Professional Documents
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business cycle = The term business cycle (or economic cycle) refers to
economy-wide fluctuations in production, trade and economic
activity in general over several months or years in an economy
organized on free-entreprise principles. These fluctuations occur
around a long-term growth trend, and typically involve shifts
over time between periods of relatively rapid economic growth
(an expansion or boom), and periods of relative stagnation or
decline (a contraction or recession). Business cycles are usually
measured by considering the growth rate of real gross domestic
product. Despite being termed cycles, these fluctuations in
economic activity do not follow a mechanical or predictable
periodic pattern. (ciclul de afaceri)
consumer price index = a measure of inflation in the United States that
considers what people spend on staple goods and services. It is
calculated by taking the average of changes in price to a basket
of goods and services compiled by the U.S. Department of
Labor. The goods and services in the basket are weighted
according to their perceived importance. The CPI is considered a
primary tool in determining how people are experiencing
inflation. (indicele prețurilor de consum)
devaluation = The active decision of a government to reduce the value
of its own currency vis a vis other currencies. Devaluation
occurs exclusively in fixed currencies, when the currency in
question is pegged to another currency. Governments devalue
their own currencies to make their exports less expensive in
foreign markets. If a company exports its products for the same
price in the local (devalued) currency, it is cheaper for
consumers to buy those products in their own currency.
(devalorizare)
indifference curve = a curve that shows consumption bundles that give
the consumer the same level of satisfaction. An indifference
curve connects all of the bundles that a consumer likes equally.
An indifference curve should not slope up. Indifference curves
cannot cross one another. (curbă de indiferență)
perfect competition = an idealized market environment in which every
market participant is too small to affect the market price by acting on its own.
turnover = 1. the amount of sales of goods or services by a company; 2.
the number of times something is used or sold in a period,
usually one year, expressed as a percentage of a total.
market price = the price at which a product can be sold; the price at
which a share stands in a stock market.
price taker = a firm or a consumer whose output or demand is so small
relative to the market that it has no effect on the market price.
monopoly power = degree of price setting power held by a supplier on
the basis of its market share.
3.2. PRACTICE
3.2.1. READING COMPREHENSION
1. Answer the following questions:
3. MULTIPLE CHOICE: Fill in the blanks with the most appropriate word
or phrase from the text:
2. SYNONYMY. Find words in the text that would fit the following lines of
synonyms.
(1) The dairy giant, Fonterra released today its annual result, according to
which there was a 20% drop in earnings across its Australia/New Zealand
business which mainly reflects … competition across the Tasman for sales of
branded consumer products such as yoghurt and cheese.
(2) Samsung gives Apple … competition in the mobile department.
(3) The new Google Wallet face … competition from Visa Mobile Payment,
Isis, and Square, all of whom are making big plays to become the definitive
digital wallet.
(4) Under … competition, firms can make super-normal profits or losses.
(5) It is irrational to presume that in a situation involving minimal or …
competition anything more than a remote lessening thereof could ever come
to pass.
(6) The failure also affected the London, Brighton & South Coast Railway, but
both it and the Chatham recovered, and the stage was then set for 30 years of
… competition between the Chatham and the SER that led to a heavy
duplication of lines from which we still benefit.
(7) China Southern, China’s biggest airline, said it expects tough conditions to
persist for the second half of 2012, with the global economic recovery facing
“various uncertainties” and continued … competition.
(8) During the project, more than 200 … competition releases were sent out to
suppliers.
5. Fill in the blanks with one of the following words. Each word may be
used once only:
actors, approximation, collective, conditions, detrimental, inapplicable,
influence, likened, regulated, unrealistic
a) Trading conditions can change over time. Consider the market for eggs. At
one time, this market could be characterized as perfectly competitive. After
all, eggs are easy to standardize (by size and colour) leading buyers to regard
one egg of a given grade as the same as another. Moreover, there were many
retailers selling this homogeneous product at the prevailing market price. But
then, some consumers developed a preference for free-range eggs. Eggs are
no longer regarded as homogeneous and so, we may say that the market has
split into two market segments. For a short while, these market segments had
different market structures. The original market remains competitive but,
because there were only a few suppliers of free-range eggs, each one had an
element of market power and was able to command a large premium for its
products. As more retailers entered this new market, market power was
dissipated. Free-range eggs still cost a little more than those produced using
the cheaper intensive-farming methods. However, since all of the many
retailers of free-range eggs have no choice but to charge the prevailing market
price, the market in free-range eggs resembles the model of perfect
competition.
(adapted and abridged from Macroeconomics – Products are Homogeneous)
c) Under pure monopoly, the industry consists of a single firm supplying the
whole market for a product. The firm can exercise monopoly or market power
because there are no substitutes for the goods or services it supplies. In
contrast, a competitive industry is one in which all firms and consumers are
small relative to the size of the market, so that none of them wields any
market power.
The relation of the firm’s size to the market is crucial: a ‘small’ firm in
this context may have a very large turnover but still counts as ‘small’ if it is
unable to influence the market price. For example, a city may support many
large general music stores but only one small seller of classical music
appealing to specialist tastes. The latter is large relative to the local market for
such specialized tastes while the general music stores compete with each
other despite their greater size. By the same token, a large steel firm may be
small compared with the world market for the product.
(adapted and abridged from Macroeconomics – The Competitive Firm’s Demand
Curve)
d) După un an 2009 despre care nici unul dintre competitorii din industria
telecom nu poate spune că a fost prielnic, încep să apară şi primele semne
bune. Cel puţin pentru unii. Romtelecom, fostul monopol de stat, a reuşit în
cele din urmă să depăşească imaginea de dinozaur şi să devină mai flexibil, în
abordarea pieţei telecom. Anul trecut, compania a regândit abordarea
clienţilor de business; mai exact, a analizat comportamentul de consum al
clienţilor şi a propus oferte mai aplicate, incluzând în pachet şi managementul
reţelei de calculatoare – Romtelecom gestionează în acest moment o reţea de
peste 25.000 de calculatoare. Următorul pas îl va face în acest an cu clienţii din
segmentul rezidenţial.
Pe agenda din acest an a Romtelecom se află destul de sus în ordinea
priorităţilor lansarea serviciului de Video on Demand (VoD – televiziune la
cerere), prin care clienţii vor avea posibilitatea să comande anumite filme sau
emisiuni TV, în schimbul unei taxe. Conţinutul video livrat la cerere se
adaugă celui deja oferit prin intermediul serviciului de televiziune prin
internet (IPTV) Dolce Interactiv, lansat la finele anului trecut – e vorba de
circa 200 de titluri de filme, documentare, concerte, cifră care va depăşi anul
acesta 1.000. Singurele condiţii sunt ca utilizatorii să se afle într-unul dintre
oraşele unde este oferit serviciul şi să deţină o linie de telefonie fixă şi o
conexiune la internet în bandă largă de la Romtelecom.
Internetul în bandă largă este o altă direcţie pe care mizează operatorul
în 2010, mai ales că anul trecut, veniturile din aceste servicii au crescut cu
24%. Aşa se explică şi decizia de a simplifica oferta de servicii oferind
începând cu 17 martie trei pachete noi de acces la internet în bandă largă –
Surf, Play şi Power. Pe de altă parte, şi strategia de retail a fost ajustată pentru
2010. Săptămâna trecută Romtelecom a extins platforma de comenzi prin
internet, devenită astfel un magazin online în toată regula.
(adaptat din „Gata, avem semnal”, în Business Magazin, nr. 273 (11/2010))