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Английский язык. Практический курс для решения бизнес-задач
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Market risk – risk that an asset price drops and its owner incurs losses while selling the asset.

Operational risk – risk of careless or unprofessional actions of management resulting in losses.

Political risk – the risk of an adverse change in official policy such as in regard to taxation, tariffs, quotas, currency control, foreign ownership, nationalization, interest rates, etc.

Price risk – risk of changes in commodity or financial instrument prices over time.

Reinvestment risk – uncertainty about the future level of returns and interest rates after the current investment expires.

Systematic risk – risk that is characteristic for all securities of a given class and cannot be eliminated through portfolio diversification.

Systemic risk – a situation when problems in any one financial institution or market may spread, widely endangering the whole system.

Exercise 4.economy, US dollar terms, account for, worth, GDP, appreciation, exchange rates, average, shift, growth rates, individuals, per capita, spending, assumption, projections, challenges, forecasts, implications, pattern, activity, engine, demand, offset, ageing, returns, advanced, weight, portfolios, flows, currency, incomes, pricing, commodities, opportunities, global, strategic, list, richest

Lesson 22

Exercise 2.1. crowding out, 2. currency, 3. gold standard, 4. inflation, 5. interest rate, 6. investment, 7. liquidity trap, 8. money supply, 9. peg, 10. savings.

Exercise 4.macroeconomics, microeconomics, laissez-faire, Nobel, Economics, consumption, stabilization, federal, institution, contributed, Chicago School, affiliated, monetarist, money supply, phenomenon, Federal Reserve Bank, fiscal policy, restricted, Great Depression, financial shock, contraction, intervention, freely floating, negative income tax, welfare, bill, foundation, advisors, free market policies, relationship, economic situation

Lesson 23

Exercise 2.

Increase: climb, recover, mount, soar, pump up, push up, peak, rise, surge, grow, drive up, boost, expand, upturn, upswing, gain, hike, lift, shot up

Decrease: downturn, cut, push down, lower, decline, fall, plunge, drop, drive down, slip, diminish, contract, reduce

Exercise 3.1. capital expenditures, 2. depreciation, 3. balance of payments, 4. Central Bank, 5. corporate tax, 6. fiscal year, 7. foreign direct investments, 8. gross domestic product, 9. inventory, 10. public finance

Exercise 4.petrodollars, forecast, hard currency, averages, upbeat, advisor, oil sector, mismanagement, wealth, natural resources, growth, windfall, spending, crunch, Stabilization Fund, accumulating, boost, tax revenues, hike, threshold, fiscal discipline, populist, outlays, GDP, cash payments, fiscal policy, public finances, budget surplus, inflation, upward, consumer prices, target, exacerbate, strengthening, manufacturers, value, in real terms, appreciate, macroeconomic, institutions, stability,

«rents», interference, interest groups

Lesson 24

Exercise 2.1. free trade, 2. free trade zone, 3. IMF, 4. Maastricht Treaty, 5. multinational company, 6. NAFTA, 7. protectionism, 8. stock exchange, 9. WTO

Exercise 4.developing nations, global markets,

«invisible hand», deregulation, barriers, cross-border, exposed, comparative, trading partners, low wage, market forces, central planning, downward, inflation, volatility, innovation, structural shift, outlook, transitional, division of labor, specialization, transactions, world economy, stimulus, incentive, function, impetus, risk-adjusted rates of return, borders

Lesson 25

Exercise 3.1. economies of scale, 2. economies of scope, 3. horizontally integrated MNC, 4. kickback, 5. license, 6. MNC, 7. quota, 8. red tape, 9. vertically integrated MNC

Exercise 5.developing countries, multinationals, doing business, government officials, co-chairs, FDI, administrative reform, banking system, red tape, working group, boosting, strengths, labor costs, education, consensus, investment climate, awareness, executives, media, opportunities, campaign, attracting, tax, capital intensive, locations, community, representation, venue, impact, Customs, legislation

Lesson 26

Exercise 2.advance payment, bill of exchange, capital goods, consumables, consumer goods, jobbing, manufacture, open account trading, person, raw material, spare part

Exercise 4.consumption, FDI, multinational, commitments, liberalize, productivity, tariff barriers, antidumping, expansion, import protection, contract, return on investment, households, safety nets, adverse, transition, unskilled, displaced, incur, retraining, relocation, living standards, public policy, sustained, incentives, offset

Lesson 27

Exercise 2.The following statements are not correct: 2, 3, 4, 8, 11.

Exercise 3.1. ask (offer) price, 2. base currency, 3. bid price, 4. central bank, 5. commission, 6. counter currency, 7. cross currency pairs or cross rate, 8. fundamental analysis, 9. intervention, 10. limit order, 11. liquidity, 12. lot, 13. pips, 14. quote, 15. settlement, 16. spread, 17. technical analysis, 18. transaction cost

Exercise 4.marketplace, transactions, contracts, negotiated, counterparties, delivery, currency, notional, FX, derivatives, interbank, binding, instrument, traders, underlying, profit, risks, rewards, exit, positions, «open outcry», E-trading, individual investors, MNCs, fluctuations, transparent, liquid, clearing, fees, physical, cash-settled

Lesson 28

Exercise 2.The following statements are not correct: 1, 3, 4, 5, 7.

Exercise 3.1. broker, 2. dealer, 3. full disclosure, 4. liquidity, 5. NASDAQ, 6. OTC, 7. secondary market, 8. SEC, 9. settlement

Exercise 4.stock market, regulator, SEC, fraudulent, easy, hazardous, structured, industry, supervision, public, securities, divisions, compliance, overseeing, disclosure, filed, transparency, filings, material, offerings, reports, M&As, proxy voting, AGMs, fair self-regulating organizations, broker-dealer, rules, disagreements, surveillance, overseers, advisors, registered, regulations, violations, law-enforcement, criminal, insider trading, fiduciary, integrity

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