BusinessWeek Watches Japan and the World @ wwBusinessWeek Editorials BusinessWeek Watches Japan and the World (EYRAI4 —7| HR CRORES BARC HER Naohisa Murakami oe NAN’UN-DO(a ABIL, KE ORAM Business Week DUBE OI A-V K 7 7ATHOVE DOW AY ARE MBI, KE CREE S ACT CHIME LEE OTT KE Oj RIS Time P Newsweek PARTIAL MSNTHETA, BusinessWeek 28 —% ELEN C, RBICHEAUE (HATE ho LAH OM OER RRC, REL LEV EOPRE, LRAMIOFAHAE LTMLTHSE WABTLIF. BRAIZ, DEYARAT YOM TS, Business Week (SHO The Wall Street Journal & i. CHE LOWE L ROTO ETS REY ZRBRE SOT IT, KE, BIC L RACED 6 BS CRU EK, Bh, BR. US. BROAPB pho CET. FRA 21 HROKA + PR HAORM EEL SLSR T AY AKAM SCEABTRET. KEOEGHRIROHY) TT. PALO IC AAMCLOMO b Eo FLOW CME ERE L TORT. RMS DO ODA SF, BEY 7 OWTHEADMATMM EEL. bE 7 CMMI CHAS RODITIES TLE» PHMOALIL, SROPLMACH DY, MHNEMASOLMCE ET. MLV EMbNS MB RBI OW TIS Notes THB LTH) ETo OMAMM 2 CD IY ET RCBIV CHEF, LOAN MMLE Vocabulary # True-False 2 questions CAX DHME & IATA BED) & Bi LE, BF 1D TOEIC® FA HTH © S21= bOTOEIC® Test Practice C, TOEIC®F A b OMAR 3 AAU DARELA. BWO TOEIC Lid, MAP E-PORRABTRE YE TA, ONS OMMIBRIMANS CEC TORIC BRILL FEOF TH. ABC Lo THOT AV ARRORMDERA, REXOKOOWVE ODOUR BLOB’ TOHCHRETI LEMCKED, SHYT. AKEGUTVT, HK KAS S SESE CER AMM OM THA BEY bEFRAOWS AM BSCLO-MIERI, SHEL CAMOBVUTT. KdV CCV ELLM, HE EMR O PAM, HARARE RRB MID ELL. EK BUEHLE WET. 2006 Fk LIAAE ORR E TF @fvra $A=7 bEHOMKC, HMOFT—TEMMICRBL COEd. F— ICBO SOMM, RMI LERL CET. Oa BusinessWeek DH Bit, WABIS DY YS ¢, BMA Paso & OLAX HCKY WoTMETH, LNFTFIBRVAOLHD EST. SIE IER LCMAHOSLIICLELES. @ Notes AXRMOPRIL, Notes #7 VIHHLEL ED. BEERAT SBS, GS NC PRBOB WO, KERHRBEHOEL ES. @FYI FYI £ (4, “For Your Information” mC [B## TK) EU5RRTH, b Cy 7 OMRAME LTBBISLT (RAV. | Reading Comprehension | @ Vocabulary RMHOMGD SEY IT SLE LR. MINEO MADE SP LNE EAM BRE RORY, Ek, WHRECHLEMLEL EI. B True-False AXONSEREMD SOTHO, AXLEUATHHED LBA, ORNS SPELMMLH VET. AMEN EHALTHAELI I. Summary Idea Completion ALE LELEOLH € MCT SMA CH. SHIA SMES, MO 14% PREIME Y bE LTH THSOCBHILLEL ED.| TOEIC Test Practice | Question-Response TOEIC ® Part 2: Question-Response DBRIC2THE Ts ARALONS (OWT, AME 3 CORR AHE CHET. HE CHAR), ELS APBRLELII. Incomplete Sentences TOEIC ® Part 5: Incomplete Sentences DHAICG2THET. HHRKLON BMI SMO AME MTL, KHSMRSUELIIF. Short Talk TOEIC ® Part 4: Short Talks DAI oT EF. HBA E SLA, THIYRERON 7 C- VRE CHNETS CEMA, RMSE Lado Short Talks i$, RMSHEI CHM IML, RMCBLELL I. HC BA 7E-CIkRE LUG IL, AFD ASAI % S Transcripts of Short Talks eAGMOMA, SHEMELELL I. ELCHI-EAMICRY FY YYTRIL, ScLBARKNOMSF TT.Table of Contents PARTI The United States UNIT 1 High Birthrates: A Mixed Blessing UNIT 2 B-Schools for the 21st Century ... UNIT 3 The Perils of Unskilled Labor . . PART II Europe UNIT 4 Germany Must Stand Up to China UNIT 5 — Germany’s Elites Failed the Public UNIT 6 How Blair Could Unite the EU ... PART III Asia UNIT 7 — Japan’s Asbestos Avoidance .... . UNIT 8 China’s Budding Maturity ...... UNIT 9 A South Asian “Peace Pipeline” . . UNIT 10 _Defusing Sino-Japanese Tension . . PART IV Industry and Society UNIT 11 Lessons from Car Imports Past . . . UNIT 12 Getting an Edge on Innovation .. . UNIT 13 Don’t Discount Diesel ......... UNIT 14 The Counterfeit Catastrophe .... UNIT 15 The Greatest Gifts of All . Transcripts of ShortTalks ................... pawen bows od 18 sees ee eeeee 22 ee Par re: 30 sage 6. sues 34 aus 8 rHoiedte «donee 42 ste en ee eeee 46 eee 50 enol, ipnua Aci. 54 rr 58 7 esPr CT) aol ir High Birthrates: A Mixed Blessing BAR TILD Fae’ Dias ABT TY, 2050 F Mid, RBOHRAPBMRIC LM L LOWE ZO 5 AICS wet, Admit RTA AE ANYONE NOT YET convinced that the world is changing fast has only to look at the estimates recently released by the Population Reference Bureau (PRB). The relatively good news for the U.S. is that its population is projected to grow 42%, to about 420 million people, by 2050. That compares with a forecast 5 population drop of 10% in Europe and a hefty 21% plunge in Japan over that period. Much of the credit for America’s vibrantly growing population goes to immigration, currently adding about 1.2 million to the populace annually. Moreover, many of these immigrants tend to be of child-bearing age, and most 10 have higher birthrates than native-born Americans. That’s a positive for the economy because a larger populace, if sufficiently trained, creates a larger local market and more workers to produce more goods and services. Countries with stagnating population growth have to depend more heavily on productivity growth—a much chancier path to prosperity for mature economies. That’s why 1s Japan, an immigration-averse nation that just announced that its population would likely fall this year for the first time in history, is likely to have a hard time maintaining its economic stature as its population quickly ages. Unfortunately, there’s also a grim message from the PRB study: Much of Notes #4 bi) mixed blessing & KOA BH SBR. blessing . #47 ROE .. 2. Population Reference Bureau (PRB) HHO ADBIRM. AGORA HDN, JEEP (NGO), KA MEE Pauw L C75 Ema S nee PHIL A PUT E Hi, EMEDIA EARL THOS. 3. project FAT De 2M forecast 4 FA] U BRK. $. hefty = big or fairly big 7. Much of the credit for America’s OATBHOAEIE, BROBA ott [BHU] OK, 9. many of DROS < AHA MURMO HTN d % | A} immigrants 12442 fk eb YAK RVLI MC vibrantly growing population goes to immigration credit OL bE [AM] ED HLH) BE these immigrants tend to be of child-bearing age MERIT A Se n 10. native-born Americans [\ ‘TS allie today’s population growth is occurring in parts of the world that can ill afford the increase. Africa will account for fully one-quarter of the earth’s population rise 20 this year. And if current trends continue, three African nations (the Democratic Republic of the Congo, Ethiopia, and Nigeria) will be among the world’s 10 most populous by 2050—each bigger than Russia, Japan, or any European country. That’s why bringing such poor countries into the world’s economic mainstream is so essential. As China and India have shown, for even populous countries that 25 embrace tough market reforms, no destiny need be preordained. Reprinted from the September 5/12, 2008 issue of BusinessWeek by special permission. Copyright ©) 2007 by The McGraw-Hill Companies, inc. Country ] 1970 | 1975 | 1980 | 1985 | 1990 1995 2000 2002 T | ~~ | — Japan 213 | 1.91 1.75 176 | 154 | 1.42 | 1.36 | 1.32 7 T USA | 246 | 1.80 | 1.84 | 1.84 | 208 | 202 | 206 | 201 France | 247 | 1.96 | 1.99 103 | 478 | 471 | 190 | 1.88 Germany | 2.03 | 148 | 156 | 137 | 145 | 1.25 | 1.38 | 1.40 3 1.19 | 1.24 1.26 semen eet “ 213 | 1.73 | 1.54 | 1.65 243 | 214 aed | 1.94 | 1.78 10. That's a positive for the economy [ 2IZ#EHIZ 2 CLT F AAT < | positive D3 Acnegative 11. populace = population 13. stagnating population growth [A C#INAI® iJ 13. productivity growth [/:it£0(#0'] 14, a much chancier path to prosperity for mature economies [Hi RhiZi4 | FUT TOY AP HEY KA VIL chancy = risky 15. an immigration-averse nation [R#EsHVF 4{H| 17. maintaining its economic stature as its population quickly ages [ Ariaisi8(: ei ititl FRORM AMET S| 19. ill afford = cannot afford 20. Africa will account for fully one-quarter of the earth's population rise [77 117 (EIR A CRIN 4 550 1 44S it) 26. tough market reform [ite L VASA] 26. no destiny need be preordained [v»i>% SEL SD COBDSATAVZE| | 24. the world’s economic mainstream [it RAZi¥Reading Comprehension @ Vocabulary BARHRICSM L LMR CREB 5 BOE L 3 0 1. 0 ta OO +a 3.0 ann cee 4. Hise se 5. LJ Beez ele 6. ELE a. unfortunately b. birthrate c. estimate d. trend e. essential f. (be) convinced Bi True-False AMOABS > TUNE T (true), Bo TUG U HS F (false) EHF L & 9. 1. [1 Japan’s population is projected to grow faster than that of the United States by 2050. [1 Many of the immigrants arriving in the United States today are aged people. 3. CD Japan is expected to have a difficult time keeping its economic status because of its graying population. 4. (1 Ethiopia will probably be more populous than Russia by 2050. Hi Summary Idea Completion SMEMKLELE I. The United States is projected to see its (p ) grow 42% to about 420 million by 2050 thanks to a sharp rise in (i ), currently adding about 1.2 milion people to the populace (a ). This is positive news for the U.S. economy because a larger population, if (s )(t dy creates a larger local market and more workers to produce more goods and services. On the other hand, in other parts of the developed world, a population drop of 10% is forecast in Europe and a hefty 21% (p ) is expected in Japan over that period. Countries with (s ) population growth have to depend more heavily on (p dig ). The outlook for the world population also has its dark side. Much of today’s population growth is occurring in parts of the world that can ill afford the (i ), with Africa projected to account for fully one-quarter of the earth’s populaton rise in 2005.Belle a dete tas © aQuestion-Response 23 CD HS, AMICNT SE LUBA €(A)~()P SMUEL x 1. Mark your answer here. (A) @) (C) 2. Mark your answer here. (A) (B) (C) G Incomplete Sentences ROBLOBAHEKNS O\BNE BOE. (A)~(D) > SRUE LED, 1. Many of America’s new arrivals born Americans. have a higher birthrate than native- (A) likely to (B) are supposed to (C) tend to (D) apt to 2. India and China are the world’s two most - (A) populace (B) populous (C) popular (D) populate OG Short Talk * CD ERS. MMIC T SELUEA €(A)~(D)P SHU Le 3, 1. Who are the most likely participants in this seminar? (A) British men hoping to launch a new business (B) British women who want to become entrepreneurs C) Television viewers (D) Global entrepreneurship experts 2. Where is there still a substantial gender gap? (A) In the wealthy countries (B) In the middle-income nations (C) At the advanced level (D) In the early stages w& . What does the speaker probably mean by “the good news”? (A) That 6.1% of men in the U.K. have overcome the odds against them (B) That there are more women entrepreneurs worldwide (C) That 3.7% of women are involved in new businesses (D) That it is still possible for women to become successful business ownersPTET Co) a oll la B-Schools for the 21st Century ABITSEBAKF (UY RA-AZ—W) BEBLONTOES, LOL, MEH WO. ASUZBED MHI THEFT. SO MASS LITT et $58 L FMAM S © LARS oe TERKEOEPRAAZ— WO RAD HEH PHO BCE EO CODO THE MARKET IS sending a troubling message to America’s business schools. Falling applications, sliding enrollments, and declining selectivity all point to problems. The obvious culprit is the soaring price of tuition—up to $39,100 a year at Harvard B-School —at a time when starting MBA salaries have remained 5 flat for years. But the metamessage may be much more serious. The market may be telling the B-schools that they are training managers for the 20th, not the 21st century. More and more corporations prefer to train their own managers in- house, but not just because of the rising cost. They also want to instill skills and values that B-schools don’t, can’t, or won't deal with, 10 For the many business schools, the speed of change in the global economy and in corporate culture may be making part of their curriculum obsolete. Outsourcing to India and China, the rise of customer power, the spread of broadband, and other huge developments are changing not only the economic context in which companies operate. They are also changing the way companies 18 operate. CEOs of global corporations are demanding that their people be able to manage innovation teams, manage global supply chains, manage strategic design, and manage the consumer experience. Are B-schools keeping up? Despite scattered courses in product design and development, most B-school curriculums still focus on analytical courses — Notes #1 b/l B-Schools (Business Schools) [ & message [MESS X y E—Y TBS J 2. declining selectivity (BRO WHIM KT | 4, starting MBA salaries [#82K2b22 2 O7fE#8] MBA (& Master of Business Administration Ds “C, PHICEDNEL. 5. metamessage [JFSHHVICIGE SNS Ay E—Y, BB 10. the speed of change in the global economy and in corporate culture may be making part of their curriculum obsolete. [72 SIRE E RIICISIB IT BBE BALL EY AA 27 — VOB REO— BE CEI % L421) 12. outsourcing to India and China [tPB]E 4 7 KIC 77 (HE) I 12, spread of broadband [7 — 76 FO#IRJ 13. economic context [¥iR HH] RR 7 Jv, MEAG BE! 1, send a troubling 10PDC Cl) amelie) accounting, marketing, and finance. But today, companies increasingly need softer 20 people skills: observing consumers, collaborating with teams, conceiving new brands, and, perhaps most important, working across cultures with Chinese, Germans, Indians, Italians, Russians, and a world full of suppliers and partners. Unfortunately, many B-schools still appear to be graduating twenty- and thirtysomethings, many of whom believe they can manage by the numbers when 2 more businesses are stressing the importance of organic growth through new Products and services. Raising innovation success rates today is far more important than improving Six Sigma results. In times of economic upheaval, when the speed of change is enormous, the business world often adapts faster than academia. The drop in B-school 30 enrollments may be signaling that people think they will receive better training inside Corporate America than out. If that is true, B-schools have a lot more learning to do before they can successfully teach this generation of managers. Reprinted from the April 18, 2005 issue of BusinessWeek by special permission. Copyright ©) 2007 by The McGraw-Hill Companies, Inc. Top 10 U.S. business schools according to an Internet survey 1. Stanford University 2. Harvard University 6. Massachusetts Institute of Technology || 3. University of Michigan, Ann Arbor _| 7. Northwestern University 4. University of Pennsylvania 8. Carnegie Mellon University |___5. University of Chicago = 9. Dartmouth College |10. Columbia University. SSS 1 de REO WR RE ERIE | CEO id chief executive officer HMMS — L117. keep up [MRO BILIZ) Du-cH ¢ | 24, and thirtysomethings [20 ft, 30/t A | 26. organic growth through new products and services [$F8Li, }— LA Ei CZAR ERR] 28, Six Sigma [277 2-L YT] BROOME PEPE ERAN LC, RRO — EA OEIC ETS 70 ko Kae aa Bede FRCLICED, BHAA YRC CMT IRE sac ite SERE 19890 F(CMMICE bo EME TOE ASKBT SOI MBS 29. economic upheavals [#1809 A258 | 15. CEOs of global corporations [72 Om. 16. twent novation teams | YORT* "eT ne Ree teu ff Vocabulary BRIM LAM EME DO OBUEL ED. 1. C0 ase 20 a¥ 3. 0 sume 4.0 mare CO sxe 6. L) mek a. stress b. scattered c. academia d. enrollment e. application _£. tuition Bi True-False ALONBKCSS THIET (true), Bo TUNE F (false) EWE L & Fo 1. The market still believes that America’s B-schools are training managers for the 21st century. zr U~. values that B-schools can’t or won’t teach. companies want to give newly recruited managers skills and 3. C1 Most B-school courses still put heavy emphasis on organic growth through new products and services. Falling B-school enrollments indicate that people think they will receive better training inside Corporate America than out. Hi Summary Idea Completion SMEMELE LED. Business schools in the U.S. seem to be in trouble these days, with (f dla ), sliding enrollments, and declining (s ) now seen as their most salient features. The obvious (c ) is the soaring price of (t ), but the problem runs much deeper. Many U.S. companies believe that B-school (¢ ) are fast becoming (0 ), given the speed of change in the global (e ) and in (c ) (c ). B-school curriculums still focus on (a ), marketing, finance, and other (a dic ), Since the business world often (a ) faster to change than academia, B-schools have a lot more (l ) to do before they can successfully teach this (g ) of managers. 12TOEIC " Test Practice ©@ aQuestion-Response ss CO HE. MMICHT SEL USA, (C)P5#UEL E53, 1. Mark your answer here. (A) (B) (©) 2. Mark your answer here. (A) (B) (C) Incomplete Sentences ROMLOBMICANS DIMM EOE. (A\~(D)P BBE LED, 1. Companies today are -—--- managers who understand customers and are Yy Bt good at collaborating with teams, (A) expecting (B) looking (C) seeking (D) hoping N . Today, the global economy is changing rapidly - outsourcing and the spread of broadband. - such developments as (A) although (B) despite (C) asa result of (D) now that OG Short Talk - CD tea. BPUCHT SEL USA E(A)~(D) 5 BOE Led. 1. How do Theory Y managers usually see their worke (A) As needing more responsibility (B) As traditionally lazy (C) As needing to be watched over all the time (D) As fundamentally hard-working and reliable v . What does the speaker seem to think of Theory X itself? (A) He subscribes to it. (B) He encourages it. (C) He disagrees with it. (D) He doesn’t understand it. 3. Who most likely is the speaker? (A) An American manager (B) A Japanese management consultant (C) A company president talking to his workers (D) An American government leaderPTS h tert ae lic The Perils of Unskilled Labor MT DR te 4 KNOLES RE Ch Ke LARAMIE Ke oCEELC Hebe. A ADI CELTHH SH TH EDH, FOAYF FLAC, 1 FCB AT SA RROD EBT SED MBO OPE RRR TVEF, TLIBEOL I GRAMMY SOTL £30, FOR YEARS, AMERICAN workers have grown increasingly angry over the exodus of U.S. jobs to fast-industrializing India. Think auto parts manufacturing, call centers, computer help desks, or software programming jobs. So it’s not without a bit of irony that we note this week that employers on the Indian 5 subcontinent —many of whom have built their business models on offering lower-cost labor to Western companies —are now experiencing labor shortages that are pushing their own wages up. It seems that all the foreign demand for India’s bargain-priced manufacturing and high-tech labor —plus a boom in construction and consumer services jobs 10 sparked by India’s heady internal growth — has left skilled workers at a premium across the subcontinent. Wages for some semi-skilled textile factory workers have jumped 10% this year, while supervisors’ salaries have risen by 20%. And overall Indian salaries will rise 12.3% this year, Mercer Human Resource Consulting figures, more than double the nation’s inflation rate. 15 While many U.S. workers might view this as a fitting comeuppance for Indian industry, that would be wrong for several reasons. The developed nations look increasingly to the Third World to provide them with ever-cheaper items to maintain high living standards. Call that the Wal-Mart effect. But too-rapid wage inflation in developing countries puts that symbiotic relationship at risk. Likewise, 2 rising wages could fuel general inflation in India, slowing its economic growth es be Notes 4b unskilled labor [3e#4A30%| 2. fast-industrializing India [ B44» KF 3. call center [AMR — YAY ¥—| 3. it’s not without a bit of irony that C SOIL LITE) ORBAN S > TOS) 4, the Indian subcontinent [4 7 FHKE! 8. bargain- priced manufacturing and high-tech labor [ Mi83€+74 77 HA( FBIM D BH Li wese! 1. fitting comeuppance for Indian industry [4 ¢ DABIASWMEH IRC 4 7 FER MoE ATS] 18. Call that the Wal-Mart effect [EE + 7 — hAREIFATAL 3) Many U.S. workers might view this as a Lh DLUERD 14TC a lary and making Indian companies less able to buy high-value goods and services sold by First World companies. That eventually hurts Western workers as well, The real problem for India isn't a lack of workers, In a nation where the sar Population has tipped 1 billion, there’s no shortage of India’s warm bodies. Instead, India’s ability to train new shortage of _ well-trained | workers may: world-class elite universities boast fewer than 100,000 graduates each year, But its high schools graduate about workers can’t keep pace with its rapidly expanding economy’s demand for manpower. For example, India’s hamper its growth ne 14 million students annually —so nearly all go on to lesser universities or trade schools providing training beneath global standards The lesson here is that education, training, and development of intellectual infrastructure are every bit as important as low wages for today’s global trading powers. (China recognized this early on; Mexico didn’t.) Interestingly, that same message also offers hope for the more mature economies (and expensive workforces) of the U.S. and Europe. Continued investment in human capital may be their best hope to remain truly competitive in a world full of faster-growing, low-wage competitors. As India’s current predicament shows, wages matter — but skilled workers matter more. Reprinted from the November 7, 2008 issue of BusinessWeek by special permission. Copyright © 2007 by The McGraw-Hill Companies, inc. SSS 21. high-value goods and services sold by First World companies [Jit oSttic £ > CHESS PUEDE / YY —EA | 25. India’s ability to train new workers can’t keep pace with its rapidly expanding economy’s demand for manpower [#fL \3iiiha¢ SMaT 4 4» KOEN IEG AERIS ko TEENS HM AOR BIC OV ACK MU] 31. trade schools [NtH#2 | 33. intellectual infrastructure [‘ait%4 7 77 | 38. remain truly competitive [MOw$H) * 39. predicament [3%] 15 20 40Peet aca i Vocabulary BAER Ci L MASS BRE RUE LD 1.0 ee 2. LD) ateeut 3. 0 amses 4. 0) xan 5. 205% 6 O a2 a. graduate b. peril c. overall d. exodus ec. shortage f. eventually Bi True-False ALOWSCS 2 THE T (tue), Bo TEA F (false) EAE LE 30 1. 1 The huge demand for India’s low-cost manufacturing and high-tech labor means that skilled workers are no longer at a premium. [1 Indian supervisors’ salaries have increased an average of 20% this year. 3. CJ Rising wages could lead to general inflation in India. 4 A lack of unskilled workers is a genuine problem for India. Ei Summary Idea Completion PREMELEL «2. The (e ) of USS. jobs to India, which has angered many American workers, was principally aimed at taking advantage of India’s (b - priced manufacturing and skilled labor. So there is some (i ) in the fact that employers on the (I dis ) are now experiencing (l )(s ) that are pushing their own wages up. In these circumstances, the problem for India appears to be that its (a ) to train new workers can’t (k dp ) with its rapidly expanding economy's demand for manpower. Although India’s (p ) has tipped 1 billion, its world-class elite universities boast fewer than 100,000 (g ) each year. As India’s (c dp ) shows, wages matter — but skilled workers are more importantBle) eRe a telly Question-Response CD EMA, MMH T SE LUBA E(A)~(C) SME L 3, 1, Mark your answer here. (A) (B) (©) 2. Mark your answer here, (A) (B) (C) Incomplete Sentences ROBLOZAIEANS ONDE BOE. (A)~(D)P SBUE La 5. 1. Continued investment in human capital may be the only way for the American economy to remain ------- in today’s global economy. (A) competition (B) competing (C) competitive (D) competent nv . The Third World has traditionally --~---- the developed nations with ever- cheaper items to maintain high living standards. (A) offered (B) provided (C) given (D) supplying OG Short Talk * CD EHS, AMICHT SEL WBA (A)~(D)P SBUEL ES, 1. What kind of gathering does this appear to be? (A) A university lecture (B) A political rally (C) A church congregation (D) A government conference 2. Which group of Asian Americans makes up the largest percentage of New York City’s voting population? (A) Japanese (B) Filipinos (C) Koreans (D) Chinese 3. What does the speaker seem to want most? (A) To convince his audience to vote for Asian Americans (B) To be a candidate in the next presidential election (C) To pool his resources (D) To have Asian American interests reflected in government policyPTS TT Ct a eli Germany Must Stand Up to China E4 VATE CRAM ORME CARER THE LEM, RATIOS EF. HMO CEMITLO TY TAREE 6 MY = TEMMEL TBD, FI RRO L ORG ENTE LBRO b EOL MA—A- OIC ATREL GERMANY SUFFERS from a reputation as a slow-growth country, but its machine-tool industry has shown amazing vitality. Orders for German tools soared 19% in 2004, an incredible achievement considering that the euro was at record highs. Thanks are due mainly to a new customer with a voracious appetite for manufacturing technology and a high regard for German engineering prowess: China, which accounted for 17% of foreign demand. But the growth won't last, and German industry should not be too exultant about it. On the contrary, German CEOs and political leaders should already be thinking hard about how to counter the threat of growing Chinese competition in 10 capital goods— which are second only to cars as Germany’s leading export. Failure to protect German dominance in capital goods would have grave consequences for the economy. Fact is, China is feverishly building its own machinery industry, which is already supplying auto and textile factories and other major sectors of the 1s Chinese economy. Chinese machinery companies are winning customers in Asia and are expected to make inroads in the U.S. Germany continues to dominate the market for the most sophisticated equipment, but those products sell best in high- wage countries where industrial buyers are looking for maximum productivity. ‘Western Europe is increasingly in the sights of Chinese companies. An early 20 warning came in the form of Shenyang Machine Tool Group’s purchase late last year of German machine-tool maker Schiess, Although Schiess was bankrupt and AF (255 |H} | 2. machine-tool industry [LEHI 3) 3. considering that ~ [~ e#meF* a We. 3. the euro was at record highs [.—U (a #L— +) UHRAIHBI & 0 #2] record i He 482.5114, 4, a new customer with a voracious appetite for manufacturing ERIRICAN BHM] 6. account for 17% [17% #44 | 10. capital goods [¥#I 10. be second only to ~ Notes #1 bv stand up to ~ given that ~£ any all-time highs & technology [2 7. exultane about ~ [~I2v 18BusinessWeek Editorial had 2003 sales of only $26 million, its acquisition gives Shenyang a measure of technology and marketing reach. It also showed that Chinese companies are serious about breaking into the European market. Given that the Chinese have already shown a remarkable ability to build whole industries from scratch, it could be only a few years before they are challenging German companies in the premium segment of the machine-tool business. Germany has a history of squandering its dominance in sectors such as pharmaceuticals through management complacency and bad government policy. But it doesn’t have to be that way this time. Government needs to invest more in training engineers, who are scarce despite record unemployment. And German companies must remain innovative while seeking maximum cost efficiency. Eastern Europe presents German companies with a convenient location to build at low cost and compete better on price. Properly managed, the rise of China presents as many opportunities as threats. Reprinted from the February 21, 2005 issue of BusinessWeek by special permission. Copyright © 2007 by The McGraw-Hill Companies, Inc. 16. make inroads in the U.S. [>i Chinese companies. ii 4 | 19. Western Europe is increasingly in the sights of bE. i > Tu] 22. a measure of [i/ED, #4 £401 25. build whole industries from scratch [2i%%4201 5% < | 27. premium segment [#¥ S859) 28. squander its dominance [3EAe#iitf #25 | 29, management complacency [~~ 2 HCI! 31. record unemployment [F222 IRE | 19 25 30 35eading Comprehension Vocabulary BAIL EMER OROEL £5. 1.O mvsnen 2.0 ee 3. O ame cos 4.0 wa 5. 0 @necten 6. 0 we a. acquisition b. dominate c. reputation d. incredible e. warning £. prowess Bi True-False ALOWNBKSo TUNE T (true), Fo THs tid F (false) EAS oa 1. ©] China is the latest customer to have a voracious appetite for German manufacturing technology. 2. (1 If German dominance in capital goods is not protected, the economy will suffer some grave consequences. 3. J Chinese machinery companies have been steadily losing customers in Asia recently. 4, 1 So far, Chinese companies have shown little interest in breaking into the European market. Ei Summary Idea Completion SEMEL EI. Germany’s machine-tool industry is enjoying fast growth thanks mainly to brisk orders from China. But the growth won't (I ) and the Germans should not be too (e ) about it. On the contrary, German CEOs and political leaders should start thinking about how to counter the (t ) of rising Chinese (c ) in capital goods. Meanwhile, the Chinese are setting their sights on (W \E ). A case in point is the recent (p ) by Shenyang Machine Tool Group of German machine- en that the Chinese have already shown a remarkable tool maker Schiess. ability to build whole industries from (s ), it could be only a few years before they are challenging German companies in the machine-tool business, For this reason, German companies must remain (i ) while seeking maximum (c ve i 20TS ToR a ete tlo-9 Question-Response CD ERS, MMICMT SELUBA £(A)~(C/PSBUEL ES, 1. Mark your answer here. (A) (B) (C) 2. Mark your answer here. (A) (B) (C) Incomplete Sentences ROMZOLMICANS DBM BOE. (A)~(D)P SMUEL 4 3. 1. Good engineers, ~ - high unemployment, are still scarce in Germany. (A) as a result of (B) on account of (C) in spite of (D) not to mention Germany. 2. The market for the most sophisticated equipment is still —~ (A) demanded of (B) depending on (C) preserved for (D) dominated by ©G Short Talk 13 CO AMS, MMICHT SELUBSA E(A)~() PORTE SD. 1, What most likely was the first question the speaker was asked? (A) Who are the Big Three American automakers? (B) When will more fuel-efficient models come out? (C) Will sales of imported cars decrease this fall? (D) Are there still imported cars in the U.S.? 2, What does the speaker say about unemployment? (A) It will neither rise nor fall. (B) It will continue to be healthy. (C) It will increase. (D) It will decrease. 3. What has caused car buyers to stop buying gas-guzzling cars, vans and trucks? (A) Sales of new compact models in Detroit (B) Their increase in price (C) High fuel costs and concern for the environment (D) A shortage of jobs in the auto industry 21BusinessWeek Editorial Germany’s Elites Failed the Public 2005 9 HIS B49 Cf i. GIR b EIR b FROME SBS Sx LAE CAECATLE, COWR RRAOMM E CAREKO GRO HC. FAY RIR DHA EE ORERIANS LEK IRE?) OR A EMHWET. *als 4 7 BROT — b Fea ET. GERMANY’S ELECTION on Sept. 18, which left no party with a clear mandate, shows that citizens of Europe’s largest economy still aren’t ready to jettison the status quo— even when the status quo includes 11.4% unemployment and growth of less than 1%. It’s tempting to be disdainful of das 5 Volk for clinging so tightly to an increasingly unaffordable welfare state. But some of the blame surely lies with the political and economic elite. To listen to the public discourse, you'd think reform is some kind of hellish ordeal, a journey into a world of mass poverty and social Darwinism. But guess what: The changes Germany needs aren’t that wrenching. Center- to right candidate Angela Merkel, whose Christian Democrats fell short of the votes needed to form a workable coalition, advocated labor-law fixes that still would have left Germans with far more job protections than the Danes. Last time we looked, Copenhagen was a pretty cheerful, prosperous place. Indeed, the great failure of Germany’s elites — including the business 1s community —is that they have allowed the debate to be framed by labor unions and left-leaning reactionaries who regard reform as a kind of economic chemotherapy. In fact, a moderate dose of change would free up the nation’s Notes #1 br failed the public [Ju 44] 3. the status quo [5RiK| 4. das Volk [CF 4 7i8-C) Bi, BIBL =the German people 5. cling tightly to ~ a2 <5 7. hellish ordeal [ASHLEE SRE! 8. social Darwinism [4:2Y— 9 4 =XA) ¥—9 4 y Otel UARMOOL IT, AMHR LEM EME LF PBHE MHEG EE THIET 5, Angela Merkel [7 77.9» A711 | 2005 4 11 BIZ 4 YOR the votes needed to form a workable coalition [RN 284 * ALT 4 OIc RL 11. labor law fixes [3HEOOLIE] 47 THERM So STOR ATL & » 2005 9 A DEBETE FAD 12. the Danes [77 -v~7% A] 15. allowed the debate to be framed by ~ [ait 21a 51S OBS | 22. Germany's economic malaise [ k 4 7 #i% ORR! PELE S us 22BusinessWeek Editorial considerable latent strengths, slow the investment shift toward Eastern Europe, and bring greater prosperity for all. Reform is a great opportunity for Germany — and for global growth, which would be bolstered if Europe’s economic leader 20 revved up. But until German political and business leaders learn to communicate the upside to the man on the street, Germany’s economic malaise will persist. Reprinted from the October 3, 2005 issue of BusinessWeek by special permission. Copyright ©) 2007 by The McGraw-Hill Companies, Inc. gq KR YRRORE RAM, RRICAB. THERIAVBEXTORSCRL, PUBROBH ELCs TEE LEM, 198911 89 RICK O RMON ¢ Kok [NIU LOR) PRMLELL. TLTLOKEE—HEO 1990F10A SA. RT IPR KT EMAT OW CRB KT YR. 41 EMODMORS | C™ cube OIT ANE LA [BRAGS 8 10 FEAL ACS PODS FO. AAC IABRIC E BUT TUE A, 2005 £11 AICSMICMEL EX WT WEIS TOR HH SY OBIT T 23Pee eur eue ey Hi Vocabulary FPREEICM LAME E EBD 5 WUE LD. 1.O aaceen 2.0 seve 3. 0 veces 4.0 eae 5. OC) ame 6. OO # a. disdainful b. fall short of —c. blame d. unaffordable e. wrenching _f, jettison Bi True-False ALONE TONET (true), Bo THN F (false) EAE L& 30 1, (J The German people are finally ready to depart from the status quo. 2. 1 Germany’s current unemployment rate stands at less than 1%. The public discourse in Germany may give outsiders the impression that Germans think reform is some kind of hellish ordeal. Labor unions and left-leaning reactionaries tend to view reform as a kind of economic chemotherapy. Ei Summary Idea Completion SMeMELELED. In Germany’s general election held on Sept. 18, 2005, no party was able to secure a clear-cut (m ). The German people seem to be clinging tightly to an increasingly (u ) welfare state. Center-right candidate Angela Merkel, whose Christian Democrats (f V(s ) of the votes needed to form a (w Vic ), has advocated labor-law ( ) that still would have left Germany with far more (j ) (p ) than the Danes. (R ) is a great opportunity for Germany, But until its political and business leaders learn to (c ) the (u ) to the man on the street, Germany will continue to suffer from le )(m ) 24