums and claims, etc.

Transport and Insurance | MO DULE 5

197

Acts of God insurance

WARM UP What is the definition of an ‘act of God’? Read the first paragraph to check.

ACTIVITIES

An act of God is a legal term which refers to a natural event, beyond human control, such as a flood, earthquake or storm. Property insurance policies, both for business premises and private homes, may include cover for these acts of God or specifically exclude them, and in the latter case a separate policy would be necessary in order to be protected. The cost of these policies for natural disasters such as flooding and earthquakes mainly depends on the location of the property to be insured and it can be much higher for areas considered at high risk or where such events have already happened. In spite of the potentially high premiums, it is fundamental for both businesses and private individuals to understand the risk and potential consequences, both physical and financial, of natural catastrophes of this kind. According to a study from Swiss Re Institute, there were 181 natural catastrophe events in 2018 and 123 man-made catastrophes with around 13,500 victims in total. There was not a single, major natural catastrophe event, but many smaller and mid-sized events including hurricanes, earthquakes, typhoons, wildfires and volcanic eruptions. The total economic losses caused by both manmade and natural catastrophes were estimated to be US$165 billion, while the global insured losses were US$85 billion. The economic loss and insured loss differ greatly as many areas of the world which are hit by natural disasters have low or non-existent insurance cover. This is not only the case for developing countries, but also the USA and Europe where many people, businesses and properties are not insured.

Reading comprehension 2

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6

Speaking 3

All insurance policies include cover for acts of God. Policies against natural disasters can be both for businesses and private individuals. In some areas it is impossible to get insurance against natural disasters. The financial after-effects of a natural disaster are greater than the physical ones. In 2018, insured losses were higher than economic losses. Lack of insurance coverage is more common in natural disaster areas than in the rest of the world.

Mediating texts

Look at the information in the table and answer these questions. 1 What data is presented in the 2 Which region saw the highest number of events? Did the same region also have the highest number of victims? 3 Which region had the highest insured losses? Did it also have the highest economic losses? 4 How does Europe compare with North America?

table and for what period?

Number of events, victims, insured and economic losses by region, 2018 Region North America Latin America & Caribbean Europe Africa Asia Oceania/Australia Seas/Space World

Number of events

Victims

Insured losses in USD bn

Economic losses in USD bn

329

52.9

80.5

959

1.3

4.9

44 53 104 9 6 304

676 2488 8823 216 32 13523

7.7 0.2 20.4 1.6 0.6 85

20.7 1.3 54.7 2.3 0.7 165

Source: Swiss Re Institute, 2018 198

MO DULE 5 | BUSINESS in THEORY

Climate Change Could Make Insurance Too Expensive For Most People

Insurers have warned that climate change could make cover for ordinary people unaffordable after the world’s largest reinsurance firm, Munich Re, blamed global warming for $24bn of losses in the Californian wildfires. The company’s chief climatologist, Ernst Rauch, has said that the costs could soon be widely felt, with premium rises already under discussion with clients holding asset concentrations in vulnerable parts “In the long run it might become of the state. 1 a social issue,” he said after Munich Re published a report into climate change’s impact on wildfires. “Affordability is so critical [because] some people on low and average incomes in some regions will no longer be able to buy insurance.” The lion’s share of

California’s 20 worst forest blazes since the 1930s have occurred this millennium, in years characterised by abnormally high summer temperatures and “exceptional dryness” between May and October. 2 Nicolas Jeanmart is the head of personal insurance, general insurance and macroeconomics at Insurance Europe, which speaks for 34 national insurance associations. 3 “The sector is concerned that continuing global increases in temperature could make it increasingly difficult to offer the affordable financial protection that people deserve, and that modern society requires to function properly,” he said. Munich Re’s insurance cover in hurricane-prone regions such as Florida is already higher than in northern Europe, by an order of magnitude. Premiums are also being adjusted in regions facing an increased threat from severe convective storms which hold an energy and severity primed by global warming. 4 No insurer has linked wildfires to climate change before. Paul Fisher, the Bank of England’s former coordinator on climate change, and a fellow at the Cambridge Institute for It will make the Sustainability Leadership, said: 5 insurance companies think carefully about the pricing and availability of their insurance policies.” Adapted from The Guardian, 2019

B Read the article and choose the best sentence to fill each gap. There is one extra sentence you do not need to use. A He said the knock-on effects from rising premiums could pose a threat. B He added that if the risk from wildfires, flooding and storms increased then the only sustainable option would be for the company to adjust risk prices accordingly. C It is very interesting if insurers conclude that climate change is a significant contributory factor to this type of event.

D Increases in the intensity and frequency of California’s wildfire season are predicted by climate models. E Wetter and more humid winters also spurred new forest growth which became tinder dry in heatwave conditions. F These include parts of Germany, Austria, France, south-west Italy and the US midwest.

ACTIVITIES

Reading comprehension

Written exam practice 5

ES Write a short essay (150-200 words) about the purpose of insurance and why it is important for international trade. You should talk about obligatory and optional types of insurance, using examples to illustrate the benefits and risks involved.

Transport and Insurance | MO DULE 5

199

5 WARM UP

What information do you think is contained in an order? Read the text and check your ideas.

BUSINESS in PRACTICE

Placing an order Written orders

ACTIVITIES

An order is a commercial document used to request a company to supply goods or services in return for John Wilde <john.wilde@wildeoptics.co.uk> payment. Ken Liu <ken.liu@guangzhoulenses.com> A written order can 4 March 20.. be sent by Trial order letter, fax or email. The Dear Mr Liu, information With reference to our previous correspondence, we would like to place a trial that should order as follows: be included Men’s sunglasses No. 4550 100 pieces @USD 35.00/piece when placing Women’s sunglasses No. 4580 50 pieces @USD 42.00/piece an order is Unisex sunglasses No. 4600 20 pieces @USD 50.00/piece the customer’s name and address, The delivery and payment terms are as per your email dated 27th February a description of the goods and 20.. . Please make sure the goods are packed in plywood crates, clearly the quantity requested, the price, marked with our company name and address. delivery and payment details. It is also We look forward to receiving your pro-forma invoice. possible to add any conditions the order is subject to. Yours sincerely, John Wilde

Reading comprehension 2

B Read the email and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6

Phraseology 3

Phraseology p. 216

Match the two halves of the sentences. 1 2 3 4 5 6 7 8

200

John Wilde has done business with this company before. He orders a total of 170 items. The delivery terms were indicated in a previous email. The payment will be made after the goods are dispatched. The email contains instructions for how the goods should be packed. John Wilde does not request any other documents.

We thank you for We are pleased to We would be grateful if The goods should be We accept If you are unable to Please note that this order is Thank you in advance for

MO DULE 5 | BUSINESS in PRACTICE

a b c d e f g h

your prompt handling of this order. accept these terms, we shall be obliged to cancel our order. subject to delivery by 18th March. place an order for ski clothing. your quotation of 11th September. the payment and delivery terms indicated in your email. packed in wooden crates and marked with our company name. you could offer us a 5% discount on this order.

Read the fax and put the sentences in the correct order.

Phraseology 5

ACTIVITIES

Reading comprehension

Mediating texts info@donaldson.co.uk

Translate these expressions and then use them to complete the email. a siamo lieti di b saremo costretti ad annullare questo ordine c Vi ringraziamo per la Vostra email d restiamo in attesa di ricevere e Vi chiediamo gentilmente di

john.weaver@larson.co.uk 1 October 20..

10.30 a.m.

Order of vitamin supplements No. CW/12/20.. Dear Mr Weaver, (1) _____________ of 9th July 20.. with your catalogue and price list. We have looked closely at your products and (2) _____________ place the following order: Description Gingko & Ginseng Capsules Vitamin B complex Capsules Echinacea Cold Relief Tablets Super Omega 3 Drops

Quantity 100 75 50 100

Unit price £7.99 £6.99 £10.50 £9.85

All prices include VAT. Delivery: Prompt Delivered EXW Oxford Payment terms: bank transfer at 30 days/5% discount Please conﬁrm the above terms and note if you are unable to meet them, (3) _____________. As the goods are urgently required, (4) _____________ process our order without delay. (5) _____________ your conﬁrmation. Yours sincerely, Clark West PH Donaldson

Transport and Insurance | MO DULE 5

201

ACTIVITIES

Writing 6

You work for the purchase department of Lewis department store in Manchester. Send an order by email to Euro Gadgets in Cologne, Germany, and include these points: • • • •

Phraseology p. 216

refer to your previous correspondence; order 30 tennis ball alarm clocks, 30 basketball alarm clocks and 25 baseball alarm clocks; state the order is subject to delivery before 2nd May; request confirmation of the order.

B Look at this information, then write an email (120-140 words) using all your notes. You work for a card shop and would like to order the following products from a new supplier from whom you received this letter.

Need to order: 20 x AL get well soon cards @ £1.15 each 35 x FG congratulations cards @ £0.95 each 25 x YT 18th birthday cards @ £0.99 each

With regards to an introductory offer, we can grant you a 5% discount on your first order. Delivery will be by first class mail and orders are usually dispatched the next day. We look forward to receiving your first order with us.

Remind them of previous correspondence and discount OK request confirmation of order

B Look at this information, then write an email (120-140 words) using all your notes. You run a car body repair shop and need to order some new paint from your usual supplier. Look at this catalogue and the notes you have made and then write an email to the company with your order.

7 litres total (0.5 litre cans)

3 litres total (1 litre cans)

CAR PAINT COLOURS No. 1547

British Racing Green

No. 1987

Laguna Seca

Available in 0.5 and 1 litre cans

No. 1874

Polar White

Price: €26.99 0.5 litres €50.00 1 litre

No. 1329

Tornado Red

For payment and delivery conditions please contact us.

Payment conditions as usual

202

MO DULE 5 | BUSINESS in PRACTICE

Order subject to delivery within 10 days

Order forms and online orders Orders can also be made by filling in pre-printed order forms, and attaching them to an accompanying email, letter or fax, as well as by completing an order form online. When ordering goods from a website the whole transaction â&#x20AC;&#x201C; the selection of the goods and quantity, authorisation for payment, delivery terms and costs â&#x20AC;&#x201C; is usually completed in one go. When you are a registered user of a website, it is possible to store all your details and use a one-click ordering system which makes the process even quicker.

Example of pre-printed order form

ACQUA WHOLESALERS

179 West Street London NW1 7PL www.acquawholesalers.co.uk

Look at the order form and catalogue and fill in the missing information.

Now answer these questions. 1 What type of company is Acqua Wholesalers? 2 Who is the client and do you think this is the first order with Acqua Wholesalers?

3 What products do they order? 4 What is the total cost of their order?

Transport and Insurance | MO DULE 5

ACTIVITIES

Reading comprehension

203

ACTIVITIES

Example of online order

204

Reading comprehension 1

In pairs, look at these webpages and answer these questions. 1 What kind of products does the site sell? 2 What stage is the online transaction at? 3 What products and quantity has the buyer selected?

MO DULE 5 | BUSINESS in PRACTICE

4 What options are there for the buyer now? 5 If the buyer has any problems, what can he do?

Phone orders Orders can be made by phone directly to the Sales Department of a company. This is common when the customer has some questions to be answered or wants to check availability of a particular product. With phone orders, it is usually necessary to also send a written confirmation.

call − catch − deliver − give place − repeat − sending − take

Complete these expressions with the words from the box.

Checking details Let me just (1) _________ that to you. You said model ABC in blue, didn’t you? Did you say 13 or 30? Sorry, I didn’t (2) _________ that.

Placing an order I’d like to (3) _________ an order. Can you (4) _________ my order? I’m phoning to order…

Making requests Could you tell me if model XYZ is available? Can you (5) _________ me the item number, please? Would you mind (6) _________ confirmation by fax? Making a promise Don’t worry. I’ll do it now. We’ll (7) _________ the goods to you by next Thursday. I’ll (8) _________ you back straightaway.

Phraseology p. 216

Listening 2

1.36 B Listen to three customers who call Katie Barnett in the Sales Department of QuickPrint, a supplier of ink cartridges for printers and photocopiers. Complete the missing information.

Speaking 3

ACTIVITIES

Functions

Professional competences

Practise this phone conversation in pairs. Then swap roles.

Seller

Buyer

You work in the Sales Department of Kitchen Maid and you receive a phone call from Kathy’s Kitchens. All your items are available immediately except for S124 which will be available in two weeks’ time. You deliver by courier all over the country, with a two-day guaranteed service. Your payment conditions are payment on confirmation of order.

You work at Kathy’s Kitchens, a shop selling kitchen and cooking equipment. You have seen Kitchen Maid’s website and would like to place an order. You are a new customer and need all the items urgently. Select the items you wish to purchase from the catalogue and phone Kitchen Maid’s Sales Department to place your order.

Transport and Insurance | MO DULE 5

205

Replying to orders WARM UP Do you think companies can always confirm all the orders they receive? What reasons could there be for a company to refuse an order?

ACTIVITIES

Accepting or refusing an order After receiving an order, the seller may acknowledge the order or, under particular circumstances, refuse it. Reasons for refusal can include the temporary unavailability or discontinuation of an item, the impossibility to satisfy delivery deadlines or unacceptable discount or payment requests. An order acknowledgement should: • thank the customer for the order; • summarise the details of the order; • give any necessary explanation, e.g. special discounts, delivery, availability; • end with a positive reference to this and future business.

A refusal letter should: • refer to the customer’s order; • explain the reasons for the refusal; • make a counter-offer, if suitable, e.g. offer an alternative item; • end with a positive reference to future business.

Reading comprehension

john.weaver@larson.co.uk

info@donaldson.co.uk

Read these two letters and underline the sentences/parts which correspond to the above points.

2 October 20.. Order acknowledgement CW/12/20.. Dear Mr West, We thank you for your order No. CW/12/20.. of 1st October for our health supplements. We are pleased to conﬁrm that all the goods are in stock and that they will be available for pick up from our premises tomorrow 14th July. Please advise us of details of your courier. As agreed we have granted you the 5% discount for payment at 30 days and our invoice will follow. Once again we thank you for this order and we look forward to doing further business with you in the future. Yours sincerely, John Weaver

206

MO DULE 5 | BUSINESS in PRACTICE

ACTIVITIES

Reading comprehension Read the email and put the sentences in the correct order.

Simon Howard <simon.howard@umbrellashop.co.uk> Roger Page <r.page@pagedept.co.uk> 29 October 20.. Your order 156/200 Dear Mr Page, We sincerely regret any inconvenience and hope to receive further orders from you in the future. With reference to your above order for 50 umbrellas, model SR Rainbow, we are writing to inform you that unfortunately we cannot conﬁrm your order. In this way we can process your order as quickly as possible. The expected delivery time would be approximately 6 weeks. Due to circumstances beyond our control, we are not able to deliver the items within two weeks as requested. If these terms are still suitable, please let us know. Yours sincerely, Simon Howard

Now answer these questions. 1 What did Mr Page order? 2 When did he want the items delivered?

Phraseology 5

Mediating texts

Phraseology p. 217

Translate these sentences into English. 1 Ci scusiamo per l’inconveniente arrecatoVi. 2 Confermiamo che la merce da Voi ordinata è disponibile immediatamente. 3 In attesa di Vostri futuri ordini, porgiamo cordiali saluti.

Writing 6

4 Purtroppo non siamo in grado di confermare il Vostro ordine. 5 Siamo spiacenti di informarVi che abbiamo interrotto la produzione del modello da Voi richiesto. 6 Nel caso accettiate la nostra proposta, Vi preghiamo di farcelo sapere al più presto.

You have received an order for 10 gas barbecues from Ms Neilson at The Garden Centre. Write a reply to her, including these details: • • • • •

3 Why can the order not be processed? 4 Does Mr Howard offer an alternative?

ringraziala per il suo ordine; scusati e informala che il barbecue modello PVP 1000 non viene più prodotto; offri il modello PVP 1020 in sostituzione e allega una brochure informativa; indica il prezzo e informala che questo articolo è disponibile in magazzino; chiedi una mail di conferma.

B You work for an Italian food producer and you receive this letter from a UK company, wanting to purchase some of your products. Write a reply (120-140 words) using all of your notes.

cannot accept it

15% for orders over £5000 only. This qualifies for 5%.

With reference to our previous correspondence, we would like to place an order for 150 kg of Parmesan cheese and 100 kg of Parma ham with a discount of 15% on your price list. Delivery: CIP Gatwick Airport Payment terms: 60 days date of invoice

strictly 15 days

happy for future orders at these conditions Transport and Insurance | MO DULE 5

207

Modification and cancellation WARM UP

What reasons could there be for a buyer to modify an existing order? What about for the seller?

spare parts pezzi di ricambio

Changing an order Once an order has been made, it is normally possible for the buyer to change it for legitimate reasons. Changes may need to be made, for example, to the quantity of a particular item in response to an increase or drop in demand. A seller may also need to inform the buyer of a change to an order. The reasons could be due to unexpected circumstances, such as the sudden Sara Mason <s.mason@sportsgadgets.co.uk> unavailability of raw Peter Carmichael <peter.carmichael@sportsmerchandise.co.uk> materials or spare parts, or a delay 20 June 20.. caused by a strike Re: Changing our order dd 14 June 20.. or bad weather.

Reading comprehension ACTIVITIES

Read the email and answer these questions. 1 When did Sara Mason make her original order? 2 When was it confirmed? 3 Does she want to increase or decrease the quantity of her order? Why? 4 Are all the items on her order affected by the changes? 5 What does she request?

Phraseology 3

Dear Mr Carmichael, We refer to our order dd 14th June 20.. and your order confirmation on 15th June 20.. Unfortunately our sales have been rather slow recently, so we would like to modify our order as specified below: - 30 hooded sweatshirts, your item No. 451, blue colour – instead of 40, as previously ordered; - 20 hooded sweatshirts, your item No. 451, red colour – instead of 20, as previously ordered. The quantities of the other items we ordered are confirmed. We hope that this change will not cause you any inconvenience and look forward to your confirmation. Thank you for your cooperation. Yours sincerely, Sara Mason Sports Gadgets

Mediating texts

Translate these expressions and then use them to complete the email. a ci scusiamo molto per questo cambiamento b entro il termine stabilito c non siamo più in grado di fornire

Phraseology p. 217

d scriviamo in riferimento al nostro ordine e siamo spiacenti di informarVi f speriamo di avere ulteriori occasioni di collaborare con Voi

Jacob Lyle <sales@beddingworld.com> June Carpenter <carpenter@woods.com> 16 December 20.. Modiﬁcation to order 741/6 Dear Ms Carpenter, (1) ____________ No. 741/6. (2) ____________ of a change to item 569, the children’s bedding sets. Our Brazilian supplier of material has discontinued the Minnie Mouse material so (3) ____________ duvets and pillowcases with this character. We will still be able to deliver the 15 Mickey Mouse and 10 Donald Duck bedding sets (4) ____________, as well as the other items on your order. (5) ____________, which is beyond our control, and hope that it will not cause you too much inconvenience. (6) ____________ in the future. Yours sincerely, Jacob Lyle

208

MO DULE 5 | BUSINESS in PRACTICE

Refer to the order for health supplements on page 201. Write an email to Mr Weaver to make this modification to your order. • add a further 50 boxes of Echinacea Cold Relief Tablets (due to the winter approaching); • cancel 45 boxes of Gingko & Ginseng Capsules (as you still have a lot left in stock).

ACTIVITIES

Writing

Listening 5

1.37 Listen to this customer calling to change an existing order. Mark the changes on this order form.

Functions 6

Complete these expressions with the words from the box.

BUYER

SELLER

I’d (1) ___________ to make a change to my order. I’m (2) ___________ we no longer need item 123. Would it be (3) ___________ to increase/decrease my order? This is (4) ___________ a rise/drop in sales. Would you be (5) ___________ to confirm the same discount?

Could you (6) ___________ me the order number? Why do you (7) ___________ to change your order? I’ll have to (8) ___________ and see. I’m sorry but we cannot (9) ___________ any modifications. Do you mind (10) ___________ this by email?

Speaking 7

accept − afraid − check − confirming due to − give − like − possible − willing − wish

Professional competences

Phraseology p. 217

In pairs, choose one of the orders/situations on the previous pages and practise a telephone conversation. The buyer can choose which items to change and why, while the seller can decide whether to accept the modification to the order or not. Then swap roles and choose a different situation.

Writing 8

You have recently ordered 25 air conditioning units from the company CoolAir. Due to the bad weather, you are forced to reduce your order to 10 units. Write an email to the company informing them of this change and asking for confirmation.

Transport and Insurance | MO DULE 5

209

WARM UP

What reasons could a buyer have to cancel or terminate a contract for goods or services?

ACTIVITIES

A breach of contract is the failure or refusal to perform all or part of the obligations as written and agreed in the contract between two parties. It could be that one party does not carry out his/ her contractual duties within the time limit or in the manner specified in the contract.

Most contracts for the sale of goods and services contain cancellation clauses which specify the terms and conditions under which one or both parties may cancel an order or terminate a contract before its expiration. These clauses often indicate the time limit within which an order or service may be cancelled and the permitted reasons for cancellation, as well as any penalties which will be incurred. An order may sometimes be cancelled by mutual agreement between the two parties. This is common in the case of longstanding business relations, when there is a genuine reason and when neither party will be subject to any damage or costs, apart from the loss of business. An example would be cancelling a sales contract for goods before they have been dispatched or put into production. The law in most countries also sets out certain terms for cancellation. A common regulation is a cooling-off period which gives consumers the possibility to cancel an order and return goods without any penalty. Contracts may also be terminated due to a breach of contract and, depending on the severity of breach of contract, the damaged party can take legal action against the other one, suing for damages.

Reading comprehension 2

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose â&#x20AC;&#x2DC;doesnâ&#x20AC;&#x2122;t sayâ&#x20AC;&#x2122; (DS). T

1 2 3 4 5

All contracts have cancellation clauses. A cancellation clause can state the deadline for cancelling a contract. There can be charges to pay when you cancel a contract. They are designed to protect both the seller and buyer. A mutual agreement to cancel an order often happens when the two parties know each other well. 6 There is a cooling-off period for goods sold in shops and supermarkets. 7 A cooling-off period allows sellers to change their mind about accepting returns. 8 If a party fails to fulfill his/her contractual obligations, he/she is in breach of contract.

Read the email and answer these questions. 1 When was the order made? 2 What was the order for? 3 Why is Mr Burr cancelling the order? 4 What are his hopes for the future?

210

Cancelling an order

James Burr <james.burr@sandwick.com> Michael Milton <info@durhamshields.co.uk> 15 June 20.. Re: Cancellation of order Dear Mr Milton, We wish to cancel our PO 2564 dd 28th May 20.. for 150 family tents, item No. 5855, due to a sudden drop in demand. We deeply regret having to cancel our order but, under current circumstances, we have no choice. We are sure we shall be able to give you a substantial order to make up for this cancellation next autumn. We thank you for your understanding. Yours sincerely, James Burr

MO DULE 5 | BUSINESS in PRACTICE

ACTIVITIES

Reading comprehension Read this email and put the sentences in the correct order.

Dear Mr Sykes, Otherwise we feel that we will be unable to place further orders with you in the future. This has caused us considerable inconvenience. We refer to our order 5784 dated 20th January 20.. for two-seater sofas. This is due to the fact that we would no longer receive the goods in time for the current season. Due to your failure to deliver the goods within the deadline stipulated in our agreement, we hereby cancel our order. Therefore we look forward to receiving an explanation from you regarding this matter. Yours sincerely, Thea Preston

Phraseology 5

Phraseology p. 217

Match the two halves of the sentences. 1 2 3 4 5 6 7

Kindly send Due to serious flooding in our factory, However, due to our goodwill, Cancellation at this stage We sincerely hope I’m afraid in this case we As per the conditions of our sales contract, 8 This is due to exceptional circumstances

a b c d e f g h

cancellation is not possible after 30 days from the order date. would incur a penalty charge of 25% of the cost of the order. would have to take legal action for breach of contract. which shall not be repeated in the future. we are prepared to accept this last-minute cancellation. we are forced to cancel your order with us with immediate effect. written confirmation of this cancellation. that this situation will not be repeated in the future.

Writing 6

Refer to the email regarding the delay in delivery of the order of umbrellas on page 207. Write an email to cancel the order. Include these points: • • • •

refer to the order and previous correspondence; apologise but explain you are forced to cancel the order; explain why you cannot accept the delay in delivery; make a reference to sending future orders.

You work for Scarpe 2000 in Italy. Write an email to your supplier, Shoes Direct UK, to cancel a complete order. Use these points to help you. • Ordine N. 563/8 del 12/2/20.. • 125 paia di infradito da donna e 50 paia da bambino • Annullamento ordine a causa della chiusura di uno dei vostri punti vendita.

Shoes Direct UK has received the above order cancellation by email. Write a reply using these notes to help you. • • • •

Your terms and conditions state that cancellations are not usually allowed at this stage. Scarpe 2000 is a long-term client so you can make an exception this time. In the future, they must respect the terms of cancellation. You hope that they can guarantee more orders in the future.

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Counter-offers

Jack Sting <j.sting@jacksons.com>

After receiving a cancellation, a seller may wish to send a counter-offer to the buyer or give an explanation in order to try to keep the deal and the customer.

Ms Preston <preston.t@sofaworld.co.uk> 2 March 20.. Order 5784

ACTIVITIES

Dear Ms Preston,

Reading comprehension & Speaking 1

Read the counter-offer made in response to Ms Preston’s order cancellation (page 211). Discuss these questions in pairs. 1 What reason does Mr Sting give for the delay? 2 What is his counter-offer? 3 Why has he made a counter-offer? 4 Do you think this is an acceptable offer for the circumstances? Why/Why not? 5 When should Ms Preston decide? 6 Should she accept the offer? Why/Why not?

Functions 2

Explaining

Apologising

Refusing/Accepting a proposal

Making a proposal

_____, _____, _____

_____, _____, _____, _____, _____

_____, _____, _____

Let me explain what happened. Would you be willing to accept an alternative product? That would be satisfactory. I’m really sorry about what has happened. In this circumstance, we’re prepared to grant you a discount. I’m afraid we’ll have to turn your offer down. The reason for this was a strike at our supplier’s plant. Please accept my apologies for this situation. I’ll have to think about it and let you know. I think we can accept that. As a gesture of goodwill, we can offer this product at the same price. This was due to bad weather during transit. I’m sorry but that is just not good enough. I’d like to apologise for not delivering the goods as scheduled.

Speaking

212

Yours sincerely, Jack Sting Sales Director Jacksons Ltd.

Match each sentence to the correct function. Which expressions are more suitable for written and which for oral communication, or both?

A B C D E F G H I J K L M N

I refer to your order cancellation dated 1st March 20.. and do apologise for not delivering your order No. 5784 within the agreed deadline. As we explained in our email dated 4th February 20.., the shipment from China was delayed due to heavy snowfall that did not allow the containers to reach the port of loading. I have looked into this matter personally and we now expect to receive the goods at the beginning of April. In view of this, I would like to propose the following: for this particular order we are ready to supply you with our more expensive, top quality sofas manufactured in Italy at the same price as the Chinese products. We have ﬁve leather sofas in stock at the moment, in the same style and colour as those ordered. If you accept my proposal, I will dispatch them immediately and you will receive them by Friday. I apologise once again for any inconvenience caused and do hope that you ﬁnd our counter-offer acceptable. I look forward to receiving your reply by return email today.

Professional competences

Phraseology p. 218

Imagine that rather than writing an email, Mr Sting phoned Ms Preston to explain the situation and make a counter-offer. Work in pairs and practise the conversation between them.

MO DULE 5 | BUSINESS in PRACTICE

Phraseology p. 218

Mediating texts

Translate these expressions and use them to complete Ms Preston’s reply to Mr Sting’s counter-offer. A spero vivamente che non ci saranno B apprezzo l’impegno C vorremmo continuare a fare

D verificare la situazione di persona E farglieli consegnare F purché arrivino qui entro

ACTIVITIES

Phraseology

Dear Mr Sting, Thank you for taking the time to (1) ________________ and (2) ________________ you have made to resolve the problem. I can confirm that I find your counter-offer satisfactory and I accept the replacement Italian sofas at the same price (3) ________________ Friday as you promised in your email. Would it be possible (4) ________________ to our warehouse in Cheshire instead of the London one? I (5) ________________ any more problems in the future with our orders as we are very satisfied with your products and (6) ________________ business with you. Thank you once again for your offer. Kind regards, Thea Preston

Vocabulary 5

B Choose the correct option to complete this email. 1 2 3 4 5 6 7 8

A A A A A A A A

regarding say dissatisfaction hold serious personally solution expire

B B B B B B B B

with reference tell irresponsibility feel seriously myself key fire

C C C C C C C C

regard talk misunderstanding take most serious person consequence terminate

Writing 6

B You work for an Italian supplier of hotel and restaurant equipment. This is part of an email you have received from a customer in the UK. Use the notes which your Italian manager has made to reply and make a counter-offer.

Ms Petra McIntyre Managing Director Clinton Ltd

‘

Ricorda che e un servizio apprezzato dai clienti stranieri e che portera dei vantaggi a lungo termine.

Dear Mr Lilos, I am writing (1) ____ to your email of 8/9/20.. in which you cancel your contract with us. I must (2) ____ it took us by surprise given that you have never previously mentioned your (3) ____ with our services. Here at Clinton Ltd, we (4) ____ our customer satisfaction very (5) ____ indeed. Therefore I suggest I visit your premises in (6) ____ to evaluate the issues you mention. Would the 11th of this month at 9 a.m. be convenient with you? I am certain we can ﬁnd a mutually satisfactory (7) ____ and that it will no longer be necessary for you to (8) ____ our services. Looking forward to hearing from you. Yours sincerely,

‘

Proponi piu tempo per pagare – dopo Natale, quando gli affari andranno meglio.

We are sorry to inform you that we have to cancel our order for the two new espresso coffee machines for our hotel. This is due to current financial difficulties caused by a significant drop in the number of foreign visitors this season. We apologise for any inconvenience.

Esprimi dispiacere per i suoi problemi.

Chiedi una sollecita risposta.

B Write an email in reply to the above counter-offer. You can decide whether or not to accept it, giving your reasons. In both cases, remember to thank the company for the proposal.

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Sending goods WARM UP

What kind of services does a freight forwarder supply? Why are they useful for importers and exporters?

Contacting a freight forwarder Depending on the Incoterms agreed for the sale, either the buyer or seller will need to contact a freight forwarding agent or a freight company directly to ask for a quotation for delivering the goods. John Wilde <john.wilde@wildeoptics.co.uk> John Mash <john.mash@liverpoolforwarding.co.uk> 4 March 20.. 10.15 a.m.

ACTIVITIES

Enquiry about transport from China

Reading comprehension 2

Read the email and answer these questions. 1 Who is Mr Wilde writing to? 2 What are the Incoterms for this shipment? 3 What information does he provide regarding the goods? 4 What information does he request from the freight forwarder?

Phraseology 3

Dear Mr Mash, Following up on our telephone conversation this morning, we would like to receive your best rates for shipping and importing the following goods to be supplied FOB Guangzhou Port, People’s Republic of China: - men’s, women’s and unisex sunglasses; - 3 plywood cases – each measuring 2 x 2 x 3 ft and weighing about 125 lbs; - by seafreight; - from Guangzhou Port to our warehouse in Chester; - including import customs formalities; - including insurance. Goods should be ready for shipment around the end of this month of March. We would like to know sailing schedules from Guangzhou Port to Liverpool Port between 20th March 20.. and 31st March 20.. and the relevant transit times. We look forward to your reply. Yours sincerely, John Wilde Managing Director Wilde Optics & Co. Ltd.

Complete these sentences using the expressions from the box.

30 wooden crates − best offer − cost of insurance customs procedures − monthly shipment − sailing schedules 1 We kindly ask you to send us your ___________ for shipping the following goods. 2 We are writing to request details regarding a ___________ from New York to Hamburg. 3 The goods will be packed in ___________, each measuring 150 x 150 x 70 cms.

4 Could you kindly include the ___________ in your quotation? 5 We would like to receive the current ___________ from Liverpool to New York for May 20.. 6 Can you inform us of the ___________ regarding the export of agricultural products from Italy to Morocco?

Writing

214

Write an email to a forwarder asking for a quotation from Rotterdam to Felixstowe. You need to make twelve deliveries (one per month) of 50 cardboard boxes (50 x 100 x 50 cm) weighing about 60 kgs each.

Write an email to a forwarder asking for a quote for the shipment of one 20 ft container from your warehouse in Arezzo to Montreal via Leghorn port. Also ask for sailing schedules and document requirements for the export of leather shoes to Canada.

MO DULE 5 | BUSINESS in PRACTICE

Shipping advice Once the goods have been dispatched, it is normal practice to send confirmation to the buyer and to attach copies of the transport documents, such as the bill of lading (see page 188).

Ken Liu <ken.liu@guangzhoulenses.com> John Wilde <john.wilde@wildeoptics.co.uk> 31 March 20.. 06.25 a.m. Shipping Documents Advice note Dear Mr Wilde, With reference to our pro-forma invoice No. WB01 dd 28th February 20.., we are pleased to inform you that the goods sailed from Guangzhou Port yesterday on board MS Sonya, ETA Liverpool 5th May 20.. Goods are loaded in container GINU 0597645, L.C.L., seal No. 365298. In the attachment we are sending you the copies of all shipping documents, including the bill of lading. As agreed, we look forward to receiving USD 4,620 as 70% balance payment of our invoice WB01. As soon as we receive your payment, we will send you the original documents by private courier. ETA stands for ‘estimated Yours sincerely, time of arrival’. Mr Ken Liu

Read the email and find out: 1 2 3 4

container number seal number port of loading port of discharge

________________ ________________ ________________ ________________

5 date of sailing 6 ETA 7 name of vessel

________________ ________________ ________________

ACTIVITIES

Reading comprehension

Writing 2

You are Mr Bridge of Hefei Chemicals. Write a shipping advice note to Mr Gordon of Johnston & Wells Limited using this information and the phrases in the box: • • • • • • • •

order No. 2585 of 26th June 20.. goods: 10,000 1-liter containers of weed killer goods packed in 40 cases goods are marked J&W 2585 1 full 40’ container No. TRIU 4878534 seal No. 214253 MS Pamela shipped on: 25th October 20..

• port of loading: Tianjin • ETA Portsmouth: 10th December 20.. • original shipping documents handed over to the seller’s bank which will forward them to the buyer’s bank for collection • ask for confirmation of the safe arrival of the goods • say that you hope to do business again with Johnston & Wells Limited in the future

• The goods you ordered have been dispatched today/sent to… • Your items have been placed on board/shipped by… • The shipping documents have been/will be sent to… • As per your instructions, the goods are packed…

• • • •

Oral exam practice 3

Goods are loaded in containers… The estimated date of arrival at… is… We kindly ask you to confirm… In the attachment we are sending you the copies of all shipping documents.

Mediating concepts

ES Prepare a short presentation (3-5 minutes) on the communication process between buyer and seller from the moment of making an order, through the possible changes and up to the dispatch of the goods.

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5 Phraseology

BUSINESS LANGUAGE More business language practice

PCTO

Written communication PLACING AN ORDER Placing an order • We are pleased to send you an order for the merchandise described below/in the enclosed/attached order form. • We are pleased to inform you that we have decided to place a trial order. • We would like to place a trial order for… • We are sending you an initial order for… • We wish to place an order for… Conditions • As agreed, payment will be made on…/eﬀected by…/at… days • With regard to…, we would like to request… • We confirm our usual terms of payment. • On receipt of your pro-forma invoice, we will arrange for the settlement by…, as agreed. • Please ship as soon as possible via… (forwarder’s name) • The items ordered above should be shipped to this address… • Goods should be packed in… marked…

Translate this email.

• Delivery should be eﬀected within this week since the goods are urgently required. • We kindly ask you to have the goods shipped by the first available vessel/on 12 May at the latest. • This present order is conditional on you providing… • Please note that this order is subject to delivery by… • If you are unable to comply with…, we shall be compelled to cancel our order. • As the goods are urgently required, we kindly ask you to process our order without delay. Request for conﬁrmation • We look forward to your order confirmation. • Thank you for your prompt handling of this order. • Please confirm by return post. • We would appreciate your confirmation of our order as soon as possible.

Mediating texts

Con riferimento alla nostra corrispondenza precedente, siamo lieti di poter passare un ordine per i seguenti articoli. Articolo Quantità Prezzo unitario AN 12 10 15.99 NB 85 23 18.56 Le condizioni di pagamento sono come da Vostra offerta del 15 aprile e Vi ricordiamo che l’ordine è soggetto alla consegna tassativa entro 15 giorni dalla presente lettera. In attesa di una Vostra gentile conferma, porgiamo cordiali saluti.

Oral communication

Professional competences

PHONE ORDERS Making an order • I’m phoning to order some items from your latest catalogue. • I’m phoning to place an order. • I’d like…/I’d like to place an order for... • We’d also like… • Can you take down my order, please? Making requests • Could you tell me if model size… is available? • Can you give me the item number, please? • Would you mind sending confirmation by…?

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In pairs, practise this phone conversation.

• Could I just check the delivery address/payment details? • Can you confirm the same conditions as our last order? Making a promise • Don’t worry. I’ll do it now. • We’ll deliver the goods by... • I’ll call you back in...

Buyer: You work for a shoe shop and wish to order these goods from a wholesaler, HappyFeet. • 25 pairs of flip flops (you decide colour and size) • you would like to make payment on delivery • you need delivery within 4 days

Conﬁrming/refusing the order • Yes, that’s fine we can do that. • I’m afraid we can’t accept this order because… • I’m terribly sorry, but we haven’t got this item in stock/available. • I’m afraid we’ve got a (slight) problem.

MO DULE 5 | BUSINESS LANGUAGE

Seller: You work for HappyFeet, a footwear wholesaler. You receive a phone order. Use this information to reply: • all sizes and colours of flip flops are in stock, except for EU size 38 in white • delivery is 5 days, or 2 days for an extra fee • payment on confirmation of order

Written communication REPLYING TO ORDERS Accepting an order

Order refusal and explanation

• Thank you for your order, which we received on 10th February. • We are pleased to send you the attached order acknowledgement/confirmation… • We confirm your order No. … of … as follows… • We would like to confirm that your order for… is currently being processed.

• Due to a sudden increase in demand, we are not able to execute your order within the requested delivery time. • We regret to inform you that we are currently unable to process your order because we are moving our plant from… to… • We are very sorry to inform you that we cannot meet your request because the item is out of stock/is not available at the moment/has been discontinued. • As you have not settled payment for previous purchases, we are obliged to refuse your latest order. • Due to circumstances beyond our control, we are not able to deliver…

Reference to sales terms • We are ready to grant you… • We are pleased to inform you that we oﬀer free delivery on orders over £5,000. • Please be informed that we must receive payment/shipping and handling charges before processing your order. • We guarantee the delivery of these goods through our regular courier service by May 14th. • We will ensure that the goods are carefully packed as per/ according to your instructions. • As agreed, we have granted you a …% discount. Reference to further business • We look forward to receiving further orders from you. • Our usual attention will be given to your order. • We are sure that you will be pleased with our service and hope to do business with you again soon.

Counter-offer • May we propose… as an alternative replacement? • We understand your requirements and would like to offer you… • As an alternative we would suggest… Request for confirmation • We would appreciate it if you could let us know if you agree with… • Please let us know your decision as soon as possible. • Please let us know if you are willing to accept… Apology and reference to future business • We apologise for any inconvenience and hope to receive further orders from you. • We are still interested in doing business with you and look forward to future business opportunities.

Write a reply to the email in exercise 1 using these prompts: • grazie dell’ordine datato 12/8/20.. • prodotti disponibili subito presso i nostri magazzini

• consegna entro 10 giorni dopo ricezione pagamento • contattateci per qualsiasi informazione • inizio di una lunga collaborazione

CHANGING OR CANCELLING AN ORDER Modiﬁcation with reason • As sales are slowing down… • Since the demand for… is decreasing/increasing… • As the product you propose as a replacement is more expensive… • We kindly ask you to reduce/increase our order from… to… • We would be grateful if you would modify the quantity of our order… Cancellation with reason • Due to a sudden drop in demand… • Owing to your inability to supply the goods within the time specified in our order…

Translate these sentences.

• As we are unable to accept your proposal, we are forced to cancel our order. • Unfortunately, due to unforeseen circumstances beyond our control, we are now obliged to cancel this order. • We regret to inform you that we are obliged to cancel our order. Request for conﬁrmation • We would be grateful if you could confirm this change/ cancellation. • Please acknowledge receipt of the present letter and confirm these changes/this cancellation. • We hope that this change/cancellation will not cause you any inconvenience and look forward to your confirmation.

Mediating texts

1 Ci scusiamo per questo cambiamento di prodotto e speriamo che ciò non Vi causi troppi problemi. 2 Purtroppo, visto il calo nelle vendite, siamo costretti a diminuire il nostro ordine. 3 Vi chiediamo di confermare subito questi cambiamenti.

4 Per via di circostanze al di là del nostro controllo, non potremo effettuare la consegna degli articoli entro la fine del mese. 5 A seguito del nostro ordine n. 123, vi scriviamo per informarVi che…

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Phraseology Oral communication CHANGING OR CANCELLING AN ORDER BY PHONE Asking for change

Accepting/Refusing

• As we no longer need…, would it be possible to decrease/to make a change to our order? • I’d like to change one of the articles on our order from… to…

• I’m pleased that business is going well and we are happy to supply the extra goods/items. • Yes, that’s fine. I can change that, no problem. • I’m sorry but at this late stage, we can’t accept any modifications to your order. • I have to remind you that the discount is no longer valid if you decrease your order.

Giving/Asking for reasons • Unfortunately, we have had a drop in customer demand. • Given the good weather, we need to order extra/more… • May I ask why you wish to cancel part of your order? • This is the second time. Can you tell me what is going on?

5 In pairs, practise this phone conversation. Professional competences Buyer: A causa di un calo nelle vendite, vuoi cambiare il tuo ordine come segue: art. 541 50 pezzi anziché 100 art. 874 25 pezzi anziché 50

Seller: Chiedi la motivazione per il cambiamento. Prendi nota. Informa il cliente che lo sconto non è più applicabile per questo ordine e chiedi conferma per email.

Vocabulary WORD FORMATION (4) It is often possible to form the opposite of a noun, adjective or verb by adding one of these prefixes: -un, -in, -im, -il, -dis and -ir. Spelling changes may be necessary.

F Use the prefixes and the words in brackets to form new words which fit the meaning of the text. A seller may be (1) __________ (ability) to fulfil an order if the goods have been (2) __________ (continue) or there is an (3) __________ (adequate) amount of stock. Orders may contain (4) __________ (accept) requests regarding payments or discounts which are (5) __________ (possibility) for the seller to meet. If it is a new client, a seller might feel there is something (6) __________ (regular), or even (7) __________ (legal), about a deal and therefore would be (8) __________ (responsibility) to accept it.

VERB PATTERNS: VERB + -ING OR TO Some verbs are followed by -ing and some by to and this pattern cannot be changed.

2 Complete these sentences with the correct form of the verb in brackets. 1 We hope __________ further business with you in the future. (do) 2 Please let us know immediately if you decide __________ our proposal. (accept) 3 We would like to suggest __________ our new range of Italian armchairs. (try) 4 Airline passengers are invited __________ the carbon emissions from their flight. (offset) TOO/ENOUGH too + adjectives or adverbs adjectives, adverbs or verbs + enough (+ infinitive / for + object + infinitive) enough + nouns

218

5 The cargo insurance sector failed __________ a profit last year. (make) 6 The company admitted __________ environmental damage to the local area. (cause) 7 Under certain circumstances, an insurance company may refuse __________ a risk. (cover) 8 A company can risk __________ bankrupt if it does not have sufficient insurance. (go)

3 Add too or enough in the correct place to complete these sentences. 1 We recommend that you use air freight this time as sea freight is slow. 2 Could you please confirm if we have cargo for an FCL? 3 Your prices are not competitive for us to place an order with you at this time. 4 I hope it will not cause much inconvenience. 5 We do not currently have supplies in our warehouse to fulfil your order. 6 We have to change our order since we ordered many monitors and not printers.

MO DULE 5 | BUSINESS LANGUAGE

Grammar 1

Time expressions used with the present perfect

Use these prompts to make complete sentences.

1 they / not try / new / service / yet 2 second time / remind / you / about / report 3 this / worst flight / ever / have 4 he / not / drive / truck / before 5 they / already / pay / insurance claim 6 goods / just / arrive

The present perfect is commonly used with the following ‘indefinite’ time expressions: ever, never, yet, already, still, before, just , recently, so far, this is the first time… The new pipeline has just been opened. Have you completed that sales contract yet? This is the first time we’ve used this freight company. It is not possible to use expressions of finished time (yesterday, 3 months ago, last year, in 2016, etc.) with the present perfect.

American English uses the past simple with just. We just finished packaging the goods for dispatch.

Present perfect simple vs present perfect continuous We use the present perfect simple: • when the action is completed or we are interested in the result of an action ABI has investigated ghost brokers operating in the car insurance sector. • to talk about ‘how much/many’ or ‘how many times’ Customs officials have inspected 17 containers. • with ‘state’ verbs, and often with live, study, work, to indicate more permanent situations Lloyd’s has been a pioneer in insurance for over 300 years.

We use the present perfect continuous: • to talk about recent continuous or repeated actions (which may be still in progress in the present) Customs officials have been inspecting the containers all day. Sorry I’m late. I hope you haven’t been waiting long. • to talk about ‘how long’ an action has lasted The company has been using the same freight forwarding company for a long time. They’ve been monitoring pollution levels since the accident happened.

2 Choose the correct alternative. 1 ‘How many invoices have you prepared/been preparing?’ ‘Only 10. The printer has played up/been playing up.’ 2 We have decided/been deciding to send the goods by rail.

3 The insurance company has increased/been increasing our premium by 20%. 4 We’ve waited/been waiting for this document all week. I hope it arrives tomorrow.

3 Complete the second sentence so that it has the same meaning as the first. Use a maximum of three words. 1 The last time they made an insurance claim was 5 years ago. They ____________ an insurance claim for 5 years. 2 The goods were sent 2 weeks ago. The goods ____________ in transit for 2 weeks. 3 It’s 10 years since I started work for this company. I ____________ for this company for 10 years.

4 He started filling in the transport documents at 9 a.m. and he’s still doing it now. He’s ____________ the transport documents since 9 a.m. 5 When did the company start? How long ____________ the company ____________ in business?

4 Translate these texts. Mediating texts Since 1995, a major insurance company has issued annual reports regarding the cost of natural disasters. The insurance industry paid out some $110 billion for natural disasters last year, it stated, while they have not issued a report with this year’s figures yet. However it seems that earthquakes, severe storms, floods and other natural disasters have been more widespread and have caused more damage than ever before.

Negli ultimi 5 anni il trasporto di merci pericolose è aumentato notevolmente, in particolare con il trasporto aereo e stradale. Questo ha creato non poche problematiche per la legislazione nazionale che si è dovuta adeguare alle normative internazionali in materia. Una nuova legislazione è in vigore dall’anno scorso per tutelare l’ambiente, i trasportatori e i cittadini.

Transport and Insurance | MO DULE 5

219

BUSINESS NEWS

Insurance claims

When Compensation Culture Goes Mad

magine you get some tickets to watch England play rugby against Ireland at the magnificent Aviva Stadium in Dublin. If a loose ball should spin out and hit you in the arm, what’s the proper response? Throw it back to a ball boy or girl on the sidelines? No, the thing to do is go straight to a solicitor, preferably a no-win, no-fee one, and demand £50,000 in compensation. If this sounds entirely invented, it’s not. Irish rugby is currently facing two separate claims from spectators, one for under €60,000 and one for over €60,000. One claimant says she wants damages after the ball hit her arm, the other said it hit her in the face. Note that this is happening in Ireland, not the UK (although it’s usually UK insurers that are down for the payouts). If you think the claims and compensation culture in the UK is out of control, Ireland takes it to a whole other level. One victim is the bouncy castle industry, which is, almost comically, affected by “inflated” payouts – but it’s no laughing matter for the hundreds of operators in the business. On 1st August 2019, the last insurer willing to offer public liability cover to the bouncy castle providers decided to quit. Why? Because of false claims and payouts granted by courts that are far too high, says Gerry Frawley of the Irish Inflatable Hirers Association. Councils and event operators are legally required to make sure public liability insurance is in place, and without it the bouncy castles will be no more. “In a year’s time there will be nobody with an insured bouncy castle in this country,” says Frawley. “To most sane people none of this makes sense.”

220

MO DULE 5 | BUSINESS NEWS

Coastal activity centres across Ireland are the next business with a sinking feeling. Whale and dolphin watching, snorkelling tours, diving and boat charters all face possible closure – because insurers are terrified of the claims. In April, an Oireachtas (Irish parliament) inquiry was told that play centres, trampoline parks, pet farms, bowling alleys and other facilities where families can have fun are closing because of claims. One operator of a play park said: “One child banged his head and, as a result, I am being taken to court because the child now has anxiety and is unable to play with his friends … The reserve on this is €23,000, despite the child not suffering any injury. This is the only reason I cannot get insurance.” The committee also heard how a child’s train operator for shopping centres faces an annual insurance bill of about €30,000 in Ireland but only €1,500 for the same service in the UK. But let’s not assume this sort of nonsense doesn’t go on in the UK too. Claims companies will encourage people to attempt to get payouts on the flimsiest evidence and they will turn to whatever 20% cut they can make next. We’re all familiar with bogus whiplash claims, and the more recent epidemic of holiday-sickness claims at all-inclusive hotels, lodged a suspiciously long time after the claimants return home. Are British bouncy castles next? Adapted from The Guardian, 2019

claimant ricorrente payout pagamento bouncy castle gonﬁabile ﬂimsiest il più debole whiplash colpo di frusta

Reading comprehension 1 INVALSI

Read the article and choose the correct option.

1 What happened at an England vs. Ireland rugby match? A Spectators were offered compensation as the match was cancelled. B Two people were hit by a rugby ball and are asking for damages. C Tickets were sold on the black market for £50,000. D A spectator hit another spectator in the face. 2 How has the bouncy castle industry suffered? A Their insurance premiums have become too expensive. B Event operators are worried about children injuring themselves. C No one builds inflatable castles anymore due to high costs. D Insurance companies have stopped offering operators public liability insurance. 3 What type of businesses are already closing down in Ireland? A Family run businesses B Centres for tourists located on the coast

C Family-oriented activity centres D Shopping centres 4 What is the situation of the play park? A They are finding it hard to get insurance due to an unreasonable claim against them. B They have to pay €23,000 a year to insure the play park. C They will have to stop business because too many children have hurt themselves. D They are angry that they pay more for insurance than similar parks in the UK. 5 How do claims companies in the UK often operate? A By asking people to pay 20% of their fees in advance. B By inventing completely false health insurance claims. C By offering people a 20% share of the payout. D By persuading people to claim even when there is little proof.

Listening 2

INVALSI Listen to an insurance expert talking about crash for cash insurance fraud scams and

1.38

match the beginning and end of the sentences. There are two extra endings that you do not need. 1 2 3 4 5

Crash for cash criminals As a result, car insurance companies The most common type of accident is Scammers often target To protect themselves, drivers can use

Speaking 3

A B C D E F G

a dashcam. cause road accidents on purpose. increase motorists’ annual premiums. older vehicles. elderly drivers and mothers. a rear-end collision. are shocked by the number of scams.

Discuss these questions in pairs. 1 Do you think that claims similar to those against Irish Rugby could happen in your country? Why/Why not? 2 What about false holiday sickness claims or car accident claims? 3 What’s your opinion of people who make false or exaggerated insurance claims? 4 What are the negative consequences of making false insurance claims for the insurance company and for other people?

Writing 4

B You are setting up an outdoor paintball centre for children and adults. Write an email of enquiry to an insurance company. In your email you should give some details of your business and then ask about: • the cost of public liability insurance; • the conditions of the policy; • other optional insurance policies the company recommends.

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5 Case presentation

Swift Transport

BUSINESS CASE STUDY

Case analysis: Swift Transport Read the information on Swift Transport. What kind of company is it? How has it changed since it was set up? What decision does the company have to make?

Swift Transport started business in 1987, offering a freight delivery service by road within the UK and mainland Europe. Since then it has expanded several times and now offers global air, road and sea freight services. Its main office and warehouse are in London, and two years ago it opened a small office in Dubai. It has a well-consolidated client base and has continually made a profit over the last four years. Now the company would like to expand its business further and has identified three potential areas:

Livestock transport

Relocation removal services Each proposal presents valid opportunities for growth. However, there are different financial investments, organisational procedures and risks for each one.

Case analysis Step one

222

Dangerous and hazardous goods transport

1.39 Listen to the manager of the Dubai office talking to a colleague in the London

office about the proposals and complete the table.

Proposal

Where

Advantages

Disadvantages

1 Relocation removals

global

(1) ___________ in Dubai (3) low ___________

(2) ___________ market

2 Livestock transport

(4) ___________

(5) good ___________

(6) most ___________ option (7) animal ___________

3 Dangerous goods

(8) ___________

greatest profits

issue of (9) ___________ (10) high ___________

MO DULE 5 | BUSINESS CASE STUDY

Step two

Work in groups. You are the directors of Swift Transport who are going to take part in a meeting to decide which proposal to implement. Each person in the group should take one of the following roles. Use the information from the listening exercise to help you prepare your opinion and examples to support it.

A You are in favour of offering removal

B You would like to see the company choose

C You support proposal three, that of

D You will chair the meeting, making sure

services for people who are relocating overseas. There is a big market for international companies who relocate personnel and need a complete service (packing of possessions, shipping, customs clearance and delivery). The financial outlay would be limited to advertising and promotion and there are no risks. Having an office in Dubai is a selling point, given the large number of people who relocate to the Middle East.

transporting dangerous and hazardous goods. The company would need to apply for the necessary authorisation and licences and appoint a Safety Advisor to oversee compliance with all the health and safety regulations, as well as organise staff training. This is not a complicated nor expensive process and would allow you to increase business with many of your existing clients. It would be extremely profitable as you could charge higher fees.

Step three DECISION MAKING

Step four

Outcome

the second option, that of transporting livestock. Thanks to standard EU regulations it is straightforward to organise the necessary permits for the road transport of livestock within Europe, and this could be expanded to cover other areas in the future. The company would need to invest in a new fleet of specially designed vehicles and find new clients in this sector. It is in great demand in Europe and is a profitable, long-term business.

everyone has a chance to present their point of view, understand what is being said and have equal time to speak. Personally, you do not want to see the company involved in any activity that could compromise its excellent reputation, but you would naturally like to see a higher profit as possible, so you are not adverse to taking calculated risks. Any decision must bring long-term benefits to the company and its image.

Now hold the directorsâ&#x20AC;&#x2122; meeting, listening to all the views in order to reach a final decision. Inform the rest of the class of your decision and motivation. How many groups chose the same solution? For the same reasons? This is what Swift Transport decided to do. Did you make the same decision?

Swift Transport voted for the option of relocation services. Their promotional campaign went well and, thanks to their competitive introductory prices, they quickly negotiated contracts with several financial services and construction companies. After a few months, they had problems with the local contractors they were using for the packing and unpacking services at the clientsâ&#x20AC;&#x2122; homes, which led to complaints and cancellation of orders. To rectify this, they decided to employ staff directly for these services which meant an increase in costs and a further drop in profits. According to their latest forecast, it will take between 8 and 10 months for them to break even on this activity. The rest of the companyâ&#x20AC;&#x2122;s operations remain profitable.

Transport and Insurance | MO DULE 5

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Professional competences Writing an internal email

Write an email which will be sent from the directors of Swift Transport to all the employees, announcing the decision that has been made. Include these points: • explain the advantages for the company; • inform them of the planned schedule; • thank staff for their collaboration during the implementation period.

Writing an unsolicited letter Making an enquiry

Write an unsolicited letter to potential clients to promote your new relocation removal services. The letter should contain: a short description of the company and the new services, an introductory offer, the benefits of choosing Swift Transport and its excellent service and customer care. You work for the company Sterling International and have received the above letter from Swift Transport. Write an email to the company to request further details as follows:

You are a financial services company which relocates staff between the USA, UK and the Middle East on a regular basis. Enquire about the booking times, customs formalities and request a quote for 10 removals within a six-month period.

Arranging a meeting

Role-play this telephone conversation in pairs. Invent any necessary details.

A You work for Swift Transport and have received the above enquiry. Phone Sterling International to arrange an appointment to meet in order to understand their specific needs and prepare an offer. You are free any afternoon next week, but could rearrange things if necessary.

Confirming a contract

B You work for Sterling International and you receive a phone call from Swift Transport to arrange a meeting regarding the enquiry you sent. You are free any morning next week, but could rearrange a meeting on Friday afternoon if absolutely necessary.

After the meeting, Sterling International want to confirm the contract. Write an email to Swift Transport to confirm the following details: • 6-month contract for maximum 10 removals between the US and the UK; • all inclusive service (un/packing, door to door delivery, customs clearance); • total cost £28,500, with 10% discount on any additional services within the same period.

Modifying details

There are problems with the delivery of a container to the USA. Write to Sterling International to inform them of the situation. Remember to start and end the email in an appropriate manner and to apologise.

Due to a strike, there is a backlog of containers at the port of New Orleans. There will be a delay of 10-15 days for the delivery.

Tips for informing clients of changes • Explain the reasons for the change and whether they are out of the company’s control or depend on internal factors. • Promise to provide the client with immediate updates of any further changes. • Whatever the reason, apologise for any possible inconvenience caused.

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MO DULE 5 | BUSINESS CASE STUDY

MODULE

6 Banking

and Finance

BUSINESS in THEORY

Banking systems Central banks Banking services Payment methods Finance

BUSINESS in PRACTICE

Payment issues Payment reminders and replies Analysing data

BUSINESS LANGUAGE

Phraseology Vocabulary Grammar

BUSINESS NEWS

Cashless economy

BUSINESS CASE STUDY

Case analysis: The Bloody Oyster Professional competences

225

6 WARM UP

Do you know the names of any foreign banks? What countries are they from?

high net worth alto patrimonio netto tax havens paradisi fiscali

BUSINESS in THEORY

Banking systems Banking can be defined as the activity of accepting or borrowing money from clients, whether individuals or companies, and then lending out this money to other individuals or companies in order to earn a profit. Naturally the services offered by today’s banks, as well as the types of bank in existence, are much more multifaceted than this.

Types of bank Some broad groups of banking categories are as follows:

RETAIL BANKS

These deal with individual customers and concentrate on mass market products such as current and savings accounts, mortgages, loans and credit and debit cards. All of the major retail banks in the UK also serve the needs of small businesses.

OFFSHORE BANKS

ACTIVITIES

These banks are located in countries which are considered tax havens due to low or no tax systems, and they offer financial and legal advantages to investors from other countries.

COMMERCIAL BANKS

These deal with business clients, both large and small, and as well as current and deposit accounts, they offer foreign currency accounts and exchange, lines of credit and guarantees for international trade, payment processing, loans for business development and expansion.

INVESTMENT BANKS

PRIVATE BANKS

This kind of bank does not take deposits but works with companies and investment markets, for example by underwriting the issue of stocks or bonds and advising on merger and acquisition processes.

BUILDING SOCIETIES

These are mutual financial institutions, which means that they are owned by their members. In the past their main business was savings accounts and mortgages, although now most have diversified and offer similar services to banks.

These manage the banking and financial needs of high net worth individuals.

POSTAL SAVINGS BANKS

These are operated in conjunction with the national postal system of a country. When they were first introduced, they only offered savings accounts, however nowadays most of them offer complete banking services.

Reading comprehension 2

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5

The principal aim of banking is to make a profit through borrowing and lending money. Most private customers will have accounts with a retail bank. Retail banks do not offer services to any kind of business. Commercial banks are bigger organisations than retail banks. A company interested in increasing its capital through new shares would consult an investment bank. 6 Private banks deal with people with a lot of money and investments. 7 Offshore banks are only located on islands. 8 Building societies and postal savings banks offer similar services to banks.

Vocabulary 3

Find the English equivalent in the text to these words and expressions. 1 prendere in prestito _____________ 2 dare in prestito _____________ 3 conto corrente _____________

226

MO DULE 6 | BUSINESS in THEORY

4 conto deposito 5 mutuo ipotecario 6 prestito

_____________ _____________ _____________

More Than a Third of UK Bank Branches Have Closed Since 2015 More than a third of the UK’s bank branches have shut for good in less than ﬁve years, while hundreds of those that remain have reduced their opening hours, 1 The consumer group Which? found there were 3,303 closures to the bank branch network between January 2015 and August 2019, 2

Which? said the closures were primarily driven by the “big four” banks – Royal Bank of Scotland Group, Barclays, HSBC and Lloyds Banking Group. RBS closed almost three quarters, or 412, of its branches across the UK, it said. NatWest, which is also part of RBS, closed 638 branches, 3 . These represented almost half of the bank’s branch network. Similarly Ulster Bank shut 35, or 44%, of branches that it used to operate in Northern Ireland. Overall, the UK branch network has reduced from 9,803 to 6,549 in four and a half years, although this has been offset slightly with challenger banks opening 49 branches. Of the UK’s bank branches that remain open, 298 are operating with reduced opening hours of four days a week or fewer. Of the big ﬁnancial players, only Nationwide has retained an “impressive” 96% of its

branches. The building society has pledged not to leave any town or city in which it is based without a branch until at least May 2021. Jenny Ross, money editor at Which?, said the closures risk shutting many people out of vital ﬁnancial services and affecting their ability to access their cash. She said: “Bank branches play a crucial role within communities, 4 The industry must ensure no one is left behind by the digital transition and that when banks shut their doors, they don’t shut their customers out of important banking services”. The charity Age UK said the rate at which banks were closing local branches was a huge blow for the millions of older people who rely on them, 5

The UK is an example of a highly consolidated banking industry. Unlike other major economies, there are not lots of independent local banks but four big banking groups: HSBC, Barclays, Lloyds Banking Group and the Royal Bank of Scotland Group. There are also several building societies, though many have been merged or acquired by other banks, and banking businesses owned by retail groups.

Adapted from The Guardian, 2019

4 INVALSI

Read the article and choose the correct sentence for each gap. There are two extra sentences that you do not need.

A B C D E F G

which is by far the most branches overall. particularly those who are not online or confident with mobile banking. which was published last month in the UK. according to a report. as banks continued to shut branches at an “alarming rate”. with similar problems for online banking services. serving consumers and businesses alike.

Banking and Finance | MO DULE 6

ACTIVITIES

Reading comprehension

227

Microcredit

ACTIVITIES

Microcredit is the concept of lending small amounts of money â&#x20AC;&#x201C; microloans â&#x20AC;&#x201C; to people who would not have access to such funds through mainstream routes. It was conceived in the developing world as a way to help poor people and alleviate poverty, and it is especially aimed at helping women and improving their position in society. Given that their aim is to help those at the bottom of the social pyramid, microloans are granted without the need for any collateral. Perhaps the most famous example is the Grameen Bank, which was founded by Nobel Peace Prize winner Muhammad Yunus in 1976 to provide credit to the poor people of his country, Bangladesh. Since then, the concept of microcredit has become more Muhammad Yunus widespread and is no longer confined to the developing world. For example, in the USA Grameen America is providing loans, training and support to those living on the poverty line so that they can build their own small businesses, improving the future for themselves and their families, whilst also boosting the local economy. Similar projects have been launched in the UK too. In recent years there has been criticism of the microfinance system and its claims to reduce poverty and empower women in developing countries. Some experts argue that there is no evidence that microfinance projects have had positive impacts and, on the contrary, are in reality little different than funds from other financial sources such as moneylenders or banks. These critics believe that basic survival should come before growing a business, and microcredit ought to be combined with other interventions to improve financial literacy and understanding. If customers have no knowledge of how to save and plan for repayments, it is unclear how are they going to be able to pay off their debt. They therefore risk finding themselves in a worse position than previously when unable to pay off their loan. There may also be the conflict of whether it is possible for a bank or organisation to run a commercially sustainable operation while simultaneously maintaining its principles and values of caring about the welfare of those in need. www.grameenfoundation.org

228

Reading comprehension 1

Microloan success stories Name: Altagracia Damian Country: Dominican Republic Loan: $80 Business: Ceramics business When she started her business, she had only 16 cents in her pocket. With her first loan, she purchased clay and glazes. Since then she has received a total of eight loans and now has seven employees and can pay for her childrenâ&#x20AC;&#x2122;s education. Name: Gonuguntla Mariamma Country: India Loan: $80 Business: Livestock farmer Uneducated and illiterate, she bought a buffalo with her first loan to help provide for her family. With further loans, she managed to buy other livestock and now has four buffaloes, one calf and seventeen goats. She has also learnt to read and count a little and sign her name.

collateral garanzia reale boost incrementare repayments rimborsi glazes vernici calf vitello

www.microcreditsummit.org

Read the text and answer these questions. 1 What is microcredit? 2 Who are the normal recipients of microloans? 3 What is the Grameen Bank? 4 What is the purpose of microloan projects in countries like the USA and UK? MO DULE 6 | BUSINESS in THEORY

5 Why has there been some criticism of the microfinance system? 6 What is one suggestion to improve microcredit? 7 What risk can recipients of microloans face? Why? 8 Why could it be inconsistent for a bank to be both profit and welfare-led?

Ethical banking in the UK

WARM UP

As more and more consumers have started changing their lifestyles and thinking about their social and environmental responsibility, the number of people in the UK choosing an ethical bank over the conventional, profit-driven banks has increased considerably over the last few years.

ETHICAL BANKS

ISLAMIC BANKING

In the UK, an ethical bank offers the same services as a traditional bank and it is regulated by the same authorities that control traditional banks. How it differs is in its policies, which have underlying moral and ethical principles, and in the transparency of its actions. Loans are not given where the money will be used, for example, for the production of weapons or the exploitation of child labour. They also issue many microloans to help small businesses. Investments are only made in areas such as environmentally-friendly businesses, fair trade organisations or to finance projects in developing countries.

Islamic banking can also be considered as a kind of ethical banking system, and in the UK it is popular with both Muslim and non-Muslim customers. According to sharia law, making money from money is forbidden, so Islamic banks do not apply interest and instead make their money through trade and investments. These investments can only be in areas allowed by Islamic law, so areas such as gambling and alcohol are not permitted. The risk of profit and losses is also shared between the bank and the borrower. These qualities of fairness and equity make Islamic banking a form of ethical banking, and one which is, according to financial experts, quite stable in times of financial crisis. Time banking

Have you ever heard about ethical and Islamic banks? Are there any in your country/town? There are two authorities in the UK which protect and improve the country's financial sector and economy. The Prudential Regulation Authority (PRA) which is part of the Bank of England, is responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and investment companies. The Financial Conduct Authority (FCA) has the objective of protecting the integrity of the UK’s financial market and promoting effective competition.

ACTIVITIES

Reading comprehension Read the text and complete these sentences. 1 Recently there has been an increase in… 2 The authorities control both… 3 Ethical banks differ from traditional banks because…

4 Examples of ethical investments are… 5 Islamic banks follow… and therefore do not… 6 Islamic banks are not allowed to invest…

Listening 3

2.02

B Listen to this interview about ethical banking in the UK and choose the correct option.

1 Why might people want to choose an ethical bank? A There has been a lot of negative press about banks and their actions. B Traditional banks no longer offer the most competitive service. C People want to live better quality lives. 2 Why do the Co-op bank and Smile get a poor ethical rating? A They do not invest enough in animal protection programmes. B Their customers include unethical supermarkets. C They are part of a group which has some unethical practices.

3 Building societies and credit unions… A are not the same type of organisation as a bank. B cannot offer current accounts. C always offer the best ethical option. 4 What do Charity Bank, Triodos and the Ecology building society have in common? A They get top ratings with Ethical Consumer magazine. B They operate in a socially and environmentallyaware manner. C They offer the best savings and mortgage rates.

Speaking 4

laundering riciclaggio pie in the sky illusione

Discuss these questions in small groups. 1 Do you think that ethical banks maintain their promises? 2 Would you choose to bank with an ethical or Islamic bank? Why/Why not?

Banking and Finance | MO DULE 6

229

Central banks WARM UP

Does your country have a central bank? What is it called?

MORE ABOUT...

ACTIVITIES

In the UK, there are banknotes in denominations of £5, £10, £20 and £50, each with the Queen featured on the front. In 2016, the Bank of England started issuing polymer banknotes instead of paper banknotes. This is thin, flexible plastic material which makes the notes cleaner, safer and stronger than the previous paper ones. So far they have issued £5, £10 and £20 notes. The banknotes have several different security features to make printing counterfeit notes as difficult as possible.

230

A central bank is responsible for its country’s financial affairs and monetary system. Each central bank may have various specific tasks, nevertheless they can be said to have the same main objectives: • to oversee monetary policy; • to maintain price stability by controlling inflation; • to manage the production and distribution of the nation’s currency (issue of banknotes and coins); • to support the nation in times of crisis to prevent its banking system from failing (providing funds to a country’s economy when commercial banks cannot cover a shortage); • to manage interest rates; • to serve as a banker for other banks. It is generally believed that a central bank can carry out these functions if it remains independent from, and uninfluenced by any political regime.

The Bank of England

www.bankofengland.co.uk

The central bank of the United Kingdom, known as the ‘Old Lady’ of Threadneedle Street, was founded in 1694 to act as the bank for the Government and to handle its debts. It has been independent since 1997, after 50 years of nationalisation. Today, its two core purposes are to maintain monetary stability and financial stability. In order to maintain price stability, the Bank’s aim is to keep the annual rate of inflation at 2% – the target rate set by the Government – and each month it sets the official Bank interest rate, independently of any Government influence. The Bank also is responsible for maintaining financial stability, that is the public trust and confidence in the general financial system as well as the institutions and markets, which has become even more important since the financial crisis. The Bank’s Prudential Regulation Authority (PRA) regulates individual financial firms, while its Financial Policy Committee (FPC) works to prevent or reduce any future financial crises. The Bank of England issues the nation’s banknotes but not its coins, which are produced by the Royal Mint.

Reading comprehension 2

B Read the texts on these pages and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7 8

One method of maintaining price stability is to control inflation. The Bank of England used to be a nationalised Bank. The UK Government decides bank interest rates together with the Bank of England. All of the Federal Reserve is located in the US capital city. The US banking system is largely controlled by the Federal Reserve. There are many criticisms of the Federal Reserve’s monetary policy. Eurozone member states no longer have national central banks. The national central banks of EU member states have to follow the guidelines for monetary policy issued by the ECB. 9 The Eurosystem is responsible for making sure payment systems operate efficiently.

MO DULE 6 | BUSINESS in THEORY

The Federal Reserve System The Federal Reserve System, also known as the Federal Reserve or simply ‘the Fed’, is the central bank of the United States, founded by Congress in 1913. It consists of a central governmental agency – the Board of Governors – in Washington D.C. and twelve Regional Federal Reserve Banks located in major cities throughout the United States, each responsible for a specific geographical area and with one or two branches. The Board of Governors’ responsibilities include the formulation of monetary policy and the analysis of domestic and international financial and economic developments. In addition, it supervises the operations of the Reserve Banks and has a significant role in the regulation of the US banking system.

MORE ABOUT... Different US presidents and important figures are depicted on the banknotes: Washington $1, Jefferson $2, Lincoln $5, Hamilton $10, Jackson $20, Grant $50 and Franklin $100.

www.federalreserve.gov

European Central Bank Unlike other central banks, the European Central Bank, established in 1998 and situated in Frankfurt, is not responsible for the banking and financial matters of a single nation, but rather a group of nations. When the first eleven EU member states – and eight others at later stages – adopted the Euro as MORE ABOUT... their single currency, they no longer had monetary sovereignty. However each maintained its own central bank and together The first Euro banknotes were introduced in these now comprise the Eurosystem together with the ECB. January 2002 and the The European System of Central Banks, on the other hand, second series, Europa, includes the ECB and all the national central banks of EU from May 2013. The member states whether or not they have adopted the Euro. €5 banknote started circulating in 2013, According to EU treaty, the basic tasks of the Eurosystem are, followed by the €10 note among others: in 2014, the €20 note • to maintain price stability; in 2015, the €50 note in • to define and implement monetary policy; 2017 and the €100 and €200 notes in 2019. • to conduct foreign exchange operations; • to promote the smooth operation of payment systems; www.ecb.int • to manage foreign reserves of the Eurozone countries. The European Monetary System

2.03 Listen to this presentation of the ECB and answer these questions.

1 Who forms the Governing Council of the ECB? 2 Who owns ECB shares and how are they attributed? 3 What is the gold standard and when was it used? 4 With this method, why did central banks have to keep sufficient gold reserves?

Oral exam practice 4

5 What does the value of money derive from today? 6 Which of these roles of the ECB is not mentioned? • defining monetary policy • issuing banknotes • keeping inflation low • managing foreign reserves

ACTIVITIES

Listening

Mediating concepts

ES Do some further research on one of the above central banks and prepare a short presentation (3-5 minutes). Include these points: • its foundation and organisational structure; • its main roles and responsibilities;

• any criticisms of its operations, for example, during the latest financial crisis.

Banking and Finance | MO DULE 6

231

Banking services WARM UP

Do you think the banking needs of individuals and businesses are the same? Why/Why not?

Business banking Any kind of business, from a sole trader to a large multinational, needs a bank or even several banks and their services to handle their financial needs and enable them to trade efficiently. A business account for a sole trader helps keep business and personal finances separate, for example, while a company has access to foreign currency and short- or long-term finance. Many banks also offer financial advice and guidance, especially for start-ups and SMEs.

Types of accounts CURRENT ACCOUNT This is used by companies for the day-to-day financial transactions of making and receiving payments. • Payments can be made by withdrawing cash from a branch or a cash machine or by writing a cheque, although these have mainly been replaced by more efficient and quicker automatic payments or credit and debit cards. • Direct debits are when the bank is authorised to take payment directly from the account to pay bills such as utility bills. • Standing orders are similar but are fixed, regular payments. • A company can also give instructions for a credit or bank transfer which is when payments are made directly to another current account, for example, to pay a supplier. The company can also receive payments in this way. There are normally bank charges for all these transactions. To keep track of these movements, banks supply regular account statements, which can also be consulted online.

DEPOSIT ACCOUNT A deposit or savings account usually pays interest and it may be necessary to give advance warning before withdrawing funds. Nowadays, they are not so widely used as companies may have few surplus funds to deposit or they will invest in other financial products and investment schemes.

ACTIVITIES

day-to-day quotidiane

232

FOREIGN CURRENCY ACCOUNT Clients who trade internationally can have accounts with their bank in different currencies, which can resolve problems connected with fluctuations in exchange rates.

Reading comprehension 2

Read the texts on these pages and answer these questions. 1 What is the difference between a current account and a deposit account? 2 Why are cash and cheques no longer so popular? 3 What is the advantage of standing orders and direct debits for an account holder? 4 When are bank transfers used? 5 Why are overdrafts only a short-term financing solution? 6 What financing solutions do banks offer for medium- and long-term capital?

MO DULE 6 | BUSINESS in THEORY

7 Why might a company need finance from a bank? 8 What advantages does a leasing agreement have for a company? 9 What kind of goods are leasing agreements usually for? 10 How can factoring help a company’s financial situation? 11 Does factoring have any disadvantages for a company? 12 How do factoring and forfeiting differ?

Financing OVERDRAFT This is an agreement where the

FACTORING This is an international trade financing

client is allowed to spend more money than is actually in the account, often called ‘going into the red’. As overdrafts are normally subject to high interest rates and heavy bank charges, they are really only a short-term solution to cover emergency situations and temporary lack of funds.

mechanism which helps a client deal with the cash flow problems caused by the delay between issuing an invoice and being paid. The client sells his outstanding invoices, with short-term payment conditions, to a bank or finance company – the factor – which advances the client the cash, minus a fee. The factor then assumes the collection of the debt.

LOANS Unlike overdrafts, loans are a more suitable means for short- and mediumterm financing. They can be granted, for example, to expand a business or to cover a period of difficulty. Commercial mortgages are a way of obtaining longterm capital, for example to buy a property or another business. LEASING This is a method of purchasing equipment, machinery or other assets without having to pay the full amount upfront. The company pays a fee to the bank or finance company for a fixed period of time which allows the use of the equipment. Additional advantages are that these payments are often tax-deductible and the agreement can include the free maintenance or replacement with updated models. Leasing opportunities are now also offered directly by companies such as car manufacturers and office equipment suppliers.

FORFEITING This is a similar concept to factoring, but it deals with capital goods, commodities or high value merchandise and is used when the payment conditions are long term, from six months to several years.

upfront in anticipo outstanding da saldare

Find the English equivalent to these words and expressions from the texts on these pages. 1 2 3 4 5 6 7

prelevare contante filiale assegno addebito diretto ordine permanente bonifico bancario

________________ ________________ ________________ ________________ ________________ ________________ ________________

8 9 10 11 12 13 14

estratto conto conto estero fido tasso di interesse commissioni bancarie deducibile fiscalmente anticipare

________________ ________________ ________________ ________________ ________________ ________________ ________________

ACTIVITIES

Vocabulary

Internet research 4

Choose one of the four UK banking groups (see page 227) and visit its website. Answer these questions. 1 What services does the bank offer for a small business?

2 How clear is the information? 3 What do you think of the bank’s slogan?

Banking and Finance | MO DULE 6

233

WARM UP

E-banking

What kind of banking operations can be carried out online?

Internet banking

Mobile banking

ADVANTAGES • 24/7 availability: You can access your account and related services whenever and wherever you want. • No wasted time: There is no need to waste time going into a branch and waiting in a long queue. • Real time: You can immediately access updated financial statements and check your account balance. • Cost-effective: Account costs are usually less than for a traditional account. • Environmentally-friendly: There is no need for the bank or the client to print and send documents and statements as it is all stored electronically.

ACTIVITIES

Reading comprehension 2

Read the texts and match the two halves of the sentences. 1 2 3 4

Internet banking is aimed Traditional accounts may have Not having to print documents means Online banks registered with the regulatory authorities 5 By downloading a bank app you can 6 Mobile payment has many benefits

a b c d e f

Vocabulary 3

Find the expressions for these definitions in the texts. 1 2 3 4 5 6

234

MO DULE 6 | BUSINESS in THEORY

________________ ________________ ________________ ________________ ________________ ________________

Mobile Money Is Booming in Africa

fees, others by the time it takes, even if short, to take out your phone and complete the few steps of a transaction compared to handing over a few notes and coins. In addition to this, many people in the country still receive their wages in cash which means that it must be ﬁrst transferred into digital form, an unnecessary step for many. Once more people are paid digitally, it is likely that we will see a further increase in mobile money transactions. The incredible boom in mobile money shows no signs of slowing down and it will continue to attract existing and new companies in the technology, banking and mobile phone industries, desperate to get a slice of the action. And proﬁts.

Reading comprehension 4 INVALSI 1

Read the article and choose the correct option.

People in Sub-Saharan Africa… A have fewer benefits from mobile money than those in other regions. B have been slow to sign up to mobile money platforms. C are benefitting hugely from mobile money platforms. D are financially disadvantaged due to their rural location.

Watch the video: Somalia abandons shillings for mobile money transfers Banking and Finance | MO DULE 6

ACTIVITIES

3 Why do some Kenyans prefer using cash? A There is nothing extra to pay if you pay in cash. B They don’t trust mobile money platforms. C They are worried about losing their phone and therefore money. D The mobile platforms take a long time to authorise transactions.

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Types of cards Most banks and other financial institutions issue different types of cards which can be used to withdraw money from a cash machine or to make payments without having to use cash. In the UK, the use of these cards, for both small and large purchases, is extremely widespread and cash and cheques are now used less and less often. There have even been talks about abolishing cheques altogether due to the decrease in popularity and as they are an expensive and time-consuming transaction for banks. In the USA, however, cheques are still a popular form of payment, together with both cash and cards. In many economies, another reason for the decline in the use of cash is the massive increase in contactless payments. Many credit and debit cards, as well as smartphones, smart watches and other devices, can be used to make contactless payments where users simply need to place their card or device near a reader at the POS terminal. Contactless payments may have an upper limit, often around €25, after which PIN verification or a signature is required.

CASH POINT CARD This card is used to withdraw cash and access the other services at a cash machine. It has to be used in conjunction with a PIN (Personal Identification Number).

MORE ABOUT... PayPal is a system for keeping all different methods of payment – such as debit and credit cards – in one place. It is widely used for buying and selling on the Internet, especially for sites like eBay, because it offers a secure payment system where no one is able to see your financial details.

DEBIT CARD This type of card is often combined with a cash point card. The customer uses this card instead of cash to make purchases anywhere there is POS terminal, such as shops, petrol stations and restaurants. It is necessary for the customer to type in a PIN on a keypad and then the amount is immediately deducted from the customer’s bank account. With this type of card, many outlets offer a ‘cashback’ facility where a customer can withdraw cash together with their purchase.

PRE-PAID CARD

Most credit cards today are ‘chip and PIN’ cards where a client only needs to enter a PIN at the POS terminal in order to make a purchase. The credit cards with magnetic stripes which have to be swiped with the customer signing a screen or paper receipt are gradually being phased out as they offer less security. For online purchases it is usually necessary to enter the card holder’s name, card number, expiry date and the CCV (card code verification) number. Unlike a debit card, with a credit card the customer can pay off the debt to the card issuer at a later moment. The customer receives a monthly statement and can choose to pay off the whole balance immediately or in instalments with high interest rates applied. Used wisely, credit cards can give you more than a month’s free credit, as well as other advantages such as protection for online purchases.

This type of card works in a similar way to a pay-as-you-go mobile phone. An amount of money is loaded onto the card which can then be used in the same way as a regular debit or credit card. The advantage is that, as they are not linked to a bank account, there is no risk of going overdrawn or running up large debts. When the amount on the card has been used up, it is impossible to continue using the card until it has been topped up. The disadvantage is that sometimes the providers charge high costs for issuing or topping up these cards.

ACTIVITIES

CREDIT CARD

Reading comprehension 1

Read the texts and say which card(s): 1 2 3 4 5

has a PIN means you pay immediately means you pay later means you pay in advance can be used in a cash machine

6 7 8 9 10

can be used online can be used to withdraw cash at a POS terminal can have very high costs is linked to a bank account charges interest

Speaking – Critical thinking 2

In small groups, discuss the advantages and disadvantages of these types of cards for these people: • • • •

236

a a a a

17-year-old student, living at home, who does not have a bank account university student, living away from home, who has a student loan business woman who travels internationally for work retired factory worker who lives on a state pension, and only has minimal savings

MO DULE 6 | BUSINESS in THEORY

Fraud In this technological and digital age, being aware of fraud is essential for businesses and individuals alike since the increase in online services has also led to an increase in the number of attempts made to cheat individuals and companies out of their money. Several decades ago, the worry was over false banknotes in circulation or forged cheques, but now financial fraud and scams are carried out over the Internet or with the latest technology.

PHISHING

CARD CLONING

This is one common way that fraudsters attempt to steal information like usernames, passwords, credit card and bank account details. Potential victims receive emails which appear to be from a reputable company, like a bank, Paypal, or an e-commerce website, saying, for example, that there is a problem with their account or a delivery. Worried about the consequences, the victims click on the link provided to confirm their personal details which then allows the criminal to steal the data. Text messages can be used in a similar way, as can phone calls, when someone pretending to be the police or a bank tries to convince you to reveal banking security details, such as passwords and PINs.

Most users of credit or debit cards are conscious of the risk of card cloning so, for example, they do not let their cards out of sight when paying in a restaurant and only use reputable websites for online purchases. However, card cloning is not always as easy to prevent. A skimmer – a device which copies the details from the magnetic strip on a card – can be inserted over the card slot on cash machines or other automatic payment machines, such as ticket machines at a railway station, and are often very difficult to detect. Together with a hidden camera to capture the PIN as it is entered, these skimmers can store hundreds of card details before they are detected.

FINANCIAL AND INVESTMENT SCAMS There seems no limit to the imagination of scammers when it comes to inventing ideas to try to con people out of their money: emails asking for help to transfer funds from a foreign country; phone calls from fake insurance companies asking to confirm the details of a policy for valuable items in your home; websites and brochures promising no-risk, high return investments. The victims of these scams truffe scams are often the elderly or those with little financial expertise, slot fessura but even experienced investors and business people have been con raggirare taken in by skilled scammers.

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6

The aim of phishing is to get people to reveal private and confidential data. Phishing techniques can also be used in text messages and phone calls. The majority of card cloning is carried out when paying by credit card in a restaurant. It may not be easy to tell if a cash machine has been tampered with. Real insurance companies may want to check your policy details over the phone. Expert business people are never deceived by internet investment scams.

ACTIVITIES

Reading comprehension

Listening 2

2.04 B Listen to an FBI agent talking about how to protect yourself from fraud and scams and fill in the gaps.

1 Credit card fraud

2 Internet scams

3 Business fraud

• Only use your credit card with (1) _________ and reputable sites. • Check security by looking for the padlock icon and (2) _________ software. • Check credit card (3) _________ carefully and then shred them.

• Always be (4) _________ of online offers. • Do not reply to offers contained in (5) _________ emails. • Do a background check on the company to see if it is (6) _________.

• Use (7) _________ sites for your online purchases. • Check the (8) _________ of sellers on auction sites. • Avoid companies that refuse to give you their (9) _________ or other details.

Banking and Finance | MO DULE 6

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Payment methods WARM UP

How can buyers and sellers in international trade minimise payment risks? Read the text to check your ideas.

One of the biggest risks with international trade is payment, especially when dealing with new clients or a new market. Ideally, an exporter would like payment as soon as an order has been placed or before the goods are dispatched. On the other hand, an importer would prefer to delay payment at least until the goods have been received if not until they have been resold in order to generate sufficient income. This means that payment methods which are more secure for the exporter are riskier for the importer and vice versa. In order to find an appropriate payment method, the seller must first research the market and local trading conditions, including the economic and political situation, as well as the importerâ&#x20AC;&#x2122;s credit standing. Then it is possible for the seller to balance his risks against customer requirements or expectations and to negotiate the most desirable method for both parties.

Open account With an open account, the seller is extending credit to the buyer as goods and documents are shipped and delivered before payment is due, which is usually agreed to take place within 30, 60 or 90 days of the invoice date. Given that the goods are received in advance of any payment, it is obviously the most advantageous option for the buyer and the least secure for the seller. For this reason these conditions are normally only granted to established clients, with a favourable payment history and that are considered to be creditworthy. Regular customers may be offered credit on a periodic basis, such as quarterly, in which case the seller will send a statement of account with details of the transactions of that period and any amounts owing.

Payment in advance At the other end of the scale is payment in advance, the most secure for the seller, which involves taking payment before goods are dispatched. However, it is not widely used in international trade because buyers rarely accept this type of condition. There are two methods which are mainly used for small orders or new customers:

CWO (Cash with Order) The buyer pays in full at the moment of placing the order, usually by bank transfer as it is so immediate.

ACTIVITIES

creditworthy solvibile

238

COD (Cash on Delivery) The goods are paid for when a carrier delivers them and the invoice to the buyerâ&#x20AC;&#x2122;s door, otherwise they are not released.

Reading comprehension 2

Read the texts about these two payment conditions and decide if these sentences are true (T) or false (F). T 1 2 3 4 5 6

Both open accounts and payments in advance are the least secure forms of payment for exporters. An open account is a form of credit given by the seller to the buyer. It is very unlikely that a new client will be given open account terms. With payment in advance, the buyer is in a more secure position than the seller. CWO means that the seller receives the customerâ&#x20AC;&#x2122;s payment together with the order. With COD, a buyer can take delivery of the goods and then pay for them.

MO DULE 6 | BUSINESS in THEORY

Bank transfer A bank transfer, also called wire transfer, bank giro credit or credit transfer, is the most frequent and quickest system for international payments. The buyer instructs his bank to transfer the relevant sum of money directly from his bank account to the seller’s bank account. The process is secure and fast for both parties involved. The information in a bank transfer includes: the names of the issuing and beneficiary banks, the buyer’s and the seller’s bank accounts, the currency, the amount to be transferred and usually a reference to the invoice number to make it easier for the seller to trace the details in his bank statement. The two banks involved will normally charge fees for the service, and sometimes if intermediary banks are used in the process, they will also demand payment for their involvement.

COMMON ACRONYMS SWIFT stands for ‘Society for Worldwide Interbank Financial Telecommunications’. This organisation provides a network for secure communications between banks around the world. Each bank connected to the system has a unique code made up of 8 to 11 alphanumeric characters, commonly called a BIC (Bank Identifier Code) code. ....................................................... IBAN stands for ‘International Bank Account Number’. This is a code of up to 34 alphanumeric characters which identify the country (using the ISO 3166-1 alpha-2 country codes), the bank, the branch and the account number where a transfer is to be made. IBANs are used in Europe and other countries around the world. Whatever code system is used, the information must be supplied and entered into the system correctly to ensure the completion of the transfer.

Read the text and complete these sentences. 1 … are most commonly made by bank transfer. 2 The money… from the importer’s bank account to the exporter’s. 3 The issuing bank is… while the beneficiary bank is…

In pairs, look at the above example of a bank transfer confirmation and find this information. 1 the amount due 2 the currency

Speaking 3

4 The bank transfer usually contains the invoice number so that… 5 Both buyer and seller may have to pay… 6 SWIFT and IBAN are… which are used to indicate the precise bank, branch or account number for a transfer.

ACTIVITIES

Reading comprehension

____________ ____________

3 the name and country of the seller’s bank 4 what the payment refers to

____________ ____________

Now discuss these questions. 1 Why do you think bank transfers are so widely used by businesses? 2 Do you think they are also common for private banking customers? Why/Why not? 3 Can you think of any situations of when bank transfers are useful for private individuals?

Banking and Finance | MO DULE 6

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Bill of exchange A bill of exchange (B/E), also known as a draft, is a written unconditional order by one party to another to pay a certain sum at a future date. The parties involved are: • the drawer – the person or company who issues the draft; • the drawee – the person or company that receives the draft and pays the sum indicated; • the payee – the person or company that receives the money. Normally the payee and drawer are the same. The time when the payment must be made – the maturity of the B/E – can be indicated in different ways: • at sight/on demand, which means it can be cashed immediately; • a fixed date indicating the exact date when it can be cashed; • a term, such as 30/60/90 days, which means it can be cashed only after this period has passed. The drawer draws a B/E and sends it to the drawee.

The drawee accepts and validates the B/E by signing it and then returns it to the drawer.

The drawer sends the goods and passes the B/E to his bank.

The drawer’s bank forwards the B/E to the drawee’s bank.

The drawee’s bank presents the bill for payment.

ACTIVITIES

A B/E is useful in international trade as it can be used as a form of credit because, being a negotiable document, it can be passed on to a third party if it is endorsed with the payee’s signature on the back.

Reading comprehension 1

Read the text and choose the correct alternative. 1 A B/E involves a maximum/minimum of two parties. 2 The maturity of a bill of exchange is when/where the bill can be cashed. 3 A term/sight draft can be cashed immediately.

Look at the B/E and answer these questions. 1 What is the name of the drawer of the B/E? 2 Who is the drawee?

Vocabulary 3

3 What is the amount of the B/E? 4 What is its maturity? 5 What is the date of issue?

Find the English equivalent to these expressions in the text. 1 2 3 4

240

4 To be valid, a B/E has to/does not have to be signed by the drawee. 5 A B/E is a non-negotiable/negotiable document.

cambiale tratta traente trattario maturazione

___________ ___________ ___________ ___________

MO DULE 6 | BUSINESS in THEORY

5 6 7 8

a vista scadenza/termine documento negoziabile girato

___________ ___________ ___________ ___________

Documentary collection With documentary collection, the exporter presents the shipping documents, invoice and bill of exchange to his bank (the remitting bank) when the goods are ready for shipping. The remitting bank forwards all the documents to the importer’s bank (the collecting bank), which will release them to the importer giving him ownership of the goods. There are two types of documentary collection which determine the release of the documents:

DOCUMENTS AGAINST PAYMENT (D/P) With this method, the collecting bank releases the documents to the importer only on payment of the B/E. Once payment has been received, the collecting bank then transmits the funds to the remitting bank for payment to the exporter.

remitting remittente

DOCUMENTS AGAINST ACCEPTANCE (D/A) This method represents a form of credit as the importer promises to pay the B/E at a future date. The collecting documents are released to the importer once he has accepted to pay the B/E on a specified date. At maturity of the B/E, the collecting bank contacts the importer for payment and will then transfer the funds to the remitting bank as above. The two banks acts as intermediaries in the process of documentary collection but they do not verify that the documents conform to the contract of sale nor do they provide any guarantees. This method of payment is fairly advantageous for both exporter and importer and it is less risky than an open account.

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6

Both the importer and exporter’s banks are involved in documentary collection. A bill of exchange is not a compulsory part of this method of payment. The shipping and other documents must be prepared in triplicate. With D/P, ownership of the goods passes to the buyer once the B/E has been paid. With D/A, the buyer has more time to pay for the goods than with D/P. The banks involved offer guarantees for the transaction.

ACTIVITIES

Reading comprehension

Speaking 2

Discuss these questions in pairs. 1 What are the similarities and differences between documentary collection and cash on delivery? 2 How is D/A similar to an open account? Does it offer more or less guarantees to the exporter? 3 What differences are there between documentary collection and a bill of exchange? Which method is more secure? Why?

Banking and Finance | MO DULE 6

241

The typical documents requested include the following, often requested in duplicate or triplicate: commercial invoice, clean bill of lading, insurance policy, packing list and Certificate of Origin.

Documentary letter of credit

A letter of credit (L/C) is a contractual agreement in which the importer’s bank guarantees that payment will be made to the exporter provided that the terms and conditions stated in the L/C have been met, that is if the requested documents have been presented and are in order. It is one of the most secure methods of payment available to international traders, especially in new or recently established business relationships or when it is difficult to obtain details of the creditworthiness of an exporter. The importer is secure since the bank must verify the documents and payment is made after shipment; the exporter is secure that he will receive payment as long as the documents he provides are in order. This last point may represent a disadvantage of this form of payment in so much that any discrepancy between the L/C and the documents presented could mean expensive amendments or even non-payment. The high bank costs, usually entirely born by the importer, are another drawback to this method and means it is a not suitable for small sums. The main parties involved are the importer (applicant), the exporter (beneficiary), the importer’s bank (issuing bank) and the exporter’s bank (advising bank) and the basic procedure for a L/C can be broken down into these nine steps: CONTRACT

DOCUMENTS

ACTIVITIES

Exporter/Seller (Beneficiary)

1 The sales contract is agreed between the importer and exporter. 2 The applicant asks the issuing bank to open credit in favour of the beneficiary. He also lists all the documents the beneficiary must provide and the conditions to be fulfilled. 3 The issuing bank informs the advising bank of the credit in its favour. 4 The advising bank informs the beneficiary of the terms of the L/C. 5 The exporter checks that the details comply with the sales contract and then dispatches the goods. 6 The exporter hands over all the documents to the advising bank. 7 The advising bank checks the documents and then forwards them to the issuing bank. 8 The issuing bank also checks the documents and that all conditions have been fulfilled before issuing an at sight or term draft to the advising bank so that the beneficiary can receive the payment. 9 The importer receives the documents from the issuing bank and can than retrieve the goods. LETTER OF CREDIT

PAYMENT

Issuing Bank/ Importer’s Bank

DOCUMENTS

Advising Bank/ Exporter’s Bank

Reading comprehension 1

Read the text and answer these questions. 1 In what kind of situations is a letter of credit advisable? 2 What information does a letter of credit contain?

3 What documents are usually necessary? 4 Who are the parties involved?

Complete this table with the advantages and disadvantages of a letter of credit. ADVANTAGES

______________________ ______________________ ______________________

DISADVANTAGES

______________________ ______________________ ______________________

Who is responsible for these steps: the applicant, the beneficiary, the issuing bank or the advising bank? 1 2 3 4

242

GOODS SHIPPED

DOCUMENTS

2 10 9

LETTER OF CREDIT

PAYMENT

LETTER OF CREDIT APPLICATION

Importer/Buyer (Applicant)

deciding the conditions and documents to include opening the credit in favour of the beneficiary notifying the beneficiary of the L/C dispatching the goods

MO DULE 6 | BUSINESS in THEORY

5 6 7 8

giving the documents to the advising bank checking the documents issuing a draft to the advising bank claiming the goods from the freight company

Full set stands for all originals (three) of an ocean bill of lading. Advising bank: Form of doc. credit: Doc. credit number: Date of issue: Expiry:

BANK OF CHINA, QINGDAO, CHINA IRREVOCABLE 89578965 12 01 20.. (01 Dec 20..) Date: 02 16 20.. (16 Feb 20..) Place: PEOPLE’S REP. OF CHINA

Beneﬁciary: XINGZHOU IMPORT & EXPORT CO. LTD. SHANGHAI SOUTH ROAD 2754 QINGDAO CHINA

MORE ABOUT... ****Amount**** USD****35,000.00 Applicant: ROSSI FOOTWEAR S.R.L. VIA VERDI 25 41100 MODENA ITALY

Available with:

BANCA COMMERCIALE MODENA - ITALY Deferred payment: 60 DAYS AFTER BILL OF LADING DATE Partial shipments: NOT ALLOWED Transhipments: NOT ALLOWED Port of loading: QINGDAO PORT (PEOPLE’S REP. OF CHINA) Port of discharge: LA SPEZIA, ITALY Latest date of shipment: 01 31 20.. (31 Jan 20..) Description of goods: 35,000 PAIRS OF FLIP FLOPS AS PER PRO-FORMA INVOICE No. 4859 DD 15 OCT 20.. AMOUNTING TO TOTAL USD 35,000.00 FOR GOODS RENDERED CIF LA SPEZIA - ITALY Documents required: 1) FULL SET OF CLEAN ‘ON BOARD’ MARINE BILL OF LADING ISSUED TO ORDER AND BLANK ENDORSED, MARKED ‘FREIGHT PREPAID’, NOTIFY APPLICANT. 2) SIGNED COMMERCIAL INVOICE, 2 ORIGINALS + 2 COPIES, DULY DATED STATING THAT INVOICED AND SHIPPED GOODS COMPLY IN EVERY RESPECT WITH THE ONES DESCRIBED IN PRO-FORMA INVOICE No. 4859 DD 15 OCT. 20.. 3) PACKING LIST, 2 ORIGINALS + 2 COPIES 4) CERTIFICATE OF ORIGIN ‘FORM A’, ORIGINAL + 1 COPY, ISSUED BY COMPETENT AUTHORITIES IN PEOPLE’S REP. OF CHINA, STATING GOODS OF ORIGIN OF: ‘PEOPLE’S REP. OF CHINA 5) INSURANCE POLICY COVERING ALL RISKS FOR 110 PCT OF INVOICE VALUE, ORIGINAL + 1 COPY Additional conditions: L/C AMOUNT COVERS 100 PCT (%) OF INVOICE VALUE Details of charges: ALL BANKING COMMISSIONS AND CHARGES OUT OF ITALY ARE TO BNF’S ACCOUNT Presentation period: DOCS TO BE PRESENTED WITHIN 16 DAYS AFTER BILL OF LADING DATE Conﬁrmation: WITHOUT

An L/C is normally irrevocable which means that it cannot be changed unless both parties agree. A revocable L/C is also possible, although it is not recommended since it allows the applicant to make changes without the consent of the beneficiary. In the case that the beneficiary is worried about the credit standing of the issuing bank or the general economic and political situation in that country, he may ask that the L/C is confirmed by the advising bank. This is called a confirmed L/C and it means that the advising bank guarantees to pay if the issuing bank fails to do so. A confirmed irrevocable L/C offers the maximum protection to the exporter.

Look at the letter of credit and answer these questions. 1 Is it irrevocable? 2 Is it confirmed? 3 What is the total amount of the letter of credit?

4 Is payment due at sight or term? 5 What documents have been requested? 6 Who will pay the bank charges?

ACTIVITIES

Reading comprehension

Written exam practice 5

ES Write a short essay (150-200 words) outlining the different forms of payment for international trade, explaining the risks and advantages for both importer and exporter.

Banking and Finance | MO DULE 6

243

Finance WARM UP

Is there a Stock Exchange in your country? What is it called? Can you think of other Stock Exchanges?

A bond is an instrument of debt, issued by governments and companies, where the bond issuer pays a fixed rate of interest to the bond holder for the life of the bond until its maturity, when the value of the bond is also repaid.

ACTIVITIES

A bull market is when there is confidence in the market and share prices are generally rising. A bear market, on the other hand, is when prices are predicted to fall.

Stock Exchanges and Commodity Exchanges A Stock Exchange is a regulated financial market where securities, such as shares and bonds , are bought and sold. It has two functions: • in the primary market it helps companies raise capital by selling shares, for example through an IPO (initial public offering); • in the secondary market it acts as an intermediary between those wishing to sell and those wanting to buy shares. In some Stock Exchanges trading is still carried out in a traditional manner with the brokers on the trading floor, shouting out orders and instructions. Most, however, have moved completely or at least partially to using online and phone trading. Trading can only be carried out by members. Share prices can naturally go both up and down (bear and bull markets ), depending on market forces of supply and demand as well as other factors such as positive or negative industry and company reports and forecasts. Naturally, the purpose of anyone trading on the Stock Exchange is to make a profit by buying low and selling high. A Commodities Exchange, also referred to as Futures Market or Futures Exchange, is where various commodities and derivatives (financial products that have a value based on that of another asset) are traded. Some of the biggest Commodities Exchanges are located in Chicago, USA, divided according to the commodities and other financial instruments they deal in. Commodities exchanges act as intermediaries in the trade of futures contracts, commonly known as futures. These are agreements to buy or sell a certain quantity of a commodity at a predetermined price and date. By attempting to predict price movements, the seller wants to fix the best possible rate, protecting himself against future price drops, while the buyer wishes to avoid any future price increases.

Reading comprehension 2

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7 8

Shares are bought and sold on the primary market. The primary market is not as big as the secondary market. Bull market and bear market indicate two opposing trends in share prices. Trading can be carried out electronically and face-to-face. Positive or negative information regarding a company can affect its share price. Commodities exchanges are in the same place as Stock Exchanges. Futures are contracts where the price of the commodity is fixed in the future. Futures help protect against upward and downward changes in price.

Vocabulary 3

Find the English equivalent to these words and expressions. 1 2 3 4

244

azioni obbligazioni offerta pubblica iniziale sala delle contrattazioni

_______________ _______________ _______________ _______________

MO DULE 3 | BUSINESS in THEORY

5 6 7 8

mercato rialzista mercato ribassista previsioni derivati

_______________ _______________ _______________ _______________

Indices An index is an indicator of trends on the stock exchange which can provide a quick picture of what is happening. A portfolio of stocks, traded on a particular exchange, are selected to represent a particular market or investment area. When an index goes up, it basically means that there are more people buying than selling and share prices have risen. The index goes down when people are dumping shares. Charles Dow is credited with the first share index when he created the Dow industrial average in 1886. Today it is known as the Dow Jones Industrial Average (DJIA) or just Dow Jones and is based on 30 blue-chip companies quoted on the NYSE. Two other well-known indices are the Financial Times Stock Exchange 100 and the Nasdaq 100. The former – also known as Footsie for short – is an index that measures the share price performance of the 100 largest, most actively traded companies on the London Stock Exchange. The Nasdaq 100 Index includes over one hundred of the largest domestic and international nonfinancial securities which are listed on the Nasdaq Stock Market in New York.

Spread The general definition of spread is the difference between two prices or interest rates. In the stock market, it refers to the gap between the current bid and ask price of a share or other security, also known as bid/ask or bid/offer spread. Bond spread is used when talking about the difference between yields of comparable bonds. To gauge the performance of a company or government bond, its yield is often compared to that of a benchmark bond, which carries less or no risk of default, such as the German Bund or US Treasury bonds. The wider the spread between the two bond yields, the greater the risk is.

Brokers

blue-chip di alto valore yields rendite benchmark di riferimento

In order to be able to buy and sell shares on a stock exchange, it is necessary to go through an authorised broker who can trade on behalf of a customer. Brokers can be part of a bank or brokerage firm, both of which may also offer online trading at low rates for small and private investors. All brokers have to pass particular national exams and The Security and are regulated by bodies such as the FCA (see page 229) in the UK and the SEC in the Exchange Commission (SEC) in the USA is a USA. They earn their money by charging a commission on each transaction. federal agency that There are three types of brokers: governs the nation’s • Execution only: these brokers carry out a client’s instructions to buy or sell shares securities industry and but do not give any advice. This type of broker receives a lower commission rate. stock exchanges. • Advisory: these brokers provide advice, giving details of the current trends, analysis of shares and companies for example, and then execute the client’s order to buy and sell. • Discretionary: these brokers buy and sell shares based on a client’s instructions but they are also authorised to make investment decisions without having prior approval from the client. This type of broker will naturally work on a higher commission rate.

Read the texts and answer these questions. 1 What is the purpose of an index? 2 What stock exchanges do the Dow Jones, FTSE 100 and Nasdaq 100 refer to? 3 What is the definition of spread? 4 What is the role of a broker?

5 What role do the FCA and SEC have for brokers? 6 Why does an execution only broker earn less commission? 7 What is the difference between advisory and discretionary brokers?

Banking and Finance | MO DULE 6

ACTIVITIES

Reading comprehension

245

London and New York Stock Exchanges

The Big Bang was a change in the Stock Exchange’s structure and operations. The Exchange became a private limited company. Trading ceased to be done face-to-face on the trading floor and screen-based electronic trading was introduced, using phones and computers. Fixed commission rates were abolished and all firms could operate as broker/dealers trading on behalf of clients and on their own account without the need for an intermediary.

The London Stock Exchange was founded in 1801 although its origins go back to the 17th century. In a similar way to how Lloyd’s started, brokers would meet in Jonathan’s Coffee House to discuss investments and trade in shares and a list of the prices of shares and commodities was created. From there a group of brokers formed a club, which in 1801 was opened on a formal basis.

Since 2004 the LSE has been situated in Paternoster Square, near St. Paul’s Cathedral.

Key dates in the Exchange’s history 1973: 1986: 2000: 2007:

www.londonstockexchange.com

female members were admitted for the first time the deregulation of the market, known as the ‘Big Bang’ vote by shareholders to become a public limited company merger with Borsa Italiana, creating the London Stock Exchange Group, Europe’s leading diversified exchange business

The New York Stock Exchange is the oldest and largest MORE ABOUT... in the USA and is located on Wall Street. The beginnings Trading on the NYSE of the Exchange can be traced back to 1792 when twentyopens and closes with four brokers met under a tree in Wall Street and signed a bell ringing, which an agreement establishing the rules for buying and selling you can watch live on company shares. The NYSE is one of the few exchanges the Exchange’s website at 9.30 a.m. for the in the world that still operates using the traditional open opening bell and at outcry system, that is where the brokers meet face-to4 p.m. for the closing face on the trading floor, in addition to electronic trading. bell. Many famous The NYSE became public in 2006. Prior to this it was a people from actors and athletes to politicians membership only organisation and it was possible to join and entrepreneurs only by purchasing one of the existing 1,366 seats. A year have rung the bell. later it merged with Euronext, the European combined stock market and formed the NYSE Euronext, the first transatlantic stock exchange. In 2013, it was acquired by Intercontinental Exchange to create the premier financial markets operator. Intercontinetal Exchange also acquired the Chicago Stock Exchange in 2018. www.nyse.com

ACTIVITIES

Reading comprehension 1

Read the texts and complete these sentences. 1 2 3 4

Both Lloyd’s and the London Stock Exchange started… Until 1973, there were no… The purpose of the Big Bang was to… The London Stock Exchange Group was created by…

5 6 7 8

The NYSE trades by using both… For most of its existence, the NYSE was a… In 2006 the NYSE… In 2007, NYSE and Euronext…

Speaking 2 1

Ticker symbols are used to represent the companies quoted on a Stock Exchange. Can you work out what the companies are in this ticker tape? They are all quoted on the NYSE. 2

AMZN2.8M@253.96▲1.47 NOK151M@3.88▲0.44 AAPL37M@538.79▼37.05 MSFT68M@26.67▲0.30 MCD5M@86.97▼0.23 GOOG1.8M@687.82▼3.21 246

MO DULE 6 | BUSINESS in THEORY

Securities fraud and speculation

smearing calunniando bursts scoppia

Information regarding things like a company’s financial performance or possible acquisitions can positively or negatively affect its share prices. This is why important information is shared with all shareholders at the same time so that no one individual or company can benefit from knowing the news in advance. When a person with information that can positively or negatively affect the price of a company’s shares makes a trade based on that knowledge, he or she is guilty of insider trading. This is an illegal activity as the individual is using knowledge which is not available to everyone, creating an unfair advantage. Short and distort and pump and dump are two other illegal practices where traders try to make a profit by manipulating share prices to their advantage. In the first technique, traders damage a company’s reputation by spreading rumours and smearing its image to make the share price drop. The second is the opposite scenario, where false information is given, exaggerating a company’s performance for example, in order to make the share price rise. Risk is obviously part of trading on the stock exchange, and speculation is when a trader has a high-risk investment strategy aimed at making quick and substantial profits from buying and selling shares or other securities. This can be a profitable long-term strategy for professionals, but many other investors have suffered serious losses with these kinds of risky investments. Many investors have been caught out by economic bubbles, such as the tech and dot-com bubbles. This is when the prices of shares or other securities continue to rise extremely sharply, going beyond what is justified, until there is a sudden collapse and the bubble bursts, meaning huge losses for investors.

Read the text and answer these questions. 1 What is insider trading? Why is it illegal? 2 What is the difference between short and distort and pump and dump?

Listening 2

2.05 B Listen to this expert talking about stock market crashes and economic bubbles and choose the correct option.

1 Tulip Mania is an example of… A a good investment opportunity. B an economic bubble. C how to invest in the Dutch Stock Exchange. 2 Why did the price of tulip bulbs rise? A There was a shortage of bulbs. B They were used to trade instead of money. C They were popular and in demand. 3 What happened after prices peaked? A Bulb dealers started trading abroad. B Bulb dealers imported other flowers. C People lost a lot of money.

Internet research 3

4 In the late 1990s, dot-com companies were quoted on the stock exchange even if… A they had no profits. B they were newly founded companies. C people were not confident about their future. 5 During this period, investors often invested… A too much money in the same company. B without checking out the company thoroughly. C when the share price was already too high. 6 What happened in March 2000? A The dot-com companies failed to make a profit. B The economic bubble burst. C Trading in dot-com companies was interrupted.

Find out about a famous case of securities fraud and write a short report. Include these points: • when it happened; • the company and people implicated;

Oral exam practice 4

3 Why do some investors use high-risk investment strategies? 4 What is an economic bubble and what risks can investors face?

ACTIVITIES

Reading comprehension

• the amount of shares/money involved; • the consequences.

Mediating concepts

ES Prepare a short presentation (3-5 minutes) on share and securities trading and the risks involved, including: • the difference between a Stock Exchange and a Commodities Exchange; • the role of a broker;

• the importance of indices; • fraud and speculation.

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6 WARM UP

In what circumstances should a company check the creditworthiness of a potential customer? Is it necessary with all methods of payment?

BUSINESS in PRACTICE

Payment issues Credit references

Bank correspondence

Businesses should always check the credit references of any new company that they intend to do business with, particularly with payment conditions where the goods are dispatched before payment is received. These references can be obtained by contacting an existing supplier of the new customer or applying to a credit reference agency, which is an independent organisation that has credit information both about consumers and businesses. There is no obligation for a company to provide a credit reference and, in fact, many companies often refuse to do so due to the associated risks. For example, if a company provides a negative credit reference, the customer may find out and decide to stop doing business with the company.

March 23rd, 20.. SOPRANO MUSIC SUPPLIES 846 Phoenix Rd. Tucson, AR 85719, USA Dear Mr Samuelson, A purchase order from Reynolds and Stewart, 8549 Wilshire Blvd., Oakland CA 94621 for $15,950 worth of merchandise listed you as a credit reference. We would appreciate any information you can provide on the credit history of Reynolds and Stewart Inc. with your company. We would be grateful if you could inform us how long they have had an account with you and whether or not they have any outstanding debts. We will keep any information you send us confidential. We have enclosed a postage paid envelope for your convenience. Sincerely yours, The Cambridge Piano Company

Martin Webster ACTIVITIES

General Manager

248

Reading comprehension 2

Read the letter and answer these questions. 1 2 3 4

What is the purpose of Mr Websterâ&#x20AC;&#x2122;s letter? Who is Soprano Music Supplies? What company does Mr Webster want a credit reference for? What specific information does he request?

MO DULE 6 | BUSINESS in PRACTICE

ACTIVITIES

Reading comprehension Read this credit reference letter and put the sentences in the correct order.

SOPRANO MUSIC SUPPLIES 846 Phoenix Rd. – Tucson, AR 85719, USA March 31st, 20.. The Cambridge Piano Company 251 Dryden Street – Cambridge, MA 02139, USA Dear Mr Webster, Therefore, based on our experience with them, we believe Reynolds and Stewart to be a good credit risk. During that time, there have been two incidents where the bills have been 60 days late. We are responding to your letter requesting credit information on Reynolds and Stewart. Since then, the bills of Reynolds and Stewart have been settled regularly. Over the past three years, Reynolds and Stewart has ordered $9,000 worth of merchandise from us. However, to be fair, those incidents occurred two and a half years ago. Yours cordially, SOPRANO MUSIC SUPPLIES

Leonard Samuelson Owner

Now answer these questions. 1 Have there been any payment problems with Reynolds and Stewart? 2 What were they and when did they happen?

Phraseology 5

3 What is the situation like now? 4 Is Soprano Music Supplies providing negative or positive credit information?

Mediating texts

Phraseology p. 266

Translate these sentences into English and then decide if they are from a request for a credit reference or a reply. Write them in the correct column. 1 Noi riteniamo che la ditta Jones & Sons Ltd. non presenti alcun rischio di credito. 2 Naturalmente qualsiasi informazione da Voi fornita sarà usata con la massima discrezione. 3 La Jones & Sons Ltd. è un nostro cliente da più di 5 anni.

4 Vi chiediamo gentilmente di fornirci qualsiasi informazione riteniate opportuna riguardo la loro situazione creditizia. 5 Da quando lavoriamo insieme, soltanto in un’occasione il cliente ha chiesto un’estensione del credito. 6 La Jones & Sons Ltd. ci ha fornito il Vostro nominativo come referente creditizio.

REQUEST

__________________________________________ __________________________________________ __________________________________________

Writing 6

Write an email to Intermoda s.r.l., a fashion wholesaler in Bologna, requesting credit information on the retail outlet Fashionista in Brighton, which wishes to place an order with your accessories company for £4,500.

Reply to the email, giving information on Fashionista’s positive credit history with your company.

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249

Kevin Brown

Sending a statement of account With open account payment terms, the seller sends a statement of account to the buyer to summarise the transactions and the amounts paid/owing. This is done on a periodic basis, often monthly or quarterly, depending on the agreement and the frequency of business.

Siobhan Delaney 1 July 20.. 11.45 a.m. 563-A quarter2.pdf Statement of account – second quarter 20.. Dear Ms Delaney, Please ﬁnd attached the statement of your account for the second quarter of this year. It includes your monthly IT maintenance fee and the purchase of the new equipment. Please check the entries and we look forward to receiving your payment by the 10th of this month as usual. Thank you for your cooperation.

ACTIVITIES

Best regards, Kevin Brown Accounts Dept.

Reading comprehension 1

Read the email and statement of account and complete these sentences. 1 This statement of account covers… months. 2 The invoices refer to… 3 The client should settle the account within…

4 The last time Miles & Grey settled their account was on… 5 Payment is to be made by bank transfer to…

Writing 2 250

Using the above email as a model, write a covering letter to accompany a monthly statement of account, indicating the payment method and deadline.

MO DULE 6 | BUSINESS in PRACTICE

Requesting new payment conditions

Il Papiro

Il Papiro s.r.l. Via degli Arcimboldi, 68 - 43012 PARMA ilpapiro@gmail.com

8th June, 20.. The Handmade Paper Company Trinity Street Dublin D5 Attn: Accounts Manager Dear Mr Doherty, We are writing to enquire whether it would be possible to change our payment terms with your company. As you know, we have placed many orders with you since we started doing business together over a year ago and we have always settled your invoices on time. Since we foresee an increase in orders due to the growing interest from our customers in your excellent products, we would be glad if you could grant us open account terms on a quarterly basis. We can assure you that we will continue to settle all payments by bank transfer on the due date. We look forward to hearing from you. Yours sincerely,

Carlo Renzi Brian Doherty Carlo Renzi

Read the letter and answer these questions.

10 June 20.. 11.45 a.m.

1 What is the purpose of this letter? 2 What reasons does Mr Renzi give for wanting to change payment conditions? 3 What assurance does he offer The Handmade Paper Company?

Open account terms

Phraseology 2

Mediating texts

Translate these expressions into English and use them to complete the reply. a b c d e f

pagamento tramite bonifico l’estratto conto noi preferiremmo se questo fosse accettabile siamo disposti ad offrirVi siamo lieti di informarVi

Writing

Dear Mr Renzi, With reference to your letter of 8th June, (1) ___________ that we have reviewed your order and payment history and (2) ___________ open account terms. (3) ___________ a bi-monthly agreement, with (4) ___________ within the 15th of the following month. (5) ___________, we will start with immediate effect and your last order (No. 859/17) will be included in (6) ___________ covering June and July. Please conﬁrm.

ACTIVITIES

Reading comprehension

Best regards, Brian Doherty

Phraseology p. 266

Write an email to your company’s supplier of cleaning materials requesting open account terms. Remind the company of your payment and order history and assure them about your reliability for the future.

Write a reply, offering the client account terms on a monthly basis, with payment by bank transfer within the 12th of each month.

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Extension of credit There may be particular circumstances – such as temporary cash flow problems, a downturn in the number of orders, a crisis within the sector, strikes and Acts of God – when a client realises he will be unable to settle an invoice on time. In this situation, rather than just defaulting on the payment, he can decide to contact the seller in order to negotiate more time to pay.

Jessica Brice Karl Nevern 18 December 20.. Your invoice No. TG 813 Dear Mr Nevern, I am writing with reference to your invoice No. TG 813 dated 22nd October for €28,953.00 which is due for payment shortly. Unfortunately we have recently suffered a series of setbacks in our factory, with a ﬁre damaging part of the production line and an urgent update of our machinery due to new legislation being introduced next year. These expenses that we have incurred mean that, much to our regret, we are currently unable to settle the invoice in question at 60 days, as per our agreement. We kindly ask you to grant us an extension of credit for a further 60 days by which time we will have resolved the issue with our insurance company and be able to settle our account. I sincerely apologise for any inconvenience this may cause you and hope that, on the basis of our past business relationship, you will accept this request.

ACTIVITIES

Yours sincerely, Jessica Brice Managing Director COLEMAN INDUSTRIES

setbacks contrattempi

Reading comprehension 1

Read the email and answer these questions. 1 Why has Ms Brice written this email? 2 What problems has his company had? 3 When is the invoice due for payment?

4 How much extra time does he request? 5 How does he try to reassure Mr Nevern that the company will settle the invoice in the future?

Vocabulary 2

Find synonyms of these words in the email. 1 2 3 4

252

soon regrettably obstacles modernisation

________________ ________________ ________________ ________________

MO DULE 6 | BUSINESS in PRACTICE

5 6 7 8

costs presently give trouble

________________ ________________ ________________ ________________

Phraseology p. 266

Complete this reply using the expressions from the box.

an alternative − balance − credit − financial difficulties − half of the outstanding amount in a position − in due course − the entire amount

ACTIVITIES

Vocabulary

Karl Nevern Jessica Brice 19 December 20.. Re: Your invoice No. TG 813 Dear Ms Brice, With reference to your email of 18th December, while we do understand the (1) __________ your company is facing at the moment, we are really not (2) __________ to grant you a further 60 days credit for (3) __________ of this invoice. Therefore, we would like to suggest (4) __________ which we feel would be acceptable for both of us. We are willing to allow you a further 30 days to settle (5) __________, that is €14,500.00. The (6) __________ of €14,453.00 is to be settled by the 15th February, giving you approximately another 30 days (7) __________. If you have any questions, please do not hesitate to contact me. We hope you appreciate our effort and look forward to receiving your payment (8) __________. Yours sincerely, Karl Nevern

Writing 4

You work for a chain of electrical shops in the UK. Write a request for an extension of credit to Samuel Grant, Accounts Manager at F&J Wholesalers. Include these points: • • • •

fai riferimento alla loro fattura n. 455 del 17/08/20.. per €18.784,00; spiega le ragioni per cui non sei in grado di saldare il conto in questo momento; chiedi un’estensione del credito di 30 giorni; rassicura il venditore che sarai in grado di pagare questa fattura.

B Look at this request for an extension of credit and the notes your account manager has made. Write a reply (120-140 words), including all the details.

OK. They have been a good customer.

If they don’t pay in full on time, future orders will be payment on delivery.

Therefore we wish to apply for an extension of credit for this invoice of $13,500 and assure you that we will be able to settle this amount in full within 90 days. We thank you in advance for your understanding and look forward to continuing our business relationship with you.

Sorry, 60 days maximum.

Send us the receipt of the bank transfer as confirmation.

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Payment reminders and replies WARM UP

What do you think a company should do if a client does not settle an invoice on time?

Written reminders Fortunately, most clients settle invoices on time according to the payment conditions set out in the sales contract. However, there may be times when they do not pay their bills within the agreed deadline, so it will be necessary for a company to send a reminder. It is normal practice to be polite and maintain goodwill, especially in the first reminder, as the reason for the outstanding amount is not yet clear and may be a genuine misunderstanding. If payment is not received, it is important to be systematic and follow up the first letter by phone and/or subsequent letters. The tone of second and third reminders should become increasingly firmer, specifying the action that will be taken if the account continues to be overdue and, as a last resort, threatening legal action to collect payment.

Ken Liu <ken.liu@guangzhoulenses.com> John Wilde Ltd. <john.wilde@wildeoptics.co.uk> 14 April 20.. 09.45 a.m. Payment of our invoice No. WBO1 Dear Mr Wilde, We are writing to inform you that we have not yet received payment of US$ 4,620.00 as settlement for our invoice No. WB01.

ACTIVITIES

outstanding da saldare overdue scaduto

The payment terms indicated in our sales contract were for the 70% balance to be paid on receipt of the copies of the shipping documents, which were sent to you by email on 31st March 20â&#x20AC;Ś

Reading comprehension 2

We are sure that there must have been some oversight, but we would appreciate it if you could give this matter your immediate attention.

Read the email and answer these questions.

If payment has already been sent in the meantime, please disregard this email.

1 Why is Mr Liu writing this email? 2 What are the agreed payment conditions? 3 How overdue is the payment? 4 Is this a first, second or third reminder? 5 Is the tone of the email angry or polite?

We look forward to receiving your remittance. Yours sincerely, Mr Ken Liu Export Sales Manager Guangzhou Lenses Import & Export Co. Ltd.

Vocabulary 3

Match each word to its synonym. 1 2 3 4 5 6

254

remittance overdue to pay misunderstanding bill terms

MO DULE 6 | BUSINESS in PRACTICE

a b c d e f

conditions to settle invoice payment, settlement outstanding oversight

ACTIVITIES

Reading comprehension Read this email and put the sentences in the correct order.

Mark Brannagh <brannagh@dawsonbailey.com> Brian Jones <brian.jones@spencerandjersey.com> 22 December 20.. Overdue payment of our invoice No. 745 Dear Mr Jones, We value your past business and hope to keep you as a customer for the future. This is the second reminder to inform you our invoice No. 745 for US$ 11,525.00 was due for payment on November 30th, 20.. Should you have any problems regarding this payment, please contact me personally by phone or email. However, we do require payment immediately or we shall be forced to apply late payment charges and interest at current rates. We thank you for your prompt attention to this matter. We kindly ask you to see to this matter with the utmost urgency and send us conﬁrmation of the wire transfer by fax or email. Sincerely yours, Dawson & Bailey Ltd. Mark Brannagh Financial Manager

Vocabulary & Phraseology 5

Complete this email with the expressions from the box.

due − extremely concerned − final notice legal action − regarding payment sincerely hope − within − without success

John Pringle <pringle@simonrockwell.com> Mary Caldwell <m.caldwell@craisgston.co.uk> 2 February 20.. Third reminder for payment of invoice No. 9864 Dear Ms Caldwell, We are (1) __________ that you have not replied to our previous two reminders (2) __________ of our invoice No. 9864 of 23rd October 20.. We have also tried to contact you by phone (3) __________. Payment was (4) __________ for this order on the 30th December and you are therefore in serious breach of our contractual conditions. We must inform you that this is our (5) __________ and unless we receive your payment of £2,540.00 (6) __________ 7 days, we shall take (7) __________ to recover the amount due. We (8) __________ that such action will not be necessary. Yours sincerely, Simon Rockwell Ltd. John Pringle (General Manager)

Read the three emails again and underline the expressions which show how the tone changes and becomes firmer and more direct.

Are these sentences more suitable for the first (F), second (S) or third (T) reminder? 1 2 3 4 5 6

We cannot allow this amount to remain unpaid any longer. ___ We attach a copy of our invoice for your convenience. ___ If you have already organised payment in the meantime, please accept our apologies. ___ We regret to remind you that your account is now overdue. ___ On 9th January we wrote to remind you that payment of our invoice has not yet been received. ___ In spite of our previous two reminders, we have heard nothing from you at all. ___

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ACTIVITIES

Phraseology 8

Mediating texts

Phraseology p. 266

Translate these sentences into English. 1 Secondo i nostri registri, la nostra fattura n. 321 del 9 maggio è ancora insoluta. 2 Siamo ancora in attesa del pagamento della nostra fattura n. 546, scaduto da due mesi. 3 Come sapete, i termini commerciali per questo ordine erano 60 gg data fattura. 4 In considerazione del Vostro positivo storico dei pagamenti, siamo sicuri che si tratti di una svista da parte Vostra.

Writing 9

5 Vi preghiamo di provvedere al saldo entro i prossimi 5 giorni lavorativi. 6 Vi esortiamo a prendere provvedimenti immediati per evitare di danneggiare la Vostra affidabilità creditizia. 7 Altrimenti non avremo altra scelta se non quella di intraprendere un’azione legale. 8 Confidiamo nel fatto che non sarà necessario e restiamo in attesa della Vostra rimessa immediata.

B Your accounts manager has written these notes on an overdue invoice, asking you to write a first reminder (120-140 words) to Ms Rebecca Bergmann of SKL GmbH in Düsseldorf. Include all the points.

INVOICE

C.S. Garden Furniture Ltd

now overdue by 20 days…

New Industrial Estate Uxbridge UB8 7FV

Invoice date Buyer

SKL GmbH

a long-standing customer, so be nice!

Netwest Bank 48, High Street, Uxbridge, Middlesex UB8 1UT Port/Airport of loading

897 9/08/20..

Consignee (if different than buyer):

Bankers:

Invoice number

attach a copy of invoice in case they didn’t get it

ask for payment within 10 days

Buyer’s account No.

Order No.

3247

313

Country of origin of goods

Country of ﬁnal destination

Germany

Terms of delivery and payment

Dover, UK

Payment: 60 days date of invoice

Port/Airport of discharge

Place of delivery

E.T.A. (Estimated Time of Arrival)

Hamburg, DE

Düsseldorf

14/08/20..

Description of goods/services

Quantity

Unit price

Invoice total

Sun loungers

£158.25

£15,825

Invoice numbers attached

Cost of consignment and services as indicated on attached sheet.

10 Despite your first reminder, SKL fails to pay your invoice. Write a follow-up letter. Include these points: • • • •

fai riferimento alla tua prima lettera; ricorda loro i termini di pagamento; informali che se ritarderanno ulteriormente il pagamento applicherete degli interessi; chiedi che ti venga data una spiegazione o che sia effettuato il pagamento entro 5 giorni lavorativi.

11 The invoice is still outstanding and now more than two months overdue. Write a final demand to the company, requesting immediate settlement otherwise you will have to take legal action.

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MO DULE 6 | BUSINESS in PRACTICE

Written replies

WARM UP

If a company receives a payment reminder, it is good practice to reply and explain what has happened. Common reasons given are an oversight, a human or computer error in the accounts department, the invoice was not received or has been temporarily blocked. It is not so frequent for a client to admit to having cash flow or serious financial problems, unless he wishes to ask for an extension of credit, in order not to appear as too much of a credit risk for future business.

What reasons could there be for a company not to settle an invoice within the agreed terms?

John Wilde <john.wilde@wildeoptics.co.uk> Ken Liu <ken.liu@guangzhoulenses.com> 15 April 20.. 10.07 a.m. Re: Payment of our invoice WBO1 Dear Mr Liu, We received your email yesterday regarding your outstanding invoice WBO1 and would like to sincerely apologise for not having settled this amount as per our agreement. Unfortunately the invoice and bank details were not entered into our accounts system correctly and therefore payment was not automatically carried out on the due date. We have instructed our bank to transfer the amount to you today. We apologise once again for this problem and hope that it has not caused too much inconvenience. Yours sincerely, John Wilde

Read the email and decide if these sentences are true (T) or false (F). Correct the false ones. T 1 2 3 4 5

Mr Wilde has taken a long time to reply to the payment reminder. There was a problem with the data inserted into the accounts system. His company uses an automatic payment system. The money will be transferred tomorrow. Mr Wilde is apologetic about what happened.

Banking and Finance | MO DULE 6

ACTIVITIES

Reading comprehension

257

ACTIVITIES

Vocabulary 3

B Choose the correct option to complete this email. Ryan Gregg Teresa Simmons 11 May 20.. 3.53 p.m. Overdue account Dear Ms Simmons, We are in (1) _____________ of your letter dated 9th May regarding our (2) _____________ account. We have had some staff shortages in our accounts (3) _____________ recently and regrettably your invoice was not included in this monthâ&#x20AC;&#x2122;s payment schedule. We have now registered the details in our system and, (4) _____________ that we settle all accounts at the end of (5) _____________ calendar month, your payment will be made (6) _____________ the 31st of this month. We (7) _____________ for this error on our part and thank you for your (8) _____________ in this matter. Yours sincerely, Ryan Gregg

1 2 3 4 5 6 7 8

258

A A A A A A A A

receipt premature region because any in apologise appreciation

B B B B B B B B

recipe overdue district providing all on regret comprehensive

C C C C C C C C

reference lately field given each at sorry perception

F Complete this fax with a suitable word for each gap.

MO DULE 6 | BUSINESS in PRACTICE

D D D D D D D D

hand standing department so both to forgive understanding

Mediating texts

Phraseology p. 267

Translate these sentences into English and write them in the correct column. 1 Ci scusiamo per eventuali inconvenienti causati da questo ritardo. 2 Daremo istruzioni alla nostra banca di eseguire il bonifico della somma dovuta sul Vostro conto. 3 Purtroppo siamo stati costretti a bloccare la fattura a causa di una difformità della merce consegnata. 4 Il Vostro pagamento sarà effettuato alla fine della settimana senza eccezione.

5 Il ritardo è stato dovuto a circostanze al di fuori del nostro controllo. 6 Ancora una volta, Vi preghiamo di accettare le nostre scuse. 7 Esamineremo la questione e Vi contatteremo immediatamente. 8 Vi possiamo assicurare che il pagamento sarà effettuato per intero entro la fine del mese.

APOLOGISING

GIVING REASONS

REASSURING

STATING ACTION

____________________ ____________________ ____________________

ACTIVITIES

Phraseology

Writing 6

B Your accounts manager has asked you to reply to a letter of reminder. Write an email (120-140 words) using all the notes.

I can’t find any reference to this outstanding amount in our records. We’ve never received any reminders. Sent when? How?

Our accounts office has notified us that the sum of €7,456.26 is still owed to us for services rendered last July in spite of several reminders. Although we have never had cause for complaint in our dealings with your company in the past, we absolutely cannot allow this amount to remain unpaid any longer. We kindly ask you to credit the sum to our account by the end of the week otherwise we will be forced to take legal action.

Ask for a copy of the invoice.

Won’t be necessary. Must be a misunderstanding.

Write an email in response to a payment reminder, using these details: • sollecito del 26 aprile 20..; • fattura n. 2536 del 28 febbraio 20.. di £2500 da saldare entro il 30 marzo 20..; • pagamento effettuato il 25 aprile 20.. tramite bonifico bancario;

• in allegato una copia della ricevuta di pagamento emessa dalla banca; • richiesta di conferma.

Write an email in response to a second payment reminder. Include these points: • scusati per il ritardo nel pagamento; • spiega le ragioni del ritardo;

• garantisci una data certa per il saldo della fattura.

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Phone reminders and replies

ACTIVITIES

After having written a first reminder, creditors will often make a follow-up phone call to try to ascertain that there are no serious problems and to ensure settlement as fast as possible. Debtors may also decide to call after receiving a payment reminder in order to explain or resolve the situation immediately. In both cases, it is good practice to note down the date and content of any phone conversations in order to be able to refer back to them at a later date.

260

Listening 1

2.06 B June Miller from Carpet Warehouse calls three of her clients regarding late payments. Listen to her conversations and complete the missing information.

2.07 On receipt of the second payment reminder (see page 255), Mr Jones of Spencer & Jersey Ltd. calls Mr Brannagh of Dawson & Bailey Ltd. Listen to their phone conversation and complete the notes.

MO DULE 6 | BUSINESS in PRACTICE

Phraseology p. 267

Complete these expressions with the words from the box.

access − a few − concerned − extension − further − guarantee − happening instalments − moment − reminders − settle − willing Asking for an explanation/payment

Accepting/Refusing proposals/counteroffers

What’s (1) _________ with this payment? Can you tell me why you haven’t replied to our (2) _________ yet? We’re very (3) _________ about this situation. Is there a valid reason? When do you think we can expect payment on this? Could you tell me when you’ll (4) _________ your account?

I’m sorry, we can’t accept that. We absolutely cannot extend credit any (8) _________. Yes, that should be OK, if you (9) _________ that payment will be made on that date. We’re (10) _________ to accept 50% now, and the balance within 30 days. If you had contacted us earlier, we might have been able to find a solution.

ACTIVITIES

Functions

Making proposals/counteroffers Do you think you could possibly give us (5) _________ more weeks? Would you be able to accept 40% payment now? Would it be possible for us to have an (6) _________ of 30 days? What about 60% payment now and the rest in two (7) _________?

Speaking 4

Making excuses Just a (11) _________, I need to check with my colleague. I seem to be having problems with my computer. Can I call you back later? I’m really sorry but our IT system is down today and I can’t (12) _________ the details.

Professional competences

Practise this phone conversation in pairs.

CREDITOR

DEBTOR

You work in the accounts department of Cocina y Mesa, a supplier of kitchenware based in Madrid. You have just sent a second reminder to your client Malley’s in Belfast regarding their outstanding payment of €1,350.00, due two months ago. The client has never been very prompt with their payments. Be insistent and put pressure on them to settle the amount immediately.

You work in the accounts division of Malley’s, a large department store in Belfast. You have just received a second reminder from Cocina y Mesa in Madrid regarding an overdue invoice and now you receive a phone call from them. You do not know when you will be able to settle the invoice, so be evasive and try not to commit to a deadline.

Now choose one of the emails of payment reminder on pages 254-255 and practise the phone conversation between buyer and seller, inventing the reasons for non-payment and future action. Swap roles and choose another situation.

Written exam practice 6

ES You work in the accounts department of a small company which produces wooden furniture. You have noticed that the number of unpaid accounts is increasing. Write a report to the management in which you: outline the steps the company should take when doing business with a new client to ensure its creditworthiness; propose the introduction of more appropriate payment terms for new businesses; indicate the best method for issuing payment reminders for unsettled accounts.

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Analysing data WARM UP

Explaining financial data

What kind of financial information is often presented in graph form? Why?

ACTIVITIES

Newspapers, company annual reports, government papers and many other kinds of documents contain financial data, which is often presented in graph form, to show results, trends and forecasts. Think about indices like the FTSE 100 or Dow Jones, currency exchange rates, company performance statistics with sales, expenditure and profits. The use of graphs makes the information immediate to see and easy to understand without having to read a lot of text. Any accompanying articles or reports usually go into more details, picking up on some of the principal figures to explain and analyse them in depth. It is a useful skill to be able to read this kind of graph, and summarise it both in written form and orally.

Vocabulary 2

Put these verbs into the correct column to indicate their meaning.

go up − increase − go down − decrease − fall − decline − grow − stabilise − drop − rise improve − level off − peak − plummet − steady − jump − pick up − climb − remain constant become stable − soar − recover − rally − boom − dip − rocket − plunge − crash







rise, _________________________ level off, ______________________ plummet, _____________________ _____________________________ _____________________________ _____________________________ _____________________________

_____________________________ _____________________________ _____________________________ _____________________________

Look at the sentences in the first column and make their opposites choosing from the expressions in the box.

has changed − rose − decrease − lowest ever rate − fell dramatically − have been lowered 1 Sales grew rapidly in the first quarter. 2 3 4 5

Holiday prices reached a peak in July. Oil prices have remained constant. There has been a 1% rise in interest rates. Output has increased sharply this month.

6 The price of mobile phones dropped by 9%.

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Sales ___________ in the first three months of the year. July saw holiday prices at their ___________. The price of oil ___________. Interest rates ___________ by 1%. There has been a significant __________ in output this month. Mobile phone prices ___________ by 9%.

Write each sentence under the correct graph. • Performance dropped twice during the period in question. • After an initial period of fluctuation, share prices levelled off. • The forecast is that both online and phone orders will decline in October.

• After a stable beginning to the year, profits plummeted in May. • Last year, sales peaked dramatically in the second quarter. • Over the four year period in question, sales increased steadily.

ACTIVITIES

800 600 400 200 1st quarter

2nd quarter

3rd quarter

4th quarter

1 A ________________________________________ fell rapidly between the second B Then they ____________ and third quarter, before ___________________ at the end of the year.

Sept

Oct

Nov

Dec

2 A ________________________________________ B However, both are predicted ____________ in November and December due to the festive period. sales prices

2016 3 A ________________________________________ B Towards the end of the period they began to ____________.

2017

2018

2019

4 A ________________________________________ B Prices also showed a similar, positive trend, although in 2018 they ____________.

5000 4000 3000 Week 10

Week 9

Week 8

Week 7

Week 6

Week 5

Week 4

Week 3

Week 2

Week 1

2000

5 A ________________________________________ B In fact, in week 8 it dropped sharply, before ____________ again at the end of the 10 week period.

1000 0

F M A M

O N D

6 A ________________________________________ B By December they had ____________ but were still far below January’s figures.

Use a verb from the table in exercise 2 with an appropriate adverb from the list below to complete the second sentence under each graph in exercise 4. Pay attention to the form of the verb. More than one answer is possible. Speed of change: suddenly - sharply - quickly - rapidly - fast - steadily - gradually - gently - slowly - sluggishly Amount of change: dramatically - significantly - considerably - markedly - slightly - fractionally - marginally

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ACTIVITIES

Vocabulary 6

Transform the second sentence so that it has the same meaning as the first one. 1 After exceptional third quarter results, NOKIA share prices increased rapidly during this afternoon’s trading. After exceptional third quarter results, there was _______________ in NOKIA share prices during this afternoon’s trading. 2 After steadily decreasing all day, the FTSE finally picked up and closed 50 points up. After _______________, the FTSE finally picked up and closed 50 points up. 3 TESCO issued a profit warning and share prices dropped considerably. There was _______________ in TESCO share prices after the company issued a profit warning. 4 After an initial drop, the pound improved slightly against the dollar and closed at 1.56. After an initial drop, there was _______________ of the pound against the dollar and it closed at 1.56. 5 Mining shares are predicted to grow sluggishly because of the current environmental talks in New York. _______________ is predicted for mining shares because of the current environmental talks in New York. 6 The Dow Jones fell sharply for the second consecutive trading session. For the second consecutive trading session, there was _______________ for the Dow Jones.

Speaking 7

Mediating texts overheads

In pairs, describe this graph using the above examples to help. One of you should talk about overheads, the other profits.

proﬁts

Vocabulary 8

B Choose the correct option to complete this summary of a day’s trading in London.

ondon shares (1) ________________ on Friday, continuing the strong gains which started on Tuesday’s trading session. After jumping 2.3% on Thursday, the FTSE 100 index closed up 25.4 points or 0.39%. An (2) ________________ in commodity prices beneﬁtted petroleum and energy companies, with Wickstead Oil closing up 4.04%.

Shares in TAL Right Brothers fell 4.98% after its (3) ________________ third-quarter trading update. The company declared a (4) ________________ in sales volumes, thanks to growth in the Japanese market. However, revenues 1 2 3 4 5 6 7 8

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A A A A A A A A

leveled off decrease exceptional rise by plummeted negative plunged

B B B B B B B B

went down increase outstanding slump from crashed positive soared

MO DULE 6 | BUSINESS in PRACTICE

C C C C C C C C

dropped (5) ________________ 11% due to the depreciation of the Yen and other currencies against the US dollar. In the FTSE 250, Halon shares (6) _____________ 7.6% after the DIY chain reported a 3.8% rise in sales for the period from August to October. On the currency markets, the pound was (7)________________ against the euro and went up 0.75% to €1.2561 but (8) ________________ 0.25% against the dollar, down to $1.5103.

went up drop disappointing increase of increased stable fell

Prepositions

Profits decreased/increased/rose/fell by 5% an increase/fall/drop of 10% shares/prices fell/rose from… to… In the period from 2014 to 2019 In the first quarter Over the last six months

F Look at the graph and complete this article with a suitable word for each gap.

ACTIVITIES

NP is a small nanotechnology company based near Cambridge and it has had a few mad days of trading on the London Stock Exchange. Shares had been (1) ___________ before 22nd May and were (2) ___________ for less than £3. They closed on Wednesday 26th May at about £22 – an amazing (3) ___________ of (4) ___________ 1,000%. At one point on Tuesday TNP shares actually (5) ___________ as high as £49.68, which meant the (6) ___________ since 22nd May was 30,000%! But on Wednesday, the shares (7) ___________ as much as 21% at one point before (8) ___________ in the last hour of trading to end the day up 11%.

Writing 10 Study the information in the article and the graph and then write a summary of the 2018/2019 performance for the online retailer ASOS.

PLUNGE IN PROFITS Online retailer ASOS has just published its final yearly results to 31st August 2019 which saw sales rise by 13% to £2.7 billion but pretax profits drop by 68% to £33.1 million. The online fashion retailer, which targets fashion conscious shoppers in their twenties, had issued a profit warning in December 2018 which caused share prices Jan '17 May '17 Sep '17 Jan '18 May '18 Sep '18 Jan '19 May '19 Sep '19 to fall dramatically. The company has had major IT and supply problems at its warehouses and has not always been able to match the discount policies carried out by its rivals. Since its peak share value in March 2018, when the company’s shares were trading at £77.30, the value has dropped by more than half. When the yearly results were published, however, the statement from the chief executive helped the share prices rise by nearly 22%. The CEO admitted their over-ambitious plans and problems over the last year, but assured investors that the company was now in a positive position and ready to adapt to changing shopping habits and customer needs. 7,730.00

6,380.48

5,030.98

3,681.44

2,331.92

982.40

B You are a broker and one of your clients has asked you to prepare a report on the performance of his investment portfolio. Use the information and notes below to write your report (120-140 words).

Invested in US mining shares

Black Tuesday

positive effect on stock market give reasons why

Useful language for reports

This report looks at/deals with… The current situation is… The key events/figures show that… It can be seen that… In conclusion

Market Events (8 Sep. to 6 Oct.) • Black Tuesday hit NYSE first, then the other major markets • Strong dollar at the end of September • Slow growth predicted for rest of October

explain which stock market client’s investments are in

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6 Phraseology

BUSINESS LANGUAGE More business language practice

PCTO

Written communication PAYMENT ISSUES Credit references • We would appreciate any information you can provide on the credit history of… • We would be grateful if you could inform us if they have any outstanding debts. • We will keep any information confidential. • We believe… to be a good credit risk. • Mr… has been our customer for… and we believe he is no risk for… Payment matters • We hereby attach the statement of your account for the second quarter 20..

• Due to our longstanding cooperation/the large volume of business, we kindly ask you to consider changing our payment conditions. • We are willing to offer you a monthly/quarterly agreement. • For this reason, we need to request an extension of credit. • We sincerely hope you are able to accept our request. • Unfortunately, we are unable to accept your request for an extension of credit/delay in payment. • Having reviewed your payment history, we can grant you a further 30 days to settle your account on this occasion. • I hope you consider this proposal acceptable and we look forward to receiving your first instalment.

You work for Yorkshire Windows, a company which produces double glazed windows and conservatories. The building company James Developments Ltd. in Doncaster wishes to place an order with your company for windows for their new housing development for a total of approximately £25,000. Write a letter to SAB Construction, a builders’ merchant in Newcastle, requesting credit information on the company. PAYMENT REMINDERS Reminder of payment • According to our records, we have not received payment for… • Our accounts office has notified us that the sum of €… is still owed to us for goods supplied last… • We regret to remind you that we have not yet received… due on… • We are concerned that you have not responded to our previous reminder for payment of… • In spite of our previous two reminders, we have heard nothing from you. • We wish to inform you that payment of our invoice is now overdue by more than… Reference to terms • As you know, the terms of trade specified that… • The terms for this order were… • As per our agreement, our invoice No. … was due for payment on… Request for explanation • We would welcome an explanation for this delay and we look forward to receiving… • We would like to know the reasons for this delay in payment.

Translate this letter.

• We are sure that there must have been some oversight. • Please note that this is a final reminder and we expect a satisfactory explanation by return. Request for settlement • Although we have never had cause for complaint in our dealings with your company in the past, we cannot allow this amount to remain unpaid. • Much to our regret, we must inform you that we will take legal action unless… • Will you please let us have your cheque/remittance for the amount due/in settlement? • Could you please credit the sum to our account at Lloyds Bank? • We do require payment immediately or we shall be forced to take legal action. Closing • We would appreciate it if you could give this matter your immediate attention. • If payment has already been sent, please disregard this letter. • We look forward to receiving your remittance. • We thank you for your prompt attention to this matter.

Mediating texts

Gentile Sig.ra Murray, con la presente Le segnaliamo che non ci è ancora pervenuto il pagamento di €8.950 in riferimento al Suo ordine n. 123 e la nostra fattura del 7/9/20.. Le ricordiamo che il pagamento doveva essere effettuato entro il 15/10/20.. tramite bonifico bancario. La preghiamo pertanto di regolarizzare la sua posizione al più presto. Nel caso avesse già effettuato il pagamento nel frattempo, Le chiediamo di ignorare la nostra richiesta. La ringraziamo per l’attenzione e Le porgiamo cordiali saluti.

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REPLY TO REMINDERS Reference to reminder/apologies • In reply to your letter of…, I apologise for the delay in payment of… • I was very sorry to receive your reminder about settlement of… • We have received your email regarding your outstanding invoice… and would like to apologise for not having settled this amount yet. Reasons for delay • The delay was only discovered when I received your letter… • Unfortunately a long strike has disrupted our activities. • A fire/flood has recently damaged our plants. • We are in severe financial problems. • Unfortunately/Much to our regret, your bank details were not entered into our accounts system correctly. Stating action/Referring to payment • We have today instructed our bank to transfer the money owed into your account.

• We assure you that payment will be made by… • We will forward a copy of… as confirmation of payment. Request for extension of credit • Could you please grant us an extension of credit for a further… • We kindly ask you to please allow us to defer payment for another… days. • We would like to know if you are prepared to accept …% of the sum now and the remainder within… • We would be very grateful if you could grant us an extra … days to pay the full balance. Apologies/Reference to business relationship • I apologise for the inconvenience we have caused but I hope you will accept our request to delay payment, in consideration of our mutually-satisfactory business relationship. • We can assure you that the problem is only temporary and payment will be made in full. • We apologise once again for this problem and hope that it has not caused too much inconvenience.

Write a reply to the payment reminder in exercise 2, using these prompts: • ci scusiamo per il ritardo dovuto alla mancanza di personale in amministrazione;

• date oggi istruzioni alla banca di effettuare il pagamento; • confermateci la ricezione; • l’inconveniente non si ripeterà.

Oral communication PHONE REMINDERS Asking for explanation/payment

Making proposals/counter-offers

• Can you tell me why you haven’t paid/replied to our reminders yet? • We’re very concerned about this situation. Is there a valid reason? • What’s happening with this payment? • Could you tell me when you’ll settle your account? • When do you think you’ll be able to pay? • We must have payment by… otherwise we’ll have to…

• I’m sorry, we can’t accept that. What about…? • Could you give us… more weeks? • Would you be able to accept …% payment now? • Would it be possible for us to have an extension of…? • Would it be possible for us to extend our credit terms to…?

Explanation for late payment • Well, I think it’s just an oversight. • I’m afraid we’ve had a difficult time recently/had some problems obtaining payment… • We’ve been badly affected by a strike/flood/fire which damaged our…

In pairs, practise this phone conversation.

Accepting/Refusing • Yes, that should be OK, if you guarantee that… • No, I’m sorry, we can’t extend the credit any further. We’ve already… • We’re willing to accept… Making excuses • Just a moment, I need to check… • I seem to be having problems with my computer. Can I call you back later? • I’m sorry but our IT system is down today and I can’t access/ check the details.

Professional competences

Creditor You work in the accounts department of BNL Building Supplies Ltd. You have already sent two written reminders to Wiley & Sons about payment of your invoice No. 56 of 11/12/20… for £6,325.00. It is now more than 60 days overdue. It is the first time the client has failed to pay on time, so you need to be polite but insistent that the amount is paid as soon as possible.

Debtor You work in the accounts department of Wiley & Sons. Your long-time supplier – BNL Building Supplies Ltd. – has sent you two written reminders and now calls you about an overdue invoice for £6,325.00. Your company is experiencing financial difficulties at the moment due to slow sales but you do not wish to admit this to your supplier in case they stop future orders. Be apologetic but try to get as much time as possible to settle this invoice.

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Vocabulary LINKERS ________________________

________________________

although despite in spite of whereas

however nevertheless on the contrary instead

therefore consequently thus as a result

in addition furthermore moreover besides

Choose the correct heading for each group of linkers.

Complete these sentences using the most appropriate linker. 1 Stocks and bonds are traded on a Stock Exchange __________ commodities are traded on a Commodity market. 2 The UK still has several building societies __________ many have been merged with banking groups. 3 In the UK cheques are no longer widely used. __________ there has been a discussion about abolishing them altogether. __________ they remain a popular form of payment in the USA.

COLLOCATIONS WITH PAYMENT

4 Islamic banks do not apply interest and __________ make a profit through investments and trade. __________ they share profit and loss risks with their clients, making them an excellent form of ethical banking. 5 __________ our previous two reminders, your account still remains overdue. __________ we have no choice but to take legal action to recover this debt.

Choose the most suitable collocation to complete these sentences. 1 To avoid legal action, we kindly ask you to ________ immediately. 2 They want to ________ until the dispute is settled. 3 The ________ is due on September 18th and then, at long last, we’ll have paid off all the loan. 4 The accounts department prefers clients who make ________ rather than those who are always late. 5 Due to financial difficulties, we need to ________ for a further 30 days. 6 Excuse me, do you ________ by credit card here?

adjective + payment prompt / late / full / part / immediate / annual / monthly / cash / final / regular | payment verb + payment make / accept / withhold / defer / delay / demand / receive / arrange for | payment

Addition − Result − Concession − Contrast

B Choose the correct option to complete this email.

Dear Mr Kramer, We have just received your payment (1) ______________ regarding invoice No. 11/5690 for AUS$4,500. We would like to inform you that this (2) ______________ was paid in full (3) ______________ bank transfer on 5th October. This is the second time that we have received such reminders (4) ______________ of our payments being made on time. We kindly ask you to (5) ______________ your records more carefully in the future before (6) ______________ out these letters. Yours sincerely, Ian Short

1 2 3 4 5 6

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A A A A A A

receipt quantity by despite check to send

B B B B B B

reminder money with whereas look sending

MO DULE 6 | BUSINESS LANGUAGE

C C C C C C

order amount through although observe send

D D D D D D

instalment number at in spite test sent

Grammar PAST PERFECT SIMPLE

PAST PERFECT CONTINUOUS

We use the past perfect simple to talk about past actions which happened before another action in the past. Many poor people in Bangladesh had never had access to bank loans before. The company had already applied for a bank loan when the client paid off their massive debt.

We use the continuous form to highlight how long the first action had been happening. He had been cloning credit cards for six months before the police caught him.

Complete the second sentence so that it means the same as the first. Use no more than three words. 1 That was the first time he had bought shares online. He ________ shares online before. 2 My card was cloned at a cash machine. I got a statement for €1,500. When I got a statement for €1,500 I realised my card ________. 3 The scammers left the country before the police arrived at their home. When the police arrived, the scammers ________ the country.

SECOND CONDITIONAL We use the second conditional to talk about unlikely or hypothetical situations. A person would be guilty of insider trading if he or she used non-public knowledge to trade. If it were interested in raising capital, a company would consult an investment bank.

4 We issued the bill of exchange and then the company cancelled their order. We ________ the bill of exchange when the company cancelled their order. 5 Two hours after the brokers began trading, there was a blackout. The brokers ________ for two hours when there was a blackout.

Complete these sentences with the correct form of the verb in brackets. 1 I ________ an ethical bank if there ________ one in my town. (choose/be) 2 The company ________ the order unless we ________ them open account conditions. (not confirm/offer) 3 If the UK ________ the Euro, the Bank of England ________ no longer ________ control over the nation’s monetary policy. (join/have) 4 A lot of people ________ access to banking services if it ________ for mobile banking. (not have/not be) 5 If people ________ more attention to warnings, there ________ so many successful internet scams. (pay/not be)

For each situation write a sentence with if.

THIRD CONDITIONAL

1 The Bank of England didn’t raise interest rates so inflation remained stable.

We use the third conditional to talk about a hypothetical situation in the past. People wouldn’t have lost so much money in the dot-com bubble if they had considered their investments more carefully. If the company hadn’t requested an irrevocable letter of credit, they would have lost a lot of money.

If the Bank of England had raised interest rates, inflation wouldn’t have remained stable. 2 The bank didn’t introduce mobile banking services so it lost a lot of customers. 3 I didn’t know that the time of the meeting had changed so I was late. 4 They didn’t hear the news because they didn’t have access to the Internet. 5 They weren’t concerned about the company’s creditworthiness so they didn’t carry out any checks. 6 The company lost a lot of money because they invested badly.

Translate these texts.

Mediating texts

The FCA had been investigating a scam involving the transfer of funds from Nigeria when they heard that the FBI had just arrested fifteen people in connection with a false investment project in the country. These two scams were actually run by the same criminal organisation, so if the two agencies had not collaborated together, many more people would have lost a great deal of money.

Video tutorial 10 I mercati azionari sono andati a gonfie vele nel primo trimestre dell’anno, ed era Piazza Affari che vantava la migliore performance in Europa. Le Borse erano state incoraggiate dal cambiamento di atteggiamento delle banche centrali e dalle loro politiche espansive. Però l’economia europea e i profitti dovrebbero rallentare entro la fine dell’anno e, secondo gli esperti, il PIL globale potrebbe scendere sotto il 3%.

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BUSINESS NEWS

Cashless economy

Is Cash Still King?

lot of European countries are moving towards becoming cashless societies. Nordic countries in particular are fast embracing cards, the Internet and apps for financial transactions, forsaking notes and coins. Denmark ranks top in the European Union for card payments with 366 transactions per capita in 2017, just ahead of Sweden, Finland and the UK, according to the European Central Bank. The Netherlands, Ireland, Belgium, France and Luxembourg all rank higher than the European average of 135 transactions per capita too. In these places, people are using apps to make even the smallest purchases like a ticket for public transport, a packet of crisps, a drink in a bar or a bunch of flowers from a street vendor. Even some unemployed people selling street magazines accept electronic payment. In the USA, on the other hand, in spite of the massive increase in the number of smartphone users, Americans have been much slower to embrace apps as a means of payment and cash is still king. In fact, the two most common forms of payment are cash and credit cards. Many Americans feel that the well-established system of credit and debit cards works perfectly well if you don’t want to use cash. These cards are safe, quick and accepted practically everywhere so why bother changing to something new? Due to the strong competition between banks and credit card companies, all the major credit cards offer holders incentives like rewards, points and cash back for using their card, and people don’t want to give these up. In addition, many people like the fact that with a credit card you don’t have to pay immediately in real time, and being able to borrow, if only for a few weeks before having to pay interest, can make life easier. In the UK the situation is different and it is estimated that between 10% and 17% of adults have decided to live a cashless life, using just contactless, mobile payments and apps: this means they make

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just one or even no payments in a month using notes and coins. Predictions, therefore, are for cash payments to fall from the current 28% of all payments in the country to just 9% by 2028. In 2019, there was even a proposal by some government ministers to stop making 1p and 2p coins and £50 notes due to this decline in the use of cash. However this idea was scrapped, especially in the light of a review that concluded nearly 8 million people in the UK would struggle to survive in a cashless economy, often people on lower incomes and the elderly.

Reading comprehension 1 INVALSI

Read the article on the use of digital payments and cash. Then answer the questions using no more than four words. 1 2 3 4 5 6

What is happening in Nordic countries? How does the number of card payments in Denmark compare to the European average? What is the situation in the USA? What benefits can there be if you use a credit card in the USA? (Give two answers) What does the figure of 9% refer to? How might a cashless society affect poor or old people?

Listening 2

2.08

INVALSI Listen to a financial journalist talking about the use of cash in Italy and choose the

correct option. 1

According to the journalist, Italy is… A moving towards a cashless economy. B a cash-based economy. C reducing tax evasion. D not very different from other EU countries

Tourists might prefer using cards because… A it is what they are used to. B you do not have to pay any commission. C you can spend more money. D it is safer than carrying a lot of cash.

What have Italian governments done to limit tax evasion? A Made self-employed people pay more taxes. B Tried to significantly reduce consumer spending. C Created laws to limit the use of cash. D Followed worldwide methods on stopping cash in hand transactions

How could banks help increase the number of cashless payments? A By making the systems easier and quicker. B By lowering the costs they charge businesses. C By making sure consumers know about cashless systems. D By promoting cashless systems to small businesses.

Some Italians dislike digital payments because… A their spending habits can be followed. B they don’t trust the bank systems. C they pay higher taxes. D they are worried about losing their cards.

What could be a disadvantage with contactless cards? A It is easy for them to be used fraudulently. B There is a limit on how much you can spend. C It can be difficult to keep count of how much you are spending. D Tap and go systems don’t always work.

Speaking 3

In pairs, discuss these questions. 1 How common are contactless cards and mobile payment apps in your area of Italy? 2 Do your parents’ generation prefer using these methods or paying with cash? What about your generation? 3 What are the advantages and disadvantages of a cashless economy? 4 Do you think notes and coins will disappear completely? Why/Why not?

Writing 4

F The director of an English Language School in Brighton is considering introducing a contactless payment system for the cafeteria, the canteen, students’ accommodation, etc. Write a report (140-190 words) on the benefits for students, parents and staff, any disadvantages such as security, and recommend what the school should do.

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6 Background

BUSINESS CASE STUDY

Case analysis: The Bloody Oyster Read this description of crowdfunding. What is it? How does it work? What types of crowdfunding exist?

Crowdfunding is a method of funding a business project through monetary contributions from a large number of people. This is usually done through a website such as Kickstarter or CrowdCube. The creator of the business idea prepares a proposal, with details of the concept, sum of money required and the incentives offered. If accepted, it is posted on the website where contributors can select which proposals to invest in. There are basically two forms of crowdfunding: reward and equity. In the first type, contributors are promised incentives based on the amount of money given, such as free products or services once the business is up and running. In the second case, contributors are offered shares in the company during its start-up period. For reward-based crowdfunding, the websites usually offer two options: ‘All or Nothing’ where the entire sum has to be raised within the given period otherwise the money is not collected from investors, and ‘Keep it All’ where the creator of the idea can keep whatever sum has been raised, minus commission for the website. Crowdfunding offers a valid alternative to going to a bank for a small business loan or other forms of financing, so much so that it has led to donation crowdfunding where people use sites like GoFundMe to fund personal causes such as medical bills and university fees.

Case presentation

Read about an idea for a business called The Bloody Oyster. Who came up with the idea? Why? What do they want The Bloody Oyster to be like?

During a chat in the pub, two young friends, Ben Hamilton and Ed Ford, decided they wanted to run a food business, but something different, not just the typical street food like burgers. As fans of seafood, they realised that many other young people had never tried oysters because the restaurants and bars with oysters on the menu were either too pretentious or too expensive. So they came up with the idea of serving oysters, Bloody Marys and other cocktails from a double-decker bus which could be moved around to different sites. They asked a friend to invent modern twists on traditional cocktails, and Ed, who had previously trained as a chef, had some ideas for the menu including different ways of cooking oysters instead of serving them raw in the traditional way. The two friends put their available savings towards the project, but still needed £22,000 in order to be able to convert the bus. 272

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Case analysis Step one BRAINSTORMING

List the advantages and disadvantages of crowdfunding as a form of finance for someone who has an idea for a business they want to start. What about the pros and cons for the contributors? Use the ideas in the Background text on page 272 and the box below to help.

originality of idea − previous experience − competition quality of proposal − risk of failure − commission worthwhile incentives − raising enough money − size of investment Creator Advantages

_________________________________________________________________ _________________________________________________________________

Contributor _________________________________________________________________ _________________________________________________________________ Creator Disadvantages

_________________________________________________________________ _________________________________________________________________

Contributor _________________________________________________________________ _________________________________________________________________

Step two CREATIVE THINKING

Ben and Ed chose reward crowdfunding to try to raise the £22,000 they needed for The Bloody Oyster. Discuss how you think they should present their proposal and the incentives they should offer. Here are some ideas. Proposal • a formal, written business proposal • a slideshow presentation • a video made by themselves • a fun and friendly letter

Outcome

Rewards • a free cocktail • a free meal for 4 people • your name on the bus • an invitation to the launch party • private hire of the bus

Read about what The Bloody Oyster did. Was their crowdfunding attempt successful? Did you make the same decisions? What is their situation today?

Ben and Ed made a professional but fun video, filmed mostly on the top floor of a double-decker bus. They spoke about their passion for the idea, what research they had done and showed beautiful images of preparing the oysters and cocktails. There were also the plans and an explanation of the layout of the bus. They offered various incentives for contributions ranging from £20 to £1,500. The incentives included an invitation to the launch, private hire and catering for 40 guests and they also added an extra incentive of an all-inclusive holiday in Morocco, the winner to be chosen at random from among the first 100 contributors. They made £22,393 in 55 days on the crowdfunding site Zequs, which meant they could start work on fitting out the bus. The Bloody Oyster spent its first summer on the Southbank in London to very positive reviews. However, after four summers the bus was no longer in operation and the pair decided to put the business up for sale.

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Professional competences Finding an idea BRAINSTORMING

You would like to organise a stimulating, extra-curricular project to benefit students in your school. Brainstorm ideas for these categories and then choose the one you prefer.

sports/hobbies − music/drama − culture/language − travel − environment

Deciding the details Writing a formal letter

Work together to define the details for your project: the aim, the number of students involved, the location, the period/length, the equipment/funds needed, etc. Write a formal letter to your school Principal to ask for authorisation and funding for your project. You should include: • a short description of the project • why it is important • how much money you would need.

Making a phone call

Writing an informal email

Role-play the following phone conversation. A You have just heard that the Principal has not accepted your proposal. Call your friend B to tell them the news. You are quite upset and angry. Give a reason why the proposal was not accepted.

B Friend A calls you to tell you the Principal’s decision. Find out the reason(s) for this decision. Although you are disappointed try to be positive.

Write an email to your classmates to suggest using crowdfunding for your project. In your email, you should: • give an example of a positive crowdfunding campaign; • explain why it would be perfect for your project; • suggest the website GoFundMe or another website to use; • describe the costs (5% commission and 3% payment processing fee on every donation).

Writing a proposal CREATIVE THINKING

You have decided to put your idea on the crowdfunding website GoFundMe. Write the proposal (140-190 words) to post on the site, including your goal amount and any small incentives you might want to offer. ‘Post’ your crowdfunding campaign so the rest of the class can read it. Everyone can ‘donate’ how much they want to the campaign they prefer and you can see who reaches their target.

Tips for writing a convincing proposal • To gain support, you need to engage your readers. • Use some expressive language to appeal to people’s emotions, but always back up what you say with facts. • Be direct and concise about the details and benefits. • Don’t forget to thank your readers their time and contribution.

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MODULE

7 Globalisation BUSINESS in THEORY

Aspects of globalisation Economic globalisation Global sustainability

BUSINESS in PRACTICE

Complaints and replies

BUSINESS LANGUAGE

Phraseology Vocabulary Grammar

BUSINESS NEWS

Global climate change

BUSINESS CASE STUDY

Case analysis: The English Academy Professional competences

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7 WARM UP

What aspects of your life are affected by globalisation?

BUSINESS in THEORY

Aspects of globalisation Effects of globalisation The IMF describes globalisation as ‘the process through which an increasingly free ﬂow of ideas, people, goods, services and capital leads to the integration of economies and societies’. It is clear that with its many different dimensions – social, cultural, technological, economic, ﬁnancial and political – it affects all of us in our daily lives.

Global technology & information

Thanks to the Internet and advances in IT, the movement of fast and free information, anywhere in the world, is now possible. Ideas, music, images, video clips and news are being exchanged between more people than at any other time in human history. The Internet and the World Wide Web have removed the barriers that lead to the isolation of countries, communities and individuals (although some countries still enforce restrictions regarding internet access and the content of websites). Using a mobile phone, an individual can text, send emails and access Internet and social networks in order to organise anything from a mass party or a ﬂash mob to smart mobs and social protests.

Global culture

ACTIVITIES

Cultural globalisation can be interpreted as changing the world from diverse multicultural places to a single homogeneous culture. Critics believe that this erosion of cultural diversity is negative and many believe that the USA, with its dominance over many areas such as entertainment, food and music, is the main culprit. It is true that the same TV talent shows and reality programmes can be seen across the world and that most corners of the globe have been invaded by the same fast food restaurants and coffee shop chains, giving a somewhat uninspiring uniformity to our lives. But, at the same time, we now have access to an incredible variety of food products, fashions and music styles without actually leaving our own country. Thanks to improvements in transport and lower costs, many more of us have the chance to travel. Low-cost airlines offer cheap ﬂights to short-haul destinations, usually within Europe or America. Even if these ﬂights are no-frills and often operate out of airports which are further away from destination cities, they have certainly increased the possibility to travel, explore and expand our horizons. culprit responsabile

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Reading comprehension 2

Read the texts on these pages and answer the questions. 1 How have advances in IT helped the process of globalisation? 2 What examples of the use of mobile phones does the text give? 3 Which country is often accused of being responsible for creating a global culture? Why? Do you agree? 4 How has globalisation changed what we watch, eat and buy? Are these positive or negative changes?

MO DULE 7 | BUSINESS in THEORY

5 What effects have low-cost airlines had on global travel? 6 What are the risks of having one dominant world language? 7 How does globalisation increase the risk of global health issues? 8 What positive effects can globalisation be said to have on world health?

Global language

Language globalisation, not surprisingly, is a major part of globalisation. After all, the whole point of language is to communicate, and a common or single language is necessary if you want or need to communicate with the world. Some claim that having one dominant language will lead to the disappearance of local dialects and a loss of importance as far as other national languages are concerned. Others feel that it will lead to a better understanding of the other nations with whom we share the world. English is currently the dominant language for the world of business and the information age. However, since there are more non-native speakers of English in the world than native speakers, the English used in many areas differs greatly from the English used in London, Washington, Toronto or Sydney.

Global health

The increase in the number of people and products which move around the world, and the speed at which they do so, has led to an increase in the risk of global health issues. These are health problems and infectious diseases which go beyond individual borders and countries and which can have major political and economical impact. The widespread, devastating effects of communicable diseases can be seen throughout history, such as the Black Death in the 14th century and the Spanish Flu epidemic of 1918. Modern examples are the SARS outbreak, a respiratory disease which originated in Hong Kong in late 2002 and spread within two or three weeks to 37 countries around the world, and the H1N1 ‘swine flu’ pandemic of 2009. Between 2014 and 2016 there was a devastating outbreak of Ebola in West Africa, with cases of contagion in the USA and Europe. The outbreak raised a lot of questions and concern about our ability to contain the spread of smallpox vaiolo contagious and deadly diseases. With regards to non-communicable diseases, it can be argued that globalisation actually benefits those with health problems, thanks to increased research shared worldwide. Improved economic conditions, gained through the effects of global trade, also mean that individuals have better access to treatment. On the other hand, critics may blame globalisation for the spread of certain health issues – such as obesity – in the first place.

Listening 3

www.who.int

2.09 Listen to this presentation of WHO and ﬁll in the missing information.

WORLD HEALTH ORGANISATION Year of foundation: (1) _______________ Number of member states: (2) _______________ Location: (3) _______________ World Health Day: (4) _______________

Speaking 4

Discuss this statement in small groups.

Role of WHO: respond to outbreaks of (5) _______________ (6) _______________ global health situation and trends set (7) _______________ and promote their implementation help (8) _______________ and the dissemination of knowledge

One global culture will be unavoidable in 50 years’ time.

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Not the Queen’s English T

ACTIVITIES

he name – Cambridge School of Languages – evokes images of colleges, churches and aristocrats conversing in the Queen’s English. But this Cambridge is composed of a few rooms in an overcrowded Delhi suburb. Its rival is not Oxford but the nearby Euro Languages School, where a threemonth English course costs $16. These schools are the front lines of a global revolution in which hundreds of millions of people are learning English. Within a decade, 2 billion people will be studying English and about half the world – some 3 billion people – will speak it, according to a recent report from the British Council. As one 12-year-old English student from China says, ‘If you can’t speak English, it’s like you’re deaf and dumb.’ Non-native speakers of English now outnumber native speakers 3 to 1, according to English-language expert David Crystal. ‘There’s never before been a language that’s been spoken by

more people as a second than a ﬁrst,’ he says. In Asia alone, the number of English users is over 350 million and there are more Chinese children studying English than 2018 English proficiency rankings there are Britons. VERY HIGH MODERATE VERY LOW The new English PROFICIENCY PROFICIENCY PROFICIENCY speakers aren’t just 01 Sweden 31 South Korea 85 Cambodia passively absorbing 02 Netherlands 32 Spain 86 Uzbekistan the language – they’re 03 Singapore 33 Lebanon 87 Iraq shaping it. New 04 Norway 34 Italy 88 Libya Englishes are rapidly Source: EF English Proficiency Index increasing the globe over, ranging from ‘Englog’ the combination of Tagalog book who’ or ‘a person which’. Linguist and English spoken in the Philippines, Jennifer Jenkins, asks why some Asians, to ‘Hinglish’, the mix of Hindi and who have trouble pronouncing the ‘th’ sound, should spend hours trying to English. So with native speakers becoming a say ‘thing’ instead of ‘sing’ or ‘ting’. minority, there’s a growing sensation International pilots, she points out, that students should stop trying to already pronounce the word ‘three’ as copy Brighton or Boston English, and ‘tree’ in radio dispatches, since ‘tree’ is embrace their own local versions. In a more widely comprehensible. generation’s time, teachers might no Adapted from Newsweek longer correct students for saying ‘a

Exam practice - Comprehension & interpretation 1

ES Choose the option which ﬁts best according to the text. 1 What does the Chinese student mean (in the second paragraph)? A People don’t understand you unless you speak English perfectly. B Native speakers pretend they can’t understand when the Chinese speak English. C It is best to learn English when you are a child as it is easier. D Not knowing English hinders communication with the rest of the world. 2 What is happening to the numbers of English speakers? A The numbers are increasing more rapidly in Asia than in the rest of the world. B There are fewer native speakers of English than non-native ones. C There are more children learning English as a second language than adults. D The number of people in Britain who speak English as a first language is lower than in the past.

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How are non-native speakers changing the English language? A They are teaching English incorrectly to the new generation of students. B They are introducing new passive learning techniques. C They are creating new forms of the language by combining it with their own. D They are refusing to learn the correct UK or US pronunciation. 4 What could be the future be for English? A The grammar and pronunciation will adapt. B There will be one standard form of English that everyone will use. C Correcting students’ mistakes will no longer be accepted. D It will become the official language for international pilots. 5 Answer the questions referring to the table. Which regions of the world are represented the most in each of the different categories of proficiency in English? What do you think the reasons for this could be?

Advantages and disadvantages of globalisation As said previously, globalisation affects us all, wherever we live, however old we are, whatever we do. Some of us may just simply accept globalisation and all that it entails, while others have much stronger views both for and against it. It is a deeply controversial topic, with strong and valid arguments for both the beneﬁts and the risks.

ADVANTAGES • The transport of goods and people is quicker and easier. • It decreases the possibility of war between developed countries. • There is an increase in free trade between countries. • People have more options to choose from among the products of different nations. • It enables the propagation of democratic ideals and human rights awareness. • Developed countries invest in developing ones, reducing poverty and helping improve living conditions, healthcare and life expectancy. • Global mass media connect all the people in the world, encouraging the interchange of cultures. • Corporations increase their operations across borders.

DISADVANTAGES • It widens the poverty gap, particularly in developing countries. • The domination and control by powerful multinationals and corporations corrupts national governments. • The ecosystem is threatened by the abuse of natural resources and the disregard of the environmental impact of business activities. • Poor countries are exploited by richer countries as the workforce is underpaid and working conditions are extremely poor. • Employees in developed countries lose their jobs when work is outsourced to developing countries. • Cultural diversity is jeopardised as the values and lifestyles of developed countries take over the traditions and identity of developing countries. • The interdependence of economies results in economic problems quickly spreading from one country to the rest of the world. • There is a higher risk of the spread of communicable diseases.

Reading comprehension & Speaking 1

Read the list of advantages and disadvantages and discuss these questions in small groups. 1 How could globalisation diminish the threat of war between developed countries? 2 What opportunities does globalisation create for developing countries? And the threats? 3 What about the opportunities and threats for developed countries?

4 What effects can globalisation have on employment? 5 What are the possible consequences of globalisation on the environment? 6 Why could cultural diversity be threatened by globalisation?

Have a class debate on globalisation where half the students are in favour of globalisation and half are against globalisation. Use the above list to help start your debate.

Written exam practice 3

ES Write a short essay (150-200 words) on globalisation. Give a deﬁnition of the term, present the different aspects and their advantages and disadvantages. Conclude with your personal opinion.

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Economic globalisation WARM UP

What does WTO stand for? What is the role of this organisation?

Economic globalisation

Economic globalisation refers to the growing integration of economies around the world, particularly through the movement of goods, services, and capital across borders. Technological advances, IT development and worldwide market-oriented reform can be considered the key elements behind this phenomenon. Improvements in communication, transport and technology have made it easier to conduct business with other countries. Both the elimination of trade barriers, such as import tariffs, and the move for many countries from planned economies to free-market economies have stimulated trade and investment. Any business which, for example, manufactures its goods in a different country or exports goods or services to other countries is part of the economic globalisation trend. Multinationals in particular play an important role as they organise their production and other activities globally on the basis of proﬁt maximisation. National governments also have an important responsibility in economic globalisation. They can remove barriers to international trade and investment but they can also create them and cause the collapse of cooperation among nations. The roles of supranational organisations, such as the World Trade Organization (WTO) and International Monetary Fund (IMF), are also often considered fundamental. These organisations aim to help improve the global marketplace, integrating more countries and spreading the beneﬁts of globalisation to more people in the world, but are often subject to many criticisms from anti-globalisation organisations and supporters.

MORE ABOUT...

ACTIVITIES

One common criticism of multinationals in search of higher proﬁts is their exploitation of workers in developing countries. Unfortunately, while fair labour standards exist in the industrialised West they are often close to non-existent elsewhere. Sweatshop labour consists of workers, often young children, who are underpaid and overworked in exploitative and dangerous conditions. Over the years much has been done by journalists and human rights activists to expose these conditions, raise awareness among consumers and get multinationals to change their working practices.

B Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). T 1 2 3 4 5 6 7 8

280

Outsourcing

Reading comprehension

Economic globalisation refers to the economies of the developed world. Without advances in IT, economic globalisation would have been slower. Reform of trade regulations has encouraged international trade and investments. Countries which used to have planned economies contribute more to global trade than other countries. Only multinationals contribute to economic globalisation. Multinationals are often criticised for their working practices in developing countries. National governments can adversely affect the process of economic globalisation. Anti-globalisation organisations want to close down the WTO.

MO DULE 7 | BUSINESS in THEORY

Arguments for and against the WTO

Anti–globalisation movement

FOR

www.wto.org

AGAINST 6

As trade expands with more products traded and more countries and companies trading, there is a greater chance that disputes will arise. The WTO system helps resolve these disputes peacefully and constructively.

The policies of the WTO impact all aspects of society and the planet, but it is not a democratic, transparent institution. The WTO rules are written by and for corporations with inside access to the negotiations and the proceedings are held in secret. 7

The WTO cannot claim to make all countries equal, but it does reduce some inequalities by giving smaller countries more voice, and at the same time freeing the major powers from the complexity of having to negotiate trade agreements with each of their numerous trading partners. 3

We have more choice and a broader range of products to choose from because we can import goods: fruits and vegetables out of season, foods, clothing and other products that used to be considered exotic, all sorts of household goods, books, music, movies, and so on. 4

Lowering trade barriers allows trade to increase, which adds to incomes – both national and personal incomes. 5

The GATT -WTO system helps governments take a more balanced view of trade policy. Governments are betterplaced to defend themselves against lobbying from narrow interest groups by focusing on trade-offs that are made in the interests of everyone in the economy.

The WTO claims that creating a world of ‘free trade’ will promote global understanding and peace. On the contrary, the domination of international trade by rich countries for the beneﬁt of their individual interests fuels anger and resentment that make us less safe. 8

WTO rules put proﬁts of corporations over human and labour rights, rather than promoting internationally recognised labour standards. 9

Corporations use the WTO to attack local and national environmental protections by saying they are ‘barriers to trade’. The WTO is attempting to deregulate industries including logging, ﬁshing, water utilities, and energy distribution, which will lead to further exploitation of these natural resources. 10

The UN reports that the richest 20% of the world’s population consume 86% of the world’s resources while the poorest 80% consume just 14%. WTO rules have speeded up these trends by opening up countries to foreign investment and thereby making it easier for production to go where the labour is cheapest and most easily exploited and environmental costs are low.

The General Agreement on Tariﬀs and Trade (GATT) was a multilateral agreement on international trade that was signed in 1947 and became part of the WTO’s operational framework in 1994.

Read the arguments for and against the WTO and match the correct heading to each paragraph.

allows disputes to be handled constructively − crushes labour and human rights destroys the environment − does not make us safer − gives consumers more choice increases inequality − is based on rules not power − is undemocratic protects governments from narrow interests − raises incomes

ACTIVITIES

Reading comprehension

Speaking – Critical thinking 2

Discuss these questions in small groups. 1 Do you agree that the WTO is undemocratic? Why/Why not? 2 Is more consumer choice always a positive thing? 3 How much responsibility do you think the WTO has for protecting the environment?

4 Should the WTO, sovereign governments or corporations be responsible for protecting the rights of workers? 5 Do you believe that free trade will help equality between nations? 6 What is your opinion of the anti-globalisation movement? What is its future?

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Global sustainability WARM UP

Sustainable development versus de-growth

What does the term sustainability mean?

Permaculture is the process in which the patterns and relationships found in nature are recreated and applied to diﬀerent aspects of our lives, such as agriculture, construction, education and economics. The aim of permaculture is to further the transition from dependent consumers to responsible producers, improving the future of people, communities and our planet.

As countries prosper thanks to globalisation, they need and use more energy, most of which is from fossil fuels. And, as we all know, burning fossil fuels releases carbons into the atmosphere, causing climate change and damaging ecosystems, resulting in disaster for our planet and our future. There is growing concern about this, with two major but contrasting models aimed at stopping the impending environmental collapse. The first model is called ‘sustainable development’ and the most widely used description of its aims is to meet ‘the needs of the present without compromising the ability of future generations to meet their own needs.’ This refers to economic development and social development as well as environmental protection. By including environmentally-protective measures into all governmental plans and establishing global sustainability standards and international certification, the supporters of sustainable development believe that growth and development are possible without damaging the environment and the world’s ecosystems. The second model is a much more radical approach called ‘de-growth’. It calls for significant reductions in resource consumption and for the introduction of limits to economic development. The followers of de-growth believe there cannot be ecologically-friendly economic growth of any kind, and the only way to save the planet is – as its name implies – to reduce production. The de-growth model recognises limits to the natural systems that influence economies, and is therefore in favour of a reverse in economic growth by introducing nonconsumptive approaches to sustainability.

Sustainable development tends to incorporate slow, incremental improvements that do not interfere with overall growth so this model has more appeal to governments, which depend on economic growth to run the country. However, critics point out that this model is not radical enough to reverse ecological decline.

impending imminente

The symbol for the de-growth movement is a snail.

ACTIVITIES

De-growth Glocalisation

282

Reading comprehension 2

Read the text and write if these sentences refer to sustainable development (S) or de-growth (D). 1 2 3 4 5

It aims at combining environmental preservation with economic growth. It intends to significantly reduce the consumption of natural resources. It does not aim at stopping overall growth. It represents a more radical approach. It is more popular with governments.

MO DULE 7 | BUSINESS in THEORY

___ ___ ___ ___ ___

ACTIVITIES

Listening B Listen to a talk on the transition approach and choose the correct option. 2.10

1 Which statement best summarises transition? A The concern over the misuse of the planet’s resources. B The change from using fossil fuels to alternative forms of energy. C The need to adapt our way of living to protect the future. 2 What aspect of buying local food is NOT mentioned? A The distance the food travels. B The freshness of the produce. C The benefit for the local business. 3 The town of Totnes was against the chain coffee shop because… A it had been demonstrated that their prices were too high. B it would damage local independent businesses. C there were already too many coffee shops for the town to support. 4 One of the benefits of a complementary currency is that… A shoppers spend more money. B the money stays in the local community. C it is worth more than the legal currency of the country.

5 The transition approach can be seen as… A a well-defined structure with precise answers to problems. B an independent method which works separately from other organisations. C a ﬂexible system which continually adapts to meet its goals.

Slowbalisation: Positive or Negative? At the beginning of 2019, the news magazine The Economist published an issue with the title ‘Slowbalisation’, accompanied by an image of the earth on the back of a snail to indicate how, in its opinion, the speed of globalisation has slowed down to a snail’s pace. According to The Economist, the golden period of globalisation lasted from from 1990 to 2010. Since then, and particularly over the last year or so, there has been a considerable change in the character and speed of globalisation. Trade wars, such as that between the USA and China with increasing tariffs and duties; the signiﬁcant drop in the proﬁts of multinational companies; the reduction in direct foreign investment; the move towards services which can’t be sold as easily across borders are all signs of this. On the other hand, there are those that see slowbalisation, a

term first used in 2015 by Dutch trendwatcher Adjiedj Bakas to describe a reaction against globalisation, as something that the world is in great need of at the moment. Our planet is facing a number of critical crises: global warming and our ever-increasing carbon footprint; inequality among the world’s countries and economies. If the infinite growth and limitless trade of the past is coming to an end, perhaps we now will be able to focus our attention on global issues like climate change and meeting the needs of all the world’s population. We must remember, however, that slowbalisation is no instant fix and won’t be able to solve all the problems that globalisation has created. chasing inseguire

relentless incessante

Reading comprehension 4 INVALSI

Read the text and answer the questions using no more than four words.

1 Why did The Economist compare the state of globalisation today to a snail? 2 What aspects of globalisation have changed recently? 3 What indicators are there that globalisation has slowed down? (Give two answers)

4 How do supporters of slowbalisation see this phenomenon? 5 According to the article, what can’t slowbalisation do?

Speaking 5

Discuss these questions in small groups. 1 In what ways can consumers contribute to global sustainability? What about businesses? 2 Do you think it is possible for a company to be global and still care about local issues? 3 Do you consider slowbalisation and the general slowdown of the economy to be positive or negative?

Globalisation | MO DULE 7

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7 WARM UP

What reasons could there be for buyers to complain about goods or services?

BUSINESS in PRACTICE

Complaints and replies Making a complaint In spite of everyone’s best intentions, things can still sometimes go wrong with orders. Whether this is the incorrect quantity or type of goods being delivered, faulty or damaged products or unsatisfactory service, these mistakes or misunderstandings can cause many problems for the customer, and also for the supplier who has to solve the problem quickly and satisfactorily in order to maintain good client relations. If a customer or a company does have to make a complaint, they should remember to follow these guidelines: • make the complaint as soon as possible after discovering the problem; • clearly present the problem or situation; • state what should be done to resolve it; • indicate a deadline for receiving a reply; • say that further action will be taken (without necessarily indicating what action); • send copies of any documents or evidence; • keep copies of any correspondence and notes of any phone calls; • always be polite and calm.

Jack Miller <j.miller@millers.co.uk> Paula Burton <paula.burton@dorsetequipments.com> 25 October 20.. Order 2531 dated 1st October 20..

ACTIVITIES

Dear Ms Burton, We placed an order for a selection of mobile phone accessories with you at the beginning of the month on the condition that the goods would be delivered to us by 23rd October at the latest. Unfortunately we have not received the goods yet and this delay is causing us great inconvenience. We are unable to satisfy our clients’ requests, in particular for selﬁe sticks and power blocks, and are consequently losing business to other stores. We need to know by return email when we can expect the consignment. If we do not receive our order within this week, we will be forced to cancel it. Awaiting your urgent reply we remain, Yours sincerely, Jack Miller Millers Ltd.

284

Reading comprehension 2

Read the text and email and answer these questions. 1 Why should a supplier try to resolve problems quickly? 2 Why do you think it is necessary to complain promptly? 3 Why is it a good idea to have copies of the correspondence sent?

MO DULE 7 | BUSINESS in PRACTICE

4 Why is Mr Miller writing the email? 5 What action does he request? 6 What action does he threaten?

ACTIVITIES

Vocabulary B Choose the correct option to complete this email.

Sara Mason <s.mason@sportsgadgets.co.uk> Peter Carmichael <peter.carmichael@sportsmerchandise.co.uk> 17 July 20.. Our order No. 658/20 Dear Mr Carmichael, With reference to our order No. 658/20 and subsequent modiﬁcation, we would like to (1) ___________ you that we have received your (2) ___________. Unfortunately, the goods (3) ___________ do not correspond to our order. We have, in fact, received 30 red and 30 blue hooded sweatshirts, item No. 451, (4) ___________ our modiﬁed order was for 30 in blue and 20 in red. This is the second time we have had to complain about (5) ___________ orders from your company. We really cannot accept these items in excess. (6) ___________ we kindly ask you to inform us of how to return them to you, at your (7) ___________, and we await a copy of the corrected invoice. We look forward to receiving your (8) ___________. Yours sincerely, Sara Mason

1 2 3 4 5 6 7 8

A A A A A A A A

inform consignor given whereas false however costs instructions

B B B B B B B B

say shipping granted so untrue therefore charges advice

C C C C C C C C

explain shipment sold in spite improper furthermore expense recommendation

F Complete this email with a suitable word for each gap.

D D D D D D D D

declare freight supplied thus incorrect nevertheless fee references

Phraseology p. 294

John Wilde <john.wilde@wildeoptics.co.uk> Ken Liu <ken.liu@guangzhoulenses.com> 10 May 20.. Damaged goods Dear Mr Liu, We wish to inform you that we are in receipt of the goods (1) ___________ arrived at Liverpool docks two days (2) ___________. Unfortunately, on unpacking the goods at our warehouse, we noticed that the lenses of 25 (3) ___________ of sunglasses – model 4550 – are extremely scratched. As the external cases showed (4) ___________ signs of damage, a fact which the shipping company can conﬁrm, the scratches (5) ___________ have been caused during production or packing in your factory. We were counting on these items for our summer season and we are sure that you (6) ___________ appreciate how serious a setback this is for our business. We kindly ask you to look (7) ___________ this matter and inform us of how you wish to proceed to resolve the situation. We look forward to your (8) ___________ reply. Yours sincerely, John Wilde Managing Director

scratched graffiate setback contrattempo

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ACTIVITIES

Phraseology 5

Mediating texts

Translate these sentences into English. What are they complaining about? 1 Se non riceveremo la merce entro la fine della settimana, annulleremo l’ordine. 2 Il danno deve essersi verificato in fase di imballaggio presso il Vostro stabilimento. 3 Purtroppo rispetto all’ordine, molti articoli risultano mancanti. 4 Vi preghiamo di farci sapere quando potete consegnare l’ordine.

5 È la terza volta che presentiamo un reclamo per merce danneggiata durante il trasporto. 6 Non siamo disposti ad accettare prodotti di qualità inferiore. 7 Siamo disposti ad accettare questa sostituzione se ci concedete uno sconto di €350 sull’ordine. 8 Siamo estremamente delusi dalla scarsa qualità della merce.

incorrect goods/quantity of goods

quality of goods

damaged or faulty goods

late delivery

____________________

Writing 6

B Your manager at Vini e Liquori in Milan has asked you to complain to the Cape of Good Hope Vineyards in South Africa about this incorrect delivery. Write an email (120-140 words) using all your notes.

didn’t receive these 15 of these instead of 5

Order No. 112/8

2O crates Sauvignon Blanc

need these urgently before 18th November

1O crates Chardonnay 5 crates Shiraz

will keep the extra if they give us 35% discount

You are the manager of an electrical appliances shop and you ordered 25 air conditioning units two months ago which have still not been delivered. Write a letter of complaint and include these points: • la consegna era stata concordata per il 15 maggio; • oggi è il 25 maggio e ne hai bisogno urgentemente prima che faccia caldo e che perda affari; • cancellerai l’ordine se non verrà consegnato entro i prossimi 7 giorni.

You are the owner of a high street fashion store and have received an unsatisfactory order of jeans from your wholesalers. Write an email of complaint and include these points: • • • •

spiega qual è il problema riguardo la qualità dei jeans; informali che non è la prima volta che accade; chiedi un’immediata sostituzione; minaccia di sospendere gli ordini futuri se il servizio non migliora.

Listening 9

2.11 B Listen to ﬁve people talking about making complaints. Match each person to what he/she is talking about. There are three extra options you do not need.

a b c d e f g h

286

making repeated complaints about the same thing getting bad customer service being satisfied with the way the complaint was handled not receiving any reply a complicated complaints procedure people not complaining enough people making unjustified complaints the complaints system in small companies

MO DULE 7 | BUSINESS in PRACTICE

Speaker 1 Speaker 2 Speaker 3 Speaker 4 Speaker 5

Responding to complaints

WARM UP

Complaints received by a large company are often dealt with by the customer services 1 Do you think department. The role of this department is to create a positive experience for each the saying ‘the customer customer, every time he/she does business with the company. This does not only involve is always right’ dealing with complaints, but the enquiry and order processes and aftersales and followis correct? up services too. A prompt, knowledgeable and polite service with well-trained staff – ‘the Why/Why not? people P’ in the marketing mix – is therefore fundamental to its successful operation. Smaller companies will probably have general staff or managers deal with complaints from customers. Nonetheless, the same rules on handling complaints should apply and whoever replies to a customer’s complaint must remember to be polite, calm and helpful whether they feel the complaint is justiﬁed or not. If the complaint is valid, a solution must be found as quickly as possible. In the case that the company considers the complaint to be unjustiﬁed, the reasons for this should be calmly but clearly explained. Complaints do not have to mean negative feedback or loss of business if they are dealt with in the proper manner.

Peter Carmichael <peter.carmichael@sportsmerchandise.co.uk> Sara Mason <s.mason@sportsgadgets.co.uk> 18 July 20.. Re: Our order No. 658/20 Dear Ms Mason, I am writing with reference to your email yesterday and wish to apologise for the incorrect number of items delivered in your order. I have looked into the matter and found out that although we had conﬁrmed the changes to your order as per your email of 20th June, the correct information was not passed on to our dispatch department. For this reason they sent off the quantities indicated on your original order. We have sorted out this internal communication problem so it should not happen again. We have arranged for our courier to pick up the excess items within the next few days. Please accept our apologies once again and we look forward to doing business again with you in the future. Yours sincerely, Peter Carmichael

Read the text and email and answer these questions. 1 What qualities should the staff who handle complaints have? 2 In the email, what was Ms Mason’s complaint about?

3 Why did the mistake happen? 4 How does Mr Carmichael resolve the situation?

ACTIVITIES

Reading comprehension

Vocabulary 3

Find the phrasal verbs in the email for these verbs. 1 examine 2 discover 3 give to

_________________ _________________ _________________

4 dispatch 5 resolve 6 collect

_________________ _________________ _________________

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ACTIVITIES

Vocabulary 4

B Choose the correct option to complete this email.

Ken Liu <ken.liu@guangzhoulenses.com> John Wilde <john.wilde@wildeoptics.co.uk> 11 May 20.. Your email of 10 May regarding damaged goods We were (1) ___________ to receive your email in (2) ___________ you informed us that some of the items in your order had been damaged. I immediately looked into this matter and checked with our quality control department which (3) ___________ me that there were (4) ___________ quality problems with this production batch. We would also like to (5) ___________ that we have had no complaints from other customers (6) ___________ orders were ﬁlled at the same time as yours. However, in good faith, we are prepared to send you new lenses free of charge to replace those in your possession. Within the next (7) ___________ of days, we will dispatch the 25 pairs of lenses by air freight and will inform you of the exact delivery date. We (8) ___________ that you will ﬁnd this solution satisfactory and we wish to (9) ___________ you that we will treat your future orders with the utmost care and attention. Yours sincerely, Ken Liu

1 2 3 4 5 6 7 8 9

A A A A A A A A A

batch lotto, partita utmost estrema, massima

surprising where spoke no sort out which few trust insure

B B B B B B B B B

surprised that said any point out that couple rely on make sure

C C C C C C C C C

surprisingly which informed a lot look out who pair depend on ascertain

D D D D D D D D D

surprise what replied none work out whose two confide assure

F Complete this email with a suitable word for each gap.

Paula Burton <paula.burton@dorsetequipments.com> Jack Miller <j.miller@stansﬁeld.co.uk> 25 October 20.. Re: Order 2531 dated 1st October 20.. Dear Mr Miller, We are sorry that you (1) __________ not received your order yet. I have checked (2) __________ our shipping department and can conﬁrm that your complete order left our factory (3) __________ 18th October 20.. I have also contacted our forwarder and they have told (4) __________ that you will receive the goods tomorrow morning. Please do not (5) __________ to contact me again tomorrow if you (6) __________ receive the goods. I apologise (7) __________ the inconvenience and look forward (8) __________ your future orders. Yours sincerely, Paula Burton Sales Manager Dorset Equipments Limited

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Phraseology pp. 294-295

Complete these sentences with the words from the box and match them to the correct function.

owing − dispatched − arranged − assistance − apologise 1 We regret that we cannot be of more __________ in this matter. 2 We have received your complaint and we __________ for the problems related to your order. 3 We have __________ for one of our agents to come and inspect the quality of the merchandise.

4 __________ to staff shortages, there was a mix up between the orders of two clients. 5 Our records show that this order was __________ correctly, so we suggest that you check the goods against the invoice once more.

Acknowledging a complaint

Explaining/Giving reasons

Stating action taken

Proposing solutions/action

Closing

_________________

Phraseology

ACTIVITIES

Phraseology

Mediating texts

Translate these sentences into English. Write them in the correct column in exercise 6. 1 Alleghiamo la nota di credito con la somma che avete pagato in eccesso. 2 Purtroppo il problema è stato dovuto a circostanze al di là del nostro controllo. 3 Siamo rimasti sorpresi nell’apprendere che avete ricevuto merci danneggiate. 4 Vorremmo suggerirVi di tenere la merce in eccesso a fronte di uno sconto del 15%. 5 Abbiamo verificato con il reparto produzione

che ci ha informato di un problema tecnico con il Vostro ordine. 6 Abbiamo spedito gli articoli mancanti e Vi arriveranno nel giro di due giorni. 7 Confidiamo nel fatto che questa soluzione Vi soddisfi. 8 Se ci poteste spedire un campione esamineremmo la questione ulteriormente per individuare la causa del problema.

Writing 8

Use these prompts to write the reply to an email of complaint about an incomplete order. • spiacente per gli articoli mancanti; • controllato con il reparto spedizioni – parte dell’ordine dilazionata per problemi tecnici; • saldo dell’ordine inviato 4 giorni fa; • arrivo previsto entro la fine della prossima settimana;

• si richiede gentile conferma del corretto ricevimento; • spiacente per non averVi informato prima e per l’inconveniente; • eviteremo che si ripeta in futuro.

B Your manager has asked you to reply to this email of complaint from Mr Warren Price at Autorepairs Ltd. Write an email (120-140 words) using the information and all your notes.

any damage to the cases externally? If so, will investigate with shipper

apologise again – profusely

Yesterday we received your consignment of silencers and, after opening all 13 cases, we have noticed that most of the silencers are badly dented. In the attachments you will ﬁnd four photos showing this defect. As a result we reject the whole consignment and ask you to take immediate action to send us replacement products. We are extremely disappointed with your service. We hope that this will not happen again in the future, otherwise we will be forced to ﬁnd a new supplier.

will arrive by the end of the week assure him of our excellent quality control – but will look into the matter

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WARM UP

Have you or anyone in your family ever had to complain about something in person or on the phone (the service in a restaurant, a faulty product etc.)? If so, how easy was it for you or them to remain polite and calm?

ACTIVITIES

pitfalls tranelli

Phone complaints and replies Making or replying to a complaint over the phone can be a more personal and quicker solution to resolving a problem but, at the same time, it has its pitfalls. Either party could ďŹ nd it difďŹ cult to remain patient and not lose their temper. Remaining calm, polite and listening carefully to one another is therefore essential to maintaining good customer relations whilst settling problems or complaints of any kind.

Listening 2

2.12 B Listen to these conversations between Lucy Mackie from V&P Vendors, a supplier of vending machine services to ofďŹ ces, and three of her customers. Complete the notes.

V&P Vendors Ltd 3

2.13 When Mr Miller does not receive the mobile phone accessories he ordered as promised by Ms Burton in her email (see page 288), he calls her immediately. Listen to their phone conversation and decide if these sentences are true (T) or false (F).

T 1 2 3 4 5

290

Mr Miller is calling the day after the mobile phone accessories were due to arrive. Ms Burton has had problems with the forwarding company before. Mr Miller requests compensation for the inconvenience. They agree on a 15% discount for the next order. Ms Burton manages to convince Mr Miller not to cancel his order.

MO DULE 7 | BUSINESS in PRACTICE

Complete these expressions with the words from the box.

appreciate − assure − dissatisﬁed − expecting − explanation − hang − insist − interrupt matter − trying − touch − unsatisfactory − view − word Expressing disappointment

Being insistent

To be honest, we’re extremely disappointed. We were (1) _________ much better service than this. I’m very (2) _________ to say the least. I’ve never had such (3) _________ service. I’m sorry, but this is just not on.

So, what exactly are you going to do about it? I (10) _________ on speaking to someone in charge. I demand an (11) _________ for this delay. As I said before, it’s not our company policy.

ACTIVITIES

Functions

Interrupting If I could just (4) _________ you a moment… Now, just (5) _________ on a second… Can I get a (6) _________ in here? Let me just say something, please.

Remaining polite I understand you’re upset, sir/madam. I’m just (7) _________ to understand the problem. I can see your point of (8) _________, but I have to say that… I (9) _________ your situation however we cannot accept…

Speaking 5

Promising action I’ll look into the (12) _________ immediately. I’ll be in (13) _________ as soon as I’ve spoken with my manager. Don’t worry. We’ll do our best to sort out the problem. I can (14) _________ you it won’t happen again.

Professional competences

Practise this phone conversation in pairs.

BUYER

SELLER

You work for a florist’s and have received an incorrect delivery from your supplier of cut flowers and plants. The quality of the cut flowers is very poor and they already are past their best, while the rose plants you received are the wrong variety and shade. This is the second time you have complained in less than a month and you are seriously considering taking your business elsewhere.

You work for a ﬂower and plant wholesaler and receive a phone call from one of your clients who complains about an incorrect delivery. You have had a lot of problems recently with new staff, but the situation seems to have improved. You really need to keep this client’s business otherwise you risk closing down.

Phraseology p. 295

Now choose one of the letters of complaint or the replies on pages 284-289 and practise the phone conversation between the buyer and seller, adding your own details or solutions. Each person can also decide how polite – or not – to be! Swap roles and choose another situation.

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WARM UP

Why do you think some people use social media to make a complaint to a company? Check your ideas against those in the ﬁrst paragraph.

ACTIVITIES

vent sfogarsi

Complaints and replies using social media In today’s world of tweets and ‘likes’, all companies should be prepared to respond to complaints on social media. People often use social media when they have had no success with more traditional channels. It is much quicker and has the possibility to be seen by lots of other social media users, raising the profile of the complaint and putting the company’s reputation and image at risk. However, with a team of people to monitor the company’s Facebook pages and Twitter accounts, and with automatic alerts to find out when the company name is mentioned, response time will be quick and any negative situations will not have a chance to escalate and go viral. Given that people often tweet to vent about a problem in real time, responding quickly means that a negative can soon be turned into a positive. Anyone dealing with a complaint or review should have good marketing and communication skills so they can respond with empathy to a situation rather than using cold, corporate language. They also need the ability and power to solve problems. Having someone with the authority to make a decision, for example to give a refund (without having to go further up the chain of command, which can often happen in a call centre situation), means the client is satisfied quickly and the positive company image is maintained. It is a good idea for a company to search the person’s public social media accounts to see if they are a habitual complainer or have a genuine problem that is worth dedicating time to. This simple control has often led to the discovery of false complaints.

Reading comprehension 2

Read the above text and compile a list of rules for how companies should deal with complaints on social media. 1 __________________________________________ 2 __________________________________________ 3 __________________________________________

Speaking 3

In pairs, look at these tweets and posts and the replies and answer these questions. 1 Are they genuine complaints? 2 Do you think they have been handled well or badly? 3 Is using humour a good way of writing and dealing with complaints?

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4 __________________________________________ 5 __________________________________________

Work in pairs and write complaints for the following situations. Customer A should write a tweet and Customer B should write a Facebook post.

Customer A You have just bought a sandwich from your local branch of a national supermarket chain. As you go to eat it, you realise it is 5 days past its sell-by-date.

Customer B You ordered some products from a well-known online retailer, but 10 days later they still haven’t been delivered and you have had no success contacting the company by email or phone.

HOW TO COMPLAIN ON TWITTER • Use the company’s Twitter handle and company name within your tweet to ensure the message can be seen by as many people as possible. • Make the tweet short and to the point (maximum length is 280 characters) and try to sum everything up in one message. • Do not be rude. • If you do not get a response, point this out in your follow-up tweet. • Ask friends, family or someone with a lot of Twitter followers to retweet your complaint to get more attention. • Do not give away any personal information.

ACTIVITIES

Writing

Now swap complaints with your partner and write a suitable reply, using the same social media format.

UK consumer rights Consumers in the UK are protected by several laws when purchasing goods or services. • One of the main consumer rights laws is the Sale of Goods Act which states that any item you buy from a trader must be of satisfactory quality, ﬁt for its purpose and match any description given. If this is not the case you are usually entitled by law to a refund or replacement. If you change your mind about a purchase, there is no automatic right to get your money back. However, many stores have their own policies regarding returns and may allow items, which are unused and in their original packaging, to be returned within a set time limit, even though they are not obliged to do so by law. • The Consumer Protection (Distance Selling) Regulations offer additional protection when buying goods at a distance, such as online, by post and by phone, when you do not see the goods in person. In these cases, you get a 14-day “cooling-off” period which starts the day after you receive your order. You are entitled to return the goods and get a refund even if you have changed your mind and there is nothing

wrong with the item. However, this does not apply for food, personalised or custom-made items and anything sold by a private individual. • The Cancellation of Contracts Made in a Consumer’s Home or Place of Work etc. Regulations – often referred to as Doorstep Regulations – apply when a consumer purchases goods or signs a contract for a service at his/her home or place of work. Traders selling goods or services in this way might use high-pressure sales techniques, some of which are actually illegal, and consumers can ﬁnd they have agreed to something they do not actually want or that they later ﬁnd at a cheaper rate. These regulations are designed to give consumers extra cancellation rights in these circumstances.

Reading comprehension 6 INVALSI 1 2 3 4 5 6

Read the text and answer the questions using no more than four words. When is a consumer entitled to a refund or replacement under the Sale of Goods Act? (Give two answers) In which circumstance is a trader not obliged to give a refund under this Act? When are consumers given a cooling-off period? Which goods are excluded from these Distance Selling Regulations? (Give two answers) Where are Doorstep Regulations applied? What is the aim of these Regulations? (Give one answer)

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7 Phraseology

BUSINESS LANGUAGE More business language practice

PCTO

Written communication COMPLAINTS Reference to order

• Unfortunately many items are missing.

• I am writing to conﬁrm the arrival of order No. … on… • It is with great displeasure that I write to inform you that I have not yet received order No. …, due to arrive on… • We are writing with reference to our order… • We wish to make a complaint about the delay in delivery of our order… • We are contacting you about a problem with regard to… • We wish to inform you that…

Suggested adjustment

• We have to inform you that the standard of the service you supplied was unsatisfactory. • The level of service received did not correspond to what we had previously agreed. • Unfortunately the agreed discount of …% has not been applied in the invoice.

Request for conﬁrmation

• Please confirm if you are prepared to accept a rebate of… • As this is not the first time I have had to complain about…, I suggest that you… • We are prepared to keep the items if you can grant us… • We would be grateful if you could let us have the missing articles as soon as possible. • We really cannot accept these items in excess, therefore we kindly ask you to tell us how to return them to you. Reason for complaint • On checking the invoice we noticed/found that you sent us the • Could you please collect these damaged goods from our warehouse as soon as possible? wrong article/colour/quantity. • We have no alternative but to return these items to you at your • I regret to have to inform you that the quality of these goods… expense. • On closer inspection, we found that the goods do not • If you cannot deliver within the next … days, our order should be correspond to the samples/were damaged. considered cancelled. • The goods delivered do not correspond to the samples/patterns • If we do not receive our order within this week, we will be forced in our hands/on which we placed the order. to cancel it. • The goods we ordered from you on 5th June have not been • Please arrange for the return of the articles which were not delivered yet/should have reached us ten days ago. ordered and for the immediate shipment of replacements. • On examining/checking the goods we find/have found that the colour is not as requested/that they are definitely of an inferior • Please send us the correct invoice. • We urgently need the goods to fulfil our customers’ orders. quality.

Translate this letter of complaint regarding an incorrect delivery.

Mediating texts

Oggetto: Reclamo per merce incompleta. In data 15.02.16 abbiamo ricevuto i prodotti ordinati presso la Vostra ditta. Siamo spiacenti di informarVi che la quantità di merce ricevuta non corrisponde a quella ordinata (rif. ns. lettera del 01.02.16). Abbiamo infatti ricevuto solo 120 articoli anziché 150. Vi preghiamo pertanto di provvedere alla consegna della parte mancante al più presto. In attesa di una Vostra conferma in merito, porgiamo cordiali saluti.

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• Please let us have your instructions by return. • I look forward to receiving your prompt conﬁrmation. • We would be grateful if you could conﬁrm that you have the right items in stock.

REPLIES Acknowledging a complaint • With reference to your fax/letter/email of…, I apologise for the problems regarding the execution of your order. • Thank you for your letter of… in which you notiﬁed us of an error in… • I was surprised to read that… • We have received your fax/letter/email of… informing us about items missing from your last order. • We have received your complaint and we were sorry to read that... Explaining/Giving reasons • The error seems to have been made because your order… • We immediately checked our copy of the invoice and saw that… • I checked the matter with the… department and they assured me that… • Unfortunately this problem was due to circumstances beyond our control. • The mistake occurred because of a systems failure in our delivery department. • I have looked into the matter and found…

Stating/Proposing action • We enclose a credit note for the ﬁgure you paid in excess. • You will receive the correct invoice shortly. • I have contacted our forwarder who told me that you will receive the goods… • We are dispatching these goods immediately and they will reach you within two days. • We have arranged for our courier to pick up the excess items within… • Replacements have been sent by express courier. • We will contact our forwarder to check the packaging conditions. • As we would like to inspect the faulty articles, our technician/ agent will call on you shortly. • We have arranged for one of our agents to come and inspect the quality of… • A member of our staﬀ will visit you to compare the quality of the articles with the samples you saw.

• We will implement further controls to ensure high standards of service at all times. • We are prepared to send you new… free of charge to replace… • As regards the wrong/surplus goods you received, we would like to suggest that you keep them against a …% discount. Apologies/Assurance of better service • We trust that you will ﬁnd this solution satisfactory and we can assure you that we will treat your future orders with the utmost care and attention. • I apologise for this regrettable inconvenience and promise that more attention will be given to your future orders. • We regret that we cannot be of more assistance in this matter. • Thank you for your patience and understanding. • We sincerely apologise for the inconvenience caused and we can assure you this problem will not occur again. • Please accept our apologies once again.

Reply to the letter of complaint in exercise 1, using these prompts: • ci scusiamo per l’errore; • abbiamo controllato presso il reparto spedizioni;

• un cartone non è stato caricato sul camion; • sarà spedito immediatamente e arriverà entro giovedì.

Oral communication PHONE COMPLAINTS AND REPLIES Making a complaint • I’m afraid there’s a problem with… • Actually, I’m phoning to complain about… • I’m sorry but I have to make a complaint about the delay in delivery. • There seems to be a fault in/something wrong with... Expressing disappointment • To be honest, we’re really disappointed. We were expecting much better service than this. • I’m very dissatisﬁed to say the least. • I’ve never had such unsatisfactory service. Being insistent • So what are you going to do about it? • I insist on speaking to someone in charge. • I demand an explanation for this delay. • As I said before, … • I want to talk to the manager now!

• I understand you’re upset, sir/madam. • I’m just trying to understand the problem. • I can see your point of view, but I have to say that… • Sir/Madam, would you mind lowering your voice? Apologising • I quite understand and I’m extremely sorry. • I do apologise for the mistake. • I’m very sorry about the mistake. • Please accept our apologies for the inconvenience. • We are really sorry about what has happened. • I’ll look into the matter immediately. • I’ll deal with it at once and call you back/let you know. • I’ll arrange for/organise… • Don’t worry. We’ll do our best to sort out the problem. • I can assure you it won’t happen again. • I’ll be in touch as soon as I’ve spoken with my manager.

• If I could just interrupt you a moment…

In pairs, practise this phone conversation.

Remaining polite

Promising action

Interrupting

• Just hang on a second… • Let me just say something, please.

Professional competences

Buyer You work for the restaurant Chez Marcel and have received a delivery of 520 wine glasses from Wexford Glassware. In spite of your precise instructions regarding packaging, the goods have arrived damaged. At least half of the glasses are broken. Unless they come up with a decent explanation and offer, you will return the whole consignment and go to a different supplier.

Seller You work for Wexford Glassware and receive a phone call from a customer about a consignment of broken wine glasses. They claim the packaging was not correct, but as you send glassware all over the world without problems you feel that this is unlikely. Reassure the customer, without accepting responsibility, and promise to look into the matter with the forwarding company.

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Vocabulary PHRASAL VERBS

point sth out turn out work sth out let sb down turn down sb/sth get back to sb

1 have a particular result, be discovered finally 2 disappoint someone 3 make someone notice something 4 reply, contact again, usually on the phone 5 find the answer, solve 6 refuse an offer or request

Match the phrasal verbs from the box to the correct definition. ________________ ________________ ________________ ________________ ________________ ________________

2 Complete these sentences with the correct phrasal verb from the box. 1 We’re going to __________ their offer of replacement goods. It’s just not acceptable. 2 I’ll find out what has happened to your order and will __________ you later today. 3 I’m sure the problem will __________ to be in the packing department. They never follow the instructions properly.

4 We’d like to __________ that this is the third time we’ve had to complain about your poor service. 5 I’m sure we can __________ a mutually acceptable solution. 6 We apologise for what happened and we won’t __________ you __________ again.

COLLOCATIONS WITH COMPLAINT have / make / deal with / handle / receive / respond to / resolve / reject | a complaint serious / frequent / official / customer / formal | complaint

3 Choose the most suitable collocation from the table above to complete these sentences. 1 I would like to __________. Who do I need to speak to? 2 Our customer service department __________ about 15 __________ by phone every day and it aims to _____ all _____ within 5 working days.

3 We only __________ if it is completely unfounded. 4 A __________ should always be made in writing. 5 The most __________ in the hospitality sector is about poor customer service.

CONNECTIVES ________________ With reference to As far as… is concerned Regarding By the way

________________ Last but not least Firstly Next In second place

_________________ From the point of view of According to Personally As far as I can see

________________ for instance/example such as that is to say

______________ To sum up In conclusion On balance

4 Choose the correct heading for each group of connectives in the table above. To conclude − To introduce − To give an opinion − To make a list − To give an example

5 Complete this essay using the most appropriate connective. More than one answer is possible. (1) _________ the positive aspects of globalisation, the most obvious is that Internet and mobile phones have removed the barriers that lead to the isolation of countries. (2) _________, there are the substantial improvements to transport. (3) _________, cheap air travel is now available to the masses. (4) _________ the standard of living (5) _________, there has been progress in all areas, (6) _________ education and healthcare. (7) _________ anti-globalisation supporters, globalisation is negative and we have to repair the damage it has made to our world.

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Grammar RELATIVE CLAUSES Relative clauses can be defining (providing essential information for understanding the sentence) or non-defining (providing extra information). The relative pronouns are who, which, that, whose, where and whom. In defining relative clauses, it is possible to omit the relative pronoun when it is the object of the relative clause. In non-defining relative clauses the relative pronoun cannot be omitted and we use commas to separate the clause. The WTO is often the focal point of criticism from people who are worried about the effects of free trade and economic globalisation. The Berlin Wall, which symbolised the separation of the world’s two superpowers, fell in 1991.

Video tutorial 11

Use these sentences to write a new one using a relative pronoun. Then say if the sentence is a defining or non-defining relative clause. 1 Globalisation has many different dimensions. They affect all of us in our daily lives. 2 We haven’t had any complaints from customers. Their orders came from the same production batch. 3 People complained about delivery times. The number increased by 15% last year.

4 Call centres are common in the Philippines and India. They carry out business processes for other companies. 5 SARS is a respiratory disease. It originated in Hong Kong in 2002. 6 They still haven’t resolved the complaint. I made it two weeks ago.

INDIRECT SPEECH We use indirect speech to report what someone says. If the reporting verb (say, tell, ask, etc.) is in the past tense, the tense of the verb in the direct speech normally moves ‘backwards’. Note that tell is followed by a direct object; say is used without an object or with to + object. They said (that) they could offer a 15% discount. We can offer a 15% discount. The goods were damaged in transit. She told me (that) the goods had been damaged in transit. Verbs such as advise, offer, invite, apologise, deny, accuse and recommend can also be used to report speech. The client accused us of not respecting our contractual agreement.

1 2 3 4 5

The client asked when the goods would arrive. He asked, ‘When ______ arrive?’ He said, ‘I won’t pay until the matter is settled.’ The client ______ to pay the invoice until the matter was settled. The client asked, ‘Can I speak to the manager, please?’ He asked if he ______ to the manager. He asked which goods the client had received. He asked the client, ‘Which goods ______?’ He said, ‘I’m sorry about this misunderstanding.’ He ______ for the misunderstanding.

MODAL VERBS WITH PAST INFINITIVES Modal verbs can be used with past inﬁnitives to make deductions, express certainty, speculate and to talk about possibility in the past. There must/could/might have been a mix up between two orders. The damage can’t have happened during transit as the goods were packed correctly.

Video tutorial 12

Complete the second sentence so that it has the same meaning as the first.

Translate these texts.

Write a sentence for each of these situations. 1 2 3 4

The goods arrived broken. (packaging not sufficient) You expected the courier to arrive at 1 p.m. It’s now 3. (delay) Some items of your order weren’t delivered. (mix up) You’ve just resolved a complaint with a very demanding client. (not easy to deal with) 5 The company hasn’t replied to your complaint. (not receive it)

Mediating texts

A consultant, who has 15 years’ experience in complaint handling management, has just launched a software product to help small businesses deal effectively with complaints. At the launch, he said that an average 7 out of 10 people would do business with a company again if their complaint was handled well.

Il WTO, il cui compito principale è di promuovere la liberalizzazione dei mercati, è uno dei bersagli preferiti dai critici della globalizzazione. Il movimento no global, che è emerso all’attenzione dell’opinione pubblica durante le contestazioni a Seattle nel 1999, è ancora oggi attivo nelle manifestazioni e nelle lotte contro le decisioni e i provvedimenti dell’organizzazione.

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BUSINESS NEWS

Global climate change

A Schoolgirl’s Fight Against Climate Change Greta Thunberg describes herself as someone who sits quietly at the back of the class. However, on August 20, 2018, at the age of 15, all that changed. That day Greta didn’t go to school. Instead, she sat down outside the Swedish parliament building as a sign of protest against climate change. None of her classmates joined her in this school strike and her parents tried to persuade her not to do it. People passing by felt both amused and sorry for her, as she sat there all alone with a hand-painted banner made out of a piece of wood from 8.30 am to 3 pm. Then gradually, people came along to keep her company. She kept her promise to strike every day until the Swedish national elections. Eight months later, Greta had become famous all over the world and admired for her determination, inspiration and positive action. Since then, her school strike for climate banner has been translated into many different languages and she is definitely not alone in her fight anymore. She has also certainly changed from the extremely introverted girl she once was. Greta was always a bit different from other kids. She was exceptionally bright and at the age of about eleven doctors said she had Asperger’s, which Greta describes as ‘overthinking’ and says that once she gets an idea into her head, especially if it’s something that worries her, she can’t let it go until she has done something about it. When she was about eight years old, she first found out about climate change and became depressed when she saw that adults didn’t seem to be taking the problem seriously. She started talking to her parents about her fears for the future, and gradually she learned to transform her depression into a source of motivation to fight climate change. Greta showed her parents documentaries and books about climate change, which convinced her parents to change their way of life to help the environment. Her father became a vegetarian and her mother stopped flying, even if this had a very negative impact on her career. Since then, Greta has changed the way many people think

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by making them more aware of climate change. Greta herself lives according to her values. She is vegan and only travels abroad by train. When she went to New York, she crossed the Atlantic by zero-carbon yacht. Greta has spoken at the UN, met political leaders and billionaire entrepreneurs. Each time she tells them not to be hopeful, but to panic and feel some of the fear she feels every day, then act on it. Her direct way of talking has won the admiration of many politicians, but she says that some leaders in countries like the US, UK and Australia are still either ignoring the strikes or saying they’re just an excuse not to go to school. To achieve a rapid reduction in emissions by 2030, politicians must be put under more pressure to do something effective, and Greta seems to be the best one at convincing them to get a move on. Adapted from The Guardian, 2019

At the end of 2019 Time named Greta Thunberg as Person of the Year.

bright sveglia, intelligente get a move on darsi una mossa

Reading comprehension 1 INVALSI

Read the text about Greta Thunberg and choose the correct option.

1 On August 20, 2018, Greta Thunberg… A went on a school trip to visit the Swedish Houses of Parliament. B started her strike to fight climate change. C went to school as usual. D sat with her classmates outside the Swedish Parliament.

4 Greta’s father… A found documentaries on climate change for Greta. B changed his eating habits. C was not convinced by his daugher’s fears for the future. D bought books on climate change for his daughter.

2 On the first day of her strike, Greta… A brought a banner with her. B occupied the Swedish Parliament Building. C went back home for lunch at midday. D was insulted by passers-by.

5 Greta’s mother… A explained what climate change was to Greta. B refused to accept her daughter’s beliefs. C sacrificed her career in support of Greta’s values. D continued to ﬂy around the world.

3 As a child, Greta… A was like any other child. B had learning problems. C couldn’t speak to her parents about her fears. D became depressed when she found out about climate change.

6 When Greta meets political leaders and billionaire entrepreneurs… A she speaks to them in a very direct manner. B she has a panic attack. C she gives them hope. D she’s frightened of them.

Listening 2

2.14 INVALSI Listen to a journalist talking about a scheme to ﬁght global warming. Answer the questions using no more than four words.

1 What kind of scheme has the English government decided to launch? 2 How long do they hope to take to plant 130,000 trees? 3 Who will manage the project? 4 What will the grant money go towards? (Give two answers) 5 What do trees store? 6 What do trees keep us in contact with? 7 What will the grant for planting a tree be organised as? 8 What will people be able to consult so that they can see if they can take part in the project?

Speaking 3

Discuss these questions in small groups. 1 2 3 4

Have you taken part in the school strike for climate? Why/Why not? Do you consider that the Fridays for Future campaign is a valid way to fight climate change? What projects or initiatives is your country taking part in to reduce emissions? In what ways can individuals do their part to reduce their carbon footprint?

Writing 4

F Write an essay (about 140-190 words) using the notes below and giving reasons for your opinion. Differences between countries become less evident every year as people the world over share the same things. Are the advantages of this greater than the disadvantages? Write about: 1 consumer goods 2 TV programmes 3 ……….. (your own idea)

Globalisation | MO DULE 7

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7 Case presentation

BUSINESS CASE STUDY

Case analysis: The English Academy Read about The English Academy. What kind of company is it? Where is it based? What problems is the company facing at the moment?

The English Academy

The English Academy in San Francisco has been teaching English as a foreign language for over forty years. The school offers year-round general English courses, as well as courses for academic and business English. It also organises summer courses, including activities like sports, music, drama and day trips, which are aimed at students from abroad. While during the rest of the year the number of students of all nationalities has remained relatively stable, the number of European students attending the summer courses has been falling rapidly over the last four years which is causing serious financial problems for the school. This decline could partly be due to the sluggish economy and the strong US dollar. However, from an analysis of the market, they have seen that the number of foreign students coming to the States, and in particular California, to study English has remained fairly constant. This has led The English Academy to identify two main problem areas within their company which need addressing in order for them to stay in business in this competitive field. These are: - lack of European students; - poor quality of customer service.

Case analysis Step one

complete the table.

Problem

Suggestions

Comments

Lack of European students

oﬀer a period of (1) ___________ during the course

may be problem of (2) ___________ for students of some nationalities already have lots of (3) ___________ in local businesses

have representatives in Europe to promote the school

extremely (4) ___________ to cover all countries individually good understanding of the separate markets and students’ needs

increased (5) ___________ on the packages

students can choose diﬀerent options that suit them better, such as (6) ___________ or extra classes

(7) ___________ for staﬀ

brush up on customer-relation skills

increase (8) ___________

good form of marketing need to ﬁnd someone to (9) ___________ pages regularly

introduce (10) ___________

cheap and relatively easy to organise, with good conversion rate

Customer service

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2.15 Listen to two directors discussing the problems the company is facing and

MO DULE 7 | BUSINESS CASE STUDY

Step two BRAINSTORMING

Step three

What do Italian students consider when planning to study English abroad? Is the USA a popular destination? What kind of courses and extra activities appeal the most? What about accommodation and facilities? Work in groups. You are the directors of The English Academy who are going to take part in a meeting to decide how to solve the company’s problems. Each person in the group should take one of the following roles. Use the information from the previous exercises and your own ideas to prepare for your role.

A You are the founder of The English Academy

B You feel that the need for ‘bricks and mortar’

C You know that the students are happy with

D The profit on the summer school courses is

and have dedicated most of your time and money to making it a success. You are deeply worried about the school being forced to close due to financial problems. You will chair the meeting, making sure everyone has a chance to present their point of view, understand what is being said and have equal time to speak.

the quality of teaching. The problems mainly lie with the badly organised administration and the quality of the accommodation on offer. More flexibility would mean the students could make up a ‘package’ designed to fit their needs. In addition, the school needs to be more modern in its approach, embracing 21st century means of communication.

Step four PROBLEM SOLVING

Outcome

language schools is going to decrease in the future, since so many people will decide to learn online. For this reason, you do not wish to make any big investments in changing the school, but would like to see the school offering distance learning. It is cheap to set up and could potentially reach a much higher number of students.

much higher than on other courses, so you would like to concentrate on increasing the number of foreign students. Given that the representatives in the Middle East and Asia ensure a steady volume of business from these areas, you support the idea of introducing a network of representatives in major European cities to actively promote your school.

Now hold the directors’ meeting and decide what to do. Then inform the rest of the class of your decisions and the motivation behind them. How many groups chose the same solutions? For similar reasons? This is what The English Academy decided to do. Did you make the same decisions?

• The English Academy immediately hired an external company to run an intensive two-week staff training course in essential customer service skills, focusing on improving response time and the handling of enquiries and complaints. • They also invested in redesigning their website, introducing a live web chat service, and they now have a member of staff who regularly updates their Facebook page and tweets important information. • They negotiated a deal with a local university so that they can offer modern, campus accommodation to students, with free use of all the campus facilities. • With this new image in place, the school began contacting directly European schools, colleges and universities. • They are currently researching the possibility of including some kind of work experience in a local company for students whose stay is over one month. Globalisation | MO DULE 7

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Professional competences Sending a reminder

You have booked and paid for a four-week advanced English language course with The English Academy. However you are still waiting for conﬁrmation of the accommodation. Write a reminder to the company. You should: • quote your booking reference number; • remind them of your specific accommodation requests;

Replying to a reminder

You work for The English Academy and have received the above email. Write a reply, in which you should: • apologise for the delay in answering; • give a reason for the delay;

Writing a complaint

• your mobile number so they can contact you urgently.

In pairs, role-play this conversation. Invent any other necessary details.

A It is the first day of the course and, as noone has replied to your email, you wish to speak to someone about changing your accommodation. Introduce yourself, explain the problem and say why you are not satisfied. Remain polite, but insist that something is done by the next day. You would also like some form of compensation for the inconvenience.

Using live web chat

• confirm the accommodation details.

You have arrived in San Francisco, two days before the course starts. Unfortunately you are not satisﬁed with the accommodation as it does not correspond to what you were promised and paid for. As it is the weekend, you cannot call anyone at the school so write an email to complain, including the following information: • reference to previous correspondence; • the problem with the accommodation;

Complaining in person

• request confirmation by the end of the week.

B You work in the administration office of The English Academy. A new student comes into the office to complain about his/her accommodation. All alternative accommodation is occupied until the end of the week, but you can guarantee to sort it out by Saturday morning. If necessary, you can offer a discount voucher for a tram tour of downtown San Francisco.

In pairs, have this live web chat. After writing each comment, you need to pass it to your partner and wait for a reply.

A You have now returned home after an overall positive experience at The English Academy. You need to know when you will receive the certificate for the exam you took, and you are still waiting for a refund due to the accommodation mix-up.

B You work for the live web chat service for The English Academy. On the basis of what person A says, you can invent all the necessary answers. You should start the chat as follows:

Good morning/afternoon. My name is… How may I help you?

Tips for live web chats • You are writing to a real person, so don’t say anything that you wouldn’t say face to face. • Remember that what you write – both client and company – can be monitored and a record will remain. • Live web chats often use standard sentences to save time typing, but don’t overuse them.

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MO DULE 7 | BUSINESS CASE STUDY

PRACTICE ROUND UP

Stages of a business transaction

Seller

Unsolicited offer

Buyer

Seller/Buyer

Enquiry

Follow-up

Request for quotation

OFFER Sales/Purchase contract

Negotiation

Definition of payment conditions

Credit reference

Definition of delivery conditions

ORDER

Open a letter of credit

Contacting a freight forwarder

Rejection

Confirmation (total/partial)

Counter-offer

Cancellation/Modification

Shipping documents â&#x20AC;&#x201C; invoice/pro-forma invoice

SHIPMENT

Advice of shipment

PAYMENT

ARRIVAL OF GOODS

Complaint

Reminder

Resolution

PR A CTICE RO UND UP

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Professional competences

BUYER

SELLER 18 Marine Parade Brighton BN1 8GH Tel.: 01273 855476 Fax: 01273 855420 www.surfersparadisebn.co.uk info@surfersparadisebn.co.uk

WAVE, which was founded in 1993 in California, USA, is a producer of boards and sails for kitesurfing. It has a solid reputation in both the USA and Australia and its European distributor opened in 2005 in the Netherlands. The sales manager is Mr Hans Van Helden/ Ms Hannah Van Helden.

THE SELLER

You have just introduced a new range of extra light kite boards, which are very competitive in price and particularly suitable for beginners. You have selected the names of potential new clients from a web search and want to write an email to promote these boards. In your email, you should:

ENQUIRY

• give some details about your company and its products; • describe the new boards and their characteristics;

THE BUYER

REPLY TOENQUIRY

UNSOLICITED OFFER

Surfer’s Paradise is a shop located in Brighton, UK, which specialises in equipment, clothing and accessories for windsurfing and kitesurfing. It also has a successful online business and organises courses for people learning to surf. The manager is Mr Sam Wilkinson/Ms Samantha Wilkinson.

Surinameweg 29 2035 VA Haarlem - NL The Netherlands Tel.: +31(0)23 5890244 Fax: +31(0)23 5890277 www.wave.com info@wave.com

• mention a special introductory offer or discount.

You receive an unsolicited letter from the company WAVE. You have never stocked their products before but are interested in receiving some further information. In your email, you should: • ask for a complete catalogue of all their products; • request technical specifications for their new kite board;

• enquire about general delivery times.

Practise this phone conversation in pairs.

THE SELLER

THE BUYER

In response to your unsolicited letter, you have received an enquiry from Surfer’s Paradise. Call the client to thank them for the interest in your company. Inform them that you have sent a complete catalogue by post which includes all the technical specifications too. Tell them that delivery times can be between 3 and 9 weeks, depending on the product. Try to find out which product(s) the client is really interested in and try to win this new business.

You receive a phone call from WAVE, whom you contacted about their new beginner kite boards. You could be interested in around 10 boards and kites for beginners as you are starting a new course soon. You are very satisfied with the products you already stock, so will need some good incentives to add their products to your range.

THE SELLER

REQUEST FOR QUOTATION

304

Write an email following up your phone conversation, conﬁrming the information given. Remember to end on a positive note.

THE BUYER

You are ready to place an order with WAVE, but before you do so you wish to receive their best offer for 5 boards and 5 kites. (You can choose the models from the catalogue on page 305.) Furthermore you need to receive the order within 3 weeks as you are having a special event at your shop and need the products by then.

PR AC T I C E R O U N D U P

You receive a quotation request from Surfer’s Paradise. You are free to decide which discount to offer them. Inform them that the prices indicated are DAP and payment is by bank transfer with 50% on receipt of order and the balance on delivery. You can guarantee delivery within 3 weeks.

Practise this phone conversation in pairs.

THE BUYER

THE SELLER

You receive an email with the quotation from WAVE. You are satisfied with the offer, but you want to discuss the payment conditions. They have requested 50% on receipt of order and the balance on delivery. You want to pay 30 days from date of invoice by bank transfer. Try to negotiate and get as close to your conditions as possible.

You receive a phone call from Surfer’s Paradise to discuss the payment conditions for their order. The amount of the order is considerable and you really cannot offer 30 days for a new client. You will need to negotiate with the buyer but try to get as close as possible to your original request.

THE BUYER

You are now ready to order your products. Write an email with all the details regarding the items, quantity, price, payment and delivery conditions.

THE SELLER

Send a conﬁrmation of the order to the buyer, thanking them for their order and conﬁrming all the details. PR A CTICE RO UND UP

NEGOTIATION

ORDER/ CONFIRMATION

THE SELLER

OFFER

PRACTICE ROUND UP

305

COMPLAINT

ADVICE OF SHIPMENT

MODIFICATION

PRACTICE ROUND UP 10 Practise this phone conversation in pairs. THE SELLER

THE BUYER

A few days after you have confirmed the order, you need to contact the client as there is an unexpected problem with the availability of one of the products. Offer alternative solutions/products to the client so that they do not cancel part of their order.

You receive a phone call from WAVE about a problem with your order. The priority for you is to have the items delivered on time, so you have to choose the best alternative that the supplier offers you.

THE SELLER

11 Write an email to conﬁrm that the order has been dispatched. Give the name of the freight company and the estimated date of delivery.

12 Practise this phone conversation in pairs. THE BUYER

THE SELLER

There are only four days until your shop’s special event and your kites and boards have not been delivered yet. Call the seller and find out what is happening with your order. You are quite angry about this.

You receive a phone call from the buyer who has not received his goods yet. Try to reassure them that you will look into the situation and will call back immediately with news of the delivery date.

THE BUYER

13 You have received the goods but when you unpacked them you noticed the designs on the boards were REPLY/RESOLUTION

THE SELLER

PAYMENT REMINDER

not the same as the ones indicated in the catalogue. Write an email to the seller to complain about this.

THE SELLER

14 You receive a letter of complaint from Surfer’s Paradise. Write a reply to explain that the designs have just been released for the coming season and were created by a team of professional surfers so are very prestigious and will be in great demand. You are willing to substitute them with the old design if the client wishes.

THE BUYER

15 Write a reply saying that you accept these different products but that you want to be informed of any changes in advance in the future.

16 The buyer has failed to settle payment on time. Write a ﬁrst reminder to them. Mention the agreed terms and ask for payment as soon as possible.

17 Practise this phone conversation in pairs. THE SELLER

THE BUYER

Surfer’s Paradise have still not settled their account. Call them and insist that payment is made within five days or you will have to take action. You are quite angry about this as you had changed your standard payment conditions in order to reach a compromise with the client.

You receive a phone call from the seller about the payment of their invoice. You have been on holiday and have no idea that the invoice has not been paid. You are very apologetic about what has happened.

THE BUYER

18 Send an email to the seller to conﬁrm that payment has been made, giving the details of the bank transfer. 306

PR AC T I C E R O U N D U P

Cultural Background Cultural Background DOSSIER 1

GEOGRAPHY DOSSIER 2

HISTORY DOSSIER 3

SOCIETY AND IDENTITY DOSSIER 4

ECONOMY DOSSIER 5

INSTITUTIONS

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1 WARM UP

Discuss these questions in pairs or small groups. 1 Have you ever been to the UK? 2 What is the capital city? What facts do you know about it? 3 What other cities or landmarks/ places can you name? Why are they famous? 4 What do you know about the geography of the country? Can you think of any mountains or rivers?

DOSSIER

Geography The UK – Quick facts The United Kingdom of Great Britain and Northern Ireland, commonly called the United Kingdom or the UK, includes the countries of England , Scotland, Wales and Northern Ireland. Great Britain (or sometimes just Britain) refers to the largest island which includes the countries of England, Scotland and Wales while the expression British Isles refers to this entire group of islands off the north west coast of mainland Europe, including Great Britain, Ireland, the Channel Islands, the Isle of Man, the Orkney Islands and many others. The UK covers an area of just under 244,000 km2 and has a population of approximately 66.4 million, with 55.9 million people living in England, 5.4 million in Scotland, 3.1 million in Wales and 1.8 million in Northern Ireland. England is the most densely populated with 413 people per square kilometre and Scotland the least densely populated with 68 people per square kilometre. The capital city of England and the UK is London, situated in the south east of the country on the River Thames. A famous tourist destination, as well as one of the most important business and financial centres in the world, London has a population of 8.9 million. Cardiff, located on the Bristol Channel, is the capital of Wales and with a population of 364,248, it is the largest city in the country. Edinburgh, with a population of 518,500, is the capital of Scotland while the capital of Northern Ireland is Belfast (population 341,877).

ACT IV ITACTIVITIES IE S

The term ‘England’ is often incorrectly used to refer to the whole of the UK and the term ‘English’ to refer to the citizens, instead of using ‘British’ or the individual country’s nationality.

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England 55.9 million

Scotland

Reading comprehension 2

Edinburgh

Read the text and complete the fact files.

Wales

151 per sq km

DO S S I E R 1 | UK vs USA

Northern Ireland

135 per sq km

The national flag of the UK is the Union Flag (often called the Union Jack) and it is made up of the flags of Scotland, England and Northern Ireland.

Geography |

DO SSI ER 1

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Cambridge

WARM UP

Which country/ area of the UK do you think… • has the highest mountain? • is the flattest? • has the largest freshwater lake? • has lots of canals?

Quickly read the texts to check if you were correct.

fens acquitrini marshland paludi moors lande, brughiere quaint pittoreschi

Geography of the UK The East of England The East of England is the lowest and flattest region of England, with fens and reclaimed marshland, much of it barely above sea level. It is an important agriculture area, mostly for cereals and vegetables. There are also some important fishing ports and Felixstowe is the busiest container port in the country. Cambridge is famous for its world-renowned university and around the city there are a lot of high-tech businesses, particularly in the fields of software, electronics and biotechnology. Stratford upon Avon

The Midlands

The Midlands is an area of mostly flat land in central England. Birmingham, the biggest city, was an important centre during the Industrial Revolution, together with other industrial cities such as Coventry, Derby and Leicester. The area is linked to London through a large network of man-made canals which were built to transport goods from this busy industrial area to the capital. The area also has a lot of agricultural land and there are famous tourist destinations such as Stratford upon Avon (Shakespeare’s birthplace), Nottingham (Robin Hood’s land) and Lincoln (famous for its Gothic cathedral).

The North of England

Manchester

The Pennines run north to south down the centre of this region and there are the Cumbrian mountains in the west, both of which offer spectacular countryside, ranging from lakes to wild open moors, isolated villages and sheep farms. This area is also famous for its factories, coal mines and industrial cities: Sunderland and Newcastle for shipbuilding; Sheffield for steel; Manchester for cotton. These industries went into decline after World War II and many were closed down, resulting in high unemployment and poverty particularly in the 1980s. These cities have undergone economic revival, becoming centres for culture and tourism as well as for new businesses and enterprises.

The South of England This area is characterised by gentle hills, fertile farmland, quaint villages and historical cities and landmarks, such as Bath with its Roman origins, the prehistoric monument at Stonehenge and the chalk figure of the Long Man at Wilmington. The river Thames flows across southern England, starting as a small stream in the Cotswolds and flowing through important towns and cities such as Oxford, Reading, Windsor and, of course, London. Cornwall and Devon in the south west of England have dramatic, rocky coastlines and high moorland areas. The south coast is a popular tourist destination and also has several important ports such as Southampton and Portsmouth. London

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Scotland

Edinburgh

Scotland forms the northern part of Great Britain and it is bordered by England to the south and surrounded by the North Sea and Atlantic Ocean. Apart from the mainland, there are hundreds of islands but only about 95 of them are inhabited. The main population, however, lives in the Central Lowlands area. Glasgow, the biggest city in Scotland, was once famous for heavy industry, in particular shipbuilding. Now most businesses are in the tertiary sector. Edinburgh is an important financial centre. The Highlands in the north of Scotland offer incredible mountain scenery with many lochs (lakes), including the famous Loch Ness, and Ben Nevis, the highest mountain in the British Isles at 1,344 m.

Wales

Snowdonia

Wales is a small country, 274 km from north to south. It borders England to the east and the rest is over 1,200 km of coastline. The north of the country is mountainous and Snowdon is the highest peak at 1,085 m. Tourism in this area is very important. As you travel south, there are more hills and valleys. The south coast is the main inhabited and industrialised area, with cities like Swansea and Cardiff. This was an important coal mining area but now business and financial services form the main part of the economy. The River Severn, the longest river in Great Britain, starts in mid Wales and then flows through central England to the Bristol Channel.

Northern Ireland Northern Ireland shares a border with the Republic of Ireland and is separated from Great Britain by the Irish Sea. It has a varied terrain with the Mourne Mountains, fertile agricultural land and beautiful coasts and beaches. Lough Neagh is the largest freshwater lake in the British Isles. The River Lagan valley and the area around Belfast are the main industrial areas and about a third of the population lives here. There are many spectacular tourist spots such as the Giantâ&#x20AC;&#x2122;s Causeway, a World Heritage Site, and the seven stone circles at Beaghmore. The Giantâ&#x20AC;&#x2122;s Causeway

Read the texts again and decide if these sentences are true (T) or false (F). Correct the false ones. T 1 2 3 4 5 6 7 8 9 10 11 12

The East of England does not have any coastline. There are a large number of software and electronics companies near Cambridge. It would be possible to travel from Birmingham to London by boat. The Pennines are mountains in Scotland. The north of England had many important industries in the past. The River Thames starts in London. Scotland shares a border with Wales. Most people in Scotland live on the Scottish islands. The south of Wales is less mountainous than the north. Coal mining is still very important in Wales. The Irish Sea divides Northern Ireland from the Republic of Ireland. There is a lot of industry around the city of Belfast.

Oral exam practice 4

ACTIVITIES

Reading comprehension

Mediating concepts

ES Choose one of the four countries of the UK and prepare a short presentation (3-5 minutes), including details about the population, the geography of the area and any important cities or landmarks.

Geography |

DO SSI ER 1

311

WARM UP

Have you ever been to the USA? What places did you visit or would you like to visit? Use the information in the fact file to complete this presentation of the USA.

The USA â&#x20AC;&#x201C; Quick facts Name: United States of America Area: 9,833,517 km2 Borders with: Mexico, Canada, Pacific Ocean, Atlantic Ocean No. of states: 50 (48 contiguous states; Hawaii and Alaska are separate) + the District of Columbia

Capital city: Washington DC Population: 329,256,465 State with highest population: California State with lowest population density: Alaska Flag: Stars and Stripes

The United States of America is situated between the Pacific and (1) ________________ Oceans and it has borders to the north with (2) ________________ and to the south with (3) ________________. It is formed of (4) ________________ states and a federal district . Two of these states are actually separate from the rest: Alaska is located to the north west of Canada and (5) ________________ is an archipelago in the middle of the Pacific Ocean. The US also has overseas territories, such as the United States Virgin Islands and Puerto Rico in the Caribbean and American Samoa in the South Pacific, which are controlled to various degrees by the US government. The USA covers an area of (6) ________________, more than twice the size of the European Union. The population is currently estimated at (7) ________________. The District of Columbia has the highest population density at 11,535 per square mile, followed by New Jersey at 1,213 per square mile. The two states with the lowest population density are Wyoming and (8) ________________ with, respectively, 6 and 1.3 inhabitants per square mile. (9) ________________ is the state with the highest population, 39,557,045 (2018 estimated figure). The US flag, commonly called the (10) ________________, has 50 white stars to represent the number of states and 13 stripes to represent the original 13 colonies. Downtown Manhattan Monument Valley, Utah

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DO S S I E R 1 | UK vs USA

This is the District of Columbia where the capital city Washington DC is located. It is land which was donated by the State of Maryland specifically to build the nationâ&#x20AC;&#x2122;s capital and is not part of any state.

ACTIVITIES

Listening 2.16 P Listen to a tourist guide talking about three different tourist attractions/ geographical features in the USA and fill in the missing information.

Geography |

DO SSI ER 1

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WARM UP

Read the texts quickly to find the answers to these questions. 1 Which is the smallest state in the USA? 2 Which is the largest state? 3 Which is the largest city? 4 Where is the highest mountain? 5 Where is the lowest point in the USA? 6 Where is the largest lake?

prairies praterie grasslands pascoli

Fortune 500 is an annual list, compiled and published by the business magazine Fortune, of the top 500 companies in the USA. The classification is based on the companies gross revenue and includes companies like Exxon Mobil, Walmart, Apple and Ford. Some Fortune 500 companies based in Atlanta are Delta Airlines, Home Depot and UPS.

Geography of the USA The North East This region of the USA, from the capital Washington up the Atlantic coast to the border with Canada, has the largest city – New York – and the smallest state – Rhode Island. It is the most densely populated and industrialised region, with a number of important cities along the Atlantic coast. Philadelphia and Boston are both historically important, having played a significant role in American history; Washington is the political capital and New York the financial, business and cultural capital. Delaware and Baltimore are also important cities. This area also has farmlands, forests and valleys with the Appalachian mountains in the east. The St. Lawrence Seaway connects the Atlantic Ocean to the Great Lakes.

The South East This region covers the states from Louisiana across to Georgia, and up to Virginia in the north and down to Florida in the south. Traditionally an agricultural area for growing cotton, tobacco, rice and sugar, it is now more diversified and economically stronger, with many important cities and business centres. New Orleans, a port and a centre for tourism, is situated in the flat lowlands of the Mississippi Delta. Atlanta is well known for CNN and many Fortune 500 companies are located there. Miami, with its Latin American influences, is a tourist’s dream, along with the rest of Florida, with its wide beaches, the Everglades and theme parks.

The Midwest This region, which includes amongst others the states of Wisconsin, Ohio, Minnesota and Iowa, is sometimes called the ‘heart’ of the USA. It is an area of flat, fertile land which is vital for agriculture with crops like corn, wheat and oats. The northern states also produce milk and cheese. The longest river in the USA, the Missouri, starts in Montana and flows into the Mississippi River, the second longest river in the USA. In the north, on the Canadian border, there are the Great Lakes. Lake Superior is the largest and is over 560 km long. Important industrial cities include Chicago for steel, chemicals and Grand Canyon financial services, Detroit for cars and Cleveland for steel and petroleum refining, although as heavy industry declines, they are moving towards becoming centres for new technologies and services.

The South West This region (Arizona, Texas, New Mexico and Oklahoma) shares a border with Mexico. It is full of open spaces, with prairies, grasslands and deserts, but at the same time it is home to some of the fastest growing cities in the USA, thanks in part to the climate. The Rocky Mountains extend north from New Mexico, and the Colorado River, which created the spectacular canyons like the Grand Canyon, flows through Arizona. There are many Native American reservations in this area, and it also is influenced by Mexican culture. 314

New Orleans

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Hawaii

The West This is a very geographically diverse region, but all of the states are mountainous to some extent. The Rocky Mountains run approximately north to south through the central states of this region, while the Sierra Nevada mountain range is in southern California and the Cascade mountains are in Oregon and Washington. To the east of the Rocky Mountains there are the Great Plains, while to the west there are the arid deserts of Utah and Nevada. The lowest point in the USA is Death Valley in California at 86 metres below sea level. The area has some agriculture, especially fruit, vegetables and wine in the Pacific Coast area, as well as sheep and cattle farming and mining. Tourism is an important industry both in the major cities, such as Las Vegas, Los Angeles and San Francisco, as well as the many National Parks, like Yellowstone and Yosemite.

Yosemite National Park

Alaska and Hawaii, although detached from the other western states, are often classified together with this region. Alaska, the largest state in the USA, is mountainous and has the highest peak in the USA (Mount McKinley, 6,194 Alamo Square, San Francisco m). Many parts of the state are uninhabited and the majority of the population lives in the area of Anchorage. There are vast crude oil deposits in the region. The cattle bestiame Hawaiian islands are volcanic. Tourism is the main industry, although the islands do crude oil petrolio export coffee, pineapple and sugar. greggio

Read the texts again and answer these questions. 1 What is the landscape like in the North East? 2 What is the purpose of the St. Lawrence Seaway? 3 Which areas of the South East attract a lot of tourism and why? 4 What is the economy of this area based on? 5 What foodstuffs are produced in the Midwest? 6 How have the industrial cities of the Midwest changed?

7 Why is there a lot of Mexican influence in the South West? 8 What common feature do the Western states share? 9 Where is most of the agriculture located in this region? 10 How do the economic resources of Alaska and Hawaii differ?

ACTIVITIES

Reading comprehension

Internet research 3

Plan a trip across the USA, from coast to coast. Then present your ideal journey to the class. • Which states would you travel through? • Which important cities/areas would you visit?

• How would the landscape change during your trip? • Where would you spend most time? Why?

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Climate in the UK

WARM UP

The UK weather is influenced by its position close to mainland Europe and by the Atlantic Ocean. This means that the weather is 1 What is the notoriously variable and changes from day to weather usually day, often many times a day, but the climate like in the UK can be classified as temperate. Generally and the USA? the west is wetter and cloudier with milder 2 If you have winters, while eastern parts are drier and less visited these windy. It is usually colder in the north and countries, what there is a bigger temperature range. Snow was it like when can fall almost anywhere in the UK, although you went? it is most common in the north of England 3 How do and Scotland, and it can often happen as you think it late as spring. Record temperatures for the compares to UK are 38.7°C and -27.2°C, but average the weather in temperatures are not that extreme: the your country? Scotland average maximum temperature New York City in July is 20.6°C in England and 16.9°C in Scotland; the average minimum temperature in January is about 1.2°C in England, Wales and Northern Ireland, and -0.2°C in Scotland. Discuss these questions in pairs or small groups.

Climate in the USA

Hurricanes and tornadoes

ACTIVITIES

Due to its size, the USA has a very wide range of weather and climatic conditions. (1) ________________ has a sub-tropical climate, with only rare cold days and snow. Hawaii also has a tropical climate, with no great difference in the average daily temperature during the year. Alaska is the opposite with a (2) ________________ climate, where mountains have permanent snow and ice. The South West is (3) ________________ and the North East usually has very cold, snowy winters and (4) ________________ summers. The Central Plains can be subject to warm humid air from the (5) ________________ or cold air from the north which means dramatic changes in weather and temperature in one day, especially in (6) ________________ and spring. The coastal areas of California have a Mediterranean MORE ABOUT... climate, but (7) ________________, for example, In the USA, it is common has its own microclimate and is often cooler with to use Fahrenheit to talk about temperature wind and (8) ________________. The highest while in the UK Celsius temperatures in the USA, and often in the world, is usually used. have been recorded in Death Valley, California.

Reading comprehension 2

Read the text about the climate in the UK and answer these questions. 1 What factors influence the weather in the UK? 2 What are the differences in the climate in the east and west of the country?

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2.17

P Listen to this description of the climate in the USA and complete the text.

DO S S I E R 1 | UK vs USA

32°F 50°F 68°F 86°F

3 Which is the coldest area? 4 What are the highest and lowest temperatures recorded? How do they compare to average temperatures?

Listening 3

0°C 10°C 20°C 30°C

The Art, and Heart, of Talking About the Weather It’s one of the most criticised conversation starters in the English-speaking world, and yet not only is it important, it’s good for us. I’m talking about the weather. Again. Yes, especially when we’re in the middle of a heatwave or it’s snowing in summer, or there’s a terrifying thunderstorm going on. All of which seem to be happening more often these days. One of the small benefits of starting off a conversation about the weather is that the person’s response may provide clues as to how – or whether – you should continue beyond that. For example if, in a lift, you make a banal comment about the temperature outside, and the respondent comes up with a clever remark that makes your heart flutter, it could be love! Or friendship! Or, at the very least, you might leave the lift with a smile on your face that wasn’t there when you entered. And that’s why I persist in talking about the weather; it is the simple joy of talking to a stranger. We know that talking to strangers is good for us because it improves our mood and makes time pass more quickly. Now more than ever, we need to reach out to people we don’t know; to find human connection in a world that seems determined to keep us apart. The weather is a force that we cannot control but affects us all. What easier way is there to remind us of our shared humanity? Adapted from The Guardian, 2019

Historical maximum and minimum temperatures 1968 Jan Feb March April May June July August Sept Oct Nov Dec

Max Temp °C Min Temp °C 7.2 1.3 5.7 0.2 11.1 3.5 13.7 4.4 15.4 7.0 20.6 11.5 20.7 12.6 20.2 12.6 18.8 11.6 16.5 10.7 9.5 4.8 5.4 1.0

2018 Jan Feb March April May June July August Sept Oct Nov Dec

Max Temp °C Min Temp °C 9.7 3.8 6.7 0.6 9.8 3.0 15.5 7.9 20.8 9.8 24.2 13.1 28.3 16.4 24.5 14.5 20.9 11.0 16.5 8.5 12.2 5.8 10.7 5.2

Source: UK Met Office - Data for Heathrow, London

ES Read the article and choose the option which fits best according to the text. 1 What aspect of British lifestyle is the article talking about? A How the weather is always unpredictable. B People talk about the weather a lot. C British people don’t talk to strangers. D People check the weather forecast every day. 2 What is the benefit of talking to a stranger? A We can complain about the bad weather. B It affects what others think of us. C It makes us seem friendly and open. D It helps make us feel better. 3 What is the message of the article? A It is important to keep a human, emotional connection with strangers. B British people should display their emotions more openly. C It takes a long time to learn how to talk about the weather successfully.

D We always need to be truthful and speak from the heart. 4 Look at the two tables. Which statement is true? A The data shows yearly temperature changes over a fifty year period. B The minimum temperature recorded in November was the same in 1968 and 2018. C The maximum temperatures recorded in the third quarter were higher in 2018 than in 1968. D The data shows the UK average maximum and minimum temperatures in two separate years.

ACTIVITIES

Exam practice - Comprehension & interpretation

5 Using the information in the two tables, write a short paragraph about the differences in temperatures in the two years, giving possible reasons for the changes.

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1 WARM UP

When you imagine Australia and New Zealand, what are the first five things that you think of? Write them down, and then compare with a partner.

DOSSIER

English-Speaking World Australia and New Zealand Australia and New Zealand are the two largest countries in the continent of Oceania in the Southern Hemisphere.

SIMILARITIES • They are both island states, and are surrounded by the South Pacific Ocean and, in the case of Australia, the Indian Ocean too. • Both countries were once colonies of the British Empire and are now members of the Commonwealth group of countries – so they are English-speaking countries. • Australia has 2 cities with a population of around 5 million people – Sydney and Melbourne. However, the capital – Canberra – is only the country’s 7th largest city. Similarly, the largest city in New Zealand is Auckland with a population of 1.4 million while the capital – Wellington – is the third largest city. • Because they are both in the Southern Hemisphere the seasons are inverted compared to Europe – so Christmas occurs in the middle of summer, and August is a cold month.

• Both countries have indigenous minority populations – known as the Aborigines in Australia and the Maoris in New Zealand. • It is possible to find animals which cannot be found in the wild in any other place on Earth: Australia is famous for its kangaroos and wallabies, the possum, the koala bear and a wild dog called the dingo. New Zealand has an unusual bird called the kiwi, which has a long beak and cannot fly; and many types of penguins and marine animals that can only be found there.

DIFFERENCES

Because both Australia and New Zealand are part of the Commonwealth they have a lot in common with Great Britain – for example, they drive on the left and their head of state is Queen Elizabeth II.

• Australia is an enormous country – almost as large as the USA and the 6th largest in the world, while New Zealand is only slightly larger than Great Britain; • Australia has a larger population – about 25.2 million, compared to only 4.8 million in New Zealand; • About 70% of Australian land is arid. However, the country also has mountains where it snows in winter, and, in the North, which is closer to the Equator, the climate is tropical. Because New Zealand is further south, it has a cooler, wetter, temperate climate.

ACTIVITIES

MORE ABOUT...

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Despite these differences, Australia and New Zealand have always been economically and politically close. Since 1983 there has been a trade agreement between the two countries known as Anzcerta, which has benefitted them both substantially.

Reading comprehension 2

Read the text and decide if these sentences are true (T) or false (F). T 1 2 3 4 5 6 7

Both Australia and New Zealand are in the Southern Hemisphere. Both countries are islands in the Indian Ocean. At Christmas time it is warm in Australia. You can find kangaroos in New Zealand and Australia. New Zealand has a larger population than Australia. Australia has a varied climate. The climate in New Zealand is cooler because the country is further south.

DO S S I E R 1 | English-Speaking World

Uluru or Ayers Rock In the centre of the Australian desert there is a unique and mysterious land feature, listed as a World Heritage Site, known as Ayers Rock, or Uluru – two official names – one given by the white colonialists and the other by the native Aborigines, the Anangu. It is a large sandstone mass standing 348 metres above the surrounding desert plain and 863 metres above sea level. It is in a dry, flat area, with very little vegetation, and is considered sacred to the indigenous people. Nearly half a million people visit the rock for tourism every year and it is considered particularly beautiful at sunset when it changes colour and becomes red. There are many mysteries connected to Uluru.

For the Anangu people it is considered the resting ground of the spirits of the creators of the world itself. The Anangu do not climb to the top of the rock and do not want parts of it to be photographed for spiritual reasons. One other mystery connected to the rock is that nobody should take away any pieces of rock from the site. If they do, they will be cursed by evil spirits. This possibly seems just a superstition, but many people have reported strange incidents after taking rocks away from the site.

MORE ABOUT... On 26th October 2019 a total ban on climbing Uluru came into force. Previously, climbing was not officially banned but tourists were asked to respect the sacred nature of the rock.

Dreamtime

The aboriginal Australians have a very original form of spirituality called ‘dreaming’, or ‘dreamtime’. They tell stories about the creation of sacred places, land, people, animals and plants; and they believe that every creature also exists eternally in a dream form – so the soul exists both before and after life. They also use this code to establish laws and customs. Connected to this tradition is the belief in ‘songlines’ – paths of energy which the white man cannot see but Aborigines can sense. These invisible lines help them to find their way when walking long distances in the desert – a practice called ‘walkabout’ which Aboriginal boys have to perform as a ritual to become adults. They are called ‘songlines’ because the Aborigines sing as they walk, to help them recognise the path. Uluru sandstone arenaria cursed maledetti and the surrounding area is crossed by many songlines which is another reason why it is sacred for the Aborigines.

Read the texts about Uluru and Dreamtime and answer these questions. 5 What is ‘dreamtime’? Why does Uluru have two names? 6 What do the Aborigines do to help them What is unusual about Uluru at a certain time of day? recognise the paths of energy? Why do the Anangu people not climb the rock? 7 What is ‘walkabout’ and why do Aborigines What apparently happens if you take rocks away do it? from Uluru?

1 2 3 4

ACTIVITIES

Reading comprehension

Listening 4

2.18

P Listen to this description of the Aborigines and fill in the missing information.

The Aborigines 1 The term Aborigine is used to refer to the indigenous or (1) ___________ people of Australia. 2 These people once spoke about (2) ___________ different languages. 3 One cultural difference was that the Aborigines did not usually wear (3) ___________. 4 The Europeans did not treat the Aborigines well because they thought they were (4) ___________. 5 The boomerang is used as a (5) ___________ by native Australians. 6 Their culture is rich in music, stories and art, but it did not have a (6) ___________.

Writing 5

P Write a story (about 100 words). It must begin with this sentence:

‘We arrived at Uluru at 3 o’clock in the afternoon and the thermometer in the coach said it was 42°C.’

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Discuss these questions in small groups. 1 What do you do to help the environment? 2 What does your local council do? And local businesses? 3 What about the national government?

reach portata compels obbliga pay our fair share fare la propria parte leaded con piombo carbon offsetting compensazione delle emissioni di carbonio

ACTIVITIES

A staycation is a holiday spent in your own country and involves enjoying the local area and attractions whilst returning home to sleep every night.

DOSSIER

Going Deeper Global warming

Going Green but Getting Nowhere Y

ou reduce, reuse and recycle. You refuse plastic bags in the shops. You do all the right things. Good. Just know that it won’t save the tuna, protect the rain forest or stop global warming. The changes necessary are so large and profound that they are beyond the reach of individual action. Even if you sold your car, stopped using air-conditioning in the summer and took a staycation , you would, in fact, have no impact on the planet. Americans would continue to emit an average of 20 tons of carbon dioxide a year; Europeans, about 10 tons. Leading climate scientists say we need to decrease global annual greenhouse gas emissions by at least half of current levels by 2050 and much further by the end of the century. And that will still mean rising temperatures and sea levels for generations. Sadly, individual action does not work. It distracts us from the need for collective action, and it doesn’t amount to enough. Self-interest, not self-sacrifice, is what causes noticeable change. Only the right economic policies will enable us as individuals to be guided by selfinterest and still do the right thing for the planet. Things won’t change until a regulatory system compels us to pay our fair share to

Reading comprehension 2

Read the article and decide if these sentences are true (T) or false (F). T

The author of the article believes: 1 global warming is not a problem. 2 individual action helps solve the problem of global warming. 3 the solution to global warming can be found in new economic policies. 4 we must all pay the full price for our actions.

Speaking – Critical thinking 3

Discuss these questions in pairs. 1 Do you agree with the author on the above points? Why/Why not? 2 Should countries with the largest CO2 emissions, such as the USA, do more to reduce their CO2 emissions? 3 Do you think that international agreements to reduce pollution, like the Kyoto Protocol, work?

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CARBON OFFSETTING

Carbon offsets can be purchased when you travel by (1) ___________, car or other forms of transport to reduce the effect of (2) ___________ emissions on the environment.

WARM UP

1 ton of carbon is equal to: 2,000 miles by plane (3) ___________ miles by medium-sized car 1,350 miles by jeep using a (4) ___________ for 10,600 hours

How do you travel to school? What about travelling at the weekends or on holiday? What kind of impact do these forms of transport have on the environment? Is there a greener alternative?

Carbon offset projects: planting trees installing (5) ___________ making bio-fuels from cooking oil Problems: no proper regulations airlines calculate their emissions for flights in different ways (6) ___________ might have been sold before difficult to check that companies use the money to make genuine savings

2.19 P Listen to this interview with an environmental journalist on the topic of carbon offsets and fill in the missing information.

Speaking – Critical thinking 6

What do you think about carbon offsets? What are the advantages and disadvantages? Do you think they are an effective way of lessening the harmful effects of emissions?

Have you ever calculated your carbon footprint? Go online to one of the many carbon footprint calculators, like the one on the WWF website, and see how much your actions effect the environment.

ACTIVITIES

Listening

Written exam practice 7

ES Write a short essay (150-200 words) about global warming following these guidelines: • define global warming and its major causes; • illustrate some of the ways to reduce our impact on the environment; • give your opinion on what individuals/governments/companies should do to stop global warming.

CLIL – POLITICS/INTERNATIONAL RELATIONS Find out about the current international agreements for climate change and any negotiations that are underway. Which nations are the most committed to enforcing these rules?

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DOSSIER

Wordsworth’s Romantic Nature 1

Read this text and complete the biography card.

MORE ABOUT... The poem ‘I Wandered Lonely as a Cloud’ is about an experience Wordsworth had in the Lake District in 1804 while there with his sister, Dorothy, who described it in prose.

CLIL – ITALIAN LITERATURE Compare and analyse Romanticism in Italian and English poetry.

floats fluttua hosts moltitudini fluttering svolazzando twinkle scintillano tossing scuotendo sprightly allegro outdo (v) superare glee allegria gazed fissai bliss beatitudine

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DATE AND PLACE OF BIRTH: ______________________ EDUCATION: ____________ ______________________ PUBLICATIONS: __________ ______________________ POLITICAL IDEAS: ________ ______________________ POETICAL VIEWS: ________ ______________________

2.20 Listen and read the poem ‘I Wandered Lonely as a Cloud’. What is the rhyme scheme? Choose the correct pattern from the box.

Continuous as the stars that shine And twinkle on the milky way, They stretched in never-ending line Along the margin of a bay: Ten thousand saw I at a glance, Tossing their heads in sprightly dance.

For oft, when on my couch I lie In vacant or in pensive mood, They flash upon that inward eye Which is the bliss of solitude; And then my heart with pleasure fills, And dances with the daffodils.

DO S S I E R 1 | Lit Corner

Walt Whitman

Read this text and find out more about the Lake District. What is the countryside like? What problems does the area face?

MORE ABOUT...

The Lake District National Park Within Great Britain, there are 15 national parks: 10 in England, 3 in Wales and 2 in Scotland. These parks are protected areas due to their beautiful countryside, wildlife and cultural heritage. They range from mountainous areas, to woods, coastal areas and wetlands. Most visitors go to enjoy the natural landscape and scenery and to go walking or do other outdoor sports such as climbing and kayaking. They also visit the towns and villages within the parks. One of the oldest English parks is the Lake District National Park which was founded in 1951. It is also the largest, covering 2,362 km2. This spectacular area, with its mountains, wooded valleys and many lakes also holds other records. You can find Windermere, the largest lake in England, which is over 18 km long. The wettest place in England is also in the Lake District. The village of Seathwaite once registered 316.4 mm of rain in 24 hours. You can also find the highest mountain in England, Scafell Pike at 978 m. With over 19 million visitors a year, tourism is one of the biggest challenges for the park to face. While tourists spend around ÂŁ1.4 billion every year, creating jobs and income for the local economy, they also bring with them pollution and traffic congestion (89% travel by car), litter, erosion and the risk of fires.

Beatrix Potter was an English author and illustrator, best known for her childrenâ&#x20AC;&#x2122;s stories about animals, like The Tale of Peter Rabbit. She lived most of her life in the Lake District.

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2 WARM UP

DOSSIER

History A brief history of the UK

Scan the texts quickly and match these historic figures to the correct description. 1 2 3 4 5 6

Claudius William I King John Henry VIII Oliver Cromwell Wellington

formed the Church of England won the Battle of Waterloo important figure in the Civil War signed the Magna Carta ruled under the feudal system first Roman Emperor to conquer Britain

d e

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DOSSIER 2 | UK vs USA

Prehistoric history The first people to inhabit the British Isles were hunters and gatherers. Around 4500 BC the introduction of farming marked the beginning of the Neolithic period, when people started to have more settled lives and introduced rituals and ceremonies. Famous monuments, like Stonehenge, were built in this period. Through the Bronze and the Iron Ages the population increased and defensive forts were built.

The Romans (43-410 AD) The Romans first arrived under Julius Caesar in 55 and 54 BC but the first conquest was carried out by Claudius and his troops in 43 AD. They gradually conquered all of what is now England and Wales but never managed to conquer Scotland. In fact, they built Hadrianâ&#x20AC;&#x2122;s Wall across the north of the country to protect them from the Scottish tribes. The Romans founded many important settlements, such as London, Bath, Manchester and York. They also built roads and introduced sanitation and sewage systems.

The Vikings (800-1066) The next invasions came from the Vikings from Scandinavia. They settled in many areas and dominated a large part of the country, taking over political control. Yorvik (now York) was their capital. Their legacy was the formation of the independent kingdoms of Scotland and England.

The Tudors (1485-1603)

Now read the texts more carefully and decide if these sentences are true (T) or false (F). T 1 2 3 4 5 6 7 8

ACTIVITIES

Reading comprehension

Internet research 3

• any similarities or connections with British history.

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WARM UP

Read the text quickly and choose the correct heading for each paragraph. 1 New employment possibilities 2 A change in the country’s economy 3 Money and capital 4 Developments in the textile industry 5 The importance of steam

The Industrial Revolution and the Victorian period A

During the Industrial Revolution (mid 18th to mid 19th century) fundamental changes occurred in England, and then spread throughout Europe and North America. The economy shifted from agriculture to industry and trade and Britain became the world’s first industrial nation. B

The invention of the steam engine and its application in industry caused a great leap for industrialisation. It was used to drive machinery in factories and in agriculture and it was crucial to the development of the first steam locomotives and a reliable and efficient rail service. The railways, together with improved road and canal links, revolutionised communication and the transport of people and goods. C

The most dramatic changes were seen first in the textile industry. Prior to 1760, the manufacture of textiles occurred in the home, a ‘cottage industry’, and involved a long process from raw material to finished product. Then new inventions, such as power looms, were perfected and the manufacture of textiles became a much quicker and more efficient process. The number of mills rapidly increased, particularly in the north of England, and towns and cities quickly grew in size as people moved from the countryside to work in the new factories. D

Agriculture still provided food for the population and raw materials for the textile industry but improved methods of farming, irrigation, livestock breeding and the use of steam powered machinery meant that less labour was necessary, leaving many without work. Thanks to steam power, the demand for coal grew and coal mining in turn underwent major changes as production steadily increased to meet this demand. Many people, including women and children, found new work in the coalmines as well as the ironworks and other factories that were rapidly expanding. E

ACTIVITIES

leap balzo in avanti power looms telai meccanici mills stabilimenti

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The ownership of factories and machinery was a new source of wealth and owners needed funds: long-term capital to expand operations and short-term capital to purchase raw materials and pay wages to their employees. A banking system was set up and London became the country’s banking and financial services centre.

Reading comprehension 2

Read the text again and answer these questions. 1 2 3 4

Why was the development of steam power important for the Industrial Revolution? Why did people move from the countryside to cities and towns? Which region of England developed most during the Industrial Revolution? What changes happened in the field of textiles?

DO S S I E R 2 | UK vs USA

The Victorian Compromise

Queen Victoria

The dramatic and rapid ■ Born: 24/5/1819 changes during the Victorian ■ Died: 22/1/1901 period meant that, on the one ■ Length of reign: 1837-1901 hand, there was the progress ■ Married: Prince Albert, brought about by the Industrial from Germany Revolution, the rising wealth of ■ Children: nine the upper and middle classes and the expanding power of Britain and its empire; on the other hand there was the poverty, deprivation and injustice faced by the working classes. This contradiction is often referred to as the Victorian Compromise. During this period, the upper classes continued to prosper and the middle classes had the possibility to improve themselves and their fortunes. The values of the Church, family and home were fundamental. The family unit was based around the authoritarian father, with the mother in a submissive role. Morality and respectability were key, and society became almost puritanical. Monuments and buildings were constructed to celebrate civic identity and pride. Philanthropy and charity were important, so libraries, wash houses and swimming baths were built to allow members of the working classes to improve themselves. However, in reality, this was hardly possible. The housing conditions for the working classes were awful, with no clean water or proper sanitation. Working hours were long, often as many as 16 hours a day, in dirty factories full of dangerous machinery. Children, even as young as five, had to work too, for example in the textile mills, mines and as chimney sweeps, and had little or no education. Disease and epidemics were widespread and infant mortality was high. If people were too poor to support themselves, they were sent to workhouses . It is clear that the morals, beliefs and values of the Victorians were not reflected in the reality of the society around them. Nonetheless, this contradiction meant many reformers fought to improve and change conditions for the working and lower classes. As the century progressed, various social reforms were introduced to reduce working hours, improve health and grant free education to children. Improvements were also made to the cities with clean water, sewage systems and gas lighting.

sewage systems sistemi fognari People with no money, job or home, as well as orphans, were sent to these workhouses, which provided them with basic food and somewhere to live. In the workhouse they had to work and conditions were terrible. An example can be found in Charles Dickens’s Oliver Twist.

Read the text and answer these questions. 1 What does the term Victorian Compromise refer to? 2 What values did the upper classes have? 3 How did the working classes live?

4 What was life like for children? 5 What was the purpose of a workhouse? 6 What changes came about towards the end of the Victorian period?

ACTIVITIES

Reading comprehension

Speaking 4

Discuss these questions in pairs. 1 Which developments in the Victorian age do you think were most important? Why? 2 Why was life difficult for children in the Victorian period? 3 What do you think was the most difficult aspect for children/adults?

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WARM UP

What do you think the expression ‘The sun never sets on the Empire’ means? Read the first paragraph to check.

stems deriva

Most former British colonies are members of the Commonwealth. This is a non-political, voluntary association to promote democracy, human rights and world peace. Queen Elizabeth II is the Head of the Commonwealth. Apart from the UK, she is also the head of state for 15 members.

The British Empire Origins The origins of the British Empire go back to the 16th century and Britain’s interest in exploring the world to search for resources and establish new trading posts. At its height in the 1920s, the British Empire covered approximately 25% of the land in the world with 25% of the world’s population. The famous saying ‘The sun never sets on the Empire’ stems from the fact that, because of the extent of the British territories, it was always daytime somewhere in the Empire.

The rise The first British colonies were established in North America at the beginning of the 17th century. At the same time, Caribbean islands like Jamaica and Barbados were colonised and sugar plantations, which used slave labour, were set up. Because of this slave trade, parts of East Africa like Sierra Leone and Nigeria became economically important to Britain. Britain lost the 13 North American colonies with the Declaration of Independence in 1776 but continued to colonise other parts of the world, including Canada, Australia, New Zealand, India and South Africa. Thanks to its position, South Africa was strategically important for sea travel to Asia and for the same reason, the British took control of the Suez Canal in Egypt. All these countries not only supplied raw materials to Britain, they were also new markets for the export of British products.

The decline

ACTIVITIES

Towards the end of the 19th century, however, the industrial growth of other countries increased competition for Britain and trade began to decrease. Furthermore, people were distancing themselves from the racist notion of imperialism. In 1931, Britain agreed to form a Commonwealth of Nations with Canada, South Africa, New Zealand and Australia. After World War II, Britain, in serious economic difficulties, no longer had the money to maintain an empire. India was the first country to gain independence in 1947. By the end of the 1960s all the African colonies, apart from Rhodesia (renamed Zimbabwe in 1980) were independent, and by the end of the nineties so were the Caribbean islands. The last colony was Hong Kong which was returned to China in 1997. Britain undoubtedly left its mark on its colonies – for better and for worse – including its language, but the colonies also changed Britain, especially with the widespread immigration from the colonies after World War II.

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Reading comprehension 2

Scan the text and underline all the countries that were once part of the British Empire. Which of these countries were the first and the last to gain independence?

Read the text and note down two reasons for: • the rise of the British Empire

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• the importance of the colonies to Britain

• the decline of the British Empire

Gandhi Mohandas Karamchand Gandhi ■ ■ ■ ■ ■

Born on 2nd October 1869 in Porbandar, Gujarat, India. Leader of the Indian nationalist movement against British rule, imprisoned several times. Practised non-violent protest to achieve political and social progress. Often called ‘Mahatma’, which means ‘great-souled’. Assassinated on 30th January 1948 in Delhi.

Is Gandhi Still a Hero?

hen Mahatma Gandhi came to London in 1931, he stayed in the poverty-stricken East End of the city, then visited struggling cotton mill workers in Lancashire. Now he is honoured with a statue in London’s Parliament Square, looking out over the Palace of Westminster. When the statue was announced, the British Prime Minister said Gandhi’s ‘approach of non-violence will resonate forever as a positive legacy, not just for the UK and India, but the world over’. The statue is designed to pay tribute to a man who lived humbly, loved humanity and practised non-violent struggle against a powerful adversary: the British Empire. In his day, Gandhi was a thorn in the side of his British rulers before Indian Independence – with his campaigns of civil disobedience and his dangerously powerful charisma. But in present-day Britain, Gandhi is admired by a generation that is embarrassed about its colonial history and admires non-violent methods of effecting

change. In India, decades of Indian schoolchildren have learned to call Gandhi ‘the Father of the Nation’ and his face is everywhere, from banknotes to public buildings. But the values Gandhi embodied – a vision of selfsufficiency for India and a lack of commercialism – seem old-fashioned to many in today’s urban, industrialised, hi-tech India. Now, a fast-paced, young generation craves luxury goods and international travel, not the chance to retreat to a village and make cloth. That leads to another truth: a reversal in economic fortunes as well as attitudes. In the first half of the last century, many in Britain considered themselves economically superior to India. Now, by contrast, British politicians are rushing to praise it, eager to attract its students to study and its business moguls to invest. No wonder the establishment wants to salute Gandhi and show him respect. Source – BBC News – © BBC

moguls magnati

Reading comprehension P Read the article and choose the correct option. 1 What is the purpose of this article? A To inform readers of a new statue of Gandhi in London. B To explain India’s fight for independence. C To show how attitudes to Gandhi have changed. D To describe the injustices of British rule in India. 2 Why did the UK government decide to erect the statue of Gandhi? A He was an important British figure. B He represents a positive period in British history. C He characterises values for all the world. D They wanted to apologise to India. 3 What do most British people today think of Gandhi? A They believe that he was a dangerous man. B They are embarrassed about what he did. C They think he is not an important part of history. D They respect his methods of fighting.

4 How has India changed since Gandhi was alive? A It has not changed and remains old-fashioned. B It is economically more powerful. C It now feels superior to the UK. D Young people no longer remember Gandhi.

ACTIVITIES

5 Which of these statements best summarises the last paragraph? A The British opinion of India has changed dramatically. B Indian students want to study in the UK. C British politicians are cautious about doing business with India. D India owes its fortune to the British Empire.

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Read the texts quickly and choose the correct heading for each paragraph.

Key moments in the 20th and 21st centuries A

Britain fought in World War I (1914-1918) and World War II (1939-1945), both of which left the country in serious economic difficulties. 1 Society/Culture In April 1982, Argentina invaded the Falkland Islands, 2 War/Conflict a British Overseas Territory in the South Atlantic Ocean. 3 Politics/ Economy The British government decided to send troops to regain possession of the islands. In June 1982 Argentina surrendered. Although the conflict and its reasons date much further back, the Northern Ireland ‘Troubles’, regarding the status of Northern Ireland within the UK, cover the period between the riots in 1969 and the ‘Good Friday Agreement’ in 1998. During these three decades, there was much violence and killing from both the unionist community (mainly Protestant, in support of remaining part of the UK) and the nationalist community (mainly Catholic, in favour of a united Ireland). British troops were part of the coalition force involved in the Gulf War (1990-1991), after Iraq invaded Kuwait, and in the Iraq War (2003-2011), which toppled Saddam Hussein’s government. After the 2001 terrorist attacks on the Twin Towers and the Pentagon, British forces were also involved in military action in Afghanistan against al-Qaeda and Osama Bin Laden. On 7th July 2005, four suicide bombers attacked central London tube stations and buses, killing 52 people. In 2017 there were several terrorist attacks in London and one in Manchester, causing many deaths and injuries. B

Between World Wars I and II, there was an economic recession as exports fell and unemployment rose. Trade unions became stronger and there was a 9-day general strike in 1926, over plans to cut wages and increase working hours. After World War II, Labour won the general election and the modern welfare state was created, with the foundation of a national health service. The government also nationalised major industries like coal mining and the railways. In 1979, Margaret Thatcher, the leader of the Conservative Party, became the country’s first female Prime Minister. Her Government’s policy included cuts in government spending and the closure of many industries. This created massive unemployment in the north of England and strikes, such as the coal miners’ strike of 1984-1985. It was also a period of economic boom with the privatisation of state-owned industries and the liberalisation of the stock market. After 18 years of Conservative governments, New Labour won the General Election in 1997 and Tony Blair became Prime Minister. Under his government, constitutional reforms were made regarding devolution for Wales, Scotland and Northern Ireland. The global financial crisis which began in 2007-2008 had severe effects on the British banking system and economy. It led to a recession and a five-year government austerity programme in an attempt to lower the country’s debt. Scotland held a referendum in 2014 about becoming an independent country but 55% of the voters said ‘no’ and, for now, the country remains part of the UK. In 2016, the UK held a referendum on the country’s membership of the EU. Those in favour of Brexit won, with 52.5% of the vote, and official notification to leave was given to the EU on 29th March 2017. The negotiation process to leave should have lasted two years, but the UK requested an extension in March, April and October 2019. 330

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The wedding of Prince William and Kate Middleton

The Olympic Stadium

Reading comprehension 2

tied the knot si sono uniti in matrimonio

Punk music and culture

Read the texts on pages 330 and 331 and answers these questions. 1 2 3 4 5 6 7 8 9 10

What international wars or conflicts has the UK been involved in since the start of the 20th century? What were the ‘Troubles’ in Northern Ireland? How has the UK been involved in the war against terrorism? What was the economic situation like between the two World Wars? Who was Margaret Thatcher and what were the positive and negative aspects of her Government? What reforms did Tony Blair introduce? What two referendums were held in the last few years and why were they important? How did the role of women change after World War I? What were the 1960s like in the UK? What events have the Royal family been involved in over the last 25 years?

ACTIVITIES

The period during and after World War I saw a big change in the role of women in society. With so many men involved in the war, women started to work in factories and to do jobs for which they had previously been considered unsuitable. In 1918 women over the age of 30 won the right to vote, but it was not until 1928 that all women over 21 were able to vote. The ‘Swinging Sixties’ are often considered a liberal and permissive decade. The laws regarding divorce, abortion and homosexuality were liberalised. Fashion had a new look with Mary Quant and the mini-skirt. Groups like The Beatles and The Rolling Stones were changing the music scene. England even won the football World Cup in 1966! In 1971 a new decimal currency (100p = £1) was launched in the UK. In 1973 the UK joined the European Economic Community, but it did not adopt the Euro as its currency in 1999 like most other EU member states did. Tragedy struck the royal family in 1997 with the death of Diana, the Princess of Wales, in a car crash. Charles and Camilla got married in 2005, and in 2011 Prince William and Kate Middleton tied the knot in London’s Westminster Abbey. Prince Harry and Meghan Markle, a former actress, got married in 2018 at Windsor Castle. The summer Olympics were held in London in 2012. In 2014, same-sex marriage became legal in England, Scotland and Wales.

Internet research & Writing 3

In pairs, using the information on these pages as a starting point, prepare a timeline of significant events and situations (political, economic, cultural) that have affected the UK in the 21st century. Add similar key moments for Italy. Then write a short report to answer these questions: 1 What key moments or events were both countries involved in? 2 Which events affected the other nation? How and to what extent?

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Why are these dates important in American history? 1492: ___________ 1776: ___________ 1861: ___________

MORE ABOUT... After the Constitution was ratified, many Americans felt it did not specify the rights of individuals, so 10 amendments, known as the Bill of Rights, were added to the Constitution to guarantee things like freedom of speech. Since the Bill of Rights was adopted more than 200 years ago, only 17 more amendments have been added to the Constitution (for example, abolition of slavery and voting rights for women).

A brief history of the USA Native Americans There are several theories regarding the arrival of the first Americans, which is estimated to be around 20,000 to 60,000 years ago. They probably arrived by crossing the bridge of land that once linked Asia to Alaska and gradually moved south and settled along the Pacific Ocean, in the mountains and deserts of the Southwest, and along the Mississippi River. Each tribe of Native Americans adapted to their environment and lived by gathering or hunting their food, farming and fishing. Their lives were, and often still are, closely linked to the land.

Arrival of the Europeans After Columbus discovered America in 1492, the next century was dominated by explorers and settlers. After their conquest of Mexico, the Spanish moved into the south (New Mexico, California, Texas) as well as Florida. The French colonised parts of Canada and Louisiana in the south while the English founded settlements along the Atlantic Coast. Their first successful colony was Jamestown in Virginia near Chesapeake Bay in 1607. The Pilgrim Fathers arrived on the ship The Mayflower in 1620 and established a colony in Plymouth, Massachusetts. There were also German and Dutch colonies. This period saw the drastic reduction in the number of Native Americans, killed by fighting or by the diseases brought by the European explorers and settlers.

War of Independence During the 1700s the thirteen Colonies grew in terms of population and economic strength. However, Britain imposed more and more oppressive restrictions and taxes on them so resentment grew. In 1773 there was the famous Boston Tea Party, where a group of protesters attacked British ships and threw their cargo of tea into Boston Harbour. On 4th July 1776 the Declaration of Independence was signed but fighting continued until a peace treaty was signed with Britain in 1783. A new Constitution was formed and George Washington became the first President of the United States of America in 1789. 332

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Moving to the West The USA grew dramatically in size when, in 1803, a massive area of land around the Mississippi and the Great Plains was bought from the French (the ‘Louisiana Purchase’). Then Florida was purchased from the Spanish in 1819 and, by 1848, Mexico had been forced to hand over Texas, New Mexico and California. People had started to move westwards across the continent to settle in the Great Plains, the Rocky Mountains and California, where gold had been discovered. To do this, they fought the Native Americans and forced them to move from their land.

Civil War By now the USA was an enormous country but with some fundamental differences between the states. The northern states were the main centres of finance, commerce and manufacturing where slavery was illegal. The southern states were mainly agricultural and used slave labour to produce tobacco, sugar and cotton. Tension increased between North and South and when Lincoln was elected President, the southern states left the Union and formed the Confederate States of America. The Civil War between the Union (the northern states) and the Confederacy (the southern states) lasted from 1861 to 1865 and was won eventually by the north but with the loss of hundreds of thousands of lives on both sides.

Economic Growth and Industrialisation The last twenty years of the 19th century were a time of great change for the country and one of exceptional economic growth. A period of depression followed the Civil War but then the USA began to change from a rural nation to an urban one. The railroads were expanded, linking the Midwest with the Pacific Coast. Industrialisation led to the construction of more factories and mills, especially in the steel, iron and textiles industries, and the demand for labour grew. There was an enormous population growth, mostly due to the millions of immigrants who arrived on the West Coast from Asia and on the East Coast from Europe.

Reading comprehension 2

The slave trade

Read the texts and answer these questions.

protesting against? 5 Who was the first President of the United States? 6 What was the ‘Louisiana Purchase’? 7 What were the major differences between the northern and southern states before the Civil War? 8 How did the country change after the Civil War?

Speaking - Critical thinking 3

ACTIVITIES

1 When and how did the first Americans probably arrive? 2 In which part of the country did the English form their first colonies? 3 What happened to the Native Americans during the period of colonisation? 4 What were the protestors at the Boston Tea Party

Immigrants arriving at Ellis Island, New York, late 19th century

Read the information below and discuss this topic with the class. The late 19th and early 20th centuries saw millions of immigrants arrive in the USA, among them many Italians. What was the situation in Italy at that time? What led so many Italians to face this journey? At the beginning of the 21st century, are there many Italians that decide to migrate? Where to and why?

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Do you know which famous person said ‘Any customer can have a car painted any colour that he wants so long as it is black’?

machine tools macchine utensili brought about causata line catena di montaggio reversed invertì conveyor belt nastro trasportatore

ACTIVITIES

Mass production is the method of producing goods in large quantities at low cost per unit while maintaining high quality standards.

The basis for mass production was the development of the machine tool industry. Although some basic tools had existed for centuries, their translation into industrial machine tools capable of precisely cutting and shaping hard metals was brought about by a series of 19th century innovators, first in Britain and then in the USA. Large numbers of identical parts could be produced at a low cost and with a small workforce.

The assembly line

A scene from the film Modern Times

The true ancestor of this industrial technique was the 19th century meat packing industry in Cincinnati and Chicago. Based on observations of the meat packing industry, the American automobile manufacturer Henry Ford designed an assembly line that began operation in 1913. Previously, cars were individually crafted by teams of skilled workmen – a slow and expensive procedure. The use of a continuous moving assembly line reversed this process. Instead of workers going to the car, the car came to the worker who performed the same task of assembly over and over again. Workers remained in place, adding one component to each car as it moved past them on the line. Delivery of parts by conveyor belt to the workers was carefully timed to keep the assembly line moving smoothly and efficiently. Ford’s methods drastically reduced assembly time per vehicle from about 12.5 hours to 6 hours and, thanks to continuous improvements, to 93 minutes in 1914. The price of a private car was also reduced, making it accessible to the common man and forcing both Ford’s competitors and his parts suppliers to imitate his technique. The assembly line spread through a large part of US industry, bringing dramatic gains in productivity and causing skilled workers to be replaced with low cost, unskilled labour.

Reading comprehension 2

Read the text and answer these questions. 1 How did the development of machine tools help mass production? 2 What is an assembly line? 3 Who introduced this concept to the automobile industry?

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Mass production

4 When was it introduced? 5 What benefits did the assembly line bring to US industry? 6 Were there any disadvantages? What were they?

Complete this table to describe car production before and after the assembly line. Before the assembly line

After the assembly line

__________________________________________ __________________________________________

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The Great Depression

WARM UP

The Great Depression was an economic recession in North America, Europe and other industrialised areas of the world that began in 1929 and lasted until about 1939. It could be possible to say that the Great Depression began with the disastrous collapse of stock market prices on the New York Stock Exchange on 29th October 1929, so called Black Tuesday. However the American and global economy had been in chaos six months before then and there were a variety of factors that caused and worsened the Great Depression. The 1920s, known as the ‘Roaring Twenties’, were a period when America was overdependent on production, with automobiles as the leading industry. There was also a great disparity between rich and poor. More than 60% of the population was living below the poverty level while only 5% of the wealthiest people in America accounted for 33% of the income and the richest 1% owned 40% of the nation’s wealth. This uneven distribution of wealth was also reflected in the unequal distribution of riches between industry and agriculture. While America prospered during the 1920s, most of Europe, still suffering from the devastation of World War I, fell into economic decline. America soon became the world’s banker and as Europe started to default on loans and to buy fewer American products, the Great Depression spread. Before the Great Depression, stock market regulations were very loose and investors were able to speculate wildly. They could buy stocks on margin, which meant they needed only 10% of the price of a stock to be able to complete the purchase. All of this out-of-control speculation led to falsely high stock prices. Then, when the stock market began to fall quickly in the months leading up to the October 1929 crash, these speculative investors could not honour their margin calls and a massive sell off began. After a great rise in the stock market between early 1928 and September 1929, in September the market began to drop and on 29th October 1929, after a week of panic, there was the crash.

Do you know the Italian equivalent for these terms? • share • shareholder • Stock Exchange

uneven disuguale default diventare inadempiente sell off liquidazione

ACTIVITIES

Reading comprehension Read the text and complete these sentences. 1 The Great Depression lasted about… 2 For six months before Black Tuesday, the American economy had been… 3 In the 1920s, … was unevenly distributed.

4 The Stock Market did not have proper … before the Great Depression. 5 Stock prices were falsely high because of… 6 The market crashed on…

Listening 3

2.21 Listen to what happened over the next three years and decide if these sentences are true (T) or false (F).

T 1 2 3 4 5 6

In 1932, stock prices were worth 20% less than in 1929. Americans took their money out of the banks. People spent less and production decreased. A consequence of this was an increase in the number of people without work. After the First World War, many European countries had lent the USA money. Great Britain and Germany suffered the Great Depression less than other European countries.

Speaking 4

Discuss these questions in small groups. 1 Why do you think we use the expression ‘Black Tuesday’ when talking about the Great Depression? 2 Have you heard the word ‘Black’ used with other days of the week? What events do they refer to?

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What aspects of 20th century American history have you studied? Are the events or people mentioned on these pages?

Key moments in the 20th century Prohibition

Prohibition was the ban on the sale, manufacture and transport of alcohol in the USA from 1920 to 1933. There were religious, moral and health reasons for banning alcohol. Many supporters believed that alcohol had destructive effects on people’s lives and that modern life had lost sight of the values of the Pilgrim Fathers. They believed it would cut crime levels and domestic violence against women caused by drunk husbands. While the ban reduced the amount of alcohol consumed, it also caused an increase in underground, organised criminal activity, with gangsters like Al Capone in Chicago. Speakeasies, bars where alcohol was served illegally, became very popular. People also started to make their own alcohol at home and bootlegging – the activity of illegally transporting alcohol into the USA – became a big business. Popular routes were from the Caribbean to Florida and from Canada across the Great Lakes and the Detroit River. Bootlegging was a major source of income for organised crime during the Prohibition period.

Pearl Harbour

ACTIVITIES

On the 7th December 1941 the Japanese attacked the American naval base in Pearl Harbour, Hawaii. In the surprise attack, hundreds of Japanese fighter planes destroyed or damaged 18 American naval ships and hundreds of planes. More than 2,000 American Army and Navy personnel died, and many more were wounded. There were also civilian casualties and injuries. The following day US Congress declared war on Japan. Before then, the USA had been supplying war material to the Allies but was not at war. After Germany and Italy had declared war on the USA, the US troops also joined the Allies fighting in Europe. Victory in Europe was celebrated on 8th May 1945 with the surrender of Nazi Germany. However, it was only after the USA dropped nuclear bombs on Hiroshima and Nagasaki that the Japanese surrendered and the war ended. Unlike Britain, the USA was in a strong economic position after the war and started to dominate the world economy.

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Reading comprehension 2

The Marshall Plan

Read the texts and answer these questions. 1 2 3 4

What was prohibition? Why was it introduced? What were the effects of prohibition? What was bootlegging and why was it important for organised crime? 5 What happened at Pearl Harbour? DO S S I E R 2 | UK vs USA

6 Were the Americans expecting an attack from the Japanese? 7 How had the Americans been involved in the war until that point? 8 How did the situation of the UK and the USA differ at the end of the Second World War?

Civil rights movement In the 1950s and 60s the American civil rights movement carried out campaigns of civil resistance, such as boycotts, sit ins and marches, against racial discrimination and segregation. Two of the many figures involved in civil rights campaigns in the USA were Martin Luther King Jr and Malcolm X. In spite of their opposing ideologies, they were both dedicated to the fight for racial advancement.

Martin Luther King Jr. Born in Atlanta in 1929 to a Baptist minister and his school teacher wife, King studied at Morehouse College in Atlanta and Boston University’s School of Theology, receiving his doctorate in 1955. He became the minister of a Baptist Church in Montgomery, Alabama, and was chosen as the head of a new group to support the Montgomery bus boycott, where the town’s black citizens boycotted the bus system for 13 months, a protest that ended with the ruling by the US Supreme Court that segregation on the city’s public buses was unconstitutional. During this time King developed his leadership techniques and nonviolent protest strategy, taken from Gandhi, that he combined with Christian social gospel ideas. He quickly emerged as a national civil rights leader and in 1963 he led the Birmingham campaign, the largest civil rights protest yet, with mass meetings, sit ins, marches and a boycott of city shops. Later the same year, he gave his famous ‘I have a dream’ speech during the civil rights march in Washington. He won the Nobel Peace Prize in 1964. King was arrested 13 times, his home was bombed on more than one occasion and attempts were made to kill him. He was assassinated in Memphis on 4th April 1968 while he was in the city to support the strike by sanitation workers.

Malcolm X Malcolm Little was born in Omaha, Nebraska, on 19th May 1925. After his father’s death and his mother was put in an institution, he was raised in various reform schools and foster homes. While he was in prison for burglary, Malcolm joined the Nation of Islam. After prison he moved to Chicago, became a minister for the Nation of Islam and changed his name to Malcolm X. He soon became the leading spokesman for the Nation of Islam, an organisation of black nationalists, led by Elijah Muhammad, who were in favour of black separatism regulated by a version of the Muslim faith. This ideology was quite the opposite of King’s and in the beginning Malcolm X was critical of King and his nonviolent activism and cooperation with whites. The support for black nationalism grew as many activists felt that nonviolent resistance to the whitedominated power structure was no longer sufficient to get results. In 1964 Malcolm X broke away from the Nation of Islam and later formed his own group, the Organization of African American Unity, which was ready to support any action, including violence, which would get significant results. Malcolm X was assassinated on 21st February 1965.

MORE ABOUT... The two men met in person only once. King had just finished a press conference regarding the Senate debate on the Civil Rights Act of 1964 when he met Malcolm X in the corridor. The two shook hands.

Rosa Parks

ACTIVITIES

Reading comprehension Read the texts and say which civil rights leader(s)... 1 2 3 4

had a difficult childhood. obtained a PhD. changed his name. was a minister.

5 6 7 8

won the Nobel Peace Prize. believed in non-violence. supported black nationalism. was assassinated.

Speaking – Critical thinking 4

Read the statement and have a class debate using the ideas below to help you.

Today, nearly 60 years after the civil rights campaigns, racial equality has still not been achieved in the USA. education • justice system • job opportunities • home ownership • income level

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Key moments in the 20th and 21st centuries Apollo 11 In 1961, the space race between the USA and USSR got even fiercer. In 1957 the Soviet Union had already launched the satellite Sputnik 1 and sent a dog into space in Sputnik 2, but on April 12th, 1961 the Russians became the first nation to send a man, Yuri Gagarin, into space. These successes by the Russians led President John F. Kennedy to promise that the USA would put a man on the moon before the end of the decade. They succeeded on 21st July 1969. Apollo 11, the fifth manned mission in NASA’s Apollo programme, was launched from Kennedy Space Centre in Florida on July 16th. Five days later the astronauts, Neil Armstrong, Buzz Aldrin and Michael Collins, landed on the moon’s surface and Neil Armstrong became the first man to walk on the moon, saying these famous words: ‘That’s one small step for man, one giant leap for mankind.’

Vietnam War protesters The Vietnam War (1955-1975) saw the United States of America involved in a war which was over 8,000 miles away and in which 58,000 young Americans, many only 19 years old, lost their lives. As the number of military personnel in Vietnam grew, and American citizens saw the increasing horrors and failures of the war, the anti-war protest movement gathered strength. There was a large student protest movement, with many students burning their draft cards and other young people fleeing from the country to escape military service. The emerging counterculture of hippies, who were disillusioned generally with politics and society, and the festival Woodstock, also became a symbol of the antiwar protest. On 15th October 1969, about two million people from all walks of life were involved in the Peace Moratorium – religious services, seminars, rallies and meetings across all the nation – to show their dissent and to pay tribute to American personnel killed in the war. There continued to be many similar marches and protests, especially in the capital Washington DC, until the ceasefire and withdrawal of American troops in 1973.

The Cold War Much of the second half of the 20th century was marked by the Cold War between the world’s superpowers, the USA and the USSR. Even before the Second World War, there was a lot of fear of communism in the USA and that it could infiltrate American society. This anxiety increased after the end of the war and was exploited by US Republican Senator Joseph McCarthy during the early 1950s. He accused many people, including Hollywood stars and directors, of carrying out un-American activities or being communist agents. Although during the Cold War there was no direct military conflict, there was extremely strong political and military tension, and both countries developed an arsenal of nuclear weapons. The Cuban Missile Crisis almost brought the world to a nuclear war in 1962. US President Ronald Reagan and General Secretary Mikhail Gorbachev were fundamental in ending this conflict, as they met at various summits to negotiate the reduction in nuclear arms. The end of the Cold War can be said to be at the Malta Summit in 1989, with an agreement between President George Bush and Gorbachev, just a few weeks after the fall of the Berlin Wall, a symbol of this East-West divide. 338

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The 9/11 attacks In the early morning of 11th September 2001, al-Qaeda terrorists hijacked four passenger airlines to carry out terrorist attacks on the USA. Two planes hit the north and south towers of the World Trade Center in New York, one hit the Pentagon in Washington DC and the last plane crashed into a field in Pennsylvania. There were almost 3,000 victims and thousands more injured in these co-ordinated attacks which prompted the USA and other nations to strengthen their anti-terrorism legislation and declare a global War on Terror. This included the invasion of Afghanistan to overthrow the Taliban; the invasion of Iraq; the capture and execution of Saddam Hussein Firefighters after the 9/11 attacks and, in 2011, the killing of Osama Bin Laden, leader of al-Qaeda. The repercussions of the terrorist attacks and the War on Terror are still felt today with the rise of the terrorist organisation ISIS, terrorist attacks in major cities like London, Berlin and Paris by Islamic extremists, and an increase in anti-Islamic feeling and extreme right-wing, white supremacy political groups in the West.

Barack Obama Barack Obama, born on 4th August 1961 in Honolulu, Hawaii, was the first African-American President of the USA. His first presidential campaign used the slogan ‘Yes, we can’ in order to send a message of hope and change to the nation and in particular to new voters, many of them young and black. During his two terms as President, he introduced a healthcare reform bill, known as Obamacare; ended US combat operations in Iraq; announced the death of al-Qaeda leader Bin Laden and proposed plans for improved diplomatic relations with Cuba. In 2009 he was awarded the Nobel Peace Prize. In 2016, after 8 years of Democratic presidency, the Democratic candidate Hilary Clinton was defeated by the Republican Donald Trump who was sworn in as the 45th President of the United States on 20th January 2017.

Reading comprehension 1

Read the texts on pages 338 and 339 and answer these questions.

Oral exam practice

5 What happened on 11th September 2001? 6 In what way are we still living the effects of these terrorist attacks? 7 What message did Barack Obama give to voters during his first presidential campaign? 8 What events was he involved in during his presidency?

ACTIVITIES

1 What space record does the Soviet Union hold? And the USA? 2 Why was there a lot of protest against the Vietnam War? 3 Which two countries were involved in the Cold War? 4 Why do you think the word ‘war’ was used even if there was no fighting?

uneven disuguale hijacked dirottarono was sworn in ha prestato giuramento

Mediating concepts

ES Choose an important figure from 20th century American history. Do some research and prepare a short presentation (3-5 minutes) to give to the class. Include information about: • the person’s family/background; • the political and social climate at the time;

• important national or international events at the time; • how he/she is an important person in American history.

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2 WARM UP

What is colonisation? Can you name any countries that have been colonised? Do you think it is a good or a bad thing? Why?

ACTIVITIES

shameful vergognoso will volontà scramble lotta, corsa break down sfaldarsi, crollare

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English-Speaking World Colonisation in Africa Although the African continent had been exploited by Europeans as early as the 15th century, the colonisation of Africa by European countries – most notably Britain and France – started at the end of the 19th century. The entire continent was colonised in only 25 years (1885-1910) during a wave of activity known as the ‘Scramble for Africa’. The main reason why colonisation took place was economic: in the 19th century European countries were industrialising rapidly, they were looking for new sources of raw materials for manufacturing and Africa was an extremely rich source of minerals, agriculture and other natural resources. The British government colonised 19 African countries in every part of the continent. The largest of these were Egypt and Sudan in the North, Nigeria in the West, Kenya, Tanzania and Uganda in the East, and Zambia, Zimbabwe, Namibia and South Africa in the South. The British interest in these parts of Africa was strategic. They exploited the mineral resources in the South and tried to control the River Nile for trade with India. There was even a plan to link South Africa to the Suez Canal by rail, but it was never completed. One very clear example of European intervention in Africa can be seen by looking at the borders between the different countries. These borders were created by the Europeans with little or no regard for existing ethno-linguistic groups or political organisations of the time. Furthermore, the borders often moved according to changes in political agreements between the European countries, leading to a great amount of confusion and conflict among the native people. Colonisation was also a form of racism, given that the colonists dictated how the countries were governed, often using violence against the African people. In addition, they would often support a particular ethnic group, usually a conservative minority, in order to encourage them to go against the interests of their own countrymen. Nowhere was this more evident than in South Africa under Dutch and British rule. Colonialism started to break down in the 1930s in North Africa, where people had more access to education and had a strong awareness of the injustice they were living under. The desire for independence spread quite rapidly across the continent. At the end of World War II, European countries were in great debt, consequently African demands for independence were gradually accepted, and by 1960 colonial occupation of Africa was virtually over.

Reading comprehension 2

P Read the text and choose the correct option. 1 Which of these statements is true? ‘The ‘Scramble for Africa’… A ended in the 19th Century. B only concerned the French and the British. C is another term for colonisation. D was a short period of intense European activity in Africa.

3 Which of the following statements is NOT true? The borders that the Europeans created between African countries… A sometimes changed. B reflected differences in language. C did not consider existing political divisions. D created tension among the Africans.

2 The main reason given for colonisation is… A the need to industrialise Africa. B competition between European countries. C that European countries needed more resources. D there was not enough agriculture in Europe.

4 What does the author say caused the end of colonisation? A The colonialists could not afford to continue occupying Africa. B The African countries had too many debts. C There were lots of educated people in North Africa. D World War II started.

DO S S I E R 2 | English-Speaking World

From Royal to Revolutionary; Prisoner to President After being jailed for life in 1964, Nelson Mandela became a worldwide symbol of resistance to apartheid. But his opposition to racism began many years before. Born into an African royal family largely dispossessed by colonisation, his grandfather had been a king and his father was a chief. However Mandela was destined not for royalty but for revolution. He attended a Methodist boarding Nelson Mandela school and the only black university (1918-2013) in South Africa, Fort Hare. However, he began to rebel against authority and was expelled. He joined the African National Congress in 1944 and helped establish its youth league. Together with a group of young, intelligent and highly motivated colleagues, he set about transforming the ANC into a mass political movement. The origins of apartheid went right back to the very beginnings of European rule in Southern Africa, but it was only with the election of the ﬁrst National Party government in 1948, in a white-only ballot, that racial segregation was thoroughly codiﬁed in law. This meant, for example, that marriage between people of different races was prohibited and certain races were forced into living in designated areas. During the 1950s, Mandela was involved in numerous ANC protests and campaigns of mass civil disobedience against apartheid. He was also arrested and charged with treason. As the extreme violence against blacks continued at the hands of the government, he committed to an armed struggle and the ANC started to carry out sabotage attacks. In 1962, Mandela

was arrested and then, two years later, imprisoned for life in Robben Island jail. His story could have ended there. Both he and the ANC had been effectively silenced, Western governments continued to support South Africa’s apartheid regime and change seemed as far away as ever. But the rise of the militant Black Consciousness Movement during the 1970s and the death in custody of one of its founders, student activist Steve Biko, renewed interest in Mr Mandela and the ANC. As the black townships went up in flames, an active worldwide anti-apartheid movement was growing, focusing on the express aim of freeing Nelson Mandela and his fellow prisoners. Sanctions, demonstrations and music concerts were just a few of the many ways that his situation was kept in the public eye. South Africa became more isolated, businesses and banks refused to do business with it and the demand for change increased. In 1990, the South African government, which had already begun to water down some aspects of apartheid legislation, finally agreed to open negotiations, and Nelson Mandela was released. He easily won the election in 1994 and became South Africa’s first black president, by which time apartheid had been dismantled. South Africa’s people were now equal under the law and could vote, and live, as they wished. Source – BBC News – © BBC

treason tradimento water down alleggerire

Read the article and answer these questions. 1 What kind of youth did Mandela have? 2 Why did the situation for non-whites change in 1948? 3 How did Mandela and the ANC change during the 1950s?

4 In what way could the story of Mandela have ended with his imprisonment? 5 Why did South Africa become more cut off? 6 Why do you think the article has this title?

ACTIVITIES

Reading comprehension

Listening 4

2.22 Listen to a music journalist talking about the anti-apartheid movement within the music industry

during the 1980s and decide if these sentences are true (T) or false (F). T 1 2 3 4 5 6

The music industry was the only sector to protest against apartheid. The journalist knew who Mandela was before he heard the song ‘Free Nelson Mandela’. Peter Gabriel’s song was about an anti-apartheid protester who was killed. The artists of the song ‘Sun City’ performed it in Sun City, South Africa. People in South Africa were not able to see the Nelson Mandela 70th birthday concert on TV. Only famous musicians took part in the Nelson Mandela 70th birthday concert.

CLIL – HISTORY Consider the links between the civil rights campaigners Mandela, Gandhi and Martin Luther King: their beliefs, political ideas, form of protest and effects on future generations.

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2 WARM UP

What do you know about the history of the women’s rights movement in Italy? For example, when did women get the vote?

DOSSIER

Going Deeper Women’s rights Some important figures in the history of women’s rights One of the earliest feminist philosophers was Mary Wollstonecraft (1759-1797) who published her book A Vindication of the Rights of Women in 1792. Elizabeth Blackwell (1821-1910), the first woman to get a degree in medicine from an American medical school, and Elizabeth Garret Anderson (1836-1917), who qualified as a doctor in Paris since she was not allowed to attend medical school in London, were pioneers in opening up the medical profession to women. Millicent Fawcett (1847-1929) was a campaigner for women’s rights in England, in particular for improved opportunities for women to enter higher education.

ACTIVITIES

Emmeline Pankhurst (1858-1928), a political activist and leader of the suffragette movement, was fundamental in helping women get the vote in the UK.

Simone de Beauvoir (1908-1986) was a French existentialist philosopher, best known for her book The Second Sex (1949) about the treatment of women throughout history. Germaine Greer (born 1939) is an Australian writer and journalist. She published The Female Eunuch (1970) on female sexuality and is considered to be an important voice in late 20th century feminism. Michelle Bachelet (born 1951) was the first Executive Director of UN Women, the United Nations entity for gender equality and the empowerment of women, which was established in 2010. As a child, Malala Yousafzai (born in 1997 in Pakistan) lived under Taliban occupation where girls were prevented from attending school. She survived being shot in the head by a Taliban gunman. She won the Nobel Peace Prize in 2012 and is an outspoken advocate for female education and gender equality.

Reading comprehension 2

Read the text and complete this table. What are these women known for? Mary Wollstonecraft Blackwell • Garret Anderson Millicent Fawcett Emmeline Pankhurst

feminist philosopher _________________ _________________ _________________

Simone de Beauvoir Germaine Greer Michelle Bachelet Malala Yousafzai

_________________ _________________ _________________ _________________

Listening 3

2.23

P Listen to this presentation of a book on women’s rights in the UK and choose the correct option.

1 In England in the early 20th century most women... A became doctors. B stayed at home to be a wife and mother. C had a good education.

4 Women in the UK were able to vote... A before World War I. B after World War I. C only after World War II.

2 The Women’s Social and Political Union... A was a military group. B demonstrated in a peaceful way. C wanted women to be able to vote.

5 What happened in the 1960s and 1970s? A Women were involved in public demonstrations. B Women were not allowed to wear high-heeled shoes. C Women were only interested in feminist literature.

3 Women in the two World Wars had the chance to... A travel away from home. B fight in the army. C get a job.

6 What is the presenter’s criticism of the book? A The statistics only cover up to 1999. B There could be more statistics. C The statistics given are incorrect.

CLIL – LAW/HISTORY Compare the history of women’s suffrage in the UK and in Italy.

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DO S S I E R 2 | Going Deeper

#MeTooPay Campaign to End Gender Pay Discrimination

Reading comprehension 4 INVALSI

Read the article and answer the questions using no more than four words.

1 What kind of people were involved in launching the #MeTooPay campaign? 2 What is the connection between the #MeToo and the #MeTooPay movements? 3 What information can be found on the campaign website? (Give two answers)

4 Who is Stacey Macken? 5 Why did she take her employer to court? 6 What message did the advert in the Financial Times give to women in a similar position to Stacey?

ACTIVITIES

More than 100 of the UK’s most successful women have launched a campaign to end pay discrimination after being shocked by the details of a female banker’s employment battle. The #MeTooPay campaign has brought together high-profile names across politics, arts and business, including former Royal Mail boss Moya Greene, GSK chief executive Emma Walmsley, London School of Economics director Minouche Shafik, and former TalkTalk boss Lady Dido Harding, and comes two years after the #MeToo movement started to raise the profile of sexual harassment and discrimination against women. Harding told The Guardian: “For those of us that have been lucky enough to get into very senior positions in the public and the private sector, it’s so tempting to assume that this isn’t happening anymore. And it was a real wakeup call to all of us, to go: ‘Oh my goodness it really is’.” She explained that the campaign is not focused on the gender pay gap, which tends to highlight a lack of women in top roles. Instead, efforts will be focused on ending Lady Dido Harding gender pay discrimination, where women are paid less than male colleagues in the same roles. Harding, Greene and fellow campaigners have launched a website to serve as a “hub for action”, where supporters can stay up to date on the latest stories around pay discrimination, hear about key court cases and get advice from compensation and negotiation experts. The case that sparked the campaign centred around banker Stacey Macken, who won an employment tribunal case against her employer BNP Paribas in a rare public victory for equal pay. Macken claimed she was discriminated against because of her gender, after finding she was paid significantly less than a male co-worker with the same job title. Macken was recruited on an annual salary of £120,000, less than the £160,000 offered to a male colleague recruited into the same position months later. That colleague took home £237,000 in bonuses over the next five years, which was seven times more than the combined £33,000 offered to Macken. Stacey Macken told The Guardian: “I am grateful for the growing network of strong women who are not afraid to speak out and support other women [through] #MeTooPay”. The #MeTooPay efforts launched in October 2019 with an advert in the Financial Times that read: “We wish to say to Stacey Macken and all other professional women whose compensation is tainted by discrimination, we are on your side.” Adapted from The Guardian, 2019

Speaking – Critical thinking 5

Discuss these questions in small groups (mixed if possible). 1 Does gender pay discrimination exist in your country? 2 Do you think it is limited to just the financial sector? In which other areas are women paid less than men for the same role? 3 What do you think the reasons for this could be? Historical? Political? Social? 4 The article also mentions that there is a lack of

women in top roles. Are there areas of business or industry where this is less or more common? 5 What about politics? Do women hold top positions in the government in your country? 6 In your opinion, are campaigns like #MeTooPay likely to succeed? Why/Why not? 7 What else needs to be done to end discrimination against women?

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DOSSIER

Virginia Woolf and feminism 1

Read this biography and complete the timeline.

Virginia Woolf is one of the most significant figures of modernist literature. Born in London in 1882, she was part of a large, intellectual family. During her childhood she spent many holidays by the sea in St. Ives, Cornwall, which was later the setting for her novel To The Lighthouse. Her brothers were Lighthouse sent to Cambridge University, but Virginia was not. She did, however, manage to study some courses at a college in London. In 1895 her mother died and Virginia suffered her first mental breakdown. Her father died in 1904 and she had a second breakdown. When Virginia moved to the Bloomsbury area of London, she met intellectuals like Lytton Strachey, Rupert Brooke and Leonard Woolf, whom she married in 1912. Together, they formed the Bloomsbury Group . In 1922 her first novel, Jacob’s Room, appeared, followed by Mrs Dalloway in 1925, To the Lighthouse in 1927 and The Waves in 1931. A Room of One’s Own is considered the first major work in feminist criticism. The start of World War II and the destruction of her London home made her mental condition The Bloomsbury Group worse and on 28th March was a group of writers, 1941 she committed artists, intellectuals suicide by filling her and philosophers who shared the same belief coat pockets with stones in the importance of the and drowning herself in arts and the pursuit of the river Ouse, near her knowledge. home. 1882 1895 1904 1912 1922 1925 1927 1931 1941

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DO S S I E R 2 | Lit Corner

Before you read this extract from A Room of One’s Own, try to imagine possible reasons for the title. Why a room? For what purpose?

ut, you may say, we asked you to speak about women and ﬁction – what has that got to do with a room of one’s own? I will try to explain. […] I could not help thinking, as I looked at the works of Shakespeare on the shelf […] it would have been impossible, completely and entirely, for any woman to have written the plays of Shakespeare in the age of Shakespeare. Let me imagine, since the facts are so hard to come by, what would have happened had Shakespeare had a wonderfully gifted sister, called Judith, let us say. Shakespeare himself went, very probably – his mother was an heiress – to the grammar school, where he may have learnt Latin – Ovid, Virgil and Horace – and

the elements of grammar and logic. [...] He had, it seemed, a taste for the theatre; he began by holding horses at the stage door. Very soon he got work in the theatre, became a successful actor, and lived at the hub of the universe, meeting everybody, knowing everybody, practising his art on the boards, exercising his wits in the streets, and even getting access to the palace of the queen. Meanwhile his extraordinarily gifted sister, let us suppose, remained at home. She was as adventurous, as imaginative, as agog to see the world as he was. But she was not sent to school. She had no chance of learning grammar and logic, let alone of reading Horace and Virgil. She picked

Read the extract and then complete this summary with the words from the box.

act − brother − home − housework laugh − learn − opportunities − run away school − sister In this part of the essay, Woolf invents a fictional character Judith, Shakespeare’s (1) _________, to illustrate that a woman with Shakespeare’s gifts would have been denied the same (2) _________ to develop them. Judith stays at (3) _________ while William goes to (4) _________. He is free to (5) _________ and move around; Judith has to do the (6) _________. Judith’s father wants her to marry and when she does not want this, he beats her. She decides to (7) _________ to London, where her (8) _________ has become rich and famous. People, however, (9) _________ at Judith when she wants to (10) _________ in the theatre or write. Her genius remains unexpressed and she kills herself.

What message do you think the writer wants to convey? Why is physical space important?

heiress ereditiera hub centro agog ansiosa moon about perdere tempo on the sly di nascosto to be betrothed fidanzarsi guffawed sghignazzò bellowed urlò poodles barboncini

The essay A Room of One’s Own is based on two lectures Woolf delivered at Newnham College and Girton College, two women’s colleges at Cambridge University, in October 1928.

up a book now and then, one of her brother’s perhaps, and read a few pages. But then her parents came in and told her to mend the stockings or mind the stew and not moon about with books and papers. [...] Perhaps she scribbled some pages up in an apple loft on the sly, but was careful to hide them or set ﬁre to them. Soon, however, before she was out of her teens, she was to be betrothed to the son of a neighbouring wool-stapler. She cried out that marriage was hateful to her, and for that she was severely beaten by her father. Then he ceased to scold her. He begged her instead not to hurt him, not to shame him in this matter of her marriage. [...] She made up a small parcel of

her belongings, let herself down by a rope one summer’s night and took the road to London. She was not seventeen. The birds that sang in the hedge were not more musical than she was. She had the quickest fancy, a gift like her brother’s, for the tune of words. Like him, she had a taste for the theatre. She stood at the stage door; she wanted to act, she said. Men laughed in her face. The manager – a fat, loose-lipped man – guffawed. He bellowed something about poodles dancing and women acting – no woman, he said, could possibly be an actress. He hinted – you can imagine what. She could get no training in her craft. Could she even seek her dinner in a tavern or roam

the streets at midnight? Yet her genius was for ﬁction and lusted to feed abundantly upon the lives of men and women and the study of their ways. At last – for she was very young, oddly like Shakespeare the poet in her face, with the same grey eyes and rounded brows – at last Nick Greene the actormanager took pity on her; she found herself with child by that gentleman and so – who shall measure the heat and violence of the poet’s heart when caught and tangled in a woman’s body? – killed herself one winter’s night and lies buried at some crossroads where the omnibuses now stop outside the Elephant and Castle…

CLIL – LAW/HISTORY/POLITICS Research the development and changes over the last fifty years in UK, Italian and European equal rights and anti-discrimination laws (e.g. race, sex, sexual orientation, disability, age).

Watch this video about equality for women and match the figures to the correct statement. 1 30,000

2 two thirds

3 10%

4 70 million

5 1 in 4

6 2

women who are victims of domestic violence women in the UK who lose their job because of pregnancy girls in the world who are denied a basic education how much of the world’s total income is earned by women women in the UK who are killed every week by a former or current partner work done in the world for which women are responsible

The voice is that of Judi Dench, the British actress who was M in the Bond films, together with Daniel Craig who has played 007.

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3 WARM UP

How do you think immigration has shaped the population and identity of the UK and USA? What about in Italy?

DOSSIER

Society and Identity UK population and identity The population of the UK is getting older, mainly due to increased life expectancy, and 18.2% of the population is over 65. Of the people living in the UK, 9.4 million were born outside the UK. This is largely accounted for by immigrants arriving from the EU, in particular Romania and Poland. This, as well as earlier immigration from ex colonies such as Jamaica and India, means that a large variety of ethnic groups make up the population. This ethnic diversity has enriched and influenced many aspects of British society although, unfortunately, integration and acceptance still raise many issues. English (or Welsh) is the main language for 92.3% of the population, apart from in London where the proportion is much lower. 7.7% of the population state they have another main language, with Polish at the top of the list of languages. Influenced by factors such as increases in divorce, married couples without children, co-habiting couples and one person households, the family unit has changed from the traditional nuclear family of a married couple with children. The average household size is 2.4 people.

ACTIVITIES ACT IV IT IE S

The official religion is the Anglican Church, with the Monarch as its head, but many other religious faiths are practised from Judaism to Buddhism. Christians (Protestants and Catholics) total 35 million, while the second religion is Islam with 2.7 million Muslims. Around a quarter of the population state they follow no religion.

Reading comprehension 2

Read the texts and decide if these sentences are T (true) or F (false). Correct the false ones. T 1 2 3 4 5 6

In the UK, a quarter of the population is older than 65. More than 9 million people who live in the UK were not born there. The UK no longer has problems related to integration. Fewer people speak English as their main language in London compared to the rest of the UK. The family unit has remained unchanged. The UK does not have an official religion.

Speaking 3

Work in pairs. Look at the images on this page. 1 Which ones represent ‘Britishness’ to you? Why?

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DO S S I E R 3 | UK vs USA

2 What else do you think represents ‘Britishness’?

US population and identity The USA, with its long history of immigrants, is an extremely multiethnic and multicultural society. Estimated figures for 2018 show 13.4% of the population is Black or African American and 5.9% is Asian. 18.3% of the US population is of Hispanic or Latino origin (a person of Cuban, Mexican, Puerto Rican, South American, Central American or other Spanish culture). The Hispanic population is the principal driver behind demographic growth in the country, together with the Asian community. The languages spoken in US households reflect the diversity of the population, with over 21% speaking a language that is not English at home. Unsurprisingly, given the large percentage of people of Hispanic origin, Spanish is the most common language spoken at home after English. There is no official church in the USA and the US Constitution guarantees the right to practise any form of religion. There are no US Census statistics regarding religious beliefs as questions about religion cannot be asked on the national census. However, other surveys show that there are a wide variety of religious beliefs and practices with Christianity being the largest, although in decline.

Students attending graduation typically wear a gown and mortarboard, often with different colours to indicate the faculty.

Read the texts and answer the questions. 1 2 3 4 5

What What What What What

has contributed to making the USA a multiethnic country? does the term Hispanic refer to and what percentage of the population is of Hispanic origin? is the second most spoken language at home? percentage of the population does not graduate from high school? right is protected by the US Constitution?

ACTIVITIES

Reading comprehension

Regarding levels of education, nearly 31% of the total population have a university degree or higher, while 87.3% have graduated from high school.

Listening 2

2.24

INVALSI Listen to five people talking about what it means to be American. Match each speaker to

what he/she says. There are two extra options you do not need. a b c d e f g

US immigration policy seems to have deteriorated. Nothing is impossible in the USA. Ethnic diversity is one positive aspect of the USA. Immigrants still come to the USA to find the ‘American Dream’. Religious freedom is a fundamental part of the USA. The USA offers more prospects to its citizens than other countries. It is difficult to be successful because there are too many restrictions.

Speaker 1 Speaker 2 Speaker 3 Speaker 4 Speaker 5

Speaking – Critical thinking 3

Discuss these questions in small groups. 1 Is it possible for people to hold onto their cultural traditions over several generations? 2 How much should an immigrant try to blend into his/her new country?

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WARM UP

Have you ever been in a school in the UK or the USA? If so, what was it like? If not, what impression do you have of these countries’ schools, based on what you have read or seen on TV or in films?

National Curriculum Key Stage 1 and 2 compulsory subjects: English, Maths, Science, Design and Technology, ICT, History, Geography, Art and Design, Music and Physical Education. Religious Education is also compulsory, but it is possible to opt out of the lessons. Key Stage 3 compulsory subjects also include modern foreign languages and Citizenship, as well as Careers Education and Sex and Relationship Education (SRE).

Education in the UK Full-time education is compulsory in the UK from the age of 5 to 16. In England, from the age of 16 to 18, young people must still have some form of education. This can be full-time education, for example A-levels in a college, an apprenticeship or traineeship, or at least 20 hours voluntary work per week together with part-time education or training. There are basically two categories of schools: state schools and private schools. State schools are administered by local government and differ slightly in subjects and exams in England, Scotland, Wales and Northern Ireland. About 93% of children attend state school. The remaining 7% go to private, independent schools, where parents pay for their children’s education. A few of these are classed as ‘public schools’, particularly exclusive and expensive institutions such as Eton and Harrow. All state schools in England must follow the National Curriculum , which sets out the subjects that students have to study and the standards and targets students should reach at each Key Stage. At Key Stage 1, for example, the teachers assess the students’ progress in English, Maths and Science, while at Key Stage 2 there are national tests as well. Comprehensive schools are open to all students; to go to a Grammar School students must pass an entrance exam called the 11 plus.

AGE

SCHOOL

CURRICULUM STAGE

EXAMS

5-11

Primary

Key Stage 1 (ages 5-7) Key Stage 2 (ages 7-11)

National tests

11-16

Secondary: Comprehensive School Grammar School

Key Stage 3 (ages 11-14) Key Stage 4 (ages 14-16)

GCSE

16-18

Sixth Form College College of Further Education Specialist Colleges

A-Levels Other vocational qualifications

18+

University

Degree

ACTIVITIES

GCSEs include compulsory and optional subjects, chosen by students in Year 9. Students normally take between 5 and 10 exams.

348

Students normally take these exams in 3 subjects: some schools offer the International Baccalaureate, or the Cambridge Pre-U exam.

Reading comprehension 2

Read the above information and write a definition for these terms. 1 National Curriculum ____________________________ 2 state school ____________________________ 3 public school ____________________________

DO S S I E R 3 | UK vs USA

4 Key Stage 2 ____________________________ 5 GCSE ____________________________ 6 A-Level ____________________________

University education Places at British universities are offered to students on the basis of their A-Level results and, sometimes, on an interview. The more prestigious universities have higher requests and Cambridge and Oxford universities, for example, have their own entrance exams and are more difficult to get into. Most students complete their university course within the degree programme of 3 or 4 years. Most of them study away from home and live in halls of residence on university campuses or in rented accommodation nearby. Most students get a student loan to pay for tuition fees and living expenses, which they start to pay back once they have graduated and start earning over a certain amount per year. The social aspect of university, with various clubs, societies and the Students’ Union, is an important part of student life.

In the USA it is normal to say students ‘graduate’ from High School as well as university or college, whereas in the UK the verb is only used to talk about university. A gap year is when students take a year off between finishing A-Levels and going to university.

Is This the End of the Gap Year ? The increase in university fees has changed the face of the traditional, pre-university year off. Previously with the low tuition fees, parents didn’t need to worry about ﬁnancing this aspect of their children’s education but now, faced with £9,000 a year tuition bills, on the whole, they don’t like the idea of their children lying around for 15 months on a beach, learning new guitar chords. The chief executive of the Year Out Group, which offers philanthropic projects, strongly believes in the value of a gap year. ‘Students who go on a gap-year experience return with a more all-round view of the world, and of their place in it,’ he insists. ‘It was just an invaluable experience,’ says a student at Birmingham University, who spent 10 weeks of her gap year building sanitation units in India. ‘It taught me a whole range of transferable skills: self-organisation and team leadership.’ A recent report, however, has concluded that there are negative aspects to these philanthropic projects. An inﬂux of short-term, paying ‘voluntourists’ can cause emotional

Both in the UK and the USA, a first degree is called a Bachelor’s Degree, for example Bachelor of Arts (BA) or Bachelor of Science (BSc).

damage, for example, to African orphans who ﬁnd themselves suddenly befriended by these young Westerners, and then just as abruptly abandoned. These philanthro-gaps aren’t cheap, either. For 12 weeks helping to build a school in Northern Thailand, you can pay £2,650. Even four weeks in a Moldavian orphanage will cost £599. Mind you, just because students have done a gap year, it doesn’t mean they’re grown up. In recent years, there has been a sort of Gap Year Grand Tour, with teenagers from mainly uppermiddle-class backgrounds travelling around a predetermined circuit that involves trekking round Machu Picchu in Peru, bungee-jumping in Queenstown, New Zealand, and the annual Songkran Water Festival in Thailand. ‘You can be on a beach in Koh Samui, and it sounds from all the voices like you’re in Putney,’ says a third year student at Newcastle University. Adapted from The Telegraph

Read the text and the article and decide if these sentences are true (T) or false (F). Correct the false ones. T 1 2 3 4 5 6

Some UK universities have tougher entrance requirements. It is normal for a student to graduate within 3 or 4 years. University tuition fees are about £9,000 a year. Gap-year philanthropic projects do not cost a lot of money. Students on gap years can learn important skills. After a gap year students are always more mature.

ACTIVITIES

Reading comprehension

Writing 4

F Write an essay (140-190 words) using all these notes and giving reasons for your opinions.

A gap year is a valuable experience which all students should be able to have. Write about: 1 cost 2 maturity

3 … (your own idea)

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Harvard University

Education in the USA

ACTIVITIES

The USA does not operate a national education system nor a national curriculum. American education is decentralised and schools are a state and local government responsibility. Within the USA, there are a large number of private schools, mostly run by religious organisations, and about 11% of students attend private schools, approximately half of whom in Catholic schools. The other schools reflect America’s religious diversity, from Protestant denominations to Quaker, Islamic and Jewish. In most states, school attendance is compulsory for students from 5 to 16. Each school year is called a grade and is generally structured with kindergarten and 1st to 5th grade at elementary school; 6th-8th grade at middle school or junior high school and 9th-12th grade at high school. At the end of 12th grade, most students take the High School Diploma. American schools give high priority to sports – especially basketball and football – as well as clubs and other extra-curricular activities. About 2.3 million students do not attend school but are taught at home by their parents and each state establishes guidelines for parents who decide to home school their children. Many parents decide to home school for moral or religious reasons. Others consider that the negative social pressure of school, such as bullying or drugs, is detrimental to a child’s development. A further reason is the belief that a personalised approach on the basis of an individual’s academic abilities will better help develop a child’s potential. Opponents of home-schooling claim that there is a risk of poor academic quality, religious or social extremism and a lack of socialisation with others. Like in the UK, American students also apply for admission into college or university. As well as taking into consideration a student’s grades and class ranking at high school, the majority of universities require students to take a standardised test (SAT or ACT) and to write an essay, for example about what benefits they believe they would get from that particular college. Colleges vary in terms of competitiveness and reputation: generally the most prestigious, such as Harvard, Princeton and Yale, are private. Most undergraduate college courses last four years and the majority of students complete their studies within this period. Students normally choose a major by the end of their first year, although sometimes they do so in their second year. The major is the core subject area which is studied in depth, together with some optional courses to offer a broader, general knowledge.

Reading comprehension 1

US high schools in films and TV series

Read the text and answer these questions. 1 What kind of education system is there in the USA? 2 What kind of private schools are there? 3 How many years do students spend in compulsory education?

4 Why do some parents teach their children at home? 5 What is the procedure to apply for college? 6 How long does a college course usually last?

Speaking – Critical thinking 2

Discuss these questions in small groups. 1 What do you think are the positive and negative aspects of the American and British primary and secondary education systems? 2 Do you think home schooling is a good idea? Why/Why not?

3 Would you prefer to study in an American or British university? Why? 4 Do they have any advantages over the Italian system? And disadvantages?

Writing 3 350

Write a short essay (150-200 words) comparing the education systems in the UK, US and Italy, stating what you believe the advantages and disadvantages of each system are.

DO S S I E R 3 | UK vs USA

Speaking Up in Class, Silently, Using Social Media W

asn’t it just the other day that teachers conﬁscated cellphones and principals warned about MySpace? Now, Erin Olson, an English teacher in Sioux Rapids, Iowa, is part of a group of educators trying to exploit Twitter to improve classroom discussion. She and others say social media, in the past kept outside the school door, can tempt students who rarely raise a hand to express themselves via a medium they ﬁnd as natural as breathing. ‘When we have class discussions, I don’t really feel the need to speak up or anything,’ said one of her students, Justin Lansink, 17. ‘When you type something down, it’s a lot easier to say what I feel.’ With Twitter and other microblogging platforms, teachers from elementary schools to universities are setting up what is known as a ‘backchannel’ in their classes. The real-time digital streams allow students to comment, ask questions (answered either by one another or the teacher) and shed inhibitions about giving their opinions. Perhaps most importantly, if they are texting on task, they are less likely to be texting about something else. Sceptics – and at this stage they far outnumber enthusiasts – are afraid that introducing backchannels into classrooms will distract students and teachers, and lead to off-topic, inappropriate or even bullying remarks. For this reason, in high schools and elementary schools, teachers try to exercise tight control over backchannels, often reviewing a transcript after class for inappropriate remarks. Even schools that encourage students to use mobile devices prohibit gossip during class.

In Exira, Iowa, Kate Weber uses the technology for short periods almost daily with her fourth graders. ‘You’d think there’s a lot of distraction, but it’s actually the opposite,’ she said. ‘Kids are much quicker at stuff than we are. They can really multitask. They have hypertext minds.’ The 11th graders in Mrs Olson’s class said the backchannel had widened their appreciation of one another. ‘Everybody is heard in our class,’ said 17-year-old Leah Postman. Janae Smith, also 17, said, ‘It’s made me see my peers as more intelligent, seeing their thought process and begin to understand them on a deeper level.’ Adapted from The New York Times

Read the article and list the advantages and disadvantages of using social media in the classroom. ADVANTAGES

DISADVANTAGES

It encourages shy students to express themselves.

__________________________________________ __________________________________________ __________________________________________

__________________________________________ __________________________________________

ACTIVITIES

Reading comprehension

Speaking 5

Discuss these questions in small groups. 1 What do you think about using social media in class? 2 Is this the future or just a passing trend?

3 Do you think it would work in your school? Why/Why not?

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WARM UP

What do you know about postgraduate qualifications? Match these abbreviations to the correct title. 1 2 3 4 5 a b c

d e

Having a postgraduate qualification on your CV will certainly give you access to toplevel positions; if it is from a renowned business school, it will add further prestige. Many international publications, such as The Economist, The Financial Times and Forbes, publish rankings of the top business schools in the UK and the USA. Here are four of the best.

MBA MPhil MSc MA PhD Master of Science Doctor of Philosophy Master of Business Administration Master of Philosophy Master of Arts

An MBA (Master in Business Administration) is probably the most widely recognised business degree in the world. It is normally open to those who have completed a first degree and have some years’ work experience, particularly in management. The course deals with many aspects of business, including management, finance, marketing and strategy. MBAs offer the chance to meet people from all over the world, both faculty and students, and employment prospects are normally excellent.

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Business schools in the UK and USA

‘Through London Business School’s first-class programmes, global community and international links, we can deliver an educational experience to transform our students’ futures.’ Situated in the centre of London close to Regent’s Park, the London Business School was founded in 1964 and its courses include MBA , Executive MBA, Masters in Finance and Masters in Management. There are more than 2,200 students from all over the world each year, and over 100 faculty members from 31 countries. The MBA is a flexible programme lasting 15, 18 or 21 months. Each year the school receives more than 3,000 applications for the MBA. Out of 497 MBA students, 38% were women and the average period of work experience was 5 years. There were students of 66 different nationalities. (Class of 2021). The current fees for the MBA are £82,000. www.london.edu

‘A great business school at the heart of Cambridge, advancing knowledge and leadership through people who leave a mark on the world.’ Founded in 1990 and named after two benefactors, Sir Paul and Lady Judge, the Cambridge Judge Business School is part of the famous University of Cambridge. Students attending the various programmes are members of one of the 31 colleges and can participate in the many extracurricular activities and social events. The school has about 70 faculty members of different nationalities and offers MBA, Executive MBA, Master of Finance, PhD and MPhil degree courses. The MBA is a 12-month course with around 200 students each year, coming from many different countries. 93% of the students of the 2017/2018 MBA found employment within three months of completing the course, with nearly all finding a job in another country or a different industry. The www.jbs.cam.ac.uk average salary, including benefits, was over £95,000.

DO S S I E R 3 | UK vs USA

The Graduate Management Admission Test (GMAT) is one of the main tests used by the world’s leading business schools as part of their admissions procedure. The exam can be taken by computer in hundreds of locations around the world. Lasting 3 ½ hours, it consists of four main sections – Analytical Writing, Integrated Reasoning, Quantitative and Verbal. International applicants must usually also do a TOEFL (Test of English as a Foreign Language) or similar exam.

‘For over 100 years our students and faculty have shaped business around the world.’ Situated in the heart of Boston, Harvard Business School is in a self-contained, residential campus with classic red-brick buildings and open grassy courtyards. About 80% of the students live on campus which helps increase the sense of community and potential for learning. It was the first business school to offer the MBA qualification and today the MBA is an intensive, two-year residential programme. Statistics for the MBA class of 2021 show that there were 9,228 applications. Out of the 938 students admitted, 43% were women and 37% international students. On average, the students had 4.7 years www.hbs.edu of work experience and the average GMAT score was 730.

‘At Stanford, we launch you into a career with impact and a life of meaning.’

Located in Silicon Valley, just 30 minutes south of San Francisco, Stanford Graduate School of Business offers Masters, PhD and Executive education programmes as well as a two year, full-time residential MBA. The school was founded in 1925 and currently has 111 members of faculty, including 3 Nobel Laureates. For the MBA class of 2021 there were more than 7,342 applicants, with 417 accepted on the programme. The students had an average of 4.6 years’ work experience, with a GMAT score of 734. 43% were from overseas. Students can live on or off campus and take advantage of all the facilities, clubs and associations the school and www.gsb.stanford.edu Stanford University have to offer.

Read the profiles and say which business school(s): LBS 1 2 3 4 5 6 7 8

CBJS

HBS

SGSB

has faculty members from different countries. has students from different countries. offers Masters programmes. is connected to a University. was founded the most recently. offers accommodation on a campus. offers a flexible MBA programme. has a two-year MBA programme.

ACTIVITIES

Reading comprehension

Speaking 3

Discuss these questions in small groups. 1 Had you already heard of these business schools? Which do you think is the most prestigious? Why? 2 Are there any business schools in your country? What kind of courses do they offer? 3 Do you think an MBA is an important qualification?

4 What are the advantages and disadvantages of studying full-time and part-time for an MBA? 5 If you had the opportunity, would you study in the UK or the USA? Which business school would you choose? Why?

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UK and US media

Newspapers

Which UK and US newspapers and TV channels can you think of?

phone hacking intercettazioni telefoniche bribery corruzione Although broadsheet is often used to refer to quality newspapers, the term actually refers to the size of the paper they are printed on. However, most of these newspapers are now published in a compact size.

In the UK, broadsheets (e.g. The Times, The Guardian, The Sunday Telegraph) are the serious papers which contain national and foreign news, politics, economy, finance and business, with in-depth analysis and opinion. The tabloids (e.g. The Sun, The Daily Star, The Sunday Mirror) are more sensationalist in their reporting and while they do cover news, they mainly concentrate on scandals, gossip, TV and sport. USA Today and TheWall Street Journal are the two main papers which are available all over the USA. The first has a more informal and easier-to-comprehend style, while TheWall Street Journal is recognised for its high quality journalism and articles on American and international news, business, finance and economics. The NewYork Times and TheWashington Post are also read nationwide, as well as in their respective cities. Broadly speaking, newspaper circulation figures continue to decline as many people use other sources to keep up-to-date with current affairs or access the news online. The digital audience of online papers, some of which are free to access while others are for paying subscribers only, is much larger than the print audience of the major US and UK newspapers.

Television Thanks to satellite, cable, digital terrestrial TV and IPTV with hundreds of subscription or free-to-air channels, the choice of packages available to viewers in both countries is enormous, and allows them to be in charge of when, where and how to watch their favourite programmes. In the UK, the terrestrial TV network BBC is funded directly by the TV licence fee (current cost £154.50) and therefore is not allowed to have any advertising on its national TV and radio stations. Ratings and advertising revenues are probably the most important aspects for American TV networks, with ‘wars’ between the giants like ABC, CBS, NBC and Fox. Univision is the dominant Spanish language network.

ACTIVITIES

You only have to pay the licence fee if you watch live TV– that means as the programmes are broadcast – on any device, including tablets and computers. If you only watch catch up TV on demand – that is watching a programme at a later moment after its initial broadcast – you no longer have to pay the fee. For this reason, the BBC wishes to introduce a general TV fee per household so people can no longer avoid paying.

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Regulation In both countries, media outlets attempt to be neutral and accurate in their reporting and try to cover the full spectrum of political opinion, although some are more overt in their support of a particular political party. In the USA, freedom of expression for the press is guaranteed by the Constitution. However, since his election in 2016, Donald Trump has often attacked certain media channels for what he called fake news, calling them the “enemy of the people”. In the UK there is a self-regulatory ethical code for print journalism and an independent organisation, OFCOM, which oversees TV and radio programmes. However, journalists can often overstep the mark with unethical behaviour, such as phone hacking and bribery in an attempt to get an exclusive story, especially when connected to the royal family, celebrities or politicians.

Reading comprehension 2

Read the texts and write a short description for each point. 1 2 3 4

The difference between tabloids and broadsheets in the UK. The difference between USA Today and The Wall Street Journal in the USA. The trend in newspaper circulation. The differences in the regulation of media in the two countries.

DO S S I E R 3 | UK vs USA

Internet Usage in Great Britain In 2019, 93% of households in Great Britain had internet access, most with fixed broadband although many users also connect with mobile broadband at home too. Out of the 7% who do not have access to the internet at home, more than half of them feel that they do not need it. Around a third of them also mentioned that privacy and security risks were an issue for them. The Opinion and Lifestyles Survey, carried out in the first three months of every year by the UK Office for National Statistics, gives a lot of insight into, among other things, internet access and usage and it is interesting to see how rapidly things have changed since questions on this topic were first introduced in the survey in 1998. Back then, only 9% of households in the UK had internet access but ten years later this had shot up to 65%. As you can imagine, the frequency of internet use and the types of activity vary greatly depending

on the age group. For example, 99% of those aged between 16 and 44 use internet daily, while this figure drops to 61% for those over 65. However, over half of the over 65s are online shoppers, particular for clothes, sports goods and household items. The same categories are also the most popular for those between 25 and 34, who are the biggest online shoppers with 46% buying eleven or more times online in a three month period. www.ons.gov.uk Internet activities within the last three months, Great Britain, 2009 and 2019 2019

2009 Sending/receiving emails

Finding information about goods or services Internet banking Reading online news newspapers or magazines Making video or voice calls over the internet (eg via Skype or Facetime) 0

40%

60%

80%

100%

The birth of the Internet

ES Choose the option which fits best according to the text. 1 Why do some households not have internet access? A The fixed broadband service does not reach 7% of the households in Great Britain. B Internet access is not a necessity for these people. C They rely on mobile broadband access when they are out of the home. D They have cancelled their internet access due to previous security problems. 2 The Opinion and Lifestyles surveyâ&#x20AC;Ś A is conducted every three months. B has been in existence since 1998. C is an annual survey. D only contains internet statistics. 3 What similarity is there between the category of 65+ and 25-34? A They use internet to buy the same kind of products.

B They use internet with the same frequency. C They carry out a similar number of online purchases. D They spend eleven times more on internet than the other age groups.

ACTIVITIES

Exam practice - Comprehension & interpretation 3

20%

Base: adults (aged 16 years and over) in Great Britain

4 Look at the bar graph. Which of the following statements is true? A Finding information was the most frequent activity in both 2009 and 2019. B The growth of internet banking between 2009 and 2019 was less than that of sending/ receiving emails. C Reading online news was less frequent in 2019 than in 2009. D Making video or voice calls was the least frequent activity in both years.

Speaking 4

Discuss these questions in pairs. 1 2 3 4 5

Do you read a newspaper, watch TV or go online to find out local, national and international news? What are the reasons behind your choice of media? Do you think that printed newspapers will be totally replaced by online papers? Do you watch a lot of TV or do you prefer other methods to see films and series? How do you access internet when you are at home? How much time do you spend on Internet and what are the most frequent activities?

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Answer these questions in pairs.

ACTIVITIES

1 How long have you been studying English? 2 Do you study any other languages? 3 Which language is going to be the most useful for you in the future? Why? 4 How many people in the world do you think study English?

Origins and development of the English language How much can you remember about early British history and the various invasions that took place? Well, they can help in understanding the origins of the English language. English is based on the language used by the AngloSaxons, who invaded Britain from Germany, and much of the grammar and vocabulary is similar to the Dutch and German languages. The Vikings, who then came from Scandinavia, also contributed some words. However, one of the biggest influences came with the Frenchspeaking Normans. For a significant period, their language was that of the ruling class and many French words entered into the English language. Latin was the language of scholarship and the Church, so words of Latin origin too became an important part of the language. The Canterbury Tales by Chaucer, With the invention of the printing press in 1476, written in Middle English at the end it became essential to have a standard way of of the 14th century writing the language and this led to a gradual standardisation of the language spoken across the country. After the Renaissance, people were interested in studying Greek and Latin, which again meant more words were assimilated into English and others were invented using Greek or Latin roots. Modern English has borrowed many words from Chinese to Swahili, and in particular from the languages spoken in the ex British colonies. Today, English is changing and evolving at an incredible rate, thanks to technology and developments which need new expressions and terms, as well as slang and colloquialisms used by todayâ&#x20AC;&#x2122;s teenagers which often become integrated into mainstream English.

Reading comprehension 2

Read the text and then write down why these points were important for the development of the English language. 1 Anglo-Saxons ___________________ 2 Normans ___________________ 3 Latin ___________________

4 printing press ___________________ 5 British colonies ___________________ 6 new technology ___________________

Listening 3

2.25 Listen to someone describing how Oxford University Press decides whether a new word should be included in one of their dictionaries. Decide if these sentences are true (T) or false (F).

T 1 2 3 4 5 6

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Hundreds of words are added each year to the dictionary. They constantly examine many different forms of writing in English. A team of readers helps identify changes in the language. Today, a word must be in use for at least two years before it is included in a dictionary. People want to find new and popular terms in a dictionary. Invented words are never included in the dictionary.

DO S S I E R 3 | UK vs USA

British English vs American English

WARM UP

One of the most obvious differences between British English and American English is the pronunciation, but there are also variations in grammar, spelling and vocabulary. American English often uses the past simple while British English uses the present perfect (I already did it – I’ve already done it); have got is usually used to talk about possession in British English while have is used in American English; prepositions are often used differently, e.g. Write me soon in American English versus Write to me soon in British English. With regards to spelling, American English often has a single consonant while British English has a double consonant (traveling – travelling) and it uses the spelling -ize, -or and -er whereas British English traditionally prefers -ise, -our and -re (organize – organise, color – colour, center – centre). Variations in slang and colloquial expressions naturally exist in the two nations, but even everyday words can be different – pants and trousers, elevator and lift, autumn and fall – which can lead to misunderstandings.

Are you learning British English or American English? Which accent do you find easier to understand? Are you more in contact with American or British English (e.g. through TV, websites, music, etc.)?

MORE ABOUT... There are some British people who want to defend British English and get very annoyed about how Americanisms are slowly creeping into their lives. Outraged viewers took to Twitter, for example, when a journalist for the BBC – considered by some as one of the nation’s institutions that should be upholding the ‘Queen’s English’ – said the American slang fessed instead of confessed in a news report about Volkswagen. But, actually, this ‘language contamination’ goes both ways and British English has started to invade America too, thanks also to the success of British TV programmes like Downton Abbey and Dr Who. And, no doubt, there are some Americans up in arms against the invasion of ‘Britishisms’!

ACTIVITIES

Reading comprehension Read the text and, in pairs, say which of the variations between British and American English you were already aware of.

Vocabulary 3

Can you match these common British English words with their American equivalent?

British English

American English

1 2 3 4 5 6 7 8

a b c d e f g h

estate car biscuit ground floor petrol pavement sweets tap underground

gas subway candy station wagon first floor cookie sidewalk faucet

Listening 4

F Listen to five people talking about British and American English. Match each speaker to what he/she is talking about. There are three extra options you do not need. 2.26

a b c d e f g h

problems teaching the two languages the importance of correct spelling a misunderstanding the influence of TV on language the similarities in teenage slang difficulties in understanding accents English as a global language problems communicating over the phone

Speaker 1 Speaker 2 Speaker 3 Speaker 4 Speaker 5

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3 WARM UP

Where are the Bahamas situated? Have you ever visited the country? What do you know about it?

DOSSIER

English-Speaking World The Bahamas

ACTIVITIES

A group of 700 islands situated in the Atlantic Ocean, the Bahamas are a popular tourist destination for those in search of beautiful beaches and great weather. The country’s second most important economic sector after tourism is banking and international financial services. Like many islands in the Caribbean area, the identity and culture of the Bahamas and its people have been shaped by its rich history and its African and European ancestors. The native inhabitants of the islands were the Lucayan Indians. However, soon after Christopher Columbus’ arrival in the New World in 1492, these natives were wiped out by disease and slavery. English settlers arrived from Bermuda in 1649, looking for religious Conch is a type of seafreedom, and they settled on what is now the island of Eleuthera. Thanks to the proximity snail, which can be eaten to important shipping lanes, the 17th and early 18th centuries saw an abundance of raw or cooked, particular pirates operating from the islands, who the British managed to stop when the Bahamas in chowders and fritters. became a British colony in 1783. Many Loyalists settled here after the American War It is very popular in the Bahamas and other of Independence and brought their slaves with them and set up plantations. The Caribbean islands. Bahamas became independent in 1973 and today are a member of the Commonwealth of Nations and have Queen Elizabeth II as their Head of State. Today’s inhabitants are approximately 80% Afro-Bahamian and 15% White, descendants of the European settlers and African slaves who came to the islands. The culture, food and language on the islands reflect this heritage. English is the official language and most people also speak Bahamian Creole. The main religion is Protestant. The traditional goombay music, which combines African musical traditions and colonial influences, is a mixture of storytelling and dancing to a fast beat, played on goatskin drums. Junkanoo is unique to the Bahamas and is a parade usually held on Boxing Day, New Year’s Day and Independence Day (July 10th), where there are dancers and musicians with cowbells, whistles, drums and horns. The cuisine relies on local products, like fish, lobster, conch and tropical fruits, and has been influenced by African, Caribbean and Europe ideas, as well as those from the south of the USA, thanks to the proximity of the islands to Florida. www.bahamas.com/about-bahamas

Reading comprehension 2

Read the text and explain the importance of these terms, people and dates for the Bahamas. 1 financial services 2 Christopher Columbus

3 1649 4 1783

7 goombay 8 Junkanoo

Speaking – Critical thinking 3

Discuss these questions in pairs. 1 How important is tourism for a country like the Bahamas? 2 The Bahamas are a popular destination for cruise ships. What do you think the advantages and disadvantages for the country are?

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5 Independence Day 6 African slaves

DO S S I E R 3 | English-Speaking World

3 Do you think tourists are able to see and appreciate the real culture and identity of the place they are visiting? Why/Why not? 4 What problems can you encounter when trying to define the identity of a nation or a population?

English in the

Bahamas By Nicolette Betel

think that it is time to recognise as a nation that the language we speak in the Bahamas is not English. It is the Bahamian Creole, to be exact, and while it uses English vocabulary as a vehicle, its structure and its rules are fundamentally different. Bahamians recognise that we have a different ﬂavour to our language, but we don’t recognise the fact that we speak a different language altogether. One reason for this is that the language we speak, which is completely legitimate, was (and still is) categorised as bad or broken English. Another is our national prejudice against our Haitian neighbours, which leads us to associate creole with all the negative connotations we associate with Haiti. Bahamian Creole is the language that was created in the slave societies which founded our modern one. One of the tactics used during slavery was to avoid at all costs placing slaves of the same background together, so many Africans were separated from people who were familiar to them, and they were only able to communicate with one another in the language of their masters. They used a basic language, full of commands and concrete words, but of limited use. Later, that pidgin language expanded to include all areas of life, including abstract and philosophical ones, and it became the creole we speak today. This is why we use English words, but we retain the African grammar that our ancestors brought with them when they came. What is interesting about African languages is that they almost all have certain characteristics in common that make them different from European ones. In African languages

nouns and verbs remain the same. To indicate possession, tense or number, Africans use other words to help, or they simply rely on context. This translates into Bahamian Creole in the following way: you’ve got one DOG, and Mark has two DOG. We know he has more than one because we said it already; he has two. In our language, and in the African ones from which it derives, ‘two dog’ is perfectly correct. The bone Mark owns is MARK BONE. We don’t need to change the noun to show whose it is; the context tells us. And if we want to tell people what Mark did with the bone, we say MARK GIVE the bone to the dog. That remains the same, now, last week or tomorrow; if we want to say when Mark gave the bone to the dog, we just add a time expression. A pidgin is a simplified These three examples are a version of a language clear illustration of the African that combines elements inﬂuence on our language, of other languages which is used in order to be which makes it distinct from able to communicate English, hence the different to speakers of other name: Bahamian Creole; but languages. A creole not an inferior form of English, language, on the other just a different one. hand, is one that has its Source: www.thenewblackmagazine.com

origins in two languages and incorporates features of each and is the mother tongue of a community.

Read the article and answer these questions. 1 According to the writer, what are the two main differences between English and her Creole? 2 Why do people from the Bahamas consider their language a bad form of English? 3 When did pidgin Bahamian become a creole? 4 What three characteristics of African languages have influenced Bahamian Creole?

5 How does Bahamian Creole indicate possession? 6 How does it indicate time in verbs? 7 Why do you think the writer concludes by saying that her creole is not inferior to English?

ACTIVITIES

Reading comprehension

CLIL – HISTORY Consider how history – with invasions, colonisation and globalisation – has shaped the identity and culture of a country and its people.

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Can you think of any films or songs which talk about the conflict in Northern Ireland?

DOSSIER

Going Deeper The Troubles

ACTIVITIES

The Northern Ireland Conflict can be said to have its origins in the Easter Rising of 1916 and the 1921 division of Ireland into the independent Republic of Ireland, predominantly Catholic, and Northern Ireland, which remained part of the UK with a mix of Protestants and Catholics. The Protestants in Northern Ireland generally defined themselves as British and were in favour of remaining part of the UK. The Catholics, on the other hand, considered themselves Irish and wanted a united Ireland. In addition, the Catholics were in a minority and were often discriminated against by the Protestant majority. The battle between the Unionists/Loyalists and the Nationalists/ Republicans came to a head in the late 1960s and continued for three decades, the period which is often known as The Troubles. There were armed campaigns and violence on both the Unionist and Nationalist sides with paramilitary groups, as well as the involvement of the British Army and the RUC – the Royal Ulster Constabulary which was the police force in Northern Ireland at that time. In 1985, the Anglo-Irish Agreement was signed between the British and Irish Prime Ministers, Margaret Thatcher and Garrett FitzGerald, but violence and disruptions continued. Loyalist graffiti, Belfast (1970) It was not until the 1998 Good Friday Agreement that the Troubles were said to be over. This peace agreement meant that the Northern Ireland Assembly could be formed and power shared between the Unionists and the Nationalists. However, this hasn’t brought an end to the country’s political problems and the two sides continue to disagree and have fundamental differences in values and viewpoints.

Reading comprehension 2

Read the text and answer these questions. 1 When was the partition of Ireland? 2 Which two religions are present in Northern Ireland? 3 Why was there disagreement between them?

Listening 3

4 5 6 7

How long did the Troubles last? Who were the two sides involved in the Troubles? Who else was involved? What happened in 1985 and 1998?

2.27 Listen to this explanation of some of the key events and people involved in the Troubles. Match

each term to the correct description. There are two extra descriptions which you do not need. 1 2 3 4 5 6 7 8

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Terence O’Neil Provisional IRA UVF Bloody Sunday Bloody Friday Bobby Sands Sinn Fein Good Friday Agreement

DO S S I E R 3 | Going Deeper

a b c d e f g h i j

a Member of Parliament a moderate, Protestant political party a republican paramilitary group provisional IRA prisoner who died after a hunger strike a treaty between the Irish and British governments Prime Minister of Northern Ireland in 1963 a loyalist paramilitary group 14 demonstrators were killed by the British Army bombs killed nine people in Belfast a radical, Catholic political party

A Journey from Violence to Politics Martin McGuinness (1950-2017) was a significant figure in Northern Ireland both during and after The Troubles: IRA commander, chief negotiator for Sinn Féin during the peace process and deputy First Minister. McGuinness, one of seven children in a Catholic family, was born in the Bogside area of Derry, a city which was controlled by Protestants even though the majority of inhabitants were Catholics. As a teenager, he faced discrimination in the workplace for being Catholic and saw the growing violence and horrors in Belfast. 1 He was committed to armed struggle and served a prison sentence after being found with explosives and ammunition in his car. 2 In 1972 he was part of a delegation sent to London to negotiate with the government and it was from here that he became involved in fighting the battle also from a political front, as a spokesperson for the Republican political party Sinn Féin. During the 1980s and 1990s as the various peace discussions progressed, he was accused of still being involved as a provisional IRA commander. His close contacts with the organisation undoubtedly mean that he should be considered as morally and personally responsible for many of their attacks even if he was no longer in the front line. 3 When violence continued even after

Reading comprehension 4

this agreement, McGuinness was quick to condemn these acts, calling the perpetrators ‘traitors’. In 2007, after having been an MP for ten years, he became deputy First Minister, a position which he held until he resigned in 2017, just a few months before his death. 4 In spite of this, he remained passionate and convinced about maintaining peace in Northern Ireland and not allowing things to go backwards into hate and violence. 5 There are those who cannot forgot the past violence committed by McGuinness and the IRA and those who consider him to be an important Republican politician who fought hard for change. Wilde and Joyce

A As deputy First Minister, he had to work through several constitutional crises. B They refused to take part in further negotiations in his presence. C In addition, his home was frequently raided by the British army and he was often taken away for interrogation. D Just as political and religious viewpoints are

divided in Northern Ireland, people’s opinions of McGuinness differ. E As a result, he became active within the IRA, the Republican paramilitary organisation, and soon was the second-in-command for the Derry area. F However, at the same time, he was fundamental in the negotiation process which led to 1988 Good Friday agreement.

ACTIVITIES

F Read the article and choose the best sentence to fill each gap. There is one extra sentence you do not need.

Speaking – Critical thinking 5

CLIL – INTERNATIONAL RELATIONS/HISTORY Discuss these questions in pairs. Find out about the reasons for the conflict between Israel and Palestine. 1 What wars in the past have been fought What is the current situation and how are other nations involved in due to religious differences? trying to find a peace agreement? 2 Why do you think religion is such an important matter in these conflicts? 3 What could be done to encourage people of different religions to live peacefully together?

Written exam practice 6

ES Today there are still many conflicts and tensions between countries or even regions of the same country. Referring to one or two conflicts that you have studied, write a short essay to discuss the reasons for these conflicts and how important the role of individual citizens, politicians, governments and international organisations are in attempting to solve them.

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Multicultural Britain? Chris Cleave’s debut novel Incendiary was published in 2005 and was later adapted into a film starring Ewan McGregor. The inspiration for his novel The Other Hand (published as Little Bee in the USA) came from his experience of working for a few days in the canteen of an asylum detention centre whilst he was a university student. The Other Hand has two narrators: Little Bee, a Nigerian asylum seeker, and Sarah, an English magazine editor, wife and mother. The book begins in an immigration detention centre, where Little Bee is sent after escaping from the horrors of the Nigerian oil conflicts and entering the UK illegally. But the story starts on a Nigerian beach with a dramatic event involving Little Bee, her sister, Sarah, and her husband Andrew, which will profoundly affect all their lives.

Monica Ali is a British writer of Bangladeshi origin. Brick Lane, published in 2003, was her debut novel and it has since been made into a film. Brick Lane is a road in the heart of London’s Bangladeshi community, in the Borough of Tower Hamlets. Brick Lane follows the life of Nazneen, a girl who moves from Bangladesh to a cramped flat in Tower Hamlets at the age of 18 in order to marry the man chosen by her family. Her Bangladeshi husband, Chanu, is a lot older than her, a little pompous, full of plans which never come to anything and extremely fond of quoting from Shakespeare. Nazneen, whose English consists of ‘sorry’ and ‘thank you’, has to adapt to her new life with this man and to her new country with its strange ways.

Read the descriptions of these two novels and answer these questions. 1 2 3 4

What do the two novels have in common? Which countries are the two immigrants from? Why did they go to the UK? Are they both in the country legally?

Hand. This excerpt is taken from the ﬁrst chapter of The Other Hand I am only alive at all because I learned the Queen’s English. Maybe you are thinking, that isn’t so hard. After all, English is the ofﬁcial language of my country, Nigeria. Yes, but the trouble is that back home we speak it so much better than you. To talk the Queen’s English, I had to forget all the best tricks of my mother tongue. For example, the Queen could never say, ‘There was plenty wahala, that girl done use her bottom power to engage my number one son and anyone could see she would end in the bad bush.’ Instead the Queen must say, ‘My late daughter-in-law used her feminine charms to become engaged to my heir, and one might have foreseen that it wouldn’t end well.’ It is all a little sad, don’t you think? Learning the Queen’s English is like scrubbing off the bright red varnish from your toe nails, the morning after a dance. It takes a long time and there is always a little bit left at the end, a stain of red along the growing edges to remind you of the good time you had. So, you can see that learning came slowly to me. On the other hand, I had plenty of time. I learned your language in an immigration detention centre, in Essex, in the south eastern part of the United Kingdom. Two years, they locked me in there. Time was all I had. But why did I go to all the trouble? It is because of what some of the older girls explained to me: to survive, you must look good or talk even better. The plain ones and the silent ones, it seems their paperwork is never in order. You say, they get repatriated. We say, ‘sent home early.’ Like your country is a children’s party – something too wonderful to last forever. But the pretty ones and the talkative ones, we are allowed to stay. In this way your country becomes lively and more beautiful. cramped angusto heir erede scrubbing off togliersi, strofinare stain macchia go to the trouble davo da fare plain bruttine

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Read the first extract and answer these questions. 1 2 3 4

Why does Little Bee say that Nigerians speak better English? What image does she use to compare the two languages? Do you think it is successful? Where and why did she learn the ‘Queen’s English’? Compare the Nigerian English sentence with its version in the Queen’s English.

This excerpt from Brick Lane is part of a conversation between Nazneen and her Asian friend Razia. Razia smiled… ‘Any news of the promotion?’ ‘My husband says they are racist, particularly Mr Dalloway. He thinks he will get the promotion, but it will take him longer than any white man. He says that if he painted his skin pink and white then there would be no problem.’ Chanu had begun, she had noticed, to talk less of promotion and more of racism. He had warned her about making friends with ‘them’, as though that were a possibility. All the time they are polite. They smile. They say ‘please’ this and ‘thank you’ that. Make no mistake about it, they shake your hand with the right, and with the left they stab you in the back. ‘Well,’ said Razia, ‘this could be true.’ Nazneen turned the words over. This could be true. She waited for more. Razia was unpicking a thread from her jumper. Nazneen said, ‘My husband says its discrimination.’ ‘Ask him this, then. Is it better than our own country, or is it worse? If it is worse, then why is he here? If it is better, then why does he complain?’ These were questions she had neither asked nor thought of asking. She was in this country because that was what had happened to her. Anyone else, therefore, was here for the same reason. ‘I don’t know if he complains,’ she found herself saying. ‘He just likes to talk about things. He says that racism is built into the “system”. I don’t know what “system” he means exactly.’ ‘My son’s teacher, she’s a good one. She helps him a lot, and he likes her. My husband has a work colleague, he gives us things. Clothes that his children have grown out of. A machine for drying hair. A radio and stepladders. All sorts of things. There are good ones and bad ones. Just like us. And some of them you can be friendly with. Some aren’t so friendly. But they leave us alone, and we leave them alone. That’s enough for me.’

Read the second extract and answer these questions. 1 2 3 4

What is Chanu’s view of the white people he works with? Does Razia share his view? What ‘system’ do you think Chanu is referring to? What evidence is there to suggest Nazneen’s feeling of alienation with her situation?

stab pugnalano unpicking sfilando grown out of che non entrano più

Compare Little Bee’s statement ‘In this way your country becomes lively and more beautiful’ with Razia’s ‘There are good ones and bad ones’. How do you interpret them? Do they suggest similar or different views of the UK?

Thinking about what Razia says – ‘If it is worse, then why is he here? If it is better, then why does he complain?’ – discuss the reasons why people decide to, or have to, leave their own countries. At what risk? For what benefits?

CLIL – HISTORY Find out about the emigration of Italians to the USA and the history of Ellis Island.

Watch this video about multicultural London and answer these questions. 1 2 3 4

What is Tower Hamlets? How does Praxis help migrants and refugees? Why did the organisation choose the name Praxis? According to Franco, what are the most common problems they deal with at the centre? 5 What was Alex’s experience when he arrived in the country? 6 Why do people like living in London?

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This pie chart shows UK employment according to sector. Which sector of the chart do you think represents the following sectors?

Services - Energy and water - Agriculture and fishing - Manufacturing and construction

1% ____________ 1,7% ____________

16,7%

DOSSIER

Economy Britain’s industrial north in the 1980s

UK economy Natural resources and energy

Britain’s large deposits of coal and iron ore were fundamental in the country’s Industrial Revolution and subsequent industrial development. However, most of the mines in Wales, northern England and central Scotland are now closed. The 1970s saw the start of production of North Sea oil and gas and currently these provide about 75% of the UK’s total primary energy. The UK is the 3rd largest gas and oil producer in Europe. The offshore oil and gas industry supports over 300,000 jobs across the UK, both directly in the oil and gas companies, as well as in the supply chain and goods and services sector. The main regions are Scotland with 40% of the workforce and South East England with 10%. While coal and gas remain the principal sources for the UK’s electricity needs, the country also generates 21% of its electricity through solar and wind power and 19.5% through nuclear power. Having been built between the 1960s and 1980s, the country’s nuclear power plants are coming to the end of their productive life and plans to extend their life span or to build more are being discussed. Investment in offshore wind farms, on the other hand, is on the increase and one of the world’s largest, Hornsea One, has just been completed off the North Yorkshire coast. Source: www.oilandgasuk.co.uk and www.decc.gov.uk

Agriculture

80,6%

____________

ACTIVITIES ACT IV IT IE S

____________

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Occupying 17.4 million hectares, agriculture accounts for around 71% the land use in the UK and employs 477,000 people (2018 figure). It contributes less than 1% to the national economy. Agriculture is highly mechanised, intensive and efficient, producing about two thirds of the country’s food needs. The principal products are cereal crops, with wheat representing over 40% of the total, followed by barley, oilseed rape, maize, potatoes and sugar beet. Livestock farming includes dairy cattle (for milk, butter and cheese), beef cattle, sheep and lambs, pigs, and poultry. Over the last few years the use of pesticides, nitrogen and phospahtes has continued to fall while the interest in organic farming methods has increased. The amount of land now farmed organically is around 474,000 hectares. Source: www.gov.uk/government/statistics

Reading comprehension 2

Read the texts on these pages and answer these questions. 1 How does the UK oil and gas industry rank compared to the rest of Europe? 2 How does the country satisfy its electricity needs? 3 What forms of renewable energy are common in the UK?

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4 5 6 7

Which is the main cereal cultivated in the UK? How many hectares of forest are there in the UK? What is the state of the UK fishing industry? Are the UK’s forestry and fishing industries sufficient to support internal demand?

Forestry Only 13% of the land area in the UK, or around 3 million hectares, is forest and the most densely wooded area is Scotland. 43,000 people are employed in the forestry and primary wood processing sectors. To satisfy demand, the UK needs to import large quantities of forest products (including sawn wood, wood based panels, pulp and paper products). In 2018 imports totalled £8.3 billion. Source: www.forestry.gov.uk

Fishing The fishing industry in the UK is in decline. In 2018, there were just over 6000 fishing vessels and around 12,000 people were employed in the industry, 2,400 of whom part-time. In the same year, the UK fishing fleet landed nearly 700,000 tonnes of fish with a value of £989 million. The main fishing areas are the northern part of the North Sea and the west of Scotland. There are also some important fishing ports in Devon and Cornwall in the south west of the country. The principal fish caught are cod, haddock, mackerel and herring, as well as some shellfish such as crabs. The UK’s major exports are mackerel, salmon and herring, while the country imports principally cod, tuna, shrimps and prawns.

BP Bets $200 Million on Renewables The energy sector is going through many changes but BP remains one of the most competitive companies in the challenge of going green. Thanks to climate change awareness, all major oil companies are under pressure to shift away from the traditional fossil fuels, like oil and gas, and get into cleaner sources of energy. Under the slogan ‘Beyond Petroleum’, 1 acquiring a large stake in Lightsource, a solar power developer based in the UK. While the demand for oil, which has been growing steadfastly at about 1.7% per annum in the last years, is expected to eventually level off to less than 1% a year through 2040, renewables like solar and wind power are increasingly seen as a good business opportunity: 2 That ﬁgure is much lower, however, than the 18% in estimated average returns that a drilling project offers. BP solar investments go back to 1980s, but nowadays manufacturing equipment like solar panels is an area largely dominated by Asian companies, 3 But BP is conﬁdent in Lightsource proving itself as a vehicle to take advantage of what’s forecast 4 BP said its $200 million investment would eventually give it a 43% stake in Lightsource, which will be renamed Lightsource BP. BP’s investment will be used to help Lightsource grow globally, and develop solar projects able to manage installations 5 The investment is BP is one of the world’s tiny compared to BP’s capital expenditure of six largest oil and about $16 billion this year. Adapted from The New York Times

gas companies, with headquarters in London.

Source: www.gov.uk/government/statistics

3 INVALSI

Read the article about British Petroleum and choose the correct sentence for each gap. There is one extra sentence you do not need.

A B C D E F

they are estimated to return between 7% and 10% on capital invested that could power about half a million homes as 10% to 15% annual growth in solar power in the next years. BP is now investing billions in renewables, BP interest in fossil fuels has increased because of their more competitive price.

ACTIVITIES

Reading comprehension

Speaking 4

Discuss these questions in small groups. 1 Are there any important oil and gas companies in Italy? Where do they operate? 2 How does the energy sector in the UK compare to that in Italy? 3 What kind of renewable energy sources are common in Italy? What are their advantages/disadvantages?

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What famous British industries and products can you think of?

ACTIVITIES

Stilton, a type of blue cheese made by adding mould spores to pasteurised milk, is made in central England in the counties of Derbyshire, Nottinghamshire and Leicestershire. It has the EU Protected Designation of Origin label and there are only 6 diaries licensed to produce it. Over 1 million Stilton cheeses are made each year, with more than 10% being exported worldwide.

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Industry and manufacturing The heavy industry of the UK’s industrial past – such as shipbuilding and steelmaking – no longer represents the bulk of the country’s industry. Where these industries remain, they are efficient and cost effective, employing fewer people in fewer locations and factories than in the past. However, the UK is still one of the largest manufacturing nations in the world. This can be attributed to a more skilled workforce, improved automation and technology, increased investment in R&D and a more integrated global economy. The manufacturing industry employs around 2.6 million people in the UK and, in 2018, was worth 10% of the total economic output of the country. Some of the biggest sectors are food and beverages, chemicals and pharmaceuticals and aerospace. Like many other sectors, the country’s industries and manufacturing companies are waiting to see what new trade agreements will be made and how the economy in general will fare postBrexit. National and international food companies like Associated British Foods, food processing, Kellogg’s, producer of well-known breakfast cereals, and Boparan Holdings, food production, exist alongside smaller enterprises producing specialist or traditional products like Scotch whisky and stilton cheese . GlaxoSmithKline is one of the largest and leading pharmaceutical companies in the world which researches and develops new drugs, but also produces household names like Aquafresh and Sensodyne toothpastes. BAE Systems is at the forefront of the defence and aerospace sector, with many factories in the south of England as well as other parts of the world. There are no longer any British owned mass car manufacturers as they have all been taken over by overseas companies. One of the last British owned car manufacturers, Morgan, which makes high-end sports cars and which had been controlled by the same family for 110 years, sold a majority stake to an Italian venture capital group in 2019. However, global car manufacturers like BMW, Nissan and Honda have invested in car manufacturing in the UK, mainly in the West Midlands. While many fashion brands are part of major international groups, Burberry is a British luxury fashion brand and Stella McCartney, although in partnership with luxury group LVMH, still owns the majority of her eponymous brand. There are also wellestablished companies in sectors like engineering, electronics and telecommunications, construction, biotechnology, nano-technology and advanced composite materials.

Reading comprehension 2

Read the text and answer these questions. 1 What kinds of heavy industry used to be important in the UK? 2 How many people work in the manufacturing sector? 3 What share of the UK’s GDP is represented by manufacturing? 4 Why is the manufacturing and industry sector interested in Brexit?

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5 What kind of companies are Kellogg’s, GlaxoSmithKline and BAE Systems? 6 How has the British car manufacturing sector changed? 7 Why is Burberry different from many other fashion brands?

British Manufacturing: Back in Fashion

uring 2019 there were yet more unwelcome headlines in the papers about the drop in UK factory outputs and the dire state of the British manufacturing industry. Yet for fashion designer Patrick Grant they will have served as a reminder of the importance of his Community Clothing initiative. Established in 2016, it was designed to be a lifeline to the fashion manufacturing workforce in the UK, addressing and maximising the capacity of British factories. The idea first came to Grant when he bought his own factory in Blackburn and looked at how it was operating. “What was really clear was that it needed good, steady work that it could do in the periods when it was quiet.” The concept is elementary in its essence. Grant wants to turn the quiet periods on the factory floor – where employees have nothing to do or, in worst cases, are laid off until the work starts to pick up again – into an efficient use of time. To do this, he has created a brand (also called Community Clothing) that produces timeless wardrobe staples for both men and women for which he’s certain there will be an ongoing demand. Grant calls it “a social enterprise” which has three aims: to make great clothes that are sustainable, affordable and well made; to create and sustain quality

jobs in towns that were once alive with clothing-manufacturing activity; and to restore civic pride in communities and consumers. After introducing it to his own factory, where he employs 38 people from the local area, Community Clothing now works with 25 factories and suppliers in the UK and has created more than 124,000 hours of skilled work. “The idea that simple, manufactured goods need to be made in low-labour-cost countries is no longer valid because automation and technology have changed the game. We won’t return to the industrial economy of the past, where we had 1.5 million people making this stuff, but we could create a serious number of sustainable jobs. Engineers to run advanced manufacturing equipment, IT specialists to create the software that runs all this – it’s not necessarily people who know how to make clothes.” Employees are embracing the initiative. “In our factory, everyone sees this as a solution,” says Grant. “They are supportive and thankful we are creating a sustainable business route. The UK has turned its nose up at factory work, but the truth is most people who work in the factories love it. There is a great camaraderie. There is pride.” “It’s basically

about setting different objectives,” he continues. “That’s what is exciting about social enterprise: it’s not about creating riches for already rich people, it’s about a new set of constituents and serving the community, serving employees and making customers feel good about doing something that has been forgotten for a long time.” Now that’s a headline we can get on board with. Adapted from The Guardian, 2019

F Read the article and choose the correct option. 1 Why were some 2019 newspaper headlines ‘unwelcome’? A They reminded Patrick Grant about his failed fashion business. B They contained fake news about British industry. C They gave bad news about the condition of manufacturing in the UK. D They implied that British fashion companies were not important. 2 What did Grant learn from the operation of his own factory? A His employees were not as efficient as he thought. B The importance of having constant work for a factory. C How to make his workers stop wasting time. D Keeping concepts simple is essential for being successful. 3 What is important about the clothes that Community Clothing produces? A They are fashionable, expensive and therefore profitable.

B They are made using low-cost labour in other countries. C They are made by unskilled people with no experience. D They are affordable, key pieces which won’t go out of fashion.

ACTIVITIES

Reading comprehension

4 How do the employees at Community Clothing feel? A They are proud of what they do. B They would prefer not to work in a factory. C They are worried about losing their jobs. D They want to be able to earn more money. 5 Why is Grant enthusiastic about social enterprise? A It is a way for him to become rich. B This method easily attracts a lot of new customers. C It creates a lot of positive publicity for his products. D It benefits both communities and individual people.

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The tertiary sector is the largest in the UK and the economic output of the sector is worth 81% of all UK economic output. Approximately 81% of the workforce is employed by this sector which includes government, healthcare, financial services, banking, retail, education and tourism. Figures for mid-2019 show that 3.23 million people are employed in central government; 1.69 in the National Health Service; 3.4 in education, 2.7 in retail and 1.8 in accommodation and food services. The retail sector has been under severe pressure from the challenging economic conditions, changes in consumer behaviour and the increase in online Tesco has 27% of the supermarket market share in the UK. shopping. The market is dominated by large chain stores, which operate in most sectors like food, clothing and electrical goods. This means that smaller and independent shops find it more difficult to compete. For example, four supermarket chains – Asda, Tesco, Sainsbury’s and Morrisons – have around 70% of the market share, although this has been declining in recent years as discount chains such as Lidl and Aldi increase The Tower of London is one of London’s their hold on the market. most popular tourist attractions. Tourism is also a key part of the UK economy, with London being one of the top tourist city destinations in the world. It has been the fastest growing sector in the UK in terms of employment since 2010, and the tourism industry is predicted to be worth over £257 billion by 2025. 1.3 million people work in the financial services sector, and about one third are employed in London, where nearly half of the sector’s £132 billion output was generated in 2018. This figure represents 6.9% of the country’s total economic output. The City of London is one of the leading international financial and banking centres in the world, with hundreds of foreign banks, offices and subsidiaries. It is home to the London Stock Exchange, the Bank of England and Lloyd’s – the world’s The City of London specialist insurance market. Edinburgh, Leeds and the North or the ‘Square Mile’ West are also significant centres for financial services.

Can you remember what percentage of the workforce is employed in the service sector in the UK? Why do you think it is so high? Has it always been this way?

ACTIVITIES

Service sector

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Reading comprehension 2

Read the text and complete these sentences. 1 81% of the UK’s GDP is represented by… 2 … are examples of the tertiary sector. 3 The retail sector employs … than the accommodation and food services sector. 4 Difficulties for the retail sector include … 5 It is not easy for independent retailers to compete with…

DO S S I E R 4 | UK vs USA

6 Employment in the tourism sector has… 7 The City of London is important for financial services because… 8 Apart from London, many people are employed in financial services in…

ACTIVITIES

Listening F Listen to this profile of British businessman Richard Branson. Complete these sentences with a maximum of three words. 2.28

1 Branson’s first venture was set up when he was ____________. 2 The Virgin Group started as ____________ and recording studios. 3 Branson is classified as the ____________ person in the UK. 4 The non-profit foundation Virgin Unite is aimed at addressing ____________ issues. 5 So far, ____________ people have already registered to go on spaceflights. 6 The first spaceflight was supposed to happen in ____________. 7 He is considered a pioneer in both his commercial and ____________ life. 8 In 2004 Branson used an amphibious vehicle to cross the ____________ in record time.

Current UK economic situation The issue which has had the most impact on the UK’s economy over the last three years is Brexit and the turmoil which British politics finds itself in. After the referendum and the decision to trigger Article 50, the negotiation for leaving the EU has not been at all smooth and there have been several delays. This has affected economic growth, with an increase in inflation and a slowdown in private consumption. Business investment has also slowed down due to the uncertainty of the withdrawal agreement G7 (or Group of Seven) and the terms of any new trade agreements, as well as fears of increased costs for is composed of the seven biggest so-called trading. In 2018, the UK current account deficit increased to 4.3% of nominal GDP, advanced economies: up from 3.5% in 2017 and the largest deficit recorded among G7 economies. This the UK, the USA, Japan, was mostly due to the increase in the trade deficit from 1.2% (2017) to 1.8% (2018) Italy, Germany, France of GDP. In 2019, the country narrowly avoided a recession but economic growth and Canada. Each nation takes on the presidency was weak, with an annual growth of around 1%, the lowest rate since 2010 when the for a year and hosts the economy started to pick up after the Great Recession of 2008. The services sector, in annual summit of the particular IT, communications and creative industries, was responsible for most of this countries’ leaders, which growth, as the manufacturing and production industry stagnated. The sterling exchange always attracts a lot of press attention, both rate has been volatile since 2016 and the pound has lost around 20% of its value against positive and negative. the dollar and has dropped close to parity against the Euro several times.

Reading comprehension Read the text and answer the questions using no more than four words.

1 How could you describe Brexit negotiations? 2 What affect has Brexit had on the economy? (Give two answers) 3 Why are businesses investing less at the moment? 4 How did the 2018 UK current account deficit compare to that of the other G7 countries?

5 What growth rate did the country record in 2019? 6 How did the manufacturing and industry sectors perform in 2019? 7 How has the pound performed against the dollar and euro since 2016?

ACTIVITIES

4 INVALSI

Internet research 5

Using the information on these pages, write a short essay about the UK economy and current economic situation, underlining any similarities or differences with Italy. Go to www.imf.org for up-to-date information.

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Adam Smith

Who are often considered to be some of the most important figures in the history of economic thought? What have you studied about these people?

ACTIVITIES

The expression laissezfaire is French and literally means ‘let them do’. It seems to have originated during a meeting in 1680 when a French finance minister asked how the state could help the merchants promote their commerce and Le Gendre, a businessman, answered ‘Laissez-nous faire’.

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BIOGRAPHY Adam Smith (1723-1790) was born in Scotland and was raised by his mother after his father’s death. He attended Glasgow University when he was 14 and, after graduating, continued his studies at Oxford University. On his return to Scotland, he gave a series of lectures in Edinburgh before being appointed a professor of Logic and then Moral Philosophy at Glasgow University. In 1759 Smith published his first work, The Theory of Moral Sentiments in which he described the principles of human nature. Starting in 1764, as the tutor of a young duke, he spent two years in France and Switzerland. In Paris he had the opportunity to frequent the literary salons of the French Enlightenment, meeting contemporaries such as Voltaire, Jean-Jacques Rousseau and Francois Quesnay. When he returned to London, Smith continued to widen his intellectual circle with people like Edmund Burke and Samuel Johnson. In 1767, he returned to his home town in Scotland to work on An Inquiry into the Nature and Causes of the Wealth of Nations, usually shortened to The Wealth of Nations, which he had started while in France, and it was finally published in 1776. Smith spent most of his last years in Edinburgh, where he was considered a renowned economist and man of letters. He was appointed Rector of Glasgow University and a Commissioner of Customs for Scotland.

Published in five books, The Wealth of Nations is commonly thought to be the first complete, methodical examination of the economic forces in Europe, dealing with the history of European economics as well an analysis of the manufacturing and trade industries at the time Smith was writing. He defined methods of producing national wealth and the circumstances for rapid economic expansion. He discussed the benefits of the division of labour and the need for specialisation. To illustrate this need, Smith used the example of pin-making. If just one person carried out all the necessary stages to produce a pin, he would not be able to make very many in one day. If, on the other hand, each separate stage were given to a specialised worker, output would increase and the time needed would decrease. Smith is perhaps most commonly associated with the notion of the invisible hand and the concept of laissez-faire – that is freedom from the intervention and restrictions of government in the economic process. Smith argues that manufacturers will, as a form of self-interest in order to make a profit, naturally produce goods for which there is the most demand and therefore market forces will ensure the production of the right goods and services. He pointed out that in order for this system to work, there should be no intervention or control by the government to disrupt the natural order of things and, secondly, there must be competition, and not a monopoly, in order to lower prices for the benefit of the consumer.

Reading comprehension 2

pin-making produzione di spille

Read the texts and choose the correct alternative. 1 Adam Smith was Scottish/English. 2 The Wealth of Nations was his first/second work. 3 He started writing it in France/Scotland. 4 It was published in one volume/five volumes. 5 For Smith, there were more advantages/disadvantages to having specialised workers.

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6 Specialisation leads to lower/higher productivity. 7 He introduced the notion of the visible/invisible hand. 8 He was in favour of/against government control and intervention in the economy. 9 According to Smith, competition increases/decreases prices. 10 He believed a monopoly was negative/positive for consumers.

John Keynes

BIOGRAPHY John Maynard Keynes was born in Cambridge in 1883 and attended Eton and then King’s College, Cambridge, where he graduated in mathematics in 1905. In 1906 he started work for the British government in the India Office and his experience led to his first book, Indian Currency and Finance. In 1908 he returned to Cambridge University as a lecturer in the Faculty of Economics, before going to work for the Treasury in 1915. He had a successful career in the Treasury and was economic advisor to the British prime minister at the Versailles Peace Conference in 1919. However, he resigned from the Treasury as he considered the Treaty of Versailles to be overly burdensome for the Germans. He decided to publish his ideas the same year in the The Economic Consequences of the Peace where he stated that the huge amounts Germany had to pay as reparation to the allies could never be paid and that these demands would create political instability in the country. In 1923 Keynes wrote Tract on Monetary Reform, followed by Treatise on Money and, in 1936, The General Theory of Employment, Interest and Money, his most famous work. When World War II started, he was again an advisor for the government and he was a principal negotiator at the Bretton Woods Conference in 1944, where the International Monetary Fund was founded. He died on 21st April 1946.

Intensely aware of the rising unemployment levels in the interwar period, Keynes challenged the traditional laissez-faire theory of the time and investigated the reasons for Britain’s economic problems in The General Theory of Employment, Interest and Money. This became his most famous work and is often considered one of the most influential economics books in history as it revolutionised the way people looked at the economy and the role of government in society. He introduced the theory of aggregate demand as the total of consumption, investment and government expenditure and stated that the key to reducing unemployment is to increase government spending and to run a budget deficit. When economic activity is depressed, the government should spend more, and when the economy is booming, the government should spend less and pay off the debts accumulated during the slump. He argued against the classical economic theory that lowering wages would stimulate employment and maintained that lower wages would decrease income, consumption and aggregate demand, counterbalancing any benefits that the lower price of labour might have contributed. After initial opposition, due also to the fact that balanced budgets were standard practice at the time, Keynesianism began to dominate UK economic policy, as well as those of other countries such as the USA and Sweden. Many governments, perhaps looking for excuses to increase spending, adopted the Keynesian theory but they started not only spending in times of an economic slump, as advocated by Keynes, but also slump recessione during economic booms.

burdensome oneroso

Read the texts and answer these questions. 1 2 3 4

Where was Keynes educated? What was his first job and why was it important? Where else was he employed? What was his main theory in The Economic Consequences of the Peace? 5 What work did he do during World War II? 6 Which is his most famous work? Why?

7 What theories did he put forward in it? 8 In what way were they different to the classical laissez-faire theory? 9 Which countries adopted Keynesian economic theory? 10 How did some governments apply Keynes’s theory differently to what he intended?

ACTIVITIES

Reading comprehension

Writing 2

Write a short essay on the contribution of Keynes and Smith to economic theory.

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This pie chart shows the US GDP by sector. In pairs, decide which section of the chart represents industry, services and agriculture. Do you think the breakdown of the GDP is similar in Italy?

0.9% ____________

19.1% 80%

____________

US economy Farming, fishing and forestry Agriculture represents approximately 0.9% of the GDP of the USA and employs around 0.7% of the total workforce: two facts which could seem to imply that it is insignificant in size and production output. On the contrary, the USA is actually one of the largest agricultural producers in the world and exports more farm products than any other country, as well as being able to satisfy its domestic demand. Most of the farms are large, agribusiness operations which are highly mechanised and employ relatively small numbers of workers. Migrant and seasonal workers are common in this sector. The major crops cultivated are corn, soybeans (Midwestern states), wheat (Great Plains), rice, cotton, tobacco (Southern states). Fruit, including grapes for wine, is grown in California, as well as in Washington and Florida. Beef cattle are important in Texas, Iowa and Nebraska while Wisconsin and Minnesota raise cattle for dairy products. Many US farmers are now using genetically engineered crops, particularly for soybeans, cotton and corn, although organic farming is on the increase too. The fishing industry is important in Alaska (salmon), New England (lobsters, oysters), California, Louisiana (shrimps), as well as the Gulf of Mexico in general. In the USA, forests account for approximately 3 million sq km of the land, and two thirds of the forests are considered timberlands, that is they can be used for the production of commercial wood products. The USA is one of the world’s leading producers and consumers of wood and wood products and the industry is predominant in the northwest Pacific coast areas, like Oregon and Washington, and also in Alaska.

Natural resources and energy

____________ Source: CIA Factbook, 2017

ACTIVITIES

Biomass is organic material derived from plants or animals – which can be burned directly to provide heat or converted into other forms of energy such as biodiesel and ethanol.

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The USA is rich in mineral deposits and some of the most important are: oil and natural gas (Alaska, Texas, California and the gulf of Mexico), coal (Appalachian mountains, Wyoming, West Virginia and Kentucky), gold (mostly in Nevada), copper (Arizona and Utah), lead (Missouri) and also silver, aluminium and zinc. These minerals continue to be important for the nation’s industrial sector and for global exports. The US’s primary energy sources are from fossil fuels – petroleum, natural gas and coal. The country can meet over 90% of its energy needs and imports the rest, mostly in the form of petroleum. Coal provides about 27% of the energy used to generate electricity, while nuclear power provides around 19%. 17% of the nation’s electricity comes from renewable sources, with hydropower and wind being the largest. The nation’s hydroelectric capacity is mainly situated in Washington, California and Oregon. The largest hydroelectric facility is the Grand Coulee Dam in Washington. Biomass , geothermal and solar are the other renewable sources.

Reading comprehension 2

Mountaintop mining

Read the texts and answer these questions. 1 How important is agriculture for the US economy? 2 What are most of the US farms like? 3 What kind of workers are often employed in this sector? 4 Which genetically modified crops are most commonly used? 5 Which states have an important fishing industry?

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6 What percentage of US forests can be used for commercial purposes? 7 What are the main energy sources for the USA? 8 Can the US satisfy its domestic demand for energy? 9 What percentage of electricity is generated by nuclear power? 10 Which renewable energy sources are used to generate electricity?

America’s Aquaculture Industry A

pproximately half of the world’s fish is no longer caught in the wild but comes from aquaculture. 1 However around 80% of the fish and seafood that Americans eat is imported and only 5% comes from American aquaculture farms. This actually positions seafood in second place after crude oil in terms of trade deficit and, naturally means that the fish the Americans eat has actually travelled a long way. The demand for seafood and fish is on the increase in the USA, perhaps because people are trying to follow health guidelines regarding the amount of fish to consume or just because the popularity of sushi is so high, so more and more of it will have to come from aquaculture. Many of the coastal areas around the USA were once very productive but they were overfished to the point that the numbers of certain species dropped dangerously low. 2 A drawback to these bans, however, is the risk of decline in the industry. As previously said, the demand for fish and seafood is rising, and commercial fishing just cannot keep up with it. 3 The US fish farming industry is quite small and very insignificant when compared to giants like China, Norway and Chile. The majority of the US domestic industry is dedicated to freshwater farming, so species like carp and catfish which have a low commercial value. Marine aquaculture of seafood like salmon, lobster and oyster provides only 1.5% of American consumption. 4 Land, labour and other factors are much more expensive than, for example, in South East Asia or South

America. Furthermore, there have been protests against marine farms in some areas, such as the coast of Maine. 5 There are also the environmental issues to consider since aquaculture, like other forms of agriculture, does pollute. In order for the USA to have a stronger aquaculture industry, the government and other authorities need to introduce clear national guidelines and promote the importance of sustainable marine aquaculture. Source: Time – Science & Space

F Read the article and choose the best sentence to fill each gap. There is one extra sentence you do not need. a The same figure is true for the fish found on American tables. b The USA consumes less fish per year than the rest of the world. c Just like for many other industries, the reasons behind the lack of domestic investment are connected to money and space.

d In addition, it certainly would not be environmentally sustainable to try to do so either. e Opponents state they are ugly to look at and damage the tourist industry which many coastal towns depend on. f No-fishing periods were then necessary in order to allow fish species to repopulate.

ACTIVITIES

Reading comprehension

Speaking 4

Discuss these questions in pairs or small groups. 1 Where does the fish and seafood on sale in your country come from? 2 Are fishing or aquaculture big industries in your country? 3 What problems do the sectors face? Are they similar to those in the USA?

4 Do you think that aquaculture is a good solution to the problems facing the fishing industry? 5 What solutions could there be for the environmental problems raised by aquaculture and agriculture in general? 6 Are there any health issues connected with large scale aquaculture and agriculture?

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Manufacturing and industry The US is one of the world’s leading manufacturing nations and industry represents around 19% of the nation’s GDP. Employment in the sector has been declining since the 1980s but output has remained relatively constant due to the advances in technology and productivity. Like the rest of the economy, the sector was hit hard by the 2008 financial crisis and recession. The industrial areas used to be concentrated in the Northeast and Midwest regions, particularly Ohio, Michigan, Pennsylvania, Illinois and New York, with steelmaking and automobile manufacturing among the leading industries. However, since the end of World War II, manufacturing industries have moved to the south and west of the nation. California and Texas are now the country’s leading manufacturing states: many of the Fortune 500 companies(e.g. Dell, Exxon Mobil, Kimberly-Clark, Texas Instruments) are located in Texas and in California (e.g. HP Inc., Apple, Chevron, SanDisk). California is important for the aerospace industry, as well as for the manufacture of heavy machinery for agriculture, construction, mining, and the oil industry. Since the early 1980s Silicon Valley, the area near San Francisco in northern California, has been associated firstly with electronics, then with silicon chips, computers and other high tech industries. It is one of the leading high tech manufacturing and R&D centres in the USA. In addition to oil companies, Texas is important for aeronautics, defence and military facilities, and in recent years the number of companies operating in the computer technology field has also increased. In those states with a high percentage of agriculture and livestock farming, food processing is naturally a key industry (e.g. California, Wisconsin, Ohio). Transportation equipment is an important sector and Michigan and Ohio are noted for their automobile production. Ohio is also the biggest state for the rubber and plastics industry. Industrial machinery, chemical, pharmaceutical, printing and publishing industries are also significant contributors to the country’s manufacturing output. The US economy is dominated by private companies, which have the freedom and flexibility to hire and fire staff and open and close plants and offices. Bureaucracy, regarding launching new products for example, is less than in some other countries. The US government and federal agencies control and regulate certain aspects of industry, such as work and safety conditions or food and drug safety. Given that the state and federal governments are major purchasers of goods and services from the private sector, they have the power to influence certain sectors of the economy and their activities, particularly in areas like aerospace and defence.

Reading comprehension 2

Read the text and answer these questions. 1 Why has manufacturing output not declined over the years? 2 In which areas of the USA were the main industries situated? 3 When did companies begin to move to other areas? 4 Where is Silicon Valley and why is it important? 5 Which industries are predominant in Texas?

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6 Where is food processing an important industry? 7 Which two states are famous for producing cars? 8 Are there more private or government-owned enterprises in the USA? 9 What role do government agencies have in regulating industry? 10 How can the government affect some sectors of the economy?

Elon Musk:

an Electrifying Personality? Since its foundation in 2003, Tesla’s mission has been to work towards a sustainable energy future as quickly as possible. This has led the company to be the electric vehicle sales leader in the USA and a pioneer in clean energy with battery products, solar panels and storage products. The company, headquartered in Palo Alto, California, and trading on the Nasdaq Stock Market, has over 48,000 full time employees, with factories in Freemont (California), Reno (Nevada) and Buffalo (New York). Its top selling car is the mass market Model 3, and it also produces the Model S, a luxury sedan, and the Model X, a SUV with vertically opening passenger doors. The company has also unveiled the Model Y and a new roadster, which can be reserved for upcoming production. Tesla, however, is probably equally well known for its co-founder and CEO Elon Musk as for its electric cars. Entrepreneur, engineer, investor with a large and sometimes controversial social media presence – he has around 30 million followers on Twitter – Musk was born in South Africa and moved to Canada, then later the USA, as a teenager. He set up a successful web software company with his brother, and then founded an online bank, which later became

PayPal and was brought by eBay for US$1.5 billion in 2002. In the same year, he started SpaceX, a company for the development and manufacturing of rockets and spacecraft with the objective of being able to build colonies on Mars. In February 2018, he hit social media and the world’s headlines with the launch into orbit of his Tesla Roadster, complete with a dummy in a spacesuit in the driver’s seat, on board the Falcon Heavy rocket on a test flight. He turned to social media again in November 2019 when he tweeted, slightly tongue-in-cheek, that perhaps there was more work needed on the shatterproof windows of the new Tesla Cybertruck. The fiasco at the launch party where Franz von Holzhausen, the company’s chief designer, can be seen smashing the Cybertruck’s windows, not once but twice, while attempting to prove their strength, caused the share price of Tesla to immediately drop 6%. Musk turned to Twitter again a few days later to boast about how many pre-orders for the truck had been made. The stock price recovered and Musk’s own net worth, estimated to be in the region of US$24 billion, bounced back too.

Reading comprehension F Read the article and choose the correct option. 1 What do we learn about Tesla in the opening paragraph? A The company’s objectives have changed over the years. B The cars which it produces have a very futuristic design. C All its products are related to the concept of sustainability. D Electric vehicles are the most profitable part of the business. 2 The Model Y and roadster are… A currently being produced by Tesla. B unavailable for the foreseeable future. C still in the design and planning stages. D available for advanced orders only. 3 Elon Musk’s other business enterprises… A have been fruit of his inventive and entrepreneurial spirit. B have not been particularly profitable initiatives.

C have all been in the computer and software sector. D have been criticised heavily on social media and in the press.

ACTIVITIES

4 What happened at the launch of the Cybertruck? A Shareholders were not impressed with the new product. B The truck failed to live up to the promises made. C You could buy shares in the company at a discount. D Tesla’s chief designer and Musk didn’t agree about involving social media. 5 How could you describe Elon Musk’s reaction during and after this event? A Impatient and impertinent B Unperturbed and confident C Anxious and apprehensive D Arrogant and aggressive

Internet research 4

Research a successful American entrepreneur (e.g. Mark Zuckerberg, Sergey Brin, Larry Page, Oprah Winfrey, Warren Buffet) and write a short presentation. Include these points: • background and education; • business idea/start up;

• ups and downs of career; • current situation.

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Services

During the 20th century, the importance of the services sector to the US economy grew steadily, just like in most other developed countries around the world, from about 50% of the GDP in 1929 to 65% in 1978 and 75% in 1993. Today the percentage is around 80% and the sector employs more than three quarters of the country’s workforce. One reason for this is that the increasing mechanisation and technology in the manufacturing industries was able to guarantee the same output with less labour. Consequently the services connected to industry and production, such as distribution, management, sales and finance became more important. In addition to these factors, the number of people employed by the government also increased.

Can you remember what percentage of the GDP in the USA derives from the service sector? Why do you think it is so high? Has it always been this way?

ACTIVITIES

Wholesale and retail trade is the leading business area and, in fact, the USA is probably the world’s leader in the retail industry. It is dominated by large retailers such as Walmart, CostCo, Target and Walgreens. Walmart is the biggest retailer in the USA and the world’s largest company by revenue, operating under the Walmart name and through subsidiaries in many countries across the globe. Healthcare is another large sector, destined to grow more as the country’s population ages and health and medical needs rise. It employs just under 20 million people, ranging from professional medical positions to administrative and financial staff. Advertising, whether creating new TV ads or selling space in magazines and newspapers, is a fast-paced and competitive industry, with the major players in New York and California. The US entertainment industry, recognised as a leader on a global level, is also vital, especially in California. Tourism – both domestic and international – are significant sources of both employment and income, thanks to the wide variety of tourist destinations including National Parks, beaches, cities and monuments. The number of people employed in business and professional services, such as lawyers and consultants, is also large, with over 22 million people. Financial services, banking, insurance and real estate remain other key components of the services sector. The New York Stock Exchange is the largest in the world and New York is one of the leading financial capitals of the world. Chicago is the second most important financial centre in the USA. While much of US industry and business is dominated by huge corporations, many Americans are keen to start their own businesses, whether it be a restaurant, delicatessen, hardware store or cleaning business. This is made easy by the relatively simple procedure to set up a business and by the fact that it is not difficult to start again if a business should fail. Many women and minority groups start their own businesses, stemming perhaps from the idea of the American dream to be free to realise one’s ambitions.

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Reading comprehension 2

Research centres of excellence in the USA

Read the text and complete these sentences. 1 Over 75% of the US workforce is… 2 Today, the services sector is more important to the economy than in the past because… and… 3 Companies like CostCo and Target… 4 Walmart operates… and is… 5 The healthcare sector is likely to grow because…

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6 ... are key sectors in California. 7 The business and professional service sector employs... 8 New York and Chicago are the two… 9 Starting your own business in America is… 10 A lot of small businesses are set up by…

ACTIVITIES

Listening F Listen to this profile of Amazon.com Inc. and choose the correct option. 2.29

1 Which of these advantages of online shopping is mentioned? A The prices are very competitive. B You have a large selection of products to choose from. C You often do not have to pay for delivery. 2 Before setting up Amazon, Bezos had... A worked in New York. B set up another internet company. C worked in a bookstore. 3 The majority of Amazon’s business plan was written... A in a plane. B in a car. C in Seattle. 4 One drawback to the original site was that... A the books were not in alphabetical order. B the information was sometimes incomplete. C the books were not always available immediately.

5 How did the bursting of the dot-com bubble affect Amazon? A It went bankrupt like many other companies. B It continued to make a profit. C It lost nearly $1.5 billion. 6 What does Jeff Bezos have in common with Steve Jobs? A They both started a company in a garage. B Their companies were not a success straightaway. C They owe their success to a business partner.

Criticisms of Amazon A

s the size of Amazon has increased, so has the number of negative stories the company has attracted. Firstly, there was the question of the company avoiding paying tax on its profits by diverting sales out of major economies to Luxembourg, a low-tax jurisdiction. This led to investigations by the UK government and the EU authorities and various tax reform initiatives to stop this form of tax avoidance by technology companies in particular. Then came the company’s working conditions, both in its offices and distribution warehouses: many journalistic investigations showed that the working conditions and stress of the job could increase the risk of mental and physical illness. Current and former employees who have spoken to journalists have described the incredibly long hours and ruthless conditions that they have to endure. Bezos has always responded to the criticisms and attacks, defending the position of the company and its operation methods. Today, perhaps to counteract some of this negative publicity, it is possible to book a tour of one of Amazon’s fulfillment centres to see how online orders are fulfilled.

Reading comprehension & Speaking 4

Read the article and discuss these questions in pairs. 1 Why was Amazon under investigation by various authorities? 2 Have you heard of other technology companies who have been accused of tax avoidance? 3 What claims have been made about the working conditions at Amazon?

4 Why do you think Amazon and other technology companies come under attack so often? Do you feel that it is justified? 5 Some people decide not to purchase from Amazon due to these issues. Do you agree with them? 6 What reasons would make you decide to boycott a company?

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What do you know about the financial crisis? Match these terms to the correct definitions.

bailout derivative hedge fund leverage sub-prime

US banking crisis 1 2

ACTIVITIES

The financial rescue of a borrower in difficulty. A mortgage offered to people who have had financial problems or who have low or unpredictable incomes, therefore with a higher risk to the lender. A financial contract which provides a way of investing in a particular product without having to own it directly. Also known as ‘gearing’. It means using debt to supplement investment. Deleveraging means reducing the amount you are borrowing. A private investment fund which uses a range of sophisticated strategies to maximise returns.

‘It Felt Like Someone Had Just Died a Tragic and Untimely Death.’

s the Lehman share price declined steadily – and sometimes not so steadily – during 2008, we watched on in horror. Still, the vast majority of Lehman’s employees remained confident until the end that management, led by Dick Fuld, were telling us the truth: that we had excellent risk management systems and were de-leveraging and cutting costs. We felt confident that Fuld was dealing with the situation. After all, he had transformed Lehman from a failing subsidiary of American Express into one of the biggest and most-respected banks in the world. If he couldn’t do it, we thought, no one could. Over time, however, our definition of ‘worst case scenario’ evolved, but few of

Listening 2

2.30 F Listen to this report regarding the causes of the 2007-2010 financial crisis. Complete the sentences using a maximum of three words.

1 2 3 4 5 6 7 8 9 10

The seriousness of this financial crisis is comparable to the ____________ and subsequent Great Depression. Before the crisis hit, the general economy was good with ____________ inflation and unemployment. New complicated financial products were developed in order to ____________ massive profits. Rescue packages were set up by ____________ in order to save financial institutions. ____________ and lower public spending are the result of increased public debt. ____________ was where the crisis started, in particular in the financial sector. Investment banks had become more important since the ____________. These investment banks had different ____________ from commercial banks. Since 2001, ____________ had been low and this maintained the demand for credit. Many families built up lots of ____________ with mortgages and credit cards.

Reading comprehension 3

Read the account by a junior Lehman banker in London, written one year after the collapse of the bank, and answer these questions. 1 2 3 4 5 6 7 8 9

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How did most Lehman employees feel when they saw Lehman share prices dropping in 2008? What position did Dick Fuld have in the company and what did Lehman employees think of him? What did employees believe the Federal Reserve would do? How did Lehman employees feel when they got to work on the morning of 15th September 2008? What had happened? Was there clear communication and information for the employees about their future? Why did some employees take objects with the Lehman logo on them? In what way were the company mottos on the stress toy ironic? What did many employees try to do that day?

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us even considered the idea of the Fed not bailing Lehman out as a last resort. Fast forward to the morning of September 15, 2008. Overnight, Lehman Brothers had filed for Chapter 11 bankruptcy protection. In New York, Fuld was strengthening his personal security team. In London, employees got together to see what could be salvaged of their jobs and salaries, but primarily to say goodbye to their teams and pack up their desks. It felt like someone had just died a tragic and untimely death. Shock was the predominant emotion. Things didn’t feel real that day. Uncertainty surrounded us. Would we be paid for the last month? Would our mobile phones get cut off today? What would we tell the clients who won’t stop calling? What would happen tomorrow? We

were hearing rumours that the US side was selling itself to Barclays. Soon it was clear that in London we were on our own, and no one had any idea what to do next. Someone saw Lehman T-shirts selling for $40 on eBay. Soon the juniors had taken every Lehman-branded object in sight. The most desirable was a cube-shaped stress toy with Lehman’s operating principles, such as ‘Demonstrating smart risk management’ and ‘Maximising shareholder value’, on it. Had one not sat on my desk for months previously, I would have thought a clever satirist had made it after the bankruptcy. Unfortunately, it appeared our chief executive had not read the cube. Desperate bankers were enthusiastically discussing ideas with head-hunters that they would have previously laughed at.

Relocating families to Bahrain suddenly looked like a wonderful opportunity. Some senior people left that day for new jobs. Others locked themselves in their offices, trying to do the same and juniors conducted job interviews in the open plan space. The ship was sinking and we were furiously scrambling out. Adapted from The Financial Times

Current US economic situation The sub-prime mortgage collapse and subsequent financial crisis intensely affected the US economy and the country’s GDP contracted and its debt rose. It was during this period that Standard & Poor’s downgraded US debt for the first time from AAA to AA+, where it has remained. Since then the economy has recovered and is now going through a period of long and strong expansion. Standard & Poor’s is one Many people have been brought back into the labour market and unemployment is of several companies at its lowest rate for nearly 50 years although, together with poverty, it still remains a which provide credit ratings on countries, problem in many of the nation’s former industrial and now depressed cities and areas. bonds and other In 2018 the GDP showed a 2.9% increase, a growth which continued at a slightly slower investments. The rating rate also in 2019. This slowdown was perhaps due to uncertainty over trading and the AAA is the best credit aggressive trade wars with China. In the 2019 fiscal year, the federal budget deficit rating that can be given and it means that the reached $984 billion, a jump of 26% compared to the previous year and the highest risk of defaulting is level in seven years.

Reading comprehension Read the text and answer the questions. 1 2 3 4 5

ACTIVITIES

miniscule. AA+ is the second best rating this company issues.

What effect did the financial crisis have on the US economy? How would you describe the current economic situation? What has happened to the unemployment rate? What difference was there in GDP between 2018 and 2019? And in the federal budget deficit?

Speaking – Critical thinking 5

An economic proverb states: ‘When the United States sneezes, the rest of the world catches a cold.’ In small groups, discuss what this means. Do you agree or not? Give examples to support your point of view.

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What do you know about Singapore and India and their economies?

thrive prosperare

ACTIVITIES

The Ease of Doing Business Index is an index created by the World Bank and is based on the study of laws and regulations directly affecting businesses. Higher rankings indicate better, usually simpler, regulations for businesses and stronger protections of property rights. In 2019, New Zealand was ranked 1st, the USA 6th and the UK 8th, while Italy was number 58.

DOSSIER

English-Speaking World Asia: Singapore and India The Four Asian Tigers or Asian Dragons is an expression used in reference to the highly-developed economies of Hong Kong, Singapore, South Korea and Taiwan, which all maintained exceptionally high-growth rates (in excess of 7% a year) and rapid industrialisation between the early 1960s and 1990s. They are advanced and highincome economies, specialising in areas of competitive advantage. For example, Hong Kong and Singapore have become world-leading international financial centres, whereas South Korea and Taiwan are world leaders in manufacturing information technology.

Singapore Singapore, despite having a population of only 5.6 million, has an extremely developed economy and is one of the most open, and thus competitive, markets in the world. For the last ten years, the World Bank Ease of Doing Business Index has ranked Singapore as the best or second best country in the world to do business with. This innovative and highly successful mixed economic system – where both the market and the state have equally strong roles in the government – is known as the ‘‘Singapore Model’. This model was born out of necessity because the country has a relatively small domestic market, so it has to open its economy to external markets in order for the economy to thrive. The government has also actively encouraged new industries to develop in Singapore in order to respond to the needs of the global market. The Singapore government’s strong economic policies have led some commentators to label the country as ‘Singapore Inc.’ – where the country appears to be run more like a corporation than a nation.

Reading comprehension & Speaking 2

Read the texts and answer these questions. 1 What countries make up the Four Asian Tigers? Why do you think they are referred to as tigers or dragons? 2 What similarities are there between the four countries?

3 How is the Ease of Doing Business Index created? Do you think Italy’s position is surprising? 4 What is the Singapore Model? 5 Why is the country sometimes referred to as Singapore Inc.?

Listening 3

2.31 F Listen to an educational expert talking about the higher education system in Singapore, and complete the missing information.

1 ___________ of people attend Polytechnics in Singapore, while 20% attend university. 2 Government reviews are aimed at ensuring higher education programmes are ___________ for the workplace. 3 Companies consider ___________ skills important attributes in an employee. 4 The Internet, computer-aided instruction packages and ___________ are widely used in teaching. 5 In the future, the role of the ___________ in higher education is likely to increase. 6 If there are more postgraduates, there will be an increase in ___________.

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India: from emerging to surging Since it achieved independence from British rule in 1947, India has developed at an incredible pace in areas such as industry, IT, education and foreign trade. Since 2015, it has averaged an impressive annual economic growth of about 7% although this has slowed down in the last two years. The country has had significant success in decreasing poverty levels but still over 176 million people live under the poverty line and millions of others have no access to decent sanitation. In addition, there are huge problems connected with violence and discrimination against women.

Mumbai, financial capital of India

Alternative Livelihoods for Rural Indian Families Datta Kondar leads a group of tourists through his village in Maharashtra to view the firefly spectacle for which it is so famous. With the arrival of the monsoons in June, thousands of fireflies emerge at twilight and perform an elaborate He had taken the courtship with their glowing bodies. 1 typical route of many rural Indians, travelling to the city in search of work, but he soon found himself unable to cope with the gritty realities of life in Mumbai and returned to his village, Purushwadi, within a year. “I would rather earn 5,000 rupees [about £60] in my village than 15,000 rupees in the city,” he says. 2 The idea of Mumbai entrepreneur Inir Pinheiro, Grassroutes aims to reduce migration from India’s villages by creating job opportunities. Nearly two-thirds of India’s 1.3 billion population live in rural areas. “Our primary focus is to says Pinheiro. Currently, empower rural communities. 3 about 900 families across 16 villages in Maharashtra, Andhra Pradesh, Madhya Pradesh and Gujarat are part of the programme. Locals are trained in all aspects of tourism

– hospitality, communication, cleanliness and hygiene, as well as safety procedures. They are taught to showcase their culture, lifestyle and the natural beauty of their village. 4 But it is the villagers who own, manage and run all the activities. Villagers are paid on a bi-weekly basis, ensuring people have a steady ﬂow of cash to pay bills and avoid debt. As well as salaries, for every visiting tourist Grassroutes pays money into a village development fund, to be used for initiatives like building a communal hall for village functions or scholarships for students. 5 “Developing new markets takes time,” says Pinheiro. “Our pilot in Purushwadi lasted three long years, before we formally registered Grassroutes. Since then, for every village we add, we invest six months to a year in training the community. Patience is key for the success of this model.” Grassroutes is now accelerating its efforts and aims to create 1 million livelihood opportunities in rural India before 2030. Adapted from The Guardian, 2019

Reading comprehension F Read the article and choose the best sentence to fill each gap. There is one extra sentence you do not need. A But we also want to celebrate the cultural diversity of India. B The Grassroutes programme has had influences besides economic wellbeing. C Bringing in tourism though, has not been easy – or quick.

D But being a tour guide is not what Kondar, 36, had planned. E Once this training is complete, Grassroutes promotes the village and handles bookings. F Back home he was recruited by Grassroutes, a social enterprise conducting a pilot for community-based tourism.

ACTIVITIES

Speaking – Critical thinking 5

Discuss these questions in pairs. 1 Do you think organisations like Grassroutes are beneficial for local people? 2 What advantages could there be for tourists? 3 Would you like to visit either Singapore or India as a tourist? Would you use an organisation like Grassroutes to do so? Why/Why not?

4 Many people from the West work in Singapore and India. Why do you think this is? 5 Would you consider working in one of these countries? Why/Why not? 6 Do you think these countries will continue to grow and develop as quickly in the future?

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4 WARM UP

In pairs, discuss these questions. • What kinds of tourism exist? • What type of companies are connected to the tourism industry? • Do you think the tourism sector is growing? Why/Why not?

ACTIVITIES

Now read the text and compare your ideas with those in the text.

Listening 2

DOSSIER

Going Deeper The importance of tourism The tourist industry is a key contributor to the economic progress of a country through export revenues, the creation of jobs and businesses, and the development of infrastructure. As a worldwide export category, it is in fifth position after fuels, chemicals, food, and automotive products. The economic impact of tourism industry goes well beyond the core hospitality and transportation sectors – hotels, restaurants, travel agencies, airlines and so on – to include agriculture, construction, engineering, real estate development, food production, consumer goods and retail. Various factors may temporarily affect the tourism industry – for example terrorist attacks or natural disasters – but as a sector it has continued to grow, almost without interruption, from the 1950s onwards, with a predicted 1.8 billion international tourists by 2030. The reasons for this continued growth are manifold: more and more destinations have opened up to tourism; investments in tourism facilities have increased; competition between companies in the sector is tougher; the average disposable income has risen and there are trends for so many different types of tourism both at home and abroad – business, family, religious, medical and eco-friendly to name some of the most common.

F Listen to this report on the importance of tourism for the UK and fill in the gaps. 2.32

UK TOURISM CURRENT SITUATION

• (1) ________ position in the world for number of international tourists • 36 million visitors • 9% of GDP • (2) ________ jobs

PREDICTIONS FOR 2025 • (3) ________ UK GDP • 3.7 million jobs • worth £257.4 billion

Speaking 3

• The aim of the UK tourist industry is to ensure that the country remains (4) ________ as a tourist destination. • Tourists are labeled as either first-time or (5) ________ • The majority of first-time visitors to the UK go to (6) ________ • Middle class, youth and (7) ________ are the three main classifications for tourists to the UK. • The best way to reach and convince young tourists to visit the UK is (8) ________

www.visitbritain.org

Discuss these questions in small groups. 1 Have you or members of your family visited the UK? Where did you go? Would you return? To the same place or a different place? Why? 2 If you have never been there, which places would you like to visit? Why? 3 Is London a popular destination for young Italians? Do you think this city has a kind of ‘must-see’ status for young people? 4 What are popular destinations in Italy for young tourists? Do they have a similar status? 5 How much do you think the Internet has contributed to the growth in tourism among young people?

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How Far Will Moms Go to Have US Babies? I t is no secret – moms will do just about anything for their kids. Some are even willing to commit visa fraud, lie to immigration ofﬁcers and pay tens of thousands of dollars to shady middlemen – as long as the payoff is a US passport for their newborn. An underground “birth tourism” network that stretches from the US to China has sprung up to cater to growing numbers of Chinese mothers who travel stateside to give birth. The moms are lured by laws that grant US citizenship to anyone born on American soil. In 2019 the ﬁrst arrests were made after a four year investigation by the Department of Homeland Security into “birth tourism” companies in California that have made millions helping pregnant Chinese women fraudulently secure visas and scam hospitals. Pregnant women from China are allowed to vacation in the U.S., after securing a travel visa from the US government. But if someone misrepresents the reason for visiting, that’s visa fraud. DHS documents describe one Chinese woman who put a Los Angeles hotel as the address where she would be staying on her visa application, but she later listed a different one on a US passport application for her newborn. That second address was for a unit in a high-end apartment complex where one birth tourism company had rented a number of homes. The company that used the apartments, You Win USA, and similar businesses have been investigated for alleged visa fraud, tax evasion, failure to report overseas assets and scamming hospitals.

In their undercover investigation, the DHS found that You Win employees not only prep moms to pass the visa interview, but also train them to clear immigration once they arrive, even suggesting that moms ﬂy from China to places like Hawaii before connecting to Los Angeles – where immigration security is tighter. In a two year period, You Win’s alleged visa fraud scheme resulted in more than 400 births at just one California hospital. The hospitals themselves can suffer as well, with clients defrauding hospitals by not paying what they owe for medical bills. According to federal sources, You Win clients pay up to $60,000 for the company’s services. These ﬁrms often also line up chauffeurs, meals, translators and sightseeing trips. Once moms get a US passport for their kid, they essentially have a ticket to enter the country because, at 21, American-born children can apply to sponsor their parents for residency in the US. But while other foreigners also come to the US for the sole purpose of giving birth, the Chinese appear to be the only group willing to pay high sums for the services of these birth tourism companies. Source – CNN Money – © CNN

payoff ricompensa lured attirate

Read the article and answer these questions. 1 What is the reason behind the trend for birth tourism in the USA? 2 Who else benefits from this growing trend? 3 Is it against the law if a foreigner gives birth in the USA? 4 What are the companies involved in birth tourism accused of?

5 How do the companies like You Win organise and help those interested in giving birth in the US? 6 Why do you think it is Chinese mothers who are particularly interested in getting a US passport for their children?

ACTIVITIES

Reading comprehension

Writing 5

F Write a report (140-190 words) on the importance of tourism for your town/city/area. Include details of the reasons why tourists visit your area, the services and facilities your area offers and any improvements that could be made.

CLIL – ECONOMY Consider tourism as a driving force behind the economy of the US and Italy, with reference to the country’s GDP and employment figures.

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DOSSIER

Arthur Miller and the American dream 1

Read this text and complete the biography card.

During the 1940s and 50s, there was a lot of fear of Communism and of its potential supporters infiltrating American society and carrying out antiAmerican activities. The House Un-American Activities Committee investigated people with alleged communist views, including a number of Hollywood stars. In his play The Crucible, Miller likened this committee and the McCarthy antiCommunist hearings to the Salem Witch Trials of 1692.

alleged presunte

Arthur Miller (1915-2005), one of America’s most successful playwrights, was born in New York City. His father lost his clothing business in the Great Depression and Miller took on various jobs such as a waiter and truck driver to pay for his college education. While he was studying at the University of Michigan, he started writing. His first Broadway play, The Man Who Had All the Luck, opened in 1944 but only ran for four performances. However, his next play, All My Sons, became a success and Miller received the Drama Critics’ Circle Award. Death of a Salesman (1949) won the Pulitzer Prize and The Crucible (1953), while not so popular at the time of writing due to its controversial political view, is today one of his most performed plays and is often considered to be one of the best plays of American twentieth-century theatre. Miller was often in the public eye – for his marriage to Marilyn Monroe (he was married three times), for his refusal to identify people with alleged communist beliefs when he testified before the House Un-American Activities Committee and also for his opposition to the Vietnam War.

Death of a Salesman The cast of Death of a Salesman includes Willy Loman, a sixty-year-old travelling salesman, his wife Linda, and their grown-up sons Biff and Happy. The play addresses both the conflicts within the family and the bigger issues concerning American values. Willy firmly believes in his own version of the American Dream, which is that a ‘well-liked’ and ‘personally attractive’ man in business will acquire the material possessions and happiness he desires. He teaches this ideal to his children as they are growing up, meaning they have no sense of direction or proper values. Willy ends up transferring his dreams to his eldest child Biff, when he understands that he himself will never be able to realise his dream. The huge difference between his actual life and his dream lead to Willy’s psychological decline and downfall. 384

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DATE OF BIRTH: __________ ______________________ EDUCATION: ____________ ______________________ MARITAL STATUS: _________ ______________________ PLAYS: _________________ ______________________ POLITICAL VIEWS: ________ ______________________

Read the plot of Death of a Salesman and answer these questions. 1 Who are the protagonists of the play? 2 What does Willy believe in? 3 How does this belief affect Willy and his sons?

Read the excerpt from Act II on page 385 and answer these questions. 1 What are the prevailing feelings in Willy and Biff? Pride, lack of a sense of reality, immaturity, ignorance, frustration? 2 What kind of father do you think Willy is? 3 Look at Willy’s underlined statement. Is he right to believe so strongly in himself and his son? Why/Why not? 4 What do you think the importance of Biff’s last line is? 5 Do you think parents should have high expectations for their children? Can it be too much pressure?

This excerpt, from Act II, comes as Biff realises that he is happy only when he is honest with himself. He reacts strongly against the values taught to him by his father and wants to expose the lies Willy has been telling for years. Biff understands that he will never be able to fulfil his father’s dreams nor will he be able to convince Willy to confront reality.

Biff Willy Biff

I stole myself out of every good job since high school! And whose fault is that? And I never got anywhere because you blew me so full of hot air I could never stand taking orders from anybody! That’s whose fault it is! Willy I hear that! Linda Don’t, Biff! Biff It’s goddamn time you heard that! I had to be boss big shot in two weeks, and I’m through with it. Willy Then hang yourself! For spite, hang yourself! Biff No! Nobody’s hanging himself, Willy! I ran down eleven flights with a pen in my hand today. And suddenly I stopped, you hear me? And in the middle of that office building, do you hear this? I stopped in the middle of that building and I saw – the sky. I saw the things that I love in this world. The work and the food and time to sit and smoke. And I looked at the pen and said to myself, what the hell am I grabbing this for? Why am I trying to become what I don’t want to be? What am I doing in an office, making a contemptuous, begging fool of myself, when all I want is out there, waiting for me the minute I say I know who I am! Why can’t I say that, Willy? (He tries to make Willy face him, but Willy pulls away and moves to the left.) Willy (with hatred, threateningly) The door of your life is wide open! Biff Pop! I’m a dime a dozen, and so are you! Willy (turning on him now in an uncontrolled outburst) I am not a dime a dozen! I am Willy Loman, and you are Biff Loman! (Biff starts for Willy, but is blocked by Happy. In his fury, Biff seems on the verge of attacking his father.) Biff I am not a leader of men, Willy, and neither are you. You were never anything but a hard-working drummer who landed in the ash can like all the rest of them! I’m one hang yourself impiccati dollar an hour, Willy I tried seven states and couldn’t raise it. A buck an hour! Do you contemptuous sprezzante gather my meaning? I’m not bringing home any prizes any more, and you’re going to begging implorante stop waiting for me to bring them home! Pop (AE) papà Willy (directly to Biff) You vengeful, spiteful mutt! (Biff breaks from Happy. Willy, in fright, a dime a dozen starts up the stairs. Biff grabs him.) un tipo da due soldi Biff (at the peak of his fury) Pop, I’m nothing! I’m nothing, Pop. Can’t you understand that? buck (AE) dollaro gather capire There’s no spite in it any more. I’m just what I am, that’s all. (Biff’s fury has spent itself, vengeful vendicativo and he breaks down, sobbing, holding on to Willy, who dumbly fumbles for Biff’s face.) spiteful mutt perfido Willy (astonished) What’re you doing? What’re you doing? (to Linda) Why is he crying? testone Biff (crying, broken) Will you let me go, for Christ’s sake? Will you take that phony dream and phony falso burn it before something happens?

Willy Loman believed in his childish, superficial and materialistic version of the American Dream. What is your interpretation of the American dream?

CLIL – POLITICS/HISTORY Find out more about McCarthyism in the USA and how it has been used as a backdrop and subject matter in films.

Watch this video about the American dream. Which person(s) (Jean, Thomas, Anthony, Anh, Chris, Aidan or Victor)… 1 2 3 4 5 6 7

went to the USA as a young child? worked hard to be able to move to the USA? talks about making money? mentions the chance to have a better life? refers to education? mentions hope? talks about the freedom to practice a religion?

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5 WARM UP

Who is the reigning monarch of the UK? Who is the current Prime Minister?

The word ‘parliament’ comes from the Old French for ‘speaking’ and was originally used in the 13th century to describe the after-dinner discussions between monks in their cloisters.

DOSSIER

Institutions The UK political system The United Kingdom is a parliamentary democracy with a constitutional monarch. This means that a king or queen is the Head of State (currently Queen Elizabeth II) and a prime minister (currently Boris Johnson) is the Head of the Government, which is voted into power by the people. The monarch once had absolute power, but this has been reduced to very limited powers and ceremonial duties. The monarch must remain politically impartial.

Parliament The business of Parliament takes place in two Houses: the House of Commons and the House of Lords. Their work is similar: legislation, scrutiny of the government and debate of current issues. Generally, the decisions made in one House have to be approved by the other. In this way the two-chamber system acts as a check and balance for both Houses.

THE HOUSE OF COMMONS

THE HOUSE OF LORDS

The Commons is made up of 650 Members of Parliament (MPs) who are elected by the public every ﬁve years. They represent many different political parties, although the majority belong to one of the two major parties, Labour or Conservative. MPs debate the big political issues of the day and proposals for new laws. While most laws have to be approved by both houses, the Commons is solely responsible for decisions regarding ﬁnancial Bills, such as proposed new taxes. Every Wednesday, MPs from all parties can question the Prime Minister on any subject, although they usually focus on the controversial issues of the moment. Debates are often very lively and dynamic, with MPs interrupting each other to challenge what is being said. However, certain rules must be followed and no ‘unparliamentary’ language is allowed.

MORE ABOUT... • When MPs vote in the Commons they say ‘aye’ or ‘no’. In the Lords, Members vote saying ‘content’ or ‘not content’. • MPs are not allowed to speak in the space between two red lines running along the length of the Chamber. It has been claimed that these lines are traditionally two swords’ lengths apart to prevent MPs duelling.

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The House of Lords is the second chamber of the UK Parliament and it processes and revises legislation (but does not veto laws passed by the Commons), acts as a check on government and provides a forum of independent expertise. Unlike MPs, the numbers of Lords are not ﬁxed (there are currently about 800 members), they are not elected by the public and they are not paid. In the past, hereditary peers (where the title of Lord was passed onto an heir) were automatically allowed to sit and vote in the House of Lords. Now most members are appointed by the Queen on the recommendation of the Prime Minister or of the House of Lords Appointments Commission, an independent, public body. 26 of the Lords are Church of England archbishops and bishops. Some Lords support a particular political party, while many others are ‘crossbenchers’, meaning that they are independent.

The Constitution When thinking about a constitution, most people imagine a document which sets out the structure of the country’s government, the relationship with its citizens and their fundamental rights. The United Kingdom is one of the few nations which does not have a single written document of this kind. Instead, the British Constitution is formed by various sources, both written and unwritten, which have evolved over a long period of time. Written sources include Acts of Parliament (laws passed by parliament), case law made by judges, and international treaties; unwritten sources include parliamentary conventions and royal prerogatives. There has been much debate and also a House of Commons inquiry into whether a written constitution, a single comprehensive document of all the rules and conventions of the county, should be introduced as a way to make democracy and the political system clear and accessible to all UK citizens.

Devolution UK devolution created a national Parliament in Scotland, a national Assembly in Wales and a national Assembly in Northern Ireland. This process transferred varying levels of power from the UK Parliament to these countries – but kept authority over the devolved institutions in the UK Parliament itself. The devolved powers include matters like education, culture, environment, transport, justice and health. The Scottish Parliament (129 elected members) and the National Assembly for Wales (60 elected members) took responsibility for their devolved powers on 1st July 1999, the Northern Ireland Assembly (108 elected members) followed on 2nd December 1999.

THE SOVEREIGN Along with the House of Commons and the House of Lords, the Sovereign is an integral part of the institution of Parliament, but the monarch is only really involved on occasions of symbolic signiﬁcance, such as the State Opening of Parliament. The reigning monarch also has to approve all new laws – by the so-called Royal Assent – but this is just a formality.

Local governmental structures

Reading comprehension Read the texts and decide if these sentences are true (T) or false (F). Correct the false ones. T 1 2 3 4 5 6 7 8 9 10

The two houses have similar responsibilities. MPs are elected by the public. Both the House of Commons and Lords have to approve new financial laws. MPs have a weekly opportunity to put questions to the Prime Minister. Members of the House of Lords are elected. Hereditary peers are no longer automatically allowed to be part of the House of Lords. All members of the House of Lords belong to a political party. The monarch has an important role in deciding new laws. The UK does not have any kind of constitution. Devolution in the UK took place on two separate dates.

ACTIVITIES

Speaking 3

Discuss these questions in class. 1 Is there any form of devolution in Italy? 2 Do you think it is a positive thing? Why/Why not? 3 Do you think it is strange that the UK does not have a written constitution?

4 In Italy, you are taught about the Italian constitution at school. Do you think this is important? What do you think happens in the UK?

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The UK Government and Prime Minister

seats seggi appoints nomina

The Secretaries of States include the Chancellor of the Exchequer (economy and finance), the Home Secretary, Secretary of State for Foreign and Commonwealth Affairs, Secretary of State for Defence, Secretary of State for Education and so on.

The political party that wins the most seats in a general election forms the government, led by their party leader who becomes Prime Minister. It is officially the monarch who appoints the party leader as Prime Minister, asking him/her to form Her Majesty’s Government.

The first Labour government took office in January 1924, under Prime Minister Ramsay MacDonald.

ACTIVITIES

The Prime Minister: • is the head of the UK Government and is ultimately responsible for the policy and decisions of the Government; • oversees the operation of the Civil Service and government agencies; • appoints members of the Cabinet; • is the principal government figure in the House of Commons. Once a week, the Prime Minister has an audience with the Queen, normally in person but also by telephone if necessary. The Cabinet is the committee at the centre of the British political system and is the supreme decision-making body in government. The Cabinet is formed by the Prime Minister, Deputy Prime Minister and the heads of departments, called Secretaries of States , which are chosen by the Prime Minister. Every Tuesday they meet, together with some other ministers, in the Cabinet room of Number 10 Downing Street to discuss the issues regarding the government and country. Government Cabinets have actually met in the same room since 1856. The Prime Minister can reorganise the roles of Cabinet ministers and the government to reflect changing priorities and challenges, for example by creating a new department or reallocating responsibilities.

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Reading comprehension 1

www.gov.uk/government/how-government-works www.number10.gov.uk

Read the text and answer these questions. 1 Who is the Prime Minister and what is his/her role? 2 What role does the Queen have? DO S S I E R 5 | UK vs USA

3 What is a Secretary of State? 4 What is the role of the Cabinet?

Political parties The UK has a multi-party system which, however, over the last 150 years has been mainly dominated by two political parties: the Labour Party and the Conservative Party.

THE LABOUR PARTY was born out of the trade union movement in 1900 with the aim of giving a political voice to the working classes and it was a socialist party. From the mid-1990s under the leadership of Tony Blair and his ‘New Labour’, the party moved away from its previous socialist policies of government intervention in the economy and the redistribution of wealth, and adopted more free market policies and become centre-left. Jeremy Corbyn, who was elected as party leader in 2015, has much more socialist, left-wing views and his policies have been strongly criticised over the last couple of years. Traditionally, the party is stronger in the north of England however in the December 2019 general election it lost several key seats in this area. THE CONSERVATIVE PARTY – often called the Tories – is a right-wing or centre-right political party and it was the dominant party in the UK for 18 years, from 1979 to 1997, winning four consecutive general elections. Margaret Thatcher, the nation’s first female Prime Minister, led the country for much of this time, followed by John Major. Traditionally stronger in the south of England, the party supports the ideas of a free market, the promotion of private enterprise and a strong military presence. After the resignation of Theresa May, in July 2019 Boris Johnson won the leadership of the party and became Prime Minister. The Conservatives and Johnson were re-elected with a strong majority in the December 2019 general election. The national parties for Scotland, Wales and Northern Ireland are increasingly playing a more important role within the UK Parliament. The Scottish National Party, in favour of an independent Scotland, won 48 out of 59 Scottish seats in the 2019 election. Plaid Cymru (the party of Wales) is in favour of independence for their country, while the Democratic Unionist Party in Northern Ireland supports remaining part of the UK. Sinn Féin, on the other hand, wants a united Ireland. Sinn Féin MPs do not actually sit in Parliament because they do not agree with swearing allegiance to the Crown. The Liberal Democrat Party was formed in 1988 with the merger of two existing parties, the Liberal Party, one of the two major parties of UK during the 19th century, and the Social Democratic Party. They are socially progressive and support electoral reform, progressive taxation, human rights laws and economic liberalism. The Green Party, established in 1990, is a left-wing political group whose primary focus is environmental and ecological issues. It is also committed to social justice and equality, particularly with reference to a living wage for everyone. It generally wins only one or two seats in Parliament.

Reading comprehension 1

Read the text and answer these questions. 1 2 3 4 5 6

ACTIVITIES

The UK Independence Party, which has right-wing, nationalist beliefs and was very prominent for several years before and during the Brexit referendum, and the Brexit Party, formed in January 2019, did not succeed in winning any seats in the 2019 general election.

What were the origins of the Labour Party? How has this party changed its political position over the years? What are the political beliefs of the Conservative Party? In which area of the UK does it have more support? What parties are linked to specific countries of the UK? Which are in favour of independence? Which party was very visible during the Brexit referendum? Why do you think that was?

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UK General Elections A

Prior to 2011, a government could decide when, within a five-year period, to call a general election. 1 The Fixed Term Parliament Act, passed on 15th September 2011, declared that general elections shall be held on the first Thursday in May every five years. Elections can be held earlier if, for example, there is a vote of no-confidence in the government, or if two-thirds of the total number of MPs agree with a motion for a general election. B

ACTIVITIES

For the general elections for the UK government, the UK is divided into numerous voting areas, called constituencies or wards, where candidates – who can be independent or from various political parties – stand for election. Each constituency in the UK elects one MP to a seat in the House of Commons, using a simple majority – ‘ﬁrst-pastthe-post’ – system. Each voter puts a cross next to their The political preferred candidate on a ballot paper. 2 party that wins a majority of seats (326) in the House of Commons usually forms the Government, with the leader of the party becoming Prime Minister.

If no party has the majority of seats, there is what is This was the case called a ‘hung parliament’. 3 in the 2010 general election, so the Conservative party negotiated with the Liberal Democrats, whose political opinion was closest to their own, to form a coalition government. It is also possible for the largest party to form a minority government, relying on the `conﬁdence' or support of minor parties for key issues and votes. This happened in 2017, when the Conservatives lost their majority and formed an agreement with the Democratic Unionist Party for their support. D

To be eligible to stand as a candidate in a UK general election, you must be over 18 and a British citizen, a citizen of the Republic of Ireland or a Commonwealth citizen with indeﬁnite rights to remain in the UK. There are various other requisites which must be satisﬁed, as well as certain exclusions. Each candidate must be formally nominated and pay a deposit of £500 to the Electoral Commission. 4 With fewer votes, the candidate loses the deposit.

Reading comprehension 1

Read the text and choose the correct heading for each paragraph (A-D). 1 Voting system

2 Calling a general election

3 Standing as a candidate

4 Coalition government

F Read the text again and choose the best sentence to fill each gap (1-4). There is one extra sentence you do not need. a For this reason, it would often try to time the election to take advantage of a positive public attitude towards the party. b In this case, it is normal to try and form a coalition with another party in order to have the majority. c This new system was adopted at the end of 2011. d These are then counted and the candidate with the most votes becomes the MP for that constituency. e This is returned if the candidate gets more than 5% of votes.

Vocabulary 3

Match the terms to the correct definition. 1 2 3 4 5

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constituency vote of no-confidence first-past-the-post hung parliament coalition

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a b c d e

the current voting system for UK government a reason to call an early election no party with a majority of seats in the House of Commons an agreement between two parties to form a government a voting district in the UK

Lies, Lies and More Lies? Between 2015 and 2019, the UK held three general elections: the first in May 2015 after a full five-year term; the second two in relatively quick succession in June 2017 and December 2019. While the reasons for calling the last two elections can be said to have been centred around the question of resolving Brexit and the desire to strengthen the Tory majority in Parliament, the difference between them has to be the spin – or perhaps we should say misinformation and downright lies – that characterised the campaign period for the December 2019 election. Spin is a term used to describe the presentation and interpretation of a news story or data so as to suit the particular narrative of a political party. Spin has always been used in politics and political campaigning but in the weeks leading up to 12th December 2019 this seemed to reach unprecedented heights. Some even called it a grim milestone in which standards of honesty and accuracy were totally abandoned by political parties and much of the UK media. In TV interviews, ministers and candidates from all political parties completely denied the facts and figures presented to them and boldly lied, just wanting to smear the opposition parties. Voters are quite used to seeing through the exaggerated claims and promises made by politicians on the campaign trail, but with the rapidity of news reporting and the use of social media channels these false messages are now reaching millions of people in seconds and are harder

to spot. The Conservative Press churned out sfornava Ofﬁce, for example, rebranded its Twitter account as ‘FactCheck UK’ in order to look like an impartial organisation providing fact checks and the truth to voters while it actually churned out Tory propaganda and attacked the Labour party. We are used to looking at social media with an air of scepticism as to what is fact and what is ﬁction, and let’s hope we can continue to do so because distorting the facts during an electoral campaign may have greater and longer lasting consequences than we can imagine.

Reading comprehension 4 INVALSI

Read the article and choose the correct option.

2 What is spin? A A way for politicians to become better known during an electoral campaign. B An attempt to manipulate facts or an event in order to influence opinion. C The specific point of view and policies of a political party. D The name given to political articles published in newspapers.

3 What is meant here by the expression ‘grim milestone’ (in bold)? A A significant, positive event. B A marker for historical events. C A depressing and negative record. D A great political achievement. 4 What role did social media have during the December 2019 election campaign? A Twitter openly supported the Conservative Party. B It was a reliable source of facts about the parties’ electoral promises. C It was used by the parties to quickly spread their version of facts. D Voters could use social media to attack the political parties.

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1 Why did the UK government call two elections so close to each other? A MPs were fed up of discussing Brexit. B No party had a majority in the House of Commons. C Politicians were misinformed over some parliamentary issues. D They wanted to have the power to settle the issue of leaving the EU.

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WARM UP

Can you name all member states of the European Union? How many different EU institutions can you name?

Article 50 of the Treaty of Lisbon gives any EU member state the right to withdraw unilaterally from the EU and it outlines the necessary procedures. Once invoked, the country has a period of two years to negotiate an exit deal.

The European Union A brief history of the EU The history of the EU starts after World War II with the formation of the European Coal and Steel Community and, in 1957, the Treaty of Rome which formed the European Economic Community (EEC). The founding member states were Belgium, France, Germany, Italy, Luxembourg and the Netherlands. Over the years more countries joined the EEC and more policies were made to facilitate trade and bring Europe and Europeans closer together. The single market became a reality in 1992 and in 1993 the Treaty of Maastricht established the EU. The single currency – the euro – came into force in 2002. As of December 2019, the EU member states are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden. The United Kingdom, after the Brexit referendum on the country’s membership of the EU in 2016, invoked Article 50* on 29th March 2017. This started the official two-year process to withdraw from the European Union, which has since been extended.

EU institutions

LEGISLATIVE The legislative branch of the European Union is formed by the European Parliament and the Council of the European Union. Together they approve new EU laws which have been proposed by the Commission, and decide the EU budget. The European Parliament also has supervisory powers, for example approving the nomination of the members and President of the Commission. It is the only EU institution where the members are elected directly by the public. There are 751 MEPs from the EU member states. Within parliament, the MEPs sit together as political groups – there are currently seven – rather than in groups according to nationality. The Council, on the other hand, is not composed of fixed members as such but each meeting is attended by the national minister from each EU member state for the policy under discussion. This means that if the meeting is discussing, for example, environmental issues, the national ministers for the environment will attend.

EXECUTIVE The European Commission, based in Brussels and Luxembourg, is the executive branch of the EU and it is made up of one commissioner from each EU member state, who serves a 5-year term. The President of the Commission assigns specific policy areas – such as the environment, education or energy – to each commissioner. The Commission represents the interests of the EU as a whole. It proposes new laws to Parliament and the Council, manages the EU’s budget, enforces EU law and represents the EU internationally, for example, by negotiating agreements with other countries.

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JUDICIAL The Court of Justice is the judicial branch of the EU. Situated in Luxembourg, it is divided into three courts: the Court of Justice, the General Court and the Civil Service Tribunal. There is one judge for each EU member state, together with eight impartial advocatesgeneral. These are all appointed for a term of six years. The Court of Justice is responsible for making sure EU law is applied in the same way in all member states and that they all comply with the obligations set out in the Treaties. It also reviews the legality of the acts carried out by the various institutions of the European Union.

JUDICIAL

OTHER EU INSTITUTIONS

Council of the European Union

European Commission

Court of Justice of the EU

European Council

European Central Bank

Court of Auditors

Brussels, Strasbourg, Luxembourg (administrative offices)

Brussels

Brussels and (6) _________

Luxembourg

(13) _________

(15) _________

(17) _________

(1) _________ MEPs from the Member States, elected by (2) _________ every 5 years

(4) _________ for the policy under discussion

28 Commissioners, one from each EU state, with a (7) _________ term, appointed by national governments

(10) _________ judge per EU country; 8 advocates general; six-year term

National (14) _________ or Government President of the Commission

Executive Board

1 member from each EU country; (18) _________ term

Debate and pass EU laws, with the Council

(5) _________ EU laws and decide the annual EU budget

(8) _________ new laws to Parliament and the Council

Ensure the Member States comply with obligations under the (11) _________

Set the EU’s general political direction and priorities

Implement the EU’s (16) _________ and monetary policy

Key responsibilities

European Parliament

Location

EXECUTIVE

Composition

LEGISLATIVE

Scrutinise other EU institutions, particularly the Commission, to make sure they are working democratically (3) _________ the EU’s budget, with the Council

Coordinate the broad economic policies of EU member countries Sign agreements between the EU and other countries

Manage the EU’s budget and allocate funding Enforce EU law Represent the EU (9) _________

Review the legality of the acts of the (12) _________

No legislative functions

Governing Council General Council

Keep prices and the financial system stable

Interpret EU law at the request of national courts and tribunals

Improve EU financial management Report on the use of public funds Present European Parliament and Council with an annual financial report

Develop the EU’s foreign and defence policies

Read the texts on page 392 and fill in the missing information on the table (1-12).

Listening 3

2.33 Listen to this presentation of some of the other EU institutions and fill in the remaining gaps (13-18).

ACTIVITIES

Reading comprehension

Internet research 4

Do some further research about one of the principal EU institutions. Then write a short essay (about 20 lines), including these points: • its composition, including important current members; • its key functions and responsibilities;

• its decision-making processes; • any recent controversial issues or decisions.

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Issues facing the EU One of the aims of the EU is for its member states to work together for peace and prosperity. However there are some issues and problems that have plagued the EU over the last couple of decades. Between 2004 and 2013, the EU increased in size by 13 countries, many of them former communist nations. And today, at the beginning of the 2020s, there are several countries in various stages of applying for EU membership. Whilst many see this enlargement as another step towards the end of the post-World War II division of Europe, others criticise the decision to accept new member states, even if they qualify and satisfy the criteria set by the EU. Supporters see the advantages of these new economic and political bonds to create the world’s largest single market. Opponents feel that many of the new member states could be an economic burden, given their much lower GDP per head, and that the EU decision-making process could became more complicated. They also argue that there would be a huge influx of immigrants, looking for employment opportunities and a better standard of living in established EU member states. The refugee crisis, with hundreds of thousands of arrivals from the Middle East, has put a strain on the relations between EU member states as they are finding it increasingly difficult to act unilaterally regarding the influx of refugees and the idea of continuing to allow open borders between member states. This crisis has also given rise to issues regarding the welfare system and labour market, because if a migrant is given citizenship in one EU country, he or she would then be free to move anywhere within the EU claiming benefits or looking for work in that country. However, questioning this right would mean questioning the key essence of the EU – that of the single market. came to a head precipitò

Economic growth and the stability of the Euro are other challenges facing the EU. A general, global economic slowdown and worries over a recession in Germany, the EU member with historically the strongest and most stable economy, have experts fearing for a few years of economic weakness. The loans, interventions and monetary policies carried out by the ECB since 2009, when the Eurozone crisis came to a head, may no longer be sufficient on their own to resuscitate the economy.

ACTIVITIES

There has been a rise in right-wing populist parties across Europe who, with their nationalist, Eurosceptic and antiimmigration views, try to appeal to the “common” people. Their members have won seats both in national elections and in the European parliament, where MEPs have established a large far-right group with the aim, not necessarily of following the footsteps of the UK and Brexit, but certainly of radically reforming the Union.

Reading comprehension 1

Read the text and complete the table. Increase in size Description

Potential issues or problems

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Refugee crisis

Economic growth/euro

Right-wing populist parties

13 new countries since 2004, with others in the process of applying Will try to radically reform the EU and maybe want countries to leave the Union

Eurozone Populism: Fight It with Fiscal Firepower

couple of months before Mario Draghi was to end his presidency of the ECB, the German tabloid newspaper Bild ran a sensationalist attack on the outgoing banker. Depicting him as “Count Draghila”, complete with vampirish teeth and velvet collar, the article portrayed the ECB boss as a fiend sucking the bank accounts of German savers dry of billions of euros with low interest rates. A day later the tabloid interviewed the head of the German central bank to force the message home under the headline “Is our money in danger?”. There is an undoubted perception across Europe’s largest economy that the ECB was penalising savers through easy money policies that have given populists a stick to beat mainstream politicians with. However, with the release of the economic data for the latter part of 2019, it is clear that the German sentiment was wrong and that the risk of recession in Europe is rising. Growth is floundering while inflation is falling. Mr Draghi has for years attempted to resuscitate the Eurozone’s sluggish economy through monetary means. The ECB lowered interest rates further into negative territory and restarted the ECB programme of buying bonds, for example. And he was right to say it is no longer tenable to claim that monetary

Adapted from The Guardian, 2019 floundering annaspando tenable sostenibile

Read the article and answer the questions using no more than four words.

1 What character was Draghi compared to in the Bild article? 2 What did the article accuse him of doing? 3 What did the ECB, under Draghi, do to help the Eurozone economy? (Give two answers)

4 What has he recently suggested as a possible solution to maintaining demand in the Eurozone? 5 What is one difference between the German and Italian economic situation? 6 What position does Christine Lagarde hold?

ACTIVITIES

2 INVALSI

policy alone can deal with the deep-rooted problems of the continental economy. Instead he has correctly called for ﬁscal policy to become the main economic instrument to sustain demand in the Eurozone. Nineteen countries in the European Union use the euro as their currency. Yet for all sorts of reasons Europe has denied governments the ability to use their budgets to increase demand. The different priorities of various parts of the euro area add to the dilemma: Germany has low levels of unemployment but a third of young workers are unemployed in Italy and Spain. While core economies are worried about cheap money and uncontrollable house prices, the ones on the periphery suffer from high borrowing costs. Mr Draghi’s successor, Christine Lagarde, has also said ﬁscal policy is required “to respond to the threat of populism.” It remains to be seen if this growing political divide can be bridged by a shift in the balance of power and thinking within Europe to promote cohesion and solidarity.

Speaking – Critical thinking 3

Discuss these questions in class. 1 What are the advantages of accepting more countries into the EU and the single currency? 2 What drawbacks could there be to increasing the size of the EU? 3 How strong has the Euro been against foreign currencies over the last six months? Has the trend been for it to improve or get weaker? 4 How has the Eurozone economy performed in the last six months? 5 Why do you think right-wing populist parties have been so successful recently? Do you think they pose a risk to the stability of the EU? 6 What is the current situation with Brexit? Do you feel that other countries are likely to leave the Union?

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WARM UP

Do you recognise the photos of the buildings on these pages? Which city are they in?

misdemeanors infrazioni, violazioni acquitted assolto

MORE ABOUT... The US Constitution is the world’s oldest written national constitution still in effect.

The US political system The Constitution The USA is a constitutional federal republic formed by 50 states. The US Constitution, which was ratified in 1788 and entered into force in 1789, is the framework for the American system of government. It defines the three separate branches of government (legislative, executive and judicial), their powers and a system of checks and balances. Each branch has some form of power over the others to ensure no single branch can become dominant. The Constitution, as the supreme law of the land, limits the legislative and executive powers of all levels of government. Any law or part of a law that is considered to be in conflict with the Constitution can be invalidated by the Supreme Court. Amendments to the Constitution are possible, but so far only 27 amendments have been made. The first ten amendments to the Constitution, called the Bill of Rights, guarantee important freedoms to every American, including freedom of speech, press, and religion. The other amendments mainly concern the expansion of political and civil liberties such as the abolition of slavery and voting rights.

The US Government

LEGISLATIVE BRANCH (Congress) SENATE

HOUSE OF REPRESENTATIVES

100 senators (two from each State)

435 representatives (the number for each State depends on its population) plus non-voting representatives from the District of Columbia, American Samoa, Guam, Puerto Rico and US Virgin Islands

Six-year terms; no limit on the number of terms, elected on a rotational basis so there are always experienced legislators

Two-year terms; no limit on the number of terms; all elected at the same time

Shared powers: • Legislation must pass both houses before it is presented to the President to be signed into law • Oversees the Executive Branch • Overrules a presidential veto

ACTIVITIES

www.state.gov

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Unique powers: • Confirms presidential appointments to the Supreme Court and key positions within the Executive Branch • Approves or rejects international treaties negotiated by the President • Conducts the trial and acts as jury in the case of impeachment of the President

Unique powers: • Can impeach the President and Supreme Court Justices • All bills for raising revenue must originate in the House • Selects the President in cases where no presidential candidate receives a majority of electoral votes

Reading comprehension 2

Read the introductory text and answer these questions. 1 2 3 4

When did the Constitution come into force? What does it define? What is the Bill of Rights? How many other amendments have been made to the Constitution?

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Impeachment is the formal process in which an official is accused of ‘treason, bribery, or other high crimes and misdemeanors.’ Three presidents have faced impeachment: Andrew Johnson was saved from conviction by one vote; Richard Nixon avoided impeachment by resigning; Bill Clinton was acquitted.

EXECUTIVE BRANCH PRESIDENT

VICE PRESIDENT

EXECUTIVE DEPARTMENTS

INDEPENDENT AGENCIES

Four-year term (maximum two terms)

15 departments, including Dept. of State, Dept. of Homeland Security and Dept. of the Treasury

Numerous agencies including the Federal Reserve, the Environmental Protection Agency, NASA and CIA

• Appoints Supreme Court justices, federal judges, department secretaries and agency heads • Commander-in-Chief of the armed forces • Negotiates international treaties • Vetoes or approves legislation passed by Congress

• First in line to assume the presidency if the President dies, becomes incapacitated, or is removed from office • Takes part in Cabinet Meetings • President of the Senate and can break tie votes

The secretaries of each department are appointed by the President and form part of the Cabinet.

The heads of each agency are appointed by the President.

• Advise the President, administer and enforce the law, provide various governmental services

• Help carry out policy and provide special services

JUDICIAL BRANCH

www.whitehouse.gov

SUPREME COURT

LOWER FEDERAL COURTS

One chief justice and eight associate justices (the size of the Supreme Court is established by Congress)

E.g. Courts of Appeal, Federal District Courts, Bankruptcy Courts (jurisdictions, number of judges and budgets are established by Congress)

Presidential appointment, for life (can only be removed through impeachment and conviction) • Examines laws and government actions to ensure they do not violate the principles laid down in the Constitution • Can declare legislation and presidential acts unconstitutional

• Interpret and apply the federal laws in criminal and civil cases

www.supremecourt.gov

Read the information on these pages about the US Government and say which branches/people/ institutions the following statements refer to. 1 2 3 4 5

appoints Supreme Court justices declares laws to be against the Constitution impeaches the President has non-voting members confirms presidential nominations

Oral exam practice 4

6 7 8 9 10

has a limit on the number of terms that can be served controls and checks the executive branch are part of the Cabinet holds the position for life provide special services for the government

ACTIVITIES

Reading comprehension

Mediating concepts

ES Choose one of the three branches of the US government and prepare a short presentation (3-5 minutes). Use the above information, as well as additional research, to talk about the structure, functions, responsibilities and people currently in positions of power within the branch.

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State and local government Each state has its own constitution and republican form of government, which are separate from the federal government. Generally their structure is similar to that of the federal government with executive (headed by an elected governor), legislative (normally consisting of two chambers) and judicial branches (with jurisdiction for matters not covered by federal courts, such as criminal cases against state law). Each state has the power to make and enforce their own laws, charge taxes and carry out their business without intervention from the federal government. However, if there is any disagreement, the Constitution and federal law have precedence over state laws. Flags of the USA and Texas This is the reason why there are so many differences among the states, with different income tax and sales tax rates, varying education and healthcare systems, and diverse rulings on issues such as capital punishment. Local governments are structured according to each stateâ&#x20AC;&#x2122;s individual laws, but are usually divided into counties and cities, as well as smaller units. On the basis of the state law, each local government There are around regulates and administers areas such as schools, hospital, police, etc.

ACTIVITIES

326 federal Indian Reservations in the USA. These are areas of land reserved for a tribe or tribes under various agreements and treaties and where the federal government holds the land in trust on behalf of the tribes. Some of the reservations are what is left of the tribeâ&#x20AC;&#x2122;s original territory, while others were created when resettling Indian people who had been relocated by force from their homelands. The largest reservation is the Navajo Nation Reservation in Arizona, New Mexico and Utah.

American Indian Government The 565 federally recognised American Indian tribes are considered sovereign entities within the United States. This sovereign status is protected by treaty, federal law, and court rulings. The approximately 1.9 million American Indians and Alaska natives are eligible for funding and services from the Bureau of Indian Affairs. Members of tribes are not subject to state or local income, sales, or property taxes, and states have little power to regulate Indians in tribal territories . Tribes have their own rulemaking bodies and judicial systems to settle disputes arising on tribal lands or between tribal members. However, while it is significant, tribal sovereignty is not absolute; Indians are subject to federal taxes and to laws passed by the US Congress.

Reading comprehension 1

Read the texts and answer these questions. 1 What kind of government does an individual state have? 2 What responsibilities does a state judicial branch have? 3 How much freedom do states have to make their own laws? 4 Is there any control over what laws they can introduce?

5 Give examples of differences that can exist between states. 6 What are local governments responsible for? 7 What status do American Indian tribes have? 8 In what ways can these tribes self-govern themselves?

Speaking 2

Discuss these questions in class. 1 How do the US government and political system compare to Italy? 2 Which system do you believe is best? Why? 3 Which aspects of the systems do you particularly agree or disagree with?

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Political parties American politics is dominated by two political parties: the Republicans and the Democrats. The Republican Party was founded in 1854. Its nickname is ‘Grand Old Party’ and its symbol is the elephant. The Democratic Party was founded in 1828 and has a donkey as its unofficial party symbol. The Democrats can be said to be centre-left whilst the Republicans are more conservative and represent the centre right, although each party naturally has members which hold different views. Republican supporters tend to be slightly older, in a higher income bracket, with more male than female supporters. The Democrats are in favour of a more active role MORE ABOUT... of government in society, social freedoms and a mixed economy. They believe in investing in government spending, healthcare, education and There have been 19 Republican Presidents to date. The first was infrastructure. The Republicans are for a more limited role of government Abraham Lincoln (1861-1865). More in society, for free markets and the importance of the private sector. They recent Republican Presidents include would like to see reduced government spending and a strong military and Richard Nixon (1969-1974), Ronald national defence. Other parties include the Green Party, active since the Reagan (1981-1989), George H. W. Bush (1989-1993), his son George W. Bush 1980s and advocating environmentalism, social justice and peace, and (2001-2009) and Donald Trump (2017- ). the Libertarian Party, founded in 1971 and in favour of laissez-faire The first Democratic President was markets, strong civil liberties and non-interventionism in foreign policy. Andrew Jackson (1829-1837) and the The Constitution Party, formerly known as the US Taxpayers’ Party, latest was Barack Obama (2009-2017). Other Democratic Presidents were is a right/far right political group which believes – as the name suggests Franklin D. Roosevelt (1933-1945), John – in the importance of the US Constitution, American sovereignty and F. Kennedy (1961-1963) and Bill Clinton Christian morals and principles. (1993-2001).

Read the text then complete the table on the two major US political parties.

Democratic Party

Republican Party

Foundation

_________________________

Political position

_________________________

Typical supporters

_________________________

Critical thinking & Speaking 2

How do you think the Democrats and the Republicans generally stand on the following points? Which would they be in favour of and which against? Why? • higher tax rates for higher income • gay rights brackets • affirmative action* • an increase in minimum wages • abortion • an increase in military spending • universal health care • more gun control laws • immigration restrictions • the death penalty • drug liberalisation

Where do the major Italian parties stand on issues like these? And what is your opinion?

ACTIVITIES

Reading comprehension

Affirmative action refers to the policies and programmes which are designed to offer equal opportunities, particularly in education and employment, to those minority groups that have suffered historic discrimination in the USA. This includes discrimination for race, colour, religion, gender, sexual orientation and national origin.

Writing 4

Write a short essay comparing the US and Italian electoral systems. Include the following points: • the number of political parties; • who can vote and how a majority vote is • how the election campaigns are structured; calculated.

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WARM UP

Who is the current President of the USA and which party does he/she represent? When were the last elections in the USA?

US elections Any natural born citizen of the United States who is over 35 years old and has been a permanent resident of the country for at least 14 years is eligible for President. The President and Vice President are elected together every four years. The election is held in November – it is always on the Tuesday after the first Monday in November. But the whole process actually starts long before that. First of all, from about January to June, there are the primaries and caucuses. These are where the Republican and Democrat parties choose the candidate they want to be their presidential candidate. The next step is the party convention, which usually happens around August. At these conventions, the Republicans and Democrats formally nominate their presidential and vice presidential candidates. The conventions are huge events over several days which are closely followed by the media. They are an opportunity for the party to present its electoral programme and the candidate in the best possible way. The campaign between the Republican and Democrat candidates then starts for real. Each candidate is followed by a huge team of advisers, fundraisers and campaigners. The money spent on election campaigns runs into billions of dollars, with a lot spent on TV advertising. Candidates often look for endorsement from celebrity and political figures which are important for their image.

ACTIVITIES

Some states, the so-called red or blue states, are traditionally Democrat or Republican controlled, while other states change from one party to the other. These are often called purple states. Both parties generally concentrate their campaign efforts – in terms of time and money – on these states, as they want to prevent them going to the other party or they want to try to take the state from the other party.

Reading comprehension 2

The division of states into Democrat (blue) and Republican (red) after the 2016 election.

Read the text and complete these sentences. 1 Only resident US citizens who are over … can stand for President. 2 Elections are held every … in November. 3 Presidential candidates are chosen in the primaries which are held from … to … 4 Party conventions are often held in …

5 The … closely follows the party conventions. 6 Party conventions are used to present the party’s … and candidate. 7 Political campaigns cost … 8 Purple states, which … from one party to another, are the most important for candidates.

Listening 3

2.34 Listen to the explanation of the election procedures and choose the correct alternative.

1 Each state has the same/a different number of Electoral College votes. 2 The president is elected directly/indirectly by the people. 3 The presidential candidate needs more/less than half the Electoral College votes to win.

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4 It is/is not possible for a candidate to win the popular vote but lose the election. 5 The winning candidate is known in/before December. 6 The inauguration of the President is on 12th/20th January.

Famous political speeches John F. Kennedy

Ronald Reagan

At the age of 43, Kennedy (35th US President, 1961-1963) was the youngest US President and the ﬁrst Roman Catholic. In his inaugural speech in January 1961 he spoke at length about the tension between the US and the Soviet Union and how to ﬁnd a way forward. He also called for the participation of all Americans in getting the country moving again.

Abraham Lincoln

Lincoln (16th US President, 1861-1865) gave a short but extremely memorable speech at Gettysburg, the location of one of the most important Civil War battles, when he was dedicating a cemetery to the fallen soldiers in November 1863. He reminded American citizens about the nation’s founding principles.

One of the most memorable speeches from Reagan (40th US President, 1981-1989) was one given on 12th June 1987 at the Brandenburg Gate in West Berlin towards the end of the Cold War.

Barack Obama

In his ﬁrst inaugural speech in January 2009, Obama (44th US president, 2009-2017) spoke about the severity of the economic and social crisis facing the nation. He also mentioned the greatness of the nation which had allowed him to become the ﬁrst African American president of the USA.

A “This is the meaning of our liberty and our creed – why men and women and children of every race and every faith can join in celebration across this magniﬁcent mall, and why a man whose father less than sixty years ago might not have been served at a local restaurant can now stand before you to take a most sacred oath.” B “And so, my fellow Americans, ask not what your country can do for you; ask what you can do for your country. My fellow citizens of the world, ask not what America will do for you, but what together we can do for the freedom of man.”

D “General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe, if you seek liberalisation: Come here to this gate! Mr. Gorbachev, open this gate! Mr. Gorbachev, tear down this wall!”

ACTIVITIES

C “Four score and seven years ago our fathers brought forth on this continent, a new nation, conceived in liberty, and dedicated to the proposition that all men are created equal.”

Reading comprehension 1

Read the texts and match each US President with the correct excerpt from famous presidential speeches.

Speaking 2

In pairs, discuss which of the following aspects make a speech great and interesting to listen to and why. Add your own ideas too. • humour/sadness • easy to understand/intellectual language • an important occasion/event

• personal anecdotes • use of statistics and data • body language

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5 WARM UP

What do you know about the Commonwealth? And about Canada? What languages are spoken there? Who is the Head of State?

Canada

DOSSIER

English-Speaking World Current Commonwealth nations: Canada One of the most unique institutions in the world of politics and international relations is the Commonwealth of Nations: a group of 53 independent sovereign states – the largest of which are India, Nigeria, Pakistan, the United Kingdom, Canada, Australia, Kenya and South Africa. The Commonwealth of Nations comprises a combined population of 2.4 billion people – almost a third of the world’s population. All of the Commonwealth states have historical links with the UK, and most are former colonies, which is why the symbolic Head of the Commonwealth is Queen Elizabeth II. They are all legislatively independent parliamentary democracies, which can vote to remain part of the Commonwealth or to leave it. So, in practice, what does it mean to be a Commonwealth state? Despite their diverse social, political, and economic backgrounds all member states are regarded as equal in status, and co-operate within a framework of common values and goals, such as the promotion of democracy, human rights, good governance, the rule of law, individual liberty, egalitarianism, free trade, multilateralism, and world peace, which are carried out through multilateral projects and meetings. They even organise the quadrennial Commonwealth Games – an event similar to the Olympics.

ACTIVITIES

Canada is peculiar as a Commonwealth state because it is a former colony of both France and the UK. The country is made up of ten provinces and three territories, including the province of Quebec where 85% of the population are French speakers, and which has French as its official language. Canada has a population of 37.5 million people, of whom just over 21% are French speakers. Not surprisingly, there is some opposition from French-speaking Canadians to the fact that their Head of State is the British Monarch. However, the national government have been very careful to promote multiculturalism and to ensure that it is also protected by the constitution. Furthermore, the role of the Queen in Canada is only a symbolic and diplomatic one – she regularly visits all areas of the country to maintain relations, but is never involved in internal politics. Although all Commonwealth members have equal status in the organisation, Canada’s role is particularly relevant. It is the second largest financial contributor, and the funds are used to help less developed, poorer member states; it also makes a great contribution in terms of education and it has hosted the Commonwealth Games no fewer than four times. These are possibly the main reasons why Canada’s membership of the Commonwealth does not appear to be in question.

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Reading comprehension 2

Read the texts and answer these questions. 1 Why is Queen Elizabeth II the symbolic Head of the Commonwealth? 2 What do all Commonwealth members have in common from a legal point of view? 3 How is Canada different from other Commonwealth members?

DO S S I E R 5 | English-Speaking World

4 Why are some French-speaking Canadians unhappy that Canada belongs to the Commonwealth? 5 What has the Canadian government tried to do to solve this problem? 6 How is Canada particularly involved in Commonwealth affairs?

Meet Justin Trudeau Thanks to his father, Justin Trudeau’s name was well known in Canada even before he launched his ﬁrst election campaign in 2015. A During his childhood, he was in

the spotlight because of his father’s job. Just a few months after Trudeau was born, US President Richard Nixon made a state visit to Ottawa and made a bold, if lighthearted, prediction. “Tonight, we’ll dispense with the formalities,” Nixon said according to reports. “I’d like to toast the future prime minister of Canada: to Justin Pierre Trudeau.” After his childhood, Justin Trudeau kept a fairly low proﬁle. He graduated from McGill University, in his family’s hometown of Montreal in 1994. Then, rather than follow his father into politics, he chose a different path – out west, and as a schoolteacher. B However, he was thrust into the public spotlight again

on his father’s death in 2000. In his eulogy, Trudeau talked about his father and the lessons he’d taught, including the importance of humility and public service. In the

F Read the article and decide which paragraph… 1 gives an example of one of Trudeau’s hobbies? 2 refers to a family tragedy? 3 mentions his first introduction to a politician?

____ ____ ____

C Whispers said he was a lightweight who’d only gotten

so far on his family name. He proved them wrong in a 2012 charity boxing match – the sport being one of his passions – as he beat his opponent Patrick Brazeau, a military vet and then-senator from Canada’s Conservative Party. And he proved them wrong again during his 78-day election campaign and with his victory. After his election, Trudeau said, “We defeated the idea that Canadians should be satisﬁed with less, and that better isn’t possible. My friends, this is Canada, where better is always possible.” Source – CNN Edition – © CNN

Justin Trudeau was elected Prime Minister of Canada in October 2015 and again in 2019. His father, Pierre Trudeau, was Prime Minister from 1968 to 1979 and from 1980 to 1984.

4 suggests some people thought Trudeau would not succeed? 5 refers to Trudeau’s hopes for the future of Canada? 6 mentions memories of the past?

____ ____ ____

ACTIVITIES

Reading comprehension

years to come, Justin Trudeau assumed the mantle of an advocate more and more, talking to youth or promoting environmental issues. Closest to his heart was his work to create the Canadian Avalanche Centre, hoping to produce some good out of his brother Michel’s death, who had perished in an avalanche in 1998. Yet it wasn’t until 2008 that he became a full-pledged politician with his election as a Liberal Party parliamentarian.

Listening 4

F Listen to these stories about the disagreement over the use of the French and English languages in Quebec and complete the sentences. 2.35

1 The Old Navy chain of shops ___________ to rename its brand ‘La Vieille Rivière’. 2 The owner of the Indian Restaurant was accused of ___________ the law, because he was promoting a British beer. 3 ‘Go Montreal’ was a ___________ used by the Party of the Mayor of Montreal. 4 Imperial Oil decided not to keep the name of its gas stations because of ___________.

5 Quebec Government offices were criticised because their automated phone system gave ___________ in English before French. 6 The story about the woman who complained about a monolingual parrot may be an ___________. 7 The news story about bilingual dogs in Montreal was ___________.

Speaking 5

Discuss these questions in pairs. 1 Is the Commonwealth a valuable institution? What benefits do you think it brings to its members? 2 Do you think monarchies still have an important role to play today? 3 How well are Canada and its politics covered by the media in your country?

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5 WARM UP

Look at the logos of some UN programmes and agencies and match them with their complete title. 1

United Nations Children’s Fund World Food Programme United Nations Environment Programme United Nations High Commissioner for Refugees United Nations Educational, Scientific and Cultural Organisation

2 3

ACTIVITIES

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DOSSIER

Going Deeper The United Nations The United Nations is an international organisation which was founded in 1945, after World War II, by 51 countries. Today nearly every nation in the world is a member of the UN as it counts 193 member countries and, fundamentally, its objectives have remained the same: to keep international peace and security, develop friendly relations among nations and promote social progress, better living standards and human rights. It has six main organs: the General Assembly, the main forum for debate and the only organ with a representative from each member country; the Security Council for the maintenance of global peace and security which has five permanent and ten rotating member nations; the Economic and Social Council at the head of the UN’s economic, social, cultural and humanitarian activities; the Secretariat for the day-to-day administration; the Trusteeship Council which was in charge of supervising some territories during their preparation for self-government or independence and now only convenes as necessary; and the International Court of Justice which is the UN’s main judicial body. The first five of these organs are based at UN Headquarters in New York while the International Court of Justice is located in The Hague in the Netherlands.

Listening 2

UN agencies A

Millions of refugees and (1) _______ are helped by UNHCR annually.

www.un.org

F Listen to more information about these UN agencies and complete the sentences using a maximum of three words. 2.36

DO S S I E R 5 | Going Deeper

The WFP saves lives by getting food to people in emergency situations such as war, civil conflict and (2) _______. In its goal to stop world hunger, it collaborates with the UN agencies (3) _______ and (4) _______.

Education, health care, (5) _______ and (6) _______ are fundamental aspects that UNICEF wants to guarantee to children worldwide. One of its operation areas is with (7) _______, whose number is estimated at 300,000.

UNEP’s primary goal is to look after the environment today for the benefit of (8) _______. One way it is doing this is by making the UN (9) _______.

One of UNESCO’s roles is to nominate (10) _______, which are places considered to be fundamental to our culture.

By using well-known personalities, the UN can emphasise (11) _______ and activities. Goodwill Ambassador is one of the (12) _______ given to famous people who help UN organisations.

MORE ABOUT... There are six official languages used at the UN – Arabic, Chinese, English, French, Russian, and Spanish. UN delegates can speak in any of the official languages, and the speech is interpreted simultaneously into the other official languages. Most UN documents are also in all six official languages.

Unicef Now Accepting Donations Through Bitcoin and Ether The UN children’s agency, Unicef, has announced it is accepting and distributing donations through cryptocurrencies ether and bitcoin. Unicef’s new Cryptocurrency Fund is the latest in a series of efforts by aid organisations to experiment with “blockchain” currencies, which have the potential to transform charitable giving and increase financial transparency. Cryptocurrencies are virtual currencies that can be cashed in for real money, and are not linked to any single country or central authority. Instead, a record of transactions is maintained by a decentralised network of computers. This system of decentralisation offers non-profit organisations the advantage of bypassing expensive fees and middlemen traditionally required to move large amounts of cash overseas quickly. But the virtual currencies have also been divisive. They are associated with huge price fluctuations, and have been previously used as a mechanism to support illicit activities such as money laundering and online drug dealing. Christopher Fabian, principal adviser at

Unicef Innovation, said the initiative would prepare the organisation for the future while also maintaining safeguards built into existing donor systems. “We see this as a piece of learning that we need to go through to prepare for the next decade,” he said. For aid organisations, cryptocurrencies make tracking donations easier, and have the potential to allow donors to see how their money is used. Unicef joins a number of aid agencies that have started accepting donations in virtual coins, including the UN World Food Programme. Rhodri Davies, head of policy at the Charities Aid Foundation, said that the initial excitement about currencies using blockchain technology in the aid sector had delivered smaller dividends than had been hoped. “It’s been a lot slower than people might have expected two or three years ago,” he said. The new Unicef fund will hold donations and distribute them in the same cryptocurrency – initiatives funded through it will sign contracts denominated in the same type of virtual coinage. Fabian said to reduce risks caused by the currencies’ volatility, most of the initial projects funded in this way would be short-term. He said the organisation would also uphold existing donor protocols – so those making donations online would have to pass rigorous checks before they were allowed to deposit funds to Unicef. Adapted from The Guardian, 2019

Reading comprehension 3 INVALSI

Read the article and choose the correct option.

2 What is the benefit of how cryptocurrencies are organsied? A It prevents the spread of illegal activities. B There is no need for intermediaries when transferring large sums. C The transactions cannot be traced. D The international transaction fees are low. 3 What is an advantage for aid organisations of using cryptocurrencies? A Donations can be traced.

B People prefer donating online. C They can handle large donations. D It is an easy system to use.

4 Until now, the results of cryptocurreny donations have been… A extremely disappointing. B higher than expected. C the source of much excitement. D lower than predicted.

ACTIVITIES

1 Why has Unicef decided to accept cryptocurrency? A All other aid organisations have already done so. B Cryptocurrency donations are worth more than cash. C There is less ambiguity about donations. D It will increase the amount people donate.

money laundering riciclaggio del denaro sporco

5 What will Unicef not change? A The upper limit on donations. B The duration of its projects. C The type of projects it funds. D The inspections for online donations.

Speaking – Critical thinking 4

Discuss these questions in small groups or pairs. 1 What do you know about how cryptocurrencies work and what they can be used for? 2 Do you think this initiative will encourage more people to donate or will it put people off? 3 Do you feel that, as a society, we are aware of the importance of charity giving or do we tend to be more selfcentered and worried about our own lives? 4 What could aid agencies and charities do to raise their profile more and encourage donations?

CLIL – POLITICS/HISTORY Analyse the origin and development of the United Nations.

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DOSSIER

Big Brother is watching you 1

Read the plot of 1984 and underline the elements of Orwell’s totalitarian state. Which are the most disconcerting and alarming for you? Why?

The government power is divided between four ministries: the Ministry of Truth (news and education), the Ministry of Love (law and order), the Ministry of Peace (war) and the Ministry of Plenty (economic affairs).

1984 The world of 1984 is divided into three countries: Oceania, Eurasia, and Eastasia. Oceania includes the two Americas, the British Isles and Australia, where only one party is in power with its undisputed leader Big Brother. Every move is monitored and privacy invaded by two-way television screens, thought is controlled, personal and critical thinking broken down and a powerful Thought Police brainwashes people into conformity. Winston Smith, the main protagonist, lives in London, a squalid and degraded city, and works for the Ministry of Truth, changing historical records to agree with the party’s current view. Winston meets Julia and they secretly fall in love and have a relationship. But love too is considered a crime. O’Brien, an inner party member, helps Julia and Winston and introduces them into the Brotherhood, a supposed rebel group. This is actually a trap. Winston and Julia are both sent to the Ministry of Love which is a sort of rehabilitation centre for criminals accused of thoughtcrime. Winston is separated from Julia, and tortured until his beliefs coincide with those of the Party. He denies everything he had believed in, even his love for Julia.

Eric Arthur Blair (1903-1950), better known by his pen name George Orwell, is one of the most unorthodox and controversial literary writers of the 20th century. His life and works are characterised by a deep sense of social injustice and an extreme opposition to all forms of totalitarianism. His most famous works are the allegorical novella Animal Farm (published in 1945) and the dystopian novel 1984 (published in 1949).

Read the excerpt on page 407 and answer these questions. 1 How is Big Brother physically described? Why do you think that is? 2 What do you notice in the slogans of the party? 3 How is Winston different from the other workers?

4 Which details and expressions build up the feeling of hysteria and delirium? Are they successful? 5 How does the last sentence make you feel?

In 1984 Orwell wanted to warn us against the dangers of totalitarianism. Do you think he succeeds? Has he helped you to develop your own idea on this matter?

How do you think Orwell would feel about his idea of Big Brother being used in TV reality shows?

CLIL – IT/LAW Consider the legal and ethical issues which have arisen in the digital age, for citizens as well as governments and companies.

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In this excerpt Winston is at work and it is the conclusion of the Two Minutes Hate where the workers are shown images of the enemies of the state on a big TV screen. These images are calculated to work them up into an hysterical state of hatred against the Party’s enemies and to install complete belief in, and obedience to, Big Brother.

he Hate rose to its climax… But in the same moment, drawing a deep sigh of relief from everybody, the hostile figure melted into the face of Big Brother, black-haired, black-moustachio’d, full of power and mysterious calm, and so vast that it almost filled up the screen. Nobody heard what Big Brother was saying. It was merely a few words of encouragement, the sort of words that are uttered in the din of battle, not distinguishable individually but restoring confidence by the fact of being spoken. Then the face of Big Brother faded away again, and instead the three slogans of the Party stood out in bold capitals: WAR IS PEACE FREEDOM IS SLAVERY IGNORANCE IS STRENGTH

But the face of Big Brother seemed to persist for several seconds on the screen, as though the impact that it had made on everyone’s eyeballs was too vivid to wear off immediately. The little sandy-haired woman had flung herself forward over the back of the chair in front of her. With a tremulous murmur that sounded like ‘My Saviour!’ she extended her arms towards the screen. Then she buried her face in her hands. It was apparent that she was uttering a prayer. At this moment the entire group of people broke into a deep, slow, rhythmical chant of ‘B-B! ... B-B!’ -- over and over again, very slowly, with a long pause between the first ‘B’ and the second -- a heavy, murmurous sound, somehow curiously savage, in the background of which one seemed to hear the stamp of naked feet and the throbbing of tom-toms… Partly it was a sort of hymn to the wisdom and majesty of Big Brother, but still more it was an act of self-hypnosis, a deliberate drowning of consciousness by means of rhythmic noise. Winston’s entrails seemed to grow cold. In the Two Minutes Hate he could not help sharing in the general delirium, but this sub-human chanting of ‘B-B! ... B-B!’ always filled him with horror. Of course he chanted with the

rest: it was impossible to do otherwise. To dissemble your feelings, to control your face, to do what everyone else was doing, was an instinctive reaction. But there was a space of a couple of seconds during which the expression of his eyes might conceivably have betrayed him. And it was exactly at this moment that the significant thing happened -- if, indeed, it did happen. Momentarily he caught O’Brien’s eye… there was a fraction of a second when their eyes met, and for as long as it took to happen Winston knew – yes, he knew! – that O’Brien was thinking the same thing as himself. An unmistakable message had passed. It was as though their two minds had opened and the thoughts were flowing from one into the other through their eyes. ‘I am with you,’ O’Brien seemed to be saying to him. ‘I know precisely what you are feeling. I know all about your contempt, your hatred, your disgust. But don’t worry, I am on your side!’ And then the flash of intelligence was gone, and O’Brien’s face was as inscrutable as everybody else’s. That was all, and he was already uncertain whether it had happened. Such incidents never had any sequel. All that they did was to keep alive in him the belief, or hope, that others besides himself were the enemies of the Party… He had gone back to his cubicle without looking at O’Brien again. The idea of following up their momentary contact hardly crossed his mind. It would have been inconceivably dangerous even if he had known how to set about doing it. For a second, two seconds, they had exchanged an equivocal glance, and that was the end of the story. But even din baccano that was a memorable event, in throbbing rimbombo the locked loneliness in which entrails viscere one had to live.

Watch this video about plans for new surveillance cameras in the UK and answer these questions. 1 2 3 4 5 6

Which city is the report about? Where are they planning to put cameras? Where are CCTV cameras already installed in towns? What could be a positive aspect of this plan? Who will be able to see and use the recordings? How much will the cameras cost and who will pay for them?

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TEST 1

B1 Reading – Multiple choice questions Read the text about the simple rules of owning a smartphone, then choose the correct answer (A, B, C or D) for questions 0-6. The first one (0) has been done for you.

Smartphone rules Here are some simple rules about how to stay safe, happy and healthy on your smartphone.

1 Don’t let your smartphone own you – you own it! The problem Today many people can’t live without their phones. They are in the‘cyber world’ more than the real world. This isn’t a very healthy way to be. The answer Take a break! Put your phone down and do a fun activity outside with your friends or family. You can use your phone for important messages and to keep in touch, but it’s important to live in the here and now.

2 Stay safe! The problem The information on your phone isn’t always safe. People can change, use or steal things from your phone. The answer Keep your passwords secret and update your software often. Don’t trust disappearing photos and messages, as people can save them. 3 Set limits! The problem You can’t stop yourself from checking the alerts and messages you have from your phone night and day. The answer For a good night’s sleep away from your phone, set it in night mode without blue lights and messages before bed. Don’t be tempted to look at it during the night – you can check in the morning. 4 Don’t follow the crowd! The problem Your friends have all the new apps, games and filters on their phones, but you don’t. The answer It really doesn’t matter if you haven’t got the same things on your phone as your friends have. It is your phone and it is unique to your needs and interests.

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5 Be kind! The problem People aren’t always clever or kind online. They can do and say stupid things and they can feel sorry about it straight after. The answer Don’t do or say things online you don’t do or say in real life – be kind! They can stay with you for ever. If you get stupid comments or pictures on your phone from other people, block them or report them straight away!

IN VALS I T R AI N IN G

TEST 1 0

Today, people often live A  with friends not family. B  healthy lifestyles.

✗ in the cyber world. C  D  without a smartphone.

It is a good idea to use your smartphone A  all the time. B  for important communication.

C  when you are out and about. D  when you are with friends and family.

It’s important to keep A  passwords private. B  people away from your phone.

C  photos and messages on your phone. D  your phone in a secret place.

You can’t sleep because of A  alarms on your phone. B  bad messages on your phone.

C  blue light on your phone. D  videos on your phone.

Your phone should have A  all the new apps, games and filters. B  the same things as other people your age.

C  your friends’ needs and interests. D  your personal needs and interests.

Which of these is a good rule? A  Don’t be kind to people online. B  Don’t do things online you don’t do in real life.

C  Don’t try to be clever in your messages online. D  Don’t send photos from your phone.

B1 Listening – Multiple matching Listen to someone talking about vlogging. Select the correct answer (A-I) to match the questions (0-6). There are two extra answers. The first one has been done for you. 2.37

Where is this new generation of celebrities?

Child vloggers.

What is vlogging?

Four thousand.

Which different types of vlog are there?

For different reasons.

How many hours of YouTube video can people watch?

Gamers and make-up artists.

How many channels have over 1 million subscribers?

In different languages around the world.

Why do people vlog?

One billion.

Who are some of the most successful vloggers?

G ✗ On YouTube.

‘Talking-head’ or ‘follow me around.’

Talking on film in front of a camera. TEST 1

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TEST 1

B2 Reading – Multiple matching: matching headings Read the texts about unusual types of schools. Choose the correct heading (A-I) for each paragraph (1-6). There are two extra headings that you should not use. The first one (0) has been done for you.

Unusual schools 1

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0 D In Bangladesh many children can’t get to school during the rainy season. So teachers have to find alternative places to teach children from isolated communities. Their solution is of course boats. In India too, there are many marginalised and disadvantaged children that should be getting an education, but are not. The solution is to take the school to over 4,000 of them in open-air classrooms on train station platforms, which they can easily reach. 1 Children of a school in rural China have to climb an 800-metre bamboo ladder for 90 minutes to get to school every day. Some of the pupils are only six years old, but they must still climb the rock because there is no alternative. There used to be a lift, but the villagers couldn’t afford to pay for the electricity. Meanwhile in Nepal, children must travel to school across a river in a basket on a zipwire. If that sounds exciting, consider that the basket is open and it gets stuck halfway across the water, so the children have to use their hands to pull themselves along the wire and this can hurt them. Then on the other side of the river they have to walk for 45 minutes to get to school. 2 There is no curriculum at the Brooklyn Free School in New York. Students can choose any class they want and they don’t have to come to school if they don’t feel like attending. In fact, the pupils themselves make up the school rules, which might be studying alone, playing, wandering around or taking it easy. Clearly there are no tests, homework or grades either. There are no rules and no punishments in London’s Ian Mikardo school either, despite having pupils with very challenging behaviour. Unusually for the UK, students don’t have to wear a uniform, but they must always listen to and show respect to each other. 3 A recent study by the University of Delaware suggests that scheduled siesta times should be timetabled into secondary school days. It could improve teenagers’ ability to reason, spatial memory and attention. The ideal amount of time is between 30 and 60 minutes. This idea is considered controversial in the USA, but in China it is already built into the post-lunch schedule for many adults in work settings and students at schools.

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TEST 1 40

4 You might have heard of forest schools, which take children outdoors for classes. They encourage them to interact with their surroundings, get in touch with nature and build things using materials found in the forest. The theory behind these schools is that young children in particular should get regular opportunities to play and develop an experiential learning style. You will find an even less traditional style of curriculum in Salem, Massachusetts in the USA, where students learn about magic and witchcraft, which they can do online or in class. 5 A high school in Copenhagen, in Denmark, is built in a glass cube, so there is natural light all day long. And there is just one giant classroom for 358 students. The open spaces have large, comfortable areas known as drums, where learning can take place in a more relaxed and healthy environment, while enabling students to continuously interact with different groups. 6 Microsoft have designed a special school in Philadelphia, which accommodates students from diverse backgrounds, who have special ability in technology. They don’t need any books or pens or pencils, as all teachers use interactive Smart boards and all lessons are digital. This might be the first of many similar technological schools.

Alternative curriculum

Open-plan schools

Different rhythms

One-to-one teaching

Extreme journeys

Schools of the future

D Improvised classrooms ✗

Travel broadens the mind

No rules

B2 Listening – Multiple matching Listen to a travel vlog. While listening, match the beginnings of the sentences (1-8) with the endings (A-K). There are two sentence endings that you should not use. The first one has been done for you. 2.38

Owen wishes he had

as well as having his in-flight meal!

Even if he had wanted to go away,

be walking along Koh Samui Beach.

He was about to leave his flat early this morning

be looking for somewhere else to stay.

This time tomorrow he will

In five days time he will

If only he hadn’t eaten at the airport

D done this before he had a really good job. ✗ E

had a little siesta.

have landed in Bangkok airport.

he couldn’t have afforded to.

He thinks it’s time he

he would have had to wait.

He really hopes it won’t

if he thought it could cause problems.

He wouldn’t have packed his penknife

take too long to get through customs.

when he realised he didn’t have his passport! TEST 1

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TEST 2

B1 Reading – Multiple matching: gap-filling Read the text about Christmas in London. Parts of the text have been removed. Choose the correct part (A-G) for each gap (1-5). There is one extra part that you should not use. The first one (0) has been done for you.

This Christmas in London 1

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Are you spending Christmas in London? Great news! There are plenty of things G (0) _____________. Hyde Park Winter Wonderland is free to enter and you can take a ride (1) _____________, watch the circus, go ice skating, visit the pop-up bars and restaurants, or browse the Christmas stalls. If it’s shopping you like, there are plenty of Christmas fairs and markets in London. Try the Southbank Centre Winter Market on the River Thames. It has lovely handmade Christmas gifts. After shopping, you can watch a pantomime, (2) _____________ at the Arts Centre. This year they are performing the children’s story Black Beauty. But there are many other pantos to choose from right across London. Alternatively, head to Maltby Street Christmas Night Market, set under Bermondsey’s Victorian railway arches. It feels like you are walking into A Christmas Carol by Charles Dickens, so you have (3) _____________. You can’t spend Christmas in London without visiting its famous department stores Harrods and Selfridges. Even if you can’t afford to shop, you can check out their beautiful Christmas decorations, sample some free food, visit their incredible toy departments, or just take in the atmosphere. Christmas lights in London are spectacular and (4) _____________. You can find the best ones on Oxford Street, Carnaby Street, or Covent Garden and do some bargain shopping at the same time. Or you can go out of the city centre to Kew Gardens. Every year, they light up the iconic buildings and a mile-long path for you to follow through the beautiful botanical gardens. If you like shows, why not watch one of the annual seasonal ballets such as Swan Lake or The Snowman, with the snow falling on stage, just in case there is no real snow outside on the streets! Or if you are more of a sporty type, then take part in Covent Garden Christmas Pudding Race or (5) _____________ of the Serpentine Lake in Hyde Park. Or maybe just watch other people doing it – as the temperatures can be around 5 °C or even below 0 °C! Whatever you are doing – have fun!

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TEST 2 A

a traditional British Christmas show

go swimming in the freezing cold water

more importantly free to see

on the giant observational wheel

the full London literary experience too

it’s a really magical experience

G ✗ to see and do at Christmas in London

B2 Listening – Short answer questions

Kew Gardens at Christmas

Listen to someone talking about dance and dyslexia. Answer questions 1-7 with no more than 4 words or numbers. The first one (0) has been done for you. You will hear the recording twice. 2.39

How many people have dyslexia in the UK?

What can dyslexia affect?

How does the speaker feel when she dances?

What is dance good for?

Why doesn’t she like telling people she’s dyslexic?

What helps her remember words and information?

How do dyslexic dancers start learning choreography?

Which non-verbal communication does she mention?

One in ten people.

TEST 2

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TEST 2

B2 Reading – Short answer questions Read about Robert Harris’ novel Fatherland, then answer the questions (1-9) using a maximum of four words. The first one (0) has been done for you.

Robert Harris’ Fatherland 1

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Imagine a world in which the Nazis had won the Second World War and the Greater German Reich stretched from the Low Countries, Belgium, Luxembourg and the Netherlands, to the Urals in Russia. That is the parallel world in which author Robert Harris set his thriller Fatherland. The action takes place in Berlin in 1964, but the alternative history of Europe seems completely believable. Hitler hasn’t killed himself and his companion Eva Braun in a bunker in Berlin, but is supreme ruler of the Greater German Reich. King Edward VIII, as a Nazi-sympathiser, hasn’t abdicated and gone into exile with his divorcee American wife, Wallis Simpson, but is nominally ruling Britain. Hitler’s favourite architect Albert Speer hasn’t been sentenced to 20 years in prison at the Nuremberg Trials, but has instead gone on to rebuild Nazi Berlin, complete with Triumphal Arch and the Great Hall of the Reich, the largest building in the world. And Berlin’s international airport is called the Flughafen Hermann Göring, after the prominent Nazi. In the novel we only find out about recent history by accident and flashback. The earliest change made to real events is the failure of the assassination attempt on Reinhard Heydrich, in Prague in 1942. He was a high-ranking German SS and police official during the Nazi era and one of the main architects of the Holocaust, which resulted in the murder of six million Jews. (In historical fact, Heydrich, though wounded, seemed to have survived the attack by Czech partisans, but later died in hospital of septicaemia.) In Harris’ plausible alternative, Heydrich was able to become the state’s evil genius, never present in the novel but always behind the plot. This is similar to how Big Brother is present in George Orwell’s dystopian novel Nineteen EightyFour, which explored the workings of an imaginary totalitarian society in Britain. In Fatherland, as in Nineteen Eighty-Four, the nation is in perpetual war, and everyone is a potential informer. But the world is not as clear cut in Harris’ novel. Some people listen to American radio, young people grow their hair long and wear hippy clothes, and even the Beatles play a gig in the German city of Hamburg, despite being officially unwelcome. The main character of Fatherland is different too. Xavier March is a brave and honest policy officer, despite his SS uniform, and has a young son who eventually reports him to the authorities. He is called upon to investigate the murder of an old man who was once an important Nazi bureaucrat. He is helped in his investigations by a young American journalist. But what they discovered is the terrible truth about the Nazi regime that has been hidden from Germans as well as from the rest of the world: what happened to millions of Jews who unaccountably disappeared during the war never to be seen again. The plausible excuse for this cover-up is the need to concentrate their resources on defeating the Soviet Union and preventing the spread of communism on the one hand, and standing up to an ever-

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TEST 2 powerful USA on the other hand. It is difficult to know whether the very familiar geo-political context, or the fact that we are so obsessed with alternative truths and what might have been, is the reason this book is still so popular and so relevant almost three decades after it was published in 1992. The book has sold over three million copies and has been translated into 40 languages, as well as being made into an award-winning film.

What kind of novel is Fatherland?

When and where is the plot set?

What had Hitler not done in this parallel world?

Who would have been ruling Britain?

What would have happened to Reinhard Heydrich in Prague in 1942?

Which other dystopian novel is Fatherland similar to?

How is Fatherland different?

Who is the main character of Fatherland?

What hidden truth does he discover?

What obsession makes people like this book so much?

It’s a thriller.

B2 Listening – True/False/Not given Listen to four speakers talking about fashion and decide whether the information below (1-8) is True, False or Not given. You will hear the recording twice. The first one (0) is an example. 2.40

True 0

The first speaker has spent a whole morning in a fitting room.

Even though people spend a long time in uncomfortable fitting rooms, they find what they want in the end.

The interactive mirror informs you of what is in stock at the moment.

The eco-line promoted by the Italian fashion business can be hand- or machine-washed.

Their sustainable clothes are expensive.

Fashion bloggers have made many campaigns against plastic.

The third speaker says that it is not true that detergents pollute water.

Recycled shoreline waste is used to make the plastic covers for clothing items.

The last speaker affirms that young people know how to combine simplicity with eccentricity.

False

Not given

✗

TEST 2

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TEST 3

B1 Reading – Multiple matching Read the text about youth trends and choose the correct heading (A-H) for each paragraph (1-6). There is one extra heading that you should not use. The first one (0) has been done for you.

YOUTH TRENDS 1

0 H Generation Z, people born between 1995 and 2015, are also called Generation Sensible, because fewer of them drink alcohol or take recreational drugs than in the past. In fact, in answer to the question ‘How much alcohol do you drink?’, 25% of 16-24s say they don’t drink any alcohol at all, and only 30% drink some alcohol every week. 1 Many young people also rank education, health and their career above socialising, hobbies and dating. Does this mean there are no students skipping lectures and going to parties anymore? 2 Generation Z are digital natives because they grow up using technology. And in answer to the question ‘How many of you use a voice assistant?’, most of them, 82%, admit to trying one, but only 42% use one at least once a week. This is because many don’t feel comfortable talking to inanimate objects, or are suspicious of the security risks attached to this technology. In fact 46% also think that their phones can record them without their permission. 3 Sometimes called the snowflake generation because they often take offence and they are not very resilient, in actual fact 16-24s know how to look after both their minds and their bodies. They do exercise, meditate, practise mindfulness and more of them follow a plant-based diet. 4 However only 2% eat vegan food all the time, but 17% experiment with it. Similarly, only 11% are always vegetarian but 29% sometimes follow a no-meat diet. Despite this, fast-food restaurants McDonald’s and Chick-Fil-A continue to be the most popular places to eat out for 16-24s in the UK and the US. So many fast-food brands are now adopting vegetarian and vegan options. 5 Generation Z are growing up in a streaming era where they download but never buy music. This means that their musical tastes vary a lot compared to previous generations and new types of fusion music are emerging. 6 In the near future there may be less traffic on the roads too as fewer young people are taking their driving test. Most choose instead to use cheap Uber taxis or public transport, both of which are better for the planet. Source: 2019 report by Voxburner, youth insights consultancy company

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TEST 3 A

Youth power

Getting around

Their priorities

Fair food or fast food?

Technophobic?

Changing tastes

Health and wellbeing

H A sober generation ✗

B1 Listening – Multiple choice questions Listen to a conversation about gaming disorder. Choose the correct answer (A, B, C or D) for questions 1-6. The first one (0) has been done for you. You will hear the recording twice. 2.41

What is gaming disorder? A  a state of mind B  a type of game

C  ✗ an illness  D the name of a game

Why is it a real problem? A  It’s anti-social. B  It’s bad for your health.

C  It’s expensive. D  It takes time.

Which of these are true for people with gaming disorder? A  They can’t stop. B  They don’t want to play.

C  They play every weekend. D  They think the game is real.

What can become of little importance for people with the disorder? A  washing C  eating B  going out D  all of these things

What does the doctor look for before giving a diagnosis? A  12 months of all the symptoms B  12 months of any symptoms

C  all the symptoms for any amount of time D  It depends on the doctor.

In which country is gaming disorder a real problem? A  America B  China

C  Japan D  North Korea

What solutions are there in the UK? A  ban on gaming B  boot-camps

C  counselling D  prison

TEST 3

417

INVALSI TRAINING

TEST 3

B2 Reading – Multiple matching: gap-filling Read the text about fake news. Parts of the text have been removed. Choose the correct part (A-M) for each paragraph (1-10). There are two extra parts that you should not use. The first one (0) has been done for you.

The Problem of Fake News 1

418

How do you stop misinformation before it even starts to spread? For decades, medicine has provided us with an easy way to prevent diseases: vaccines. Now researchers are working on a type of vaccination that could combat a serious 21st-century problem: fake news. This could work because misinformation behaves like a virus. False news stories spread faster, deeper and farther than true stories, moving across G social media, and strangely if you try to expose it, (0) __. Experts think that instead of waiting for false information to spread and then laboriously fact-checking and exposing it, you can protect yourself against it before it happens. Here’s how. More than 97% of climate scientists have concluded that humans are responsible for global warming, (1) __. This is because of sophisticated campaigns aimed at sowing doubt among the public, which is then difficult to remove. The Cambridge team tried to do this with something called the Oregon Petition, (2) __. They prepared three documents: a ‘truth brief’ explaining that 97% of climate scientists agree that humans are responsible for climate change; a ‘counter-brief’ revealing the flaws in the Oregon Petition, for instance, (3) __, and that fewer than 1% of the signatories are climate scientists; and the Oregon Petition itself. They surveyed 2,000 people, asking them how big the scientific consensus on climate change is. Then they divided them into one group that saw the ‘truth brief’ and one group that saw the Oregon Petition, (4) __. The results were intriguing. When participants were first asked about the scientific consensus on climate change, they calculated it to be around 72%. But they then changed their estimates based on what they read. When the scientists provided a group with the ‘truth brief’, the average rose to 90%. For those who only read the Oregon Petition, the average fell to 63%. When a third group read them both – first the ‘truth brief’ and then the petition – (5) __. When a group of participants read the ‘truth brief’ and were also told that politically motivated groups could try to mislead the public on topics like climate change, the calculated average rose to almost 80%. Strikingly, this was true even after receiving the Oregon Petition. The ‘counter brief’ detailing how the petition was misleading was more effective. One final group who read it before the petition estimated that 84% of scientists (6) __. So how and why does this work? Humans usually rely on mental shortcuts to think; the world is full of information and our brain has limited time and capacity to process it. If you see a wrinkled, grey-haired man and someone tells you he is a senior citizen, your brain accepts that and carries on. People working with misinformation (7) __. Before believing a piece of new information, most people scrutinise it in at least five ways. We usually want to know if other people believe it, if there is evidence supporting this new claim, if it fits with our previous knowledge on the matter, if the internal argument makes sense and whether the source is credible enough. But at times we rely too much on shortcuts to answer these five questions, (8) __. The vaccination reverses this trend, but it takes a lot of time and effort to go case by case, inoculating people. So the Cambridge researchers came up with a different idea. This new idea was an online, role-playing game (9) __, rather than the topics. The game is called Bad News and it takes less than 15 minutes to play. You launch a fake news site, become its editor-in-chief, purchase an army of Twitter bots and direct your followers against a well-meaning fact checker. Throughout the game, you learn six different techniques used by fake news tycoons: impersonation, emotional exploitation, polarisation, conspiracy,

IN VALS I T R AI N IN G

TEST 3 discredit and trolling. The idea is that the next time someone tries to use the tactics against you on social media, (10) __. A

and those who saw the ‘truth brief’ before the petition

so our evaluation is not as thorough

agreed that humans were responsible for climate change

but large groups of society still have trouble believing it

that among the Petition’s 31,000 names are people like the Spice Girls

focussing on the strategies of fake news

the average remained unchanged from participants’ original instincts: 72%

how to tell the difference between them

which falsely claimed that over 31,000 American scientists rejected human responsibility for climate change

know this and use it to their advantage

with different information at the same time

you should recognise them and be able to call them out

G misinformation sticks with people, according to resear✗ ch at the University of Cambridge

B2 Listening – Multiple choice questions Listen to an expert talking about racism in sport. Choose the correct answer (A, B, C or D) for questions 1-6. The first one (0) has been done for you. You will hear the recording twice. 2.42

In which country was cricketer Jofra Archer racially abused? A  Australia B  Barbados

C  England D  ✗ New Zealand

Who was racially abused in Verona earlier in the month? A  Brescia footballer Mario Balotelli B  Chelsea F.C. forward Tammy Abraham

C  the Bulgarian football team D  the English football team

What percentage of the reports relating to hate speech in 2018-19 were racist? A  47% C  79%  51% B D  93%

According to the expert, why do people behave in a racist way? A  all of the following C  to protect their culture B  fear of immigration D  to protect their national identity

What does he claim can fuel open forms of prejudice? A  mass media B  people’s bad behaviour

C  social media D  the tribal nature of sport

Which of the following statements is true? A  Most of the abuse is online. B  There were stronger laws against racism in the 1970s.

C  This kind of abuse is nothing new. D  The situation is getting better.

What could be done to make clubs more responsible for their fans’ racist behaviour? A  They could be banned. C  They could be educated. B  They could be fined. D  They could be given a warning.

TEST 3

419

Exam Practice Part 1: Comprehension and interpretation

Submarine Cables Most of us connect to the Internet using Wi-Fi nowadays, so no longer use a physical connection with a cable. However, sooner or later, this wireless system links up with physical cables, each wire as thin as a strand of hair, that carry the tiny bits of code across the world and across oceans 5 quicker than you can read this sentence. The first trans-Atlantic cable connected the USA and Britain in 1858 and the first message sent took 16 hours to transmit. Today it is estimated that there are 750,000 miles of cable on the ocean floors. The routes have to be carefully planned to avoid underwater hazards and interference by fishing boats and the cables must be made to withstand heavy currents, earthquakes and other physical conditions. 10 In the past, it was mainly telecommunication companies, often joining in a consortium, which laid the cables but over the last ten years or so the major tech companies, such as Amazon, Google, Facebook and Microsoft, have become involved. The UN has reported that more than half the global population is online and now even the remotest areas of the world are getting internet access. In addition, more and more technology which relies on fast data speeds is being invented. Faced with this massive demand for bandwidth, these private network operators have 15 started laying their own cables, individually or by pooling their resources, to be ready. (234 words)

Source: New York Times online edition

International Internet Bandwith Growth by Region, 2014-2018

Bar chart from https://blog.telegeography.com/international-internetcapacity-growth-just-accelerated-for-the-first-time-since-2015

420

EX AM P R AC T ICE

TEST 1 Choose the option which fits best according to the text. 1

How does data travel around the world? A B C D

It It It It

travels as bits of code exclusively through cables or wires. travels quicker with a Wi-Fi connection than with a traditional cable one. travels as bits of code through both wireless and cable systems. first travels across the Atlantic before reaching other parts of the world.

2 Why have tech companies got involved in laying undersea cables? A B C D

It is cheaper than using the cables which belong to a telecommunications consortium. They want to be able to satisfy the increase in demand for bandwidth. Other companies are not interested in reaching remote parts of the world. The existing cables are too slow for their needs.

3 The bar chart shows the growth in internet bandwidth for the period between 2014 and 2018. Which of these statements is true? A B C D

The slowest growth in internet bandwidth was registered in North and South America. Internet bandwidth grew by at least 30% in all regions of the world. The Middle East had the largest increase in internet bandwidth. Internet bandwidth grew more rapidly in Africa than in other regions of the world.

4 Answer the question. Use complete sentences and your own words. Explain why undersea cables are so important for modern communication and what characteristics they need to have. 5 Answer the question by referring to the bar chart. How did the growth in internet bandwidth differ among the different regions and what do you think the factors for this could be?

Part 2: Written production Choose one of the following tasks. Number your answer clearly to show which question you have chosen.

Either 1 Your boss has asked you to analyse the communication methods used in your company. Write a report of about 300 words on the current methods used (letters, emails, face-to-face meetings, etc.) and then recommend new methods (social networks, video-conferencing, etc.), saying how they can improve communication and productivity. Or 2 How much do you use social networks and text messaging to communicate with people? What do you think are the advantages and disadvantages of this means of communication compared to talking face to face? Write an essay of about 300 words, giving your views on the topic.

TEST 1

421

Exam Practice Part 1: Comprehension and interpretation

The Digital Future of Bricks-and-Mortar Retail 5

Data collection powers the online world of retail. There is an almost infinite amount of data instantly available, from the number of views and websites visited to the time spent browsing and a customerâ&#x20AC;&#x2122;s purchase history. All this data can be analysed and used, for example, to improve customer experience, to target advertising or to organise a digital marketing campaign. Now the bricks-and-mortar retail industry is also trying to combine digital tools with a real store shopping experience. One forecast is that stores, using facial recognition technology, will be able to recognise a customer as soon as they walk in, and know their identity, preferences and past purchases.

It is certainly more challenging to collect this kind of data for a physical store than it is for an online one. And there is also the question of privacy, with clients likely to have to specifically authorise data collection, similar to the opt-in services which already exist today, like using geo-fencing to know when a customer is in the area to then target them with specific adverts and promotions. But to remain relevant in a quickly changing world, some industry experts claim, means more than data collection. Others state that physical retail will always rely on a good product and excellent customer service, and that the whole shopping experience must be focused on the clientâ&#x20AC;&#x2122;s needs whether that is entertainment, food, beauty or electronics. (234 words)

Source: New York Times online edition

Online shopping preference in the United States as of 2017, by age group

Bar chart from https://www.statista.com/statistics/242512/online-retailvisitors-in-the-us-by-age-group/

422

EX AM P R AC T ICE

TEST 2 Choose the option which fits best according to the text. 1

Why do online retailers use data collection? A B C D

To understand their client base and target their marketing effectively. To be more competitive against physical stores. To improve the range of products they offer. To make purchasing an item quicker and easier for their customers.

2 What problems can physical stores have when it comes to collecting and using data? A B C D

Trouble with promoting a physical shopping experience. Problems of interpreting the data correctly for their sector. Difficulties in finding the right technology for their needs. Problems of privacy and not having instant access to vast amounts of data.

3 The graph shows online shopping preference according to age group in the USA. Which of the following statements is true? A B C D

There is little difference in online shopping preferences across the four age groups. The older people are, the less they shop online. People born after 2000 are not as interested in online shopping as their parents. The older generation tend to shop online more than young people.

4 Answer the question. Use complete sentences and your own words. Explain the difficulties physical stores have with data collection and suggest ways that they can remain in business when faced with strong online competition. 5 Answer the question by referring to the bar chart. How do online shopping preferences change according to age? Why do you think that is?

Part 2: Written production Choose one of the following tasks. Number your answer clearly to show which question you have chosen.

Either 1 You work for a retail company in the cosmetics field that currently sells its products in department stores and chemists. The management is considering starting an B2C e-commerce site. Write a report of about 300 words outlining the benefits and risks of this new strategy for the company, and give your recommendations. Or 2 Some people think that in the next twenty years physical shops will cease to exist and will be totally replaced by online shopping. Do you agree? Write an essay of about 300 words giving your opinion.

TEST 2

423

Exam Practice Part 1: Comprehension and interpretation

In-House Content Marketing Over the last decade or so, content marketing has really taken over and become the buzz word for so many companies, both large and small. Creating content, whether it is a video, infographic, or a blog post, has become vital for company marketing strategies. 5

In the past, this task was often assigned to external agencies, but the recent trend is to bring it in-house, relying on internal resources to create the necessary content. One of the main benefits is obviously cost. A company can save a lot of money by avoiding expensive agency fees. Another advantage is brand and product knowledge. People within the company will have a more detailed and intimate knowledge of the brand and how to promote it. However, prioritising these two factors over creativity and quality could be risky. Letâ&#x20AC;&#x2122;s look at video, for example. With so much of the Internet, especially social media networks, dedicated to video content, companies want to invest heavily in this area. To make a decent video, a company would need to have in-house a specialised team of designers, videographers and post-production editors. If this is not the case, there is the risk of a poor quality final product, which would not be beneficial to the companyâ&#x20AC;&#x2122;s image. Therefore outsourcing certain areas of content marketing, rather than doing absolutely everything in-house, can be worthwhile in the long run when it offers better quality and more effective content. (236 words)

Source: www.contently.com

Primary benefits of in-house agencies (USA 2018)

Source: Association of National Advertisers (ANA)

Bar chart from https://contently.com/2018/11/01/brands-advertising-inhouse/

424

EX AM P R AC T ICE

TEST 3 Choose the option which fits best according to the text. 1

What two benefits of in-house content marketing are mentioned in the text? A B C D

Improved quality and using internal knowledge. Having control and using internal resources. Saving money and brand or product expertise. Speed and cost effectiveness of the operations.

2 In what circumstances can an external agency be useful? A B C D

When When When When

there is a lack of relevant skills within the company. the client has long-term goals for content marketing. there is a specific product campaign to be organised. the agency is used to taking risks on behalf of the clients.

3 The graph shows the benefits of having an in-house agency. Which of these statements is true? A B C D

Respondents feel that having more control is less important than creative expertise. Speed and brand knowledge are equally important for respondents to the survey. One of the least important advantages is having institutional knowledge. Companies prefer saving money over all the other benefits of an in-house agency.

4 Answer the question. Use complete sentences and your own words. What is content marketing and what are the advantages and disadvantages of using an in-house agency instead of an external one? 5 Answer the question by referring to the bar chart. What are the most and least important factors when considering creating content in-house? Do you agree? Are there other factors that should be taken into consideration?

Part 2: Written production Choose one of the following tasks. Number your answer clearly to show which question you have chosen.

Either 1 You work in the marketing division of a large, national chain of supermarkets. You strongly believe in the power of content marketing to make the company more visible and competitive. Write a report to your manager, outlining the importance of content marketing, some proposals for new content, and the benefits for the company. Or 2 Nowadays the Internet, and particularly social media sites, are full of videos, from private individuals, companies and organisations. For this reason, some people believe that they are, at best, a waste of time and, at worst, dangerous. Write an essay of about 300 words with your point of view, using examples from your personal experience.

TEST 3

425

Exam Practice Part 1: Comprehension and interpretation

Charitable Causes 5

Nowadays it is becoming harder and harder to find a sports celebrity who has not associated his or her name, money or time with a charitable cause. Some take part in high-profile and widely publicised ventures, while others go about their charitable work away from the public eye, setting up foundations or funds to help a cause close to their heart. Causes range from homelessness and addiction, to social inclusion, literacy and medical research. Some cynics think that the motivation for this philanthropy is to increase PR and just an exercise in brand building for the celebrity, but the reasons are probably more complex than that. Having achieved incredible results in their chosen sports, these people are ready to look for other rewards and a sense of wellbeing. The same drive that led them to sporting success, together with the skills learned during their careers, such as business management and people skills, can help their philanthropic work be successful. However philanthropy, especially that by the extremely wealthy, has come under attack and has been called a form of tax avoidance which makes the problems it tries to resolve worse rather than better. Others question the infl uence that these billionaire philanthropists can have on the lives of millions of people and whether it is functional to rely on them and their wealth to fix the worldâ&#x20AC;&#x2122;s problems. (225 words)

Source: ÂŠ BBC

Which of the following best describes how often you give to charity? (UK)

Bar chart from https://www.cafonline.org/about-us/publications/2018publications/uk-giving-report-2018

426

EX AM P R AC T ICE

TEST 4 Choose the option which fits best according to the text. 1

Which of the following is not given as a reason why sports celebrities might get involved in charitable causes? A B C D

It is good publicity for them. They feel strongly about a particular cause. They want a way to feel good. The public prefer celebrities who are generous.

2 According to the article, sports people can be successful at running philanthropic organisations due toâ&#x20AC;Ś A B C D

the amount of time and money they have available to donate. their celebrity status and high profile. the expertise and experience gained during their career. the help they are given by PR organisations.

3 What criticisms have there been of billionaire philanthropy? A B C D

Billionaire philanthropists only give a small proportion of their wealth. It can be considered a harmful rather than beneficial action. The taxation system on donations and philanthropy is corrupt. The majority of the money donated is wasted and does not go to help the causes.

4 Answer the question. Use complete sentences and your own words. What is philanthropy? What kind of people are involved in it and why? 5 Answer the question by referring to the bar chart. How does charitable giving in the UK vary according to age? What could the reasons for this be?

Part 2: Written production Choose one of the following tasks. Number your answer clearly to show which question you have chosen.

Either 1 Your company has decided to fund a project to help the local community. Write a letter of about 300 words to the local council informing them of this idea and the amount of money you have available. Say what kind of project you could be interested in and why. Request details of any suitable projects the council has in the area and how you could be involved in them. Or 2 What international charities or non-profit organisations do you know? Write a report of about 300 words on one of them, saying what kind of organisation it is, its beliefs and activities, the people or countries involved, and any criticisms of its operations.

TEST 4

427

Exam Practice Part 1: Comprehension and interpretation

Co-working 5

Co-working is a simple but very functional idea. A flexible workspace operator offers the chance to rent a fully-equipped, open space work area for a specific period, from a few hours or days to extended periods depending on the workers’ needs. Initially popular with small start-up companies and freelancers who often don’t have the need or funds for renting their own office spaces, these flexible spaces are being used more and more by larger companies and even multinationals for their employees. It is precisely the flexibility of these spaces which is the main attraction as it allows these organisations to expand or reduce their workforce and the space needed on the basis of the volume of work they have. They no longer have to sign long and extortionate leases on fancy office buildings. For the people who work in co-working spaces, there are many benefits too, such as flexible hours, more autonomy and control, and often shorter commute times. Another advantage is that it can reduce the loneliness which some may feel when working alone or working remotely, away from the social aspect of a traditional office set-up. Research has shown that the social interaction with other co-workers can also improve motivation and help build useful networks and contacts. Concentration is also much better as there are far fewer distractions compared to working from home or in a coffee shop. (231 words)

Professional status of co-workers

Bar chart from https://born2invest.com/articles/coworking-office-spacetrends-expanding/

428

EX AM P R AC T ICE

TEST 5 Choose the option which fits best according to the text. 1

Which is the best definition of co-working? A B C D

Sharing a job and a desk with a colleague. Working flexible hours in your company’s office building. Renting work space according to your needs. Increasing social interaction between employees.

2 Why have large companies become interested in co-working spaces? A B C D

They offer flexible solutions to their business needs and help save money. The companies are growing too fast for their current office buildings. The co-working spaces have more modern and better equipment than their own offices. It is increasingly difficult to find office buildings to rent in some city locations.

3 According to the article, one disadvantage of remote working is that… A B C D

co-working spaces are not always close to the worker’s home. you have to be extremely disciplined to get your work done on time. co-working spaces don’t have the same facilities as a traditional office space. it can be an extremely solitary and isolated way of working.

4 Compared to working alone, working in a co-working space means workers… A B C D

aren’t under as much pressure. feel encouraged and have more drive. appreciate their social life more. don’t spend as much time drinking coffee.

5 Answer the question by referring to the bar chart. How did the professional status of people co-working change in the period between 2012 and 2017?

Part 2: Written production Choose one of the following tasks. Number your answer clearly to show which question you have chosen.

Either 1 You work for an American company which needs a co-working space for three employees in Milan for six months. You have found two possible options in the city. Write a report giving details of the two places (e.g. location, costs, facilities etc.) and make your recommendation for the most suitable one. Or 2 Write an essay of about 300 words debating the advantages and disadvantages of working remotely from home or in a co-working space for both the company and the employee.

TEST 5

429

Exam Practice Part 1: Comprehension and interpretation

Transparent Supply Chains Over the last twenty years or so, consumers have paid a lot of attention to the ethical nature of the products they buy and to manufacturersâ&#x20AC;&#x2122; corporate policies. But now they are also scrutinising all aspects of the supply chain for any unethical or questionable practices. 5

Some take the personal decision to boycott a particular service, brand or an entire multinational for ethical, environmental, political and other motives so it is increasingly important for marketers and companies to really understand how their product is made otherwise they risk damaging their brand. If they fail to enhance the transparency of their supply chains, for example by making the provenance of raw materials clear, the health and image of their brand is at risk.

The fashion industry in particular has often been criticised for not delivering supply chain sustainability and transparency. For example, investigations carried out in clothing factories in places like Bangladesh show that workers are paid a pittance and often have to work in dangerous conditions. Some fashion brands, at both the high and low ends of the market, have promised to ensure their products are made in accordance with the highest ethical and environmental standards.

But until all companies do so, it is the marketers who will be in the firing line, trying to repair the damage and rebuild brand trust whenever any unethical practices or environmental problems in the supply chain are revealed to consumers. (237 words) Source: www.marketingweek.com

Reasons for personal boycotts of products and services by shoppers in the UK (2018)

Bar chart from https://www.statista.com/statistics/867067/brandboycotting-reasons-in-the-united-kingdom-uk/

430

EX AM P R AC T ICE

TEST 6 Choose the option which fits best according to the text. 1

What does a transparent supply chain mean? A B C D

Analysing regularly the separate components of the supply chain. Allowing investigations into the supply chain to be carried out by consumer groups. Having a clear and visible process for all aspects of the company supply chain. Keeping all elements of the supply chain under the central control of the main organisation.

2 What criticism has there been of the fashion industry? A B C D

They donâ&#x20AC;&#x2122;t use quality raw materials for their clothing. They donâ&#x20AC;&#x2122;t always pay fair wages to their workers. Their supply chains are too transparent. Their production techniques cause environmental damage.

3 What negative consequences might a company face if its unethical practices come to light? A B C D

Consumers will no longer believe in the brand and its image will be ruined. The marketing department will have to adapt to new advertising rules. The company will be forced to change components of its supply chain. The company will no longer be able to deliver its goods on time.

4 The bar chart shows reasons for UK consumers to boycott products and services. Which of the following statements is true? A B C D

The second largest reason for boycotting is corruption. How companies treat their staff and their supply chain workers are equal in second place. Most UK consumers boycott companies due to them not paying taxes. Cover ups are less important reasons for consumers than faulty products.

5 Answer the question by referring to the bar chart. What were the main reasons for shoppers to boycott certain products or services in the UK in 2018? Why do you think this was the case?

Part 2: Written production Choose one of the following tasks. Number your answer clearly to show which question you have chosen.

Either 1 Write an essay of about 300 words to explain the elements of the supply chain and how companies can ensure they are sustainable and transparent while, at the same time, maintaining low costs and maximum profitability. Or 2 How important are ethical and environmental issues for consumers today? Write an essay of about 300 words, discussing this question. Use examples from the news, companies you have heard of, and your own experience to support your point of view.

TEST 6

431

Best Performance Premium Editorial coordination: Simona Franzoni Editorial project: Sabina Cedraro Editors: Sabina Cedraro, Cristina Mancini, Simona Pisauri Art director: Marco Mercatali Production manager: Francesco Capitano Page design: Sara Blasigh Page layout: Sergio Elisei, Curvilinee Picture editors: Sabina Cedraro, Giorgia D’Angelo Cover Cover design: Curvilinee Photo: Shutterstock © 2020 ELI S.r.l. P.O. Box 6 62019 Recanati Italy info@elilaspigaedizioni.it www.elilaspigaedizioni.it The Author would like to thank Giovanni and Daniel for their patience, and to remember Peter for his incredible strength and spirit. The Publisher and Author would like to thank Prof.ssa Daniela Cerroni, Prof.ssa Sonia Talevi, Francesca Cecconi and Antonino Barbera Mazzola, who commented on the material at different stages of its development. No unauthorised photocopying All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of ELI. This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the publisher’s prior consent in any form of binding or cover than that in which it is published and without a similar condition being imposed on the subsequent purchaser. All websites referred to in Best Performance Premium are in public domain and whilst every effort has been made to check that the websites were current at the time of going to press ELI disclaims responsibility for their content and/ or possible changes. While every effort has been made to trace all the copyright holders, if any have been inadvertently overlooked the publisher will be pleased to make the necessary arrangements at the first opportunity. Segnalazione di errori Produrre un testo scolastico è molto complesso. L’esperienza ci insegna che è quasi impossibile pubblicare un libro senza un errore o una imprecisione, e ci scusiamo con i nostri lettori. Ogni segnalazione che potete inviarci sarà per noi preziosa. Vi ringraziamo se vorrete scriverci al seguente indirizzo: redazione@elionline.com Printed by Tecnostampa – Pigini Group Printing Division – Loreto, Trevi – Italia 28.83.024.0 ISBN 978-88-536-2961-6

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Acknowledgements Photo acknowledgement Alamy: p. 10 (bottom left), 66, 155, 177, 195, 230 (left), 361, 388 (right); Eli Archives: pp. 26 (bottom right), 45, 57, 60 (boots), 65, 81, 107, 109 (middle), 110, 112 (top left, right), 113, 114 (left), 115, 121 (bottom), 125 (bottom left), 126, 145, 147, 148, 153, 183 (2 A-J), 190, 191, 196, 203, 204, 205, 251, 273 (left), 279, 283, 284, 292, 298 (Time cover), 304, 305, 323 (top right), 324, 325, 326, 327, 328, 332 (middle), 333, 334, 335, 336, 337, 338, 340, 344, 345, 356, 360, 362, 363, 369, 370, 371, 378, 384, 385, 390, 399, 400, 406, 407; Gettyimages: pp. 10, 112 (bottom left), 119; 198, 199, 307-308, 343, 386; Marka: pp. 332 (top right), 342, 346 (left); Shutterstock: pp. 9, 10 (top right), 11, 12, 14, 15, 16, 17, 18, 19, 20, 21, 23, 24, 25, 26 (left), 27, 28, 30, 31, 33, 34, 37, 38, 41, 42, 43, 46, 50, 51, 55, 56, 58, 59, 60 (left), 61, 62 (Hard Rock Cafe), 64, 67, 72, 74 (top, left, headhunting), 77, 78, 79, 82, 83, 84, 85, 87, 88, 92 (top), 94, 97, 98, 102, 103, 104, 105, 106, 108, 109 (left, right), 114 (right), 116, 117, 118, 120, 121 (top, bottom), 123, 125 (photos in ex. 3, bottom right), 128, 132, 134, 137, 138, 139, 142, 143, 144, 146, 150, 152, 156, 157, 158, 159, 161, 164, 166, 170, 172, 175, 176, 178, 179, 180, 181, 182, 183 (1 A-J), 184 (top), 186, 192, 194, 197, 200, 201, 202, 207, 209, 210, 211, 212, 214, 215, 216, 220, 222, 225, 226, 227, 228, 230 (right), 231, 232, 235, 236, 238, 241, 244, 245, 246, 248, 249, 252, 254, 255, 256, 260, 262, 257, 266, 270, 271, 272 (left), 275, 276, 277, 278, 280, 282, 284, 285, 287, 290, 291, 293, 294, 298 (image on the background), 299, 300, 301, 308 (flags), 309, 310, 311, 312, 313, 314, 315, 316, 317, 318, 319, 320, 321, 322, 323 (left), 329, 330, 331, 332 (left), 339, 341, 346 (photos on the right), 347, 348, 350, 351, 354, 355, 357, 358, 359, 364, 365, 366, 367, 368, 373, 374, 375, 376, 377 (top), 379, 380, 381, 382, 383, 387, 388 (left), 390, 391, 392, 394, 395, 396, 397, 398, 401, 402, 403, 404, 405. Websites: adidas.com: p. 125; apec.org: p. 154 (logo); asean.org: p. 154 (logo); barkbox.com: pp. 52-53; boatshed.com: p. 63; canon.com: p. 125; conservatives. com: p. 389 (logo); degrowth.eu: p. 282 (logo); dhl.com: p. 110; disneyland. disney.go.com: p. 125; drycargomag.com: p. 185; efta.int: p. 154 (logo); fairtrade. net: p. 26 (logo); fallenfruit.org: p. 272; federalreserve.gov: p. 231 (logo); finance.nine.com.au: p. 92; garofolivini.it: p. 173; google.com: p. 124 (logo); greeneenergyuk.com: p. 60 (logo), greenpeace.org: p. 94; gofundme.com: p. 274; gsb.standford.edu p. 353; harley-davidson.com: p. 125; hbs.edu: p. 353; imf. org: p. 155 (logo); it.wfp.org: p. 404 (logo); jbs.cam.ac.uk: 352 (logo), labour. org.uk: p. 389 (logo); lloydsbank.com: p. 74 (logo); london.edu: p. 352 (logo); mcdonalds.com: p. 124 (logo); mercosur.int: p. 154 (logo); michelin.com/eng p. 113; naftanow.org: p. 154 (logo); nike.com: p. 125; opec.org: p. 154 (logo); oxfam. org: p. 70; pizzahut.com: p. 62 (logo); tesco.com: p. 125; thebodyshop.com: p. 62 (logo); thecommonwealth.org: p. 154 (logo); tre.it: p. 124 (logo); twitter.com: p. 124 (logo); unep.org: p. 404 (logo); unesco.org: p. 404 (logo); unhcr.org: p. 404 (logo); unicef.org: p. 404 (logo); europcar.com p. 62 (logo); twitter.com/ hashtag/oysterburgers: 273; us.playstation.com: p. 124 (logo); virgingalactic.com: p. 369; who.it p. 277 (logo); worldbank.org: p. 155 (logo); wto.org: p. 155 (logo); wwf.org: p. 124 (logo). Video acknowledgement © AFP/GettyImages pp. 65, 176, 235; © Sky News/GettyImages p. 109. The Publisher would like to thank Caitlin Brown for the video ‘What is the American Dream?’; Russia Today for the video ‘Big Brother Cab’; We Are Equals for the video ‘EQUALS’, directed by Sam Taylor Wood, produced by Barbara Broccoli; www.britainsbestbreaks.tv for the video ‘The Lake District’. Article acknowledgement The Publisher would like to thank The Financial Times for the article ‘It felt like someone had just died a tragic and untimely death’, by FT Alphaville, 2009; The New York Times for the articles ‘Going Green but Getting Nowhere’, by Gernot Wagner, 2011; ‘Speaking Up in Class, Silently, Using Social Media’, by Trip Gabriel, 2011; The Telegraph for the article ‘Is this the end of the gap year?’, by Christopher Middleton, 2010 © Telegraph Media Group Ltd; Newsweek Magazine for the article ‘Not the Queen’s English’, by Carla Power, 2005; Seven Network Australia, for the article ‘Teen millionaires: The kids running successful businesses who say you can too’, by Alex Cullen, 2019; The Guardian for the articles ‘California landmark workers’ rights bill sends waves through gig economy firms’, by Kari Paul, 2019; ‘AI can read your emotions. Should it?’, by Tim Lewis, 2019; ‘Climate change could make insurance too expensive for most people-report’, by Arthur Neslen, 2019; ‘£50,000 for being hit by a rugby ball: when compensation culture goes mad’, by Patrick Collinson, 2019; ‘More than a third of UK bank branches have closed since 2015’, by Miles Brignall, 2019; ‘#MeTooPay campaign launched to end gender pay discrimination’, by Kalyeena Makortoff; ‘British manufacturing: back in fashion’, by Scarlett Conlon, 2019; ‘The Guardian view on eurozone populism: fight it with fiscal firepower’, Editorial, 2019; Unicef now accepting donations through bitcoin and ether’, by Vidhi Doshi, 2019; ‘Greta Thunberg, schoolgirl climate change warrior: “Some people can let things go. I can’t”’, by Jonathan Watts, 2019; ‘Escape to the country: India’s villagers open doors to city tourists’, by Anne Pinto-Rodrigues, 2019.