Study the words and the word-combinations.

Паника

Study the words and the word-combinations.

 

acute adj	острый
anticipation n	ожидание
convulsion n	потрясение
decline n	спад
cycle n	цикл
shortage n	нехватка
bubble n	дутое предприятие
prelude n	прелюдия
extend v	простираться
capital goods	средства производства
default n	невыполнение обязательств
outcome n	результат
economic expansion	экономический рост
rock v	трясти
shatter v	разрушать
depression n	депрессия
recession / decline n	спад, рецессия
cessation n	прекращение
minor adj	незначительный
contraction n	сокращение
cycle n	цикл
downward trend	тенденция к понижению
household n	семья домашнее хозяйство
inventories n pl	материально-производственные запасы
draw on v	пользоваться
extent n	размер
extend v	предоставлять
reverse v	поворачивать в противоположном направлении
excess adj	дополнительный

 

1. Read and translate the text [5, с.126—136].

 

Panic

 

Panic — in economics, acute financial disturbance, such as widespread bank failures, feverish stock speculation followed by a market crash, or a climate of fear caused by economic crisis or the anticipation of such crisis. The term is applied only to the violent stage of financial convulsion and does not extend to the whole period of a decline in the business cycle. Until the 19th century, economic fluctuations were largely connected with shortages of goods, market expansion, and speculation, as in the incident known as the South Sea Bubble (1720), when stock speculation reached panic proportions in both France and England. Panics in the industrialized societies of the 19th and 20th centuries, however, have reflected the increasing complexity of advanced economies and the changed character of their instability. A financial panic has quite often been a prelude to a crisis that extended beyond commercial activities into sectors of consumption and capital goods. The Panic of 1857 in the United States, for example, was the outcome of the railroads' defaulting on their bonds, hence the decline in the value of rail securities. The Panic’s effects were complex, including not only the closing of many banks but also a sharp increase in unemployment in the United States and a money-market panic on the European continent. The Panic of 1873, which began with financial crises in Vienna in June and in New York City in September, marked the end of the long-term economic expansion in the world economy that had begun in the late 1840s. The greatest panic, however, was the crisis in 1929, which rocked the U.S. economy, shattered world economic relations, and brought about the Great Depression.

Agree or disagree with the following statements.

1) Business cycle is periodic fluctuation in the rate of economic activity, as measured by the levels of employment, prices, and production. 2) Panic is a sudden strong feeling of fear or nervousness that makes you unable to think clearly or behave sensibly. 3) Expansion is the act or process of making a company or business larger by opening new shops and factories. 4) Bubble is something that lacks firmness or reality.

Translate the following words and phrases from Russian into English.

Простираться; по ту сторону коммерческой деятельности; потребление; средства производства; невыполнение обязательств по погашению облигаций; получающийся в результате спад; стоимость ценных бумаг; денежный рынок; острые финансовые беспорядки; широко распространенный; банкротство банка; лихорадочная спекуляция акциями; крах фондовой биржи; экономический кризис; ожидание; интенсивная стадия; финансовое потрясение; экономические колебания; в значительной степени; дефицит товаров; расширение границ рынка; дутое предприятие; страны с передовой экономикой; цикл деловой активности; спад; экономический рост.

Complete the following statements. Retell the text “Panic”.

1) Panic in economics is…

2) The term “panic” is applied to…

3) Until … economic fluctuations were…

4) Panics in … reflected…

5) A financial panic has been a prelude to…

6) The Panic of 1857 was the outcome of…

7) The Panic of 1857 included…

8) The Panic of 1873 began with…

9) The Panic of 1873 marked…

10) The greatest panic was…

11) The greatest panic rocked … shattered … and brought…

Read and translate the text.

Depression and recession

Depression — in economics, a long period of decline in the business cycle that is characterized by sharply reduced industrial production, widespread unemployment, serious declines or cessations of growth in construction activity, and great reductions in international trade and capital movements. Unlike minor business contractions that may occur in one country independently of business cycles in other countries, severe depressions have usually been nearly worldwide in scope. The Great Depression beginning in 1929, for example, was the most severe and widespread economic decline in the 20th century. Recession — in economics, a downward trend in the business cycle characterized by a decline in production and employment, which in turn causes the incomes and spending of households to decline. Even though not all households and businesses experience actual declines in income, their expectations about the future become less certain during a recession and cause them to delay making large purchases or investments. In recessions, the decline in output can be traced to a reduction in purchases of durable household goods by consumers and of machinery and equipment by businesses, and a reduction in additions of goods to inventories. The greatest effect is probably on inventories; businessmen stop adding to their inventories and become more willing to draw on them to fill production orders. The decline in inventories thus has a double impact on production volume. Whether a recession develops into a severe and prolonged depression depends on a number of circumstances. Among them are the extent and conditions of credit extended during the previous period of prosperity, the amount of speculation permitted, the ability of government monetary and fiscal policies to reverse the downward trend, and the amount of excess productive capacity in existence.

Глобализация

 

Globalization

 

In 2000 the media were full of references to globalization of the economy, communications — even politics and military affairs. Large crowds turned out to protest meetings such as that of the World Trade Organization (WTO) in Seattle, Wash., in 1999 or called attention to International Monetary Fund (IMF) policies in granting loans to states at war. What were these protests all about? Globalization is a phenomenon involving the integration of economies, cultures, governmental policies, and political movements around the world. Internationalization is nothing new. Many of the large empires and religious movements represented forms of globalization. Trade and investment between countries have promoted interdependence of the world's economies for centuries. As early as 1962 the Canadian visionary Marshall McLuhan wrote that the electronic age was turning all humanity into a “global tribe,” and the term global village is attributed to him. Nowadays, the larger corporations organize production on a worldwide scale. Each step in the value-added chain, from research and development to processing of raw materials, production of parts, assembly of components, and marketing of the final product, is carried out in the most advantageous geographic location, regardless of where corporate headquarters are located or where the final good is sold. The globalization of markets means increasingly that similar goods are sold around the world for similar prices. The BBC, CNN, and the Internet have accelerated the integration of global culture. Teenagers around the world watch the same videos, listen to the same music, and wear the same clothes. At the same time, television audiences in virtually all countries watch the same major events, listen to the same financial forecasts, and see the same three-minute glimpses of ecological disasters.

Паника

Study the words and the word-combinations.

 

acute adj	острый
anticipation n	ожидание
convulsion n	потрясение
decline n	спад
cycle n	цикл
shortage n	нехватка
bubble n	дутое предприятие
prelude n	прелюдия
extend v	простираться
capital goods	средства производства
default n	невыполнение обязательств
outcome n	результат
economic expansion	экономический рост
rock v	трясти
shatter v	разрушать
depression n	депрессия
recession / decline n	спад, рецессия
cessation n	прекращение
minor adj	незначительный
contraction n	сокращение
cycle n	цикл
downward trend	тенденция к понижению
household n	семья домашнее хозяйство
inventories n pl	материально-производственные запасы
draw on v	пользоваться
extent n	размер
extend v	предоставлять
reverse v	поворачивать в противоположном направлении
excess adj	дополнительный

 

1. Read and translate the text [5, с.126—136].

 

Panic

 

Panic — in economics, acute financial disturbance, such as widespread bank failures, feverish stock speculation followed by a market crash, or a climate of fear caused by economic crisis or the anticipation of such crisis. The term is applied only to the violent stage of financial convulsion and does not extend to the whole period of a decline in the business cycle. Until the 19th century, economic fluctuations were largely connected with shortages of goods, market expansion, and speculation, as in the incident known as the South Sea Bubble (1720), when stock speculation reached panic proportions in both France and England. Panics in the industrialized societies of the 19th and 20th centuries, however, have reflected the increasing complexity of advanced economies and the changed character of their instability. A financial panic has quite often been a prelude to a crisis that extended beyond commercial activities into sectors of consumption and capital goods. The Panic of 1857 in the United States, for example, was the outcome of the railroads' defaulting on their bonds, hence the decline in the value of rail securities. The Panic’s effects were complex, including not only the closing of many banks but also a sharp increase in unemployment in the United States and a money-market panic on the European continent. The Panic of 1873, which began with financial crises in Vienna in June and in New York City in September, marked the end of the long-term economic expansion in the world economy that had begun in the late 1840s. The greatest panic, however, was the crisis in 1929, which rocked the U.S. economy, shattered world economic relations, and brought about the Great Depression.