1. Business English Upper Intermediate U2W09 John Silberstein johnsilb@aol.com

2. Agenda Current Events: Europe Weighs Rescue Plan for Greece

3. Current Events What may be the most efficient way to prevent the spread of the debt crisis? Why might it be important to just give money to Greece to solve their national debt crisis? Why is the credibility of the Euro important? What would occur if the value of the Euro dropped? What do you think Credit Insurance is? Europe Weighs Rescue Plan for Greece

4. Investment and Debt Companies can put money into investment projects in other countries in private direct investment. With free cross-border capital flows, they can repatriate their profits to their own country, or withdraw their investment altogether. There is debate about whether governments should try to limit capital inflows, and outflows with capital controls or whether they should follow the global trend towards liberalization. Some economists say that too much liberalization leads to instability in a country’s economy, with foreign exchange crises which lead to devaluation or depreciation – its currency becomes worth less in terms of other currency (relative value). For example, some say that China’s growth has benefited from the fact that its currency is not freely convertible, thus avoiding the capital outflows that other Asian economies have suffered from at various times. Direct Investment

5. Investment and Debt The International Monetary Fund (IMF) and the World Bank play an important role in the development of less-developed countries. A main function of the World Bank is to lend money to countries so that they can obtain the conditions for economic growth. For example, it sponsors infrastructure projects – road building, water supply systems, etc. – and projects in health education and agriculture. But developing countries may build up unsustainable levels of debt and be unable to repay their debts. The IMF has debt reduction programs for Heavily Indebted Poor Countries (HIPCs) that will reduce the amount of money that they owe. It also contributes to work on the Millennium Development Goals – specific targets relating to poverty reduction and the stimulation of growth in poor countries. Borrowing

6. Investment and Debt Burden:The amount of debt that a country has – this is seen as a problem. Service:making payments on a debt. Rescheduling:When lenders agree that a debt can be repaid in a different way or at a different time – also, Restructuring Relief:When lenders agree that debts do not need to be repaid – also, Forgiveness. Word Combinations with Debt

7. Investment and Debt 1.Withdraw 2.Depreciate 3.Pull out 4.Soar 5.Spur 6.Vulnerable 7.Perilous 8.Calamity 9.Vicious circle 10.Inflation Exercise: match expressions with definitions 1.Very Dangerous 2.Take out 3.Disaster 4.Leave 5.Easily affected by something else 6.Cause 7.Lose value 8.Rising prices 9.Rise fast 10.When a problem occurs that causes another problem to occur, which causes...

8. Metaphors a word or phrase literally denoting one kind of object or idea used in place of another to suggest a likeness or analogy between them. What is a Metaphor?

9. Metaphors a group of words whose meaning considered as a unit is different from the meanings of each word considered separately An idiom is a type of a metaphor. What is an Idiom?

10. Metaphors a group of words whose meaning considered as a unit is different from the meanings of each word considered separately What is an Idiom?

11. Metaphors we're "revved up” we're excited planting a seed gently introduce someone to an insight or idea Examples

12. Metaphors Belt tightening Reduce expenses bite the bullet to make a difficult or painful decision; to take a difficult step Blockbuster a big success; a huge hit Examples

13. Metaphors Level the playing field Run out of steam - Running on empty Up to speed Firing on all cylinders Over your head Ping me Explain the following Metaphors

14. Metaphors I don't have the bandwidth for that Knock your socks off Make it happen Over my dead body I'll do it or die trying Explain the following Metaphors

15. Metaphors We need to buy more time to finish this assignment! I can’t afford to spend any more time on this! It was worth waiting for. This is wasting my precious time. Money: Time is Money

16. Metaphors Investing in their company is like pouring money down the drain. They have started liquidating their assets, I wonder how long they can stay afloat. In a situation like that, anyone would have a hard time keeping their head above water. I can’t believe that the bank went under. Once the financial crisis started they sunk like a rock. Money: Money is Liquid

17. Management Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co- ordination between authority and responsibility. Hence, a manager always has to organize in order to get results. Organizing

18. Management A job is a collection of tasks and responsibilities that an employee is responsible to conduct. Jobs have titles. A task is a typically defined as a unit of work, that is, a set of activities needed to produce some result, e.g., vacuuming a carpet, writing a memo, sorting the mail, etc. Complex positions in the organization may include a large number of tasks, which are sometimes referred to as functions. Job descriptions are lists of the general tasks, or functions, and responsibilities of a position. Typically, they also include to whom the position reports, specifications such as the qualifications needed by the person in the job, salary range for the position, etc. Job descriptions are usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. The analysis looks at the areas of knowledge and skills needed by the job. Note that a role is the set of responsibilities or expected results associated with a job. A job usually includes several roles. Organizing: Terms

19. Management A manager performs organizing function with the help of following steps: Identification of activities - All the activities which have to be performed in a concern have to be identified first. For example, preparation of accounts, sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments. Organizing: Steps

20. Management Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working. Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it. Organizing: Steps

21. Management Specialization - Organizational structure is a network of relationships in which the work is divided into units and departments. This division of work is helping in bringing specialization in various activities of concern. Well defined jobs - Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualifications, skill and experience. This is helping in defining the jobs properly which clarifies the role of every person. Clarifies authority - Organizational structure helps in clarifying the role positions to every manager (status quo). This can be done by clarifying the powers to every manager and the way he has to exercise those powers should be clarified so that misuse of powers do not take place. Well defined jobs and responsibilities attached helps in bringing efficiency into managers working. This helps in increasing productivity. Co-ordination - Organization is a means of creating co- ordination among different departments of the enterprise. It creates clear cut relationships among positions and ensure mutual co- operation among individuals. Harmony of work is brought by higher level managers exercising their authority over interconnected activities of lower level manager. Authority responsibility relationships can be fruitful only when there is a formal relationship between the two. For smooth running of an organization, the co- ordination between authority- responsibility is very important. There should be co- ordination between different relationships. Clarity should be made for having an ultimate responsibility attached to every authority. There is a saying, “Authority without responsibility leads to ineffective behaviour and responsibility without authority makes person ineffective.’’ Therefore, co- ordination of authority- responsibility is very important. Organizing: Importance

22. Management Effective administration – The organization structure is helpful in defining the jobs positions. The roles to be performed by different managers are clarified. Specialization is achieved through division of work. This all leads to efficient and effective administration. Growth and diversification - A company’s growth is totally dependant on how efficiently and smoothly a concern works. Efficiency can be brought about by clarifying the role positions to the managers, co-ordination between authority and responsibility and concentrating on specialization. In addition to this, a company can diversify if its potential grow. This is possible only when the organization structure is well- defined. This is possible through a set of formal structure. Sense of security - Organizational structure clarifies the job positions. The roles assigned to every manager is clear. Co- ordination is possible. Therefore, clarity of powers helps automatically in increasing mental satisfaction and thereby a sense of security in a concern. This is very important for job- satisfaction. Scope for new changes - Where the roles and activities to be performed are clear and every person gets independence in his working, this provides enough space to a manager to develop his talents and flourish his knowledge. A manager gets ready for taking independent decisions which can be a road or path to adoption of new techniques of production. This scope for bringing new changes into the running of an enterprise is possible only through a set of organizational structure. Organizing: Importance

23. Management Organizing: Principles