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Conf.univ.dr. Ana-Maria IUGA
COMUNICARE ÎN AFACERI
LIMBA ENGLEZĂ
NOTE DE SEMINAR
Pentru uz intern
Editura „ALMA MATER”
Sibiu, 2010
3
CUPRINS
SEMESTRUL I
1. Grammar in Context ...................................................................... 5
2. Cultural Approaches concerning .................................................. 13
3. The European Union – Democracy/ Global Business Relations .. 18
4. Microeconomic Terms .................................................................. 27
5. Banking Terms and Notions ......................................................... 35
6. Adjective Intensifiers .................................................................... 47
7. Marketing Campaigns .................................................................. 53
SEMESTRUL II
8. Styles in Written Communication ................................................ 59
9. The Memorandum, The Report .................................................... 69
10. Guidelines for writing business documents ................................ 78
11. The Pronoun and qualifying expressions .................................... 85
12. The contract: - types ................................................................... 94
13. Who’s Who in economics ......................................................... 103
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SEMESTRUL I
1. Grammar in Context
1.1. Communicative Situations
It is difficult to come to an understanding unless one has a grasp
of the full complexity of language, and hence of language learning.
Language is multifaceted to the extent that human activity is various.
There is an enormous variety of walks of life/occupations/lifestyles,
each of which has its own language and cultural setting. We may
divide the walks of life/occupations/lifestyles into two categories:
those that are common to everybody and those that are concerned with
specialized topics familiar only to a few.
Obviously, those walks of life/occupations/lifestyles that are
common to many people are concerned with everyday existence.
Examples of these universal topics are socializing, shopping,
travelling, eating out, telephoning friends, greetings and introductions,
and reading newspapers. So, when one learns a language, one must be
exposed to linguistic items relating to these universal topics.
Yet in addition to such topics, there is an enormous range of
specialized topics that are of significant importance only to sections of
the population. Examples of these are as follows: sports, hobbies and
interests, business, banking and finance, medicine, academics, literary
criticism, travel and tourism, biology, chemistry, physics, agriculture
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and law or military matters. The list is endless. The extent to which an
individual will need language pertaining to any of these specific topics
depends upon how important the topic is to him in his everyday life. If
the topic is not at all important for him, there is no need for him to
know any of the linguistic items pertaining to it. At the other end of
the scale, when we reach the stage at which any topic constitutes an
individual's profession, it becomes crucial that he have a mastery of
the specialized language pertaining to it.
Each topic will contain certain tasks, specific to it, which an
individual will need to accomplish and which require him to use
language. Here are some examples taken from different fields:
- University Professor: - Giving lectures, participating in
seminars, reading and writing papers for publication, reading and
writing books, discussing academic topics with students and
conducting examinations, oral and written.
- Businessman/businessperson/executive: -Giving presentations,
negotiating, participating in meetings, writing reports, press releases,
letters, faxes and memos, telephoning, note taking, socializing and
entertaining.
- Research Scientist: - Writing the results of experiments,
writing reports on the significance of the results, giving presentations,
participating in seminars, reading recent research.
- Army Professional: Training soldiers, discussing strategies
and tactics, giving instructions, writing reports, giving interviews to
the press …
7
These lists are quite general in scope. It is possible, and
desirable, to define the fields of expertise more specifically so that the
accompanying tasks can be defined precisely. In addition, each
defined task should be divided into its various subtasks, so that the
linguistic items to be learned may be identified more easily. In
general, we may state the situation as follows. Human life, and hence
human language, is concerned with many and various topics. Each
topic requires certain communicative tasks to be performed, and these
tasks require mastery of certain task-based skills. Such skills are:
reading and writing texts of various styles, register and lengths,
listening in various styles, accents and registers, speaking
appropriately in a variety of contexts including socializing,
negotiating, interviewing, presenting information and pronouncing
material in a clear and culturally acceptable way. People who are
engaged in different activities need to master different skills.
In order to acquire the desired skills, a range of linguistic items
specific to each skill must be mastered.
- Specialized vocabulary: Each field will have vocabulary,
which is special to it. Some of the words may have meanings specific
to the field, different from their meanings in everyday life.
- Register: Basically, register is concerned with the levels of
politeness and formality to be found in language and the attitudes or
values conveyed by certain words and phrases. Within each field,
there will be specific registers to be learned. Speaking and writing in
different social and cultural contexts require language with different
levels of formality and politeness. Register is very complex and highly
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developed in English and includes not only certain forms of
grammatical structure, but specific kinds of vocabulary. Using even a
single word inappropriately can have disastrous consequences.
- Functions: Each field will have different linguistic functions,
which need to be performed, such as apologizing, complaining,
introducing, requesting, refusing requests and making suggestions.
Each function may be performed in different registers.
- Structures: Certain tasks require certain structures much more
than others. For example, a mastery of the various forms of
conditional sentence is essential for writing philosophy, but is hardly
needed at all for writing personal letters.
Different human activities require different communication
skills, which in turn require mastery of specific linguistic items.
Within this broad definition, we may identify two central areas:
content and methodology.
So, for instance, a course in English for Business Purposes will
be concerned with developing all of the linguistic skills, which are
required in order to function at a professional level in the world of
international business. For some people, even a course entitled
"English for Business Purposes" will prove to have too broad a scope
and for them, a course designed for their specialization within the field
of business will be appropriate, for instance in Advertising,
Accounting, Marketing or Human Resources.
In general, we may say that learning should take place in
contexts that are as authentic as possible and content-based. The
requirement of authenticity means that learning materials should use
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actual texts produced by people working in the field under
consideration. For instance, a class on how to write business reports
should use good examples of reports produced by actual
businessmen/businesspersons/executives. A class devoted to the oral
skills needed to function in the currency exchange market should use,
as listening materials, recordings of conversations carried out on the
telephone by actual dealers. The requirement that the learning
materials be content-based means that they should focus on specific
problems that people are likely to encounter in their everyday working
lives. For instance, to develop fluency in a course on negotiating, a
case study, which presents a real negotiating situation-, faced by
actual companies or in specific military, police or community
departments- could be used.
The extent of the authenticity of the learning materials will vary
depending upon two related factors: the language level of the trainees
and the degree of linguistic complexity of the skills presented and
practiced. If the language level is low, then perforce the degree of
authenticity will be compromised. As the language level increases, the
degree of authenticity becomes greater.
Romanian people have a very specific way of discussing things.
If you are brought up with it, you see no problem. However, in terms
of strategies for communication in Business English, the Romanian
way may be ineffective.
It is over direct and often could be received as an abusive one.
Therefore, I decided to investigate the case and find some solution.
10
Unfortunately, there was absolutely no data and no descriptive
evaluation of Romanian strategies for communication.
Searching libraries, I came across” Intercultural Communication
- a Discourse Approach” by Scollon and Scollon. It focuses on
professional communication in a cross-cultural context and
emphasises the importance of proper meaning interpretation. Briefly,
Scollon and Scollon suggest that in most cases, a sudden breach of
any kind of professional communication could be owed to the
misinterpretation of signals, verbal messages and gestures particular to
a given culture. Therefore, they believe that to eliminate or lower the
risk of a breach, professional students should be informed about
potential problems and sensitised to peculiarities of an alien code of
practice. Nevertheless, it is virtually impossible to predict every
professional problem, one might say. To solve this problem, the
authors suggest a skeleton for situation-context analysis – Grammar of
Context.
The main purpose of Grammar of Context is to analyze and
describe the environment in which a communicative situation occurs.
It takes into consideration the following factors:
1. Scene - participants’ expectations in terms of location and
communication content ( what information should be used and how)
2. Key - participants’ expectations of the communication tone
(formal / informal)
3. Participants - their status; relationship with each other
4. Message Form - whether it is speaking, writing, or other
media
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5. Manifestation - deals with the way members of a particular
group find out about a code of practice; whether it is explicit – a
company’s statute // regulation, or tacit – common knowledge,
traditional behaviour
LOL-speak, fractured grammar, and emoticons are all finding
their way into the college essays of Canadian students with increasing
and disturbing frequencies, if a report in that nation's popular press is
to be believed. Entitled "Students failing because of Twitter, texting,"
the report is based in part on the failure rate of an English language
exam administered by the prestigious University of Waterloo in
Ontario. The failure rate has now approached one third, up from 25
percent a few years ago, and a University administrator blames failure
of basic grammar.
Emoticons and textspeak have apparently made their way into
these exams, and the administrators are horrified. All of which flies in
the face of some research that's only a few years old, which suggests
that teens who are heavy texters actually have a reasonable grasp of
grammar. One of those studies, in fact, was performed with Canadian
teens, some of whom have probably made their way to college in the
intervening years.
Although it would be tempting to ascribe the apparent
differences to those between anecdote (in the form of college English
exam scores) and formalized studies, the differences may really be a
matter of what's being measured. The earlier studies focused on how
the students were expressing themselves, and focused on the
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complexity of the communications; these came through despite what
our report termed "informal diction and bizarre acronyms." It's
precisely that informal diction, like replacing "because" with "cuz"
and merging "a lot" into a single word, that's grating on college
administrators. At the same time, liberated from the tyranny of
character limits, students are apparently sprinkling commas liberally
throughout the text.
Thus, it looks like students are retaining the ability to express
themselves in rich terms, but are either incapable of recognizing when
to adopt formal usage, or incapable of doing so when necessary.
Either of those should be easier to fix than an inability to express ideas
through text. Of course, given the historical evolvability of the English
language, chances seem good that the teens won't so much fix the
problem as force those with higher expectations to meet them
halfway.
13
2. Cultural Approaches concerning
2.1. Time, being late
2.2. Team Work, Difficult People/Situations
What is your cultural approach to the following aspects?
Answer the following questions:
1. Time – Do you tolerate being late - If yes, how much?
2. Eye contact – Is it important for a communicative event? Do
you need to maintain it? If yes, for how long?
3. Small Talk – Do you use it? Do you think it is important?
What is your personal attitude to it?
4. Silence – How do you understand silence? Is it meaningful?
5. Teams – Is it natural for you to work in teams?
6. Difficult people & situations –
- What is your way of dealing with interruptions and difficult
people?
Business English serves the role of a medium for a corporate
communication; it is used and influenced by different cultures.
Therefore, by raising cultural awareness we help improve both the
language and the working relationships.
Informal communication is vital for achieving certain types of
work-related tasks. Research on scientific collaboration has shown
14
that physical distance is the strongest predictor of collaboration
between researchers. Physical proximity promotes frequent,
impromptu face-to-face communications, which are crucial for the
planning and negotiation phases of projects. Work on software
development also has demonstrated that the degree to which project
workers engage in interpersonal communication strongly predicts
project success. Furthermore, other work has shown negative impacts
on teamwork when opportunities for ad hoc communication are
reduced, as in remote collaboration. Work becomes more difficult to
coordinate and advance despite the use of longer and more task-
focused meetings in remote settings. Sociological studies of
organizational life stress the primary role of mundane office
conversations in helping workers learn, understand, adapt, and apply
formal procedures and processes.[…]
Despite research from various disciplines showing the value of
informal interactions, evidence indicates that people in the workplace
do not recognize its value. Kraut & Streeter (1995) found impromptu
communication is under-utilized compared with its value, whereas
formal communication techniques are overused relative to their value.
Our own preliminary evidence supports this result. In a series of
interviews with a dozen employees in a Fortune 500 U.S. corporation,
we found that although people reported gaining most of their work-
related news and information from informal interactions, those same
people said they used almost exclusively formal approaches to convey
information to other parts of the company. Most commonly, they
reported their information to a high-level management group and
15
asked that they pass the information down the hierarchy in their staff
meetings. In many cases, they wrote a document to convey
information and either gave it to managers to give to their employees,
or made it available to employees directly (in email, mailings to the
home, or by publishing it on the company's internal World Wide Web
pages). Some also gave formal presentations to supplement the
document. When we asked information disseminators if they had
considered spreading their information through word of mouth, they
either had not thought of it or did not trust it. They were concerned
that information passed informally would be distorted and
misinterpreted and might not become available to all the intended
recipients.
Say whether the statements below it are true (T) or false (F).
Read the part that has helped you choose your answer:
• The farther they are from each other, the more effectively
scientists can cooperate.
• Sometimes interpersonal communication makes it difficult for
the team to concentrate on their specific tasks.
• Corporate workers should be discouraged from engaging in
routine conversation during office hours.
• Unfortunately, only sociologists recognize the value of
interpersonal communication.
• Researchers interviewed dozens of employees in 500 U.S.
corporations.
16
• The employees used to find out about the latest projects and
developments within the firm most of the time by talking to their
colleagues.
To communicate effectively you need to be familiar with the
process and the variables involved. The basic communication
process includes a source, a message, a channel and a receiver.
The source is you, including your communication skills, your attitudes
and your purpose, as well as your knowledge of the subject, your
audience, and the context in which you are communicating.
The message includes the code or language you are using as well
as the message’s treatment, that is, what content is selected and how it
is organized. You can think of the channel as both the senses and the
medium of communication used. For instance, seeing and hearing, are
the senses variously involved in reading the printed page, listening to
a tape, or speaker, watching TV, video. Generally, the more channels
we use, that is, the more senses we stimulate, the more effective the
communication. Keep Marshall McLuhan’s aphorism "the medium is
the message" in mind. McLuhan overstates his point but, by affecting
different senses and thus our perception of reality, the media or
technology used can itself influence the message we receive and how
we respond to it. Recall that radio and print reports of the Ethiopian
drought and famine a few years ago were largely ignored. We really
did not receive the message until it was conveyed through photos and
TV video footage.
17
Receivers are the final link in the communication process. They
must accurately receive and decipher your message. How well your
audience understands the message you intend will depend on not only
the previous factors, but also their own knowledge, attitudes and
context.
The process of communication is on going and dynamic, is
irreversible, requires perception of meaning, and occurs in a
situational context. There are many barriers to effective, accurate
communication. These can be mechanical, involve differing
perceptions or values (not having the same understandings), or be a
matter of semantics, that is, the use of words, images, or examples that
are beyond the receiver’s intellectual or cultural ability to understand.
Non-communication is not possible. Every word, every gesture
communicates something to the receivers, to your audience. In
addition, once communicated, they cannot be retracted. You want to
communicate your intended message and enhance your professional
reputation. You do not want to be remembered for a lacklustre
presentation and a garbled message. First impressions are difficult to
overcome!
Communicating well benefits you, your audience, and society as
a whole. Thinking about communication as a process is useful
because it helps explain why we must establish the purpose and goals
of our message, why we need to know our audience, what media we
select, what meaning is perceived, and more.
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3. The European Union – Democracy/ Global Business
Relations
3.1. Human Rights,Disctimination, Social Assistance
A worldwide economic recession in the early 1980s brought
with it a wave of 'euro-pessimism'. Nevertheless, hope sprang anew in
1985 when the European Commission, under its President Jacques
Delors, published a 'white paper' setting out a timetable for completing
the European single market by 1 January 1993. The Communities
adopted this ambitious goal and enshrined it in the Single European
Act, which was signed in February 1986 and came into force on 1 July
1987.
The political shape of Europe was dramatically changed by the
fall of the Berlin wall in 1989. This led to the reunification of
Germany on 3 October 1990 and the coming of democracy to the
countries of central and Eastern Europe as they broke away from
Soviet control. The Soviet Union itself ceased to exist in December
1991.
Meanwhile, the European Communities were changing too. The
member states were negotiating a new treaty that was adopted by the
European Council (i.e. their presidents and/or prime ministers) at
Maastricht in December 1991. This 'Treaty on European Union' came
into force on 1 November 1993. The EEC was renamed simply 'the
European Community' (EC). Moreover, by adding areas of
19
intergovernmental cooperation to the existing Community system, the
Treaty created the European Union (EU). It also set new ambitious
goals for the member states: monetary union by 1999, European
citizenship, new common policies - including a common foreign and
security policy (CFSP) - and arrangements for internal security.
The new European dynamism and the continent's changing
geopolitics led three more countries - Austria, Finland and Sweden -
to join the EU on 1 January 1995. The Union now had 15 member
states and prepared for its most spectacular achievement - replacing its
national currencies with a single European currency, the euro.
On 1 January 2002, euro notes and coins came into circulation in
12 EU countries (the 'euro area'). The euro is now a major world
currency, having a similar status to the US dollar.
As the world moves forward into the 21st century, Europeans
must together face the challenges of globalization. Revolutionary new
technologies and the Internet explosion are transforming the world
economy. However, these profound economic changes bring with
them social disruption and culture shock.
Meeting in Lisbon in March 2000, the European Council
adopted a comprehensive strategy for modernizing the EU economy
and enabling it to compete on the world market with other major
players such as the United States and the newly industrialized
countries. The 'Lisbon strategy' includes opening up all sectors of the
economy to competition, encouraging innovation and business
investment, and modernizing Europe's education systems to meet the
needs of the information society.
20
At the same time, unemployment and the rising cost of pensions
are both putting pressure on the member states' economies, and this
makes reform all the more necessary. Voters are increasingly calling
on their governments to find practical solutions to these issues.
Scarcely had the European Union grown to encompass 15
member states when another 12 began knocking at its door. In the mid
1990s, it received membership applications from the former Soviet
bloc countries (Bulgaria, the Czech Republic, Hungary, Poland,
Romania and Slovakia), the three Baltic states that had once been part
of the Soviet Union (Estonia, Latvia and Lithuania), one of the
republics of the former Yugoslavia (Slovenia) and two Mediterranean
countries (Cyprus and Malta).
The EU welcomed this opportunity to help stabilize the
European continent and to extend the benefits of European unification
to these young democracies. Accession negotiations with the
candidate countries were launched in Luxembourg in December 1997
and in Helsinki in December 1999. The Union was on the way to its
biggest enlargement ever. For ten of the candidate countries,
negotiations were completed on 13 December 2002 in Copenhagen.
The European Union had 25 member states in 2004, and continued
growing as more countries joined in the years ahead.
More than half a century of integration has had an enormous
impact on the history of Europe and on the mentality of Europeans.
The member state governments, whatever their political colour, know
that the age of absolute national sovereignty is over and that only by
joining forces and pursuing "a destiny henceforward shared" (to quote
21
the ECSC Treaty) can their ancient nations continue to make
economic and social progress and maintain their influence in the
world.
Integration has succeeded in overcoming age-old enmity
between European countries. Attitudes of superiority and the use of
force to resolve international differences have been replaced by the
'Community method' of working together. This method, which
balances national interests with the common interest and respects
national diversity while creating a Union identity, is as valuable today
as ever. Throughout the Cold War period, it enabled Europe's
democratic and freedom-loving countries to stick together. The end of
east-west antagonism and the political and economic reunification of
the continent are a victory for the spirit of Europe - a spirit that
European peoples need more than ever today.
The European Union offers a response to the huge challenge of
globalization - a response that expresses the values Europeans believe
in. The EU offers, above all, the best possible 'insurance policy' for a
free and peaceful future.
What do we understand by Democracy today? What are the
fundamentals of Democracy?
Democracy comes from the Greek word, "demos," meaning
people. In democracies, the people hold sovereign power over
legislator and government.
22
Although nuances apply to the world's various democracies,
certain principles and practices distinguish democratic government
from other forms of government.
• Democracy is government in which power and civic
responsibility are exercised by all citizens, directly or through their
freely elected representatives.
• Democracy is a set of principles and practices that protect
human freedom; it is the institutionalization of freedom.
• Democracy rests upon the principles of majority rule, coupled
with individual and minority rights. All democracies, while respecting
the will of the majority, zealously protect the fundamental rights of
individuals and minority groups.
• Democracies guard against all-powerful central governments
and decentralize government to regional and local levels,
understanding that local government must be as accessible and
responsive to the people as possible.
• Democracies understand that one of their prime functions is to
protect such basic human rights as freedom of speech and religion; the
right to equal protection under law; and the opportunity to organize
and participate fully in the political, economic, and cultural life of
society.
• Democracies conduct regular free and fair elections open to all
citizens. Elections in a democracy cannot be facades that dictators or a
single party hide behind, but authentic competitions for the support of
the people.
23
• Democracy subjects governments to the rule of law and
ensures that all citizens receive equal protection under the law and that
their rights are protected by the legal system.
• Democracies are diverse, reflecting each nation's unique
political, social, and cultural life. Democracies rest upon fundamental
principles, not uniform practices.
• Citizens in a democracy not only have rights, they have the
responsibility to participate in the political system that, in turn,
protects their rights and freedoms.
• Democratic societies are committed to the values of tolerance,
cooperation, and compromise. Democracies recognize that reaching
consensus requires compromise and that it may not always be
attainable. In the words of Mahatma Gandhi, "intolerance is itself a
form of violence and an obstacle to the growth of a true democratic
spirit."
On the surface, the principles of majority rule and the protection
of individual and minority rights would seem contradictory. In fact,
however, these principles are twin pillars holding up the very
foundation of what we mean by democratic government.
Majority rule is a means for organizing government and deciding
public issues; it is not another road to oppression. Just as no self-
appointed group has the right to oppress others, so no majority, even
in a democracy, should take away the basic rights and freedoms of a
minority group or individual.
24
• Minorities - whether because of ethnic background, religious
belief, geographic location, and income level, or simply as the losers
in elections or political debate - enjoy guaranteed basic human rights
that no government, and no majority, elected or not, should remove.
• Minorities need to trust that the government will protect their
rights and self-identity. Once this is accomplished, such groups can
participate in, and contribute to their country's democratic institutions.
Among the basic human rights that any democratic government
must protect are freedom of speech and expression; freedom of
religion and belief; due process and equal protection under the law;
and freedom to organize, speak out, dissent, and participate fully in
the public life of their society.
Democracies understand that protecting the rights of minorities
to uphold cultural identity, social practices, individual consciences,
and religious activities is one of their primary tasks.
Acceptance of ethnic and cultural groups that seem strange if not
alien to the majority can represent one of the greatest challenges that
any democratic government can face. Nevertheless, democracies
recognize that diversity can be an enormous asset. They treat these
differences in identity, culture, and values as a challenge that can
strengthen and enrich them, not as a threat.
There can be no single answer to how minority-group
differences in views and values are resolved - only the sure knowledge
that only through the democratic process of tolerance, debate, and
willingness to compromise can free societies reach agreements that
embrace the twin pillars of majority rule and minority rights.
25
Social assistance and welfare services provide protection to
society's most vulnerable groups, i.e., those with no other means of
support such as single parent households, victims of natural disasters
or civil conflict, handicapped people, or the destitute poor. Social
assistance interventions may include welfare and social services to
highly vulnerable groups such as the physically or mentally disabled,
orphans, or substance abusers cash or in-kind transfers such as food
stamps and family allowances temporary subsidies such as life-line
tariffs, housing subsidies, or support of lower prices of staple food in
times of crisis
Social security is primarily a social insurance program
providing social protection, or protection against socially recognized
conditions, including poverty, old age, disability, unemployment and
others. Social security may refer to:
• social insurance, where people receive benefits or services in
recognition of contributions to an insurance scheme. These services
typically include provision for retirement pensions, disability
insurance, survivor benefits and unemployment insurance.
• income maintenance—mainly the distribution of cash in the
event of interruption of employment, including retirement, disability
and unemployment
• services provided by administrations responsible for social
security. In different countries this may include medical care, aspects
of social work and even industrial relations.
26
• More rarely, the term is also used to refer to basic security, a
term roughly equivalent to access to basic necessities—things such as
food, clothing, shelter, education, money, and medical care.
Social protection refers to a set of benefits available (or not
available) from the state, market, civil society and households, or
through a combination of these agencies, to the individual/households
to reduce multi-dimensional deprivation. This multi-dimensional
deprivation could be affecting less active poor persons (e.g. the
elderly, disabled) and active poor persons (e.g. unemployed). This
broad framework makes this concept more acceptable in developing
countries than the concept of social security. Social security is more
applicable in the conditions, where large numbers of citizens depend
on the formal economy for their livelihood. Through a defined
contribution, this social security may be managed. But, in the context
of wide spread informal economy, formal social security arrangements
are almost absent for the vast majority of the working population.
Besides, in developing countries, the state's capacity to reach the vast
majority of the poor people may be limited because of its limited
resources. In such a context, multiple agencies that could provide for,
social protection is important for policy consideration. The framework
of social protection is thus capable of holding the state responsible to
provide for the poorest sections by regulating non-state agencies.
27
4. Microeconomic Terms
4.1. Definitions
Selected Glossary of Microeconomic Terms1
Adjustment process: Path by which a system moves from a
position of disequilibrium to one of equilibrium.
Aggregation: A method of simplifying theory by combining
many markets into a large, composite market.
Allocation: The determination of what goods and services will
be produced from available resources. Allocation can be done with
markets or with hierarchy.
Antitrust policy: Policy that makes companies act in a
competitive manner by breaking up companies that are monopolies,
prohibiting mergers that would increase market power, and finding
and fining companies that collude to establish higher prices.
Arbitrage: Simultaneously buying in a cheap market and selling
in an expensive one.
Budget Constraint: A line that separates outcomes that are
affordable from outcomes that is not affordable. Occasionally it is
called a consumption-possibilities frontier.
1 After: English International Lyon – internet pages
28
Change in demand: A shift in the demand curve.
Change in quantity demanded: A change in the amount people
buy because a change in price moves them along a stationary demand
curve.
Change in quantity supplied: A change in the amount sellers
sell because a change in price moves them along a stationary supply
curve.
Change in supply: A shift in the supply curve.
Circular flow: The flow of products from businesses to
households and the flow of resources from households to businesses.
Consumer Sovereignty: In a market economy, it is ultimately
the wants of the consumers, not the preferences of the producers that
determine what goods and services are produced.
Contingent behaviour: Behaviour that exists when each
person's actions depend on what he expects others to do.
Cross-price elasticity (cross-elasticity): A measure of whether
goods are substitutes or complements.
Demand curve: The relationship between price and the amount
of a product people want to buy.
Derived demand: The demand for a resource depends on, or is
derived from, the demand for the things that the resource helps
produce.
Disequilibrium: A condition that exists when a system is not at
rest and has a tendency to change.
29
Dollar voting: An explanation of how a market economy
determines what goods are produced made with an analogy to the
political process of voting.
Duopoly: A market in which there are two sellers.
Economic efficiency: A situation in which value is maximized.
Given resources, technology, and preferences, no changes will
increase value. It is also called the Pareto optimality.
Economic inefficiency: A situation in which there is potential
value that no one captures. Given resources, technology, and
preferences, there is some change, which will improve the well-being
on one individual without harming anyone else.
Entrepreneur: An individual who creates new: a new
organization, market, or product, usually in the quest for profit.
Entrepreneurs are innovators.
Equilibrium: A condition that exists when a system is at rest
and has no further tendency to change.
Externality: A cost or benefit that a decision maker passes on to
a third party. Pollution is an example of a negative externality.
Excise tax: A sales tax on a specific item.
Fixed cost: Cost that does not change as output changes.
Free rider: Person who does not pay for good or service
because there is no way to exclude those who do not pay from using
the good or service.
Game theory: An analysis of interactions in which the outcome
a person faces depends not only on his strategy of action, but also on
the strategies of others.
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Human capital: People’s assets in the form of investment in
themselves.
Inferior good: A good that people buy less frequently if their
incomes rise.
Invisible hand: A phrase that expresses the belief that the best
interests of a society can be served when individual consumers and
producers compete to achieve their own private interests.
Law of demand: The principle that there is an inverse
relationship between the price of a good and the quantity that buyers
are willing to purchase.
Law of diminishing returns: Adding more of one input while
holding other inputs constant eventually results in smaller and smaller
increases in added output.
Lorenz Curve: A graphical way to illustrate the equality or
inequality of the distribution of income.
Marginal cost: The change in total cost caused by a one-unit
change in an activity, or the slope of the total cost curve. In the case of
a business, the change in total cost is caused by a change in output.
Marginal rate of substitution: The ratio at which people will
trade good B for good A.
Marginal rate of transformation: Slope of the production-
possibilities frontier, which shows how much of good B must be given
up to produce more of good A.
Marginal resource cost: The change in total cost caused by a
one-unit change in an input.
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Marginal revenue: The change in total revenue resulting from
a change in sales; the slope of the total cost curve.
Marginal revenue product: The change in total revenue
resulting from a one-unit change in an input.
Market failure: A situation in which a market yields a result
that is economically inefficient, that is, there is value that is not
captured.
Maximization principle: The rule that net benefits are
maximized when marginal benefit equals marginal cost.
Monopoly: An industry with only one seller.
Monopolistic competition: An industry that has easy entry and
exit, but in which sellers are price searchers.
Moral hazard: Insurance problems; when the cost of a disaster
is reduced with insurance, people have less incentive to avoid the
disaster.
Negative-sum game: In terms of game theory, an interaction in
which losses exceed winnings.
Normative analysis: An analysis based on a judgment about
what is desirable and what is undesirable.
Paradox of Value: The puzzle of why essential items such as
water are cheap while frivolous items such as diamonds are expensive.
The paradox is easily resolved when one understands the difference
between total value and marginal value.
Pareto optimality: See Economic efficiency.
Present value: Money in the future is less valuable than an
equivalent amount of money now because money in the future gives
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fewer options. The comparison of money in different time periods is
made with a present value computation.
Price ceiling: Legally established maximum price a seller can
charge.
Price-discrimination: Charging different prices for the same
good or service.
Price floor: Legally established minimum price a seller can be
paid.
Price searcher: A seller (buyer) who can influence price by the
amount he sells (buys).
Price taker: A seller (buyer) who has no control over price, but
sells (buys) at the given price.
Principal-agent problem: The potential conflict of interest
when a person (the principal) has someone (the agent) acting on his
behalf.
Producers' surplus: The difference between the lowest price a
producer will accept and the actual price; also called economic rent.
Production function: The mathematical way of stating that
output depends on inputs.
Progressive tax: A tax that charges a higher percentage of
income as income rises.
Proportional tax: A tax that charges the same percentage of
income, regardless of the size of income.
Public good: A good or service that, once produced, has two
properties: Benefits are available to all and there is no way to bar
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people who do not pay (free riders) from consuming the good or
service.
Quota: Limit on the quantity of a good that may be imported in
any time period.
Regressive tax: A tax that charges a lower percentage of income
as income rises.
Rent seeking: Efforts to obtain value through transfer without
providing anything in return.
Scarcity: The condition in which human wants exceed the
available supply of goods, time, and resources. In a world without
scarcity, there would be no economics.
Shortage: The market condition existing when quantity
demanded exceeds quantity supplied. Generally, an increase in price
will eliminate a shortage.
Speculation: Attempting to buy when the price is low and sell
when it is high.
Sunk cost: Is cost which cannot be recovered.
Surplus: The market condition existing where the quantity
supplied is greater than the quantity demanded. Generally, a decrease
in price will eliminate a surplus.
Tariff: Excise tax on imported goods.
Tax incidence: Taxes can be shifted from those who write the
check to the government to others. The study of tax incidence is the
study of who ultimately bears the burden of the tax.
Utility: An abstract variable, indicating goal-attainment or
want-satisfaction.
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Utility function: A mathematical way of saying that utility
depends on consumption of goods and services.
Zero-sum game: An interaction in which the sum of winnings
and losses equals zero.
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5. Banking Terms and Notions
5.1. Definitions
A well-functioning financial sector increases economic growth.
If an economy does not allocate savings to the most productive uses, it
will grow more slowly than it can grow.
From a microeconomic point of view, the primary purpose of
financial markets is to allocate available savings to the most
productive use.
Markets are interrelated, and a problem in one market can have
its source in a different market. This finding is a starting point for
macroeconomics.
Macroeconomists ask two central questions: "Is this market a
likely source of instability that shows up as inflation or recession,"
and "Will the adjustment process in this market cause problems for the
overall adjustment of the economy."
Changes in one part of the economy are rapidly transmitted to
other parts through financial markets. Such transmission is not limited
to questions of tariffs or to the market for foreign exchange; all
financial markets transmit.
When most people think of financial markets, they think of the
stock market. A stock is a share in the ownership of a corporation, and
through the stock market, one can buy and sell. The stock market has
high visibility because it is open to anyone who can collect several
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hundred dollars together. However, the stock market is only a very
small part of the total financial market and plays only a minor role in
macroeconomic theory.
Markets for debt are much larger than the stock market in terms
of their daily transactions. These markets have less visibility because
many require hundreds of thousands or even millions of dollars to
enter directly. Some of these markets for debt do play an important
role in macroeconomic theory. Whenever economists include an
interest rate in their discussion, a market for debt is playing a role in
their thinking.
There are many kinds of transactions that take place in the
market for debt. Some transactions are highly publicized: when a big
corporation issues marketable bonds with the aid of a brokerage
house, the brokerage house advertises the event to attract buyers.
Transactions on the New York Bond Exchange are also very visible--
they are reported in the financial section of major newspapers. Many
more transactions involve financial intermediaries and less publicity.
Eventually most people visit a bank (or a savings and loan association,
which has become almost identical) to arrange a loan. Large
corporations, small businesses, non-profit groups, and individuals all
use banks to obtain funds.
In addition to lending money to individuals and groups, banks
are part of financial markets in other ways. Banks borrow and lend
funds among themselves in the funds market. They buy and sell
foreign exchange. They buy and sell government and commercial
debt. Finally, one form of bank debt serves as money in modern
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economies, and banks create this debt because of their financial
transactions.
Prices in the debt market are interest rates, what one pays (or
receives) for the use of funds for some period of time. Because they
aggregate financial markets, economists often talk about "the interest
rate." In fact, there are many interest rates. Rates differ depending on
factors such as the risk of default, the liquidity and time to maturity of
the debt, and the tax status of the interest payments.
The press commonly reports several interest rates. The prime
rate was once the interest rate that large commercial banks charged
their most credit-worthy customers for short-term loans. In recent
years, banks have usually given their best customers discounts from
the prime, so this definition is no longer accurate. A good definition of
the prime is hard to give other than - it is the rate that banks publicize.
The funds rate is the rate that banks charge one another for funds
they borrow on an overnight basis. The discount rate is the rate at
which banks may be permitted to borrow from a Central/Federal
Reserve bank. Finally, the interest rate on 13 and 26 week Treasury
Bills is used by many banks to determine rates that they pay on some
of their accounts. This interest rate is probably the one most
economists have in mind when they talk about "the interest rate." In
practice, all these rates tend to fluctuate together.
Though many of us hold savings bonds, very little of the debt is
financed with them. More of the debt is in the form of long-term debt
(bonds), medium-term debt (notes), and short-term treasury bills, or T-
bills for short.
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Financial intermediaries, large companies, and governmental
units buy T-bills. Organizations find them a safe and profitable way
to invest funds available for short periods of time. The attractiveness
of T-bills is enhanced by the secondary market that has developed. A
secondary market does not sell newly-issued securities, but previously
issued - or "used" - securities. (The stock and bond exchanges are
examples of secondary markets.) The existence of this secondary
market has made T-bills very liquid, that is, T-bills can be converted
into cash quickly and cheaply. However, because it does not deal in
small transactions of $50000 or $100000, it is not visible. It is an
over-the-counter market, which means transactions are done by
computer or telephone.
T-Bills are now sold as book-entry security, which means they
are in the form of a paper certificate, but are only entries in the books
of the Treasury.
Most people do not enter financial markets directly but use
intermediaries or middlemen. Commercial banks are the financial
intermediary we meet most often in macroeconomics, but mutual
funds, pension funds, credit unions, savings and loan associations,
and to some extent insurance companies are important financial
intermediaries. When people deposit money in a bank, the bank uses
the funds to make loans to homebuyers for mortgages, to students so
they can pay for their education, to business to finance inventories,
and to anyone else who needs to borrow. A person who has extra
money could, of course, seek out borrowers himself and bypass the
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intermediary. By eliminating the middleman (intermediary), the saver
could get a higher return.
Financial intermediaries provide two important advantages to
savers. First, lending through an intermediary is usually less risky than
lending directly. The major reason for reduced risk is that a financial
intermediary can diversify. It makes a great many loans, and even
though some of those loans will be mistakes, the losses will be largely
offset by loans that are sound. In contrast, an average saver could
directly make only a few loans, and any bad loans would substantially
affect his wealth. Because an intermediary can put its "eggs" in many
"baskets," it insures its depositors from substantial losses.
A second advantage financial intermediaries give savers is
liquidity. Liquidity is the ability to convert assets into an able form to
spend – money - quickly. A house is an illiquid asset; selling one can
take a great deal of time. If an individual saver has lent money directly
to another person, the loan can also be an illiquid asset. If the lender
suddenly needs cash, he must either persuade the borrower to repay
quickly, which may not be possible, or he must find someone else who
will buy the loan from him, which may be very difficult. Though the
intermediary may use its funds to make illiquid loans, its size allows it
to hold some funds idle as cash to provide liquidity to individual
depositors. Only when a great many depositors want to withdraw
deposits at the same time, which happens when there is a "run" on the
institution, will the financial intermediary be unable to provide
liquidity. Unless it can obtain help from the government or other
institutions, it will be forced to suspend payments to depositors.
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Financial intermediaries help large numbers of people to use,
though indirectly, financial markets. Although these intermediaries are
important in the macroeconomic functioning of the economy, they are
usually stable and change only slowly. With the exception of those
intermediaries that issue deposits against which checks may be
written, economists do not expect disturbances to arise in financial
intermediaries. As a result, macroeconomic theory does not pay much
attention to them.
A financial market is an "efficient market" if its prices take into
accounts all knowledge that people have about that market. If there is
knowledge, which is not being used, unexploited profit opportunities
exist, and in financial markets, these opportunities should be quickly
taken. If one knows that a stock or bond is undervalued and that it will
rise in value, one will make a large amount of money by buying until
it does rise. Because profit opportunities are quickly exploited once
they become known, one cannot "beat" an efficient market unless one
has special information that is unavailable to others.
The idea of efficient markets suggests that one should not place
a great deal of faith in any forecasts about interest rates or stock
prices, because if the person making the forecast really does know
what will happen, he could keep quiet and get rich.
The speculators play a useful role in an efficient market where
prices adjust very quickly to new information. They are coolly rational
individuals looking at the fundamental values of items, buying when
prices are too low and helping lift these prices, and selling when
prices are too high and helping to lower these prices. As a result,
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prices correctly transmit information about values, which people can
then use to make decisions. An efficient market will not be the source
of economic disturbances. However, it can transmit disturbances, and
this alone would be enough to interest economists.
An important reason people buy items in financial markets is in
the hope of selling them at a profit. Thus trading in these markets
involves not only an analysis of the fundamental value of an asset, but
also an analysis of how other people will react. If people are confident
that others will buy the item for more than they paid for it, then they
will buy it even if it has little value to them.
The idea described above has been called the "greater-fool"
theory. It implies that although one may be a fool for buying an asset
that is overpriced, one can profit if there are still greater fools who
will pay even more for it.
Markets based on the "greater-fool" theory always collapse.
Eventually the greatest fool is found, and once he is found, the process
cannot continue. It can affect the production of an economy if the
speculations cause enough financial disruption. They will cause
bankruptcies, reduce people's trust in others, and cause unemployment
for the people who became speculators.
A speculative crash in financial markets is not enough, by itself,
to trigger a recession.
The federal government not only regulates financial markets and
intermediaries, it is also a major financial intermediary itself. Two
agencies with important regulatory functions are the Securities
Exchange Commission (SEC), the Federal Deposit Insurance
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Corporation (FDIC). The SEC regulates behaviour in stock and bond
markets, and also specifies which information a publicly-traded
company must provide to shareholders. The FDIC insures deposits at
commercial banks and, with the demise of the Federal Savings and
Loan Insurance Corporation in the 1980s deposits at savings and loan
associations.
The U.S. government makes extensive loans for agriculture and
housing. Because the government can borrow at a lower interest rate
than most private borrowers can, and because it does not need to make
a profit, it can lend at lower interest rates than private intermediaries
can. The government also subsidizes borrowers by guaranteeing loans
that private lenders make. However, the issues that these actions of the
government raise are primarily microeconomic in nature.
From a macroeconomic perspective, by far the most important
government institution involved in financial markets is the Federal
Reserve System. The Federal Reserve System (often referred to as the
"Fed" by economists and bankers) is the central bank of the United
States. A central bank functions as a banker's bank. Just as individuals
and businesses have deposits at a regular bank and can write checks
on these deposits, banks have deposits at a central bank and can write
checks on these deposits.
The Federal Reserve System is a rather strange "central" bank
because it is composed of 12 separate banks. When you examine your
paper currency, you will see the district number and letter of one of
these 12 banks on the left side of the portrait. This strange structure
exists because of the political realities that faced Congress when it
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established the system in 1913. In 1935, Congress reduced the
independent authority of these 12 banks and centralized policy-
making authority in a group called the Federal Open Market
Committee (FOMC) which decides monetary policy. Though today
the individual Reserve banks retain little independent power, the
president of each can serve as a voting member of the FOMC.
In the market for foreign exchange, people trade one country's
money for another's. If, for example, you decide to travel to Thailand,
you will need to buy some bahts, the currency of Thailand, either
before you go or once you get there. In your transaction, you will
supply dollars to the foreign exchange market and demand bahts.
The foreign exchange market provides an excellent illustration
of how financial markets can transmit disturbances. The market is
usually considered to be an efficient market, not subject to runaway
speculative binges. The heart of the market is the trading by a number
of very large banks. A trade worth a million dollars is very small in
this market, but it is the prices of these very large bank transactions
that newspapers report when they publish exchange rates. When you
deal in smaller amounts when you travel to Thailand, you will get less
favourable prices.
The market for foreign exchange can be analyzed in terms of
supply and demand. Americans demand foreign money (and supply
dollars) when they buy things abroad, such as vacations, goods,
services, factories, and financial assets. Foreigners supply foreign
currency (and demand dollars) when they buy things here, such as
vacations, goods, services, factories, and financial assets. Though
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when you buy a Japanese camera, you do not deal in the foreign
exchange market, someone did in the process of bringing the camera
to you. It may have been the American importer, who would have sold
dollars to buy yen, and then used the yen to buy the camera. On the
other hand, it may have been the Japanese exporter, who sold cameras
for dollars and then sold the dollars for yen. In either case, dollars
were supplied to the foreign exchange market and yen were
demanded.
The exchange rate, or the price of foreign money, is an important
price when we buy things made in other countries.
Two things affect the price of the Japanese camera as seen from
America. The first is the yen price of the camera, and the second is the
dollar price of the yen. If either one increase: Japanese cameras will
become more expensive and Americans will want fewer of them. The
exchange rate also affects the price of American goods as seen in
Japan.
When foreign currency is cheap, foreign products are cheap in
dollars, and Americans will want a lot of them. To buy these foreign
products, Americans must buy a lot of foreign exchange. When the
price of foreign exchange is expensive, so also are foreign products
and Americans will not want many. Hence, they will not need as much
foreign exchange.
Let us consider what will happen if the United States increased
its tariffs. Because tariffs are taxes on imports, foreign products will
become more expensive for Americans. As a result, Americans will
want to buy fewer imports, which is usually the desired result of
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tariffs. However, if the exchange rate is: a floating rate, that is, one
that can take whatever value supply and demand dictate, the story has
not ended. Because of the tariff and the resulting decrease in imports,
foreign money becomes cheaper for Americans and American dollars
become more expensive for foreigners. If dollars become more
expensive, foreigners will find American goods more expensive. The
end effect of a tariff with floating exchange rates, then, is to cut not
just imports, but to cut exports as well.
If a country treats the foreign exchange market as any other
market, allowing the marketplace determine the price of foreign
money, it has a system of floating exchange rates. This is what most
of the Western world has had since the 1970s. However, governments
have often fixed prices in this market. In doing so they simultaneously
establish price floors and price ceilings--they will neither let the price
rise nor fall (except within a small range).
There are two ways a government can keep exchange rates fixed.
One method, which has been common in less-developed nations, is
called a fixed and unconvertible exchange rate because the exchange
rate is fixed, but domestic currency cannot be freely converted into
foreign money. Governments using it almost always set the price of
foreign exchange below the market-clearing price (which means that
they price their own currency too high), and thereby cause a shortage
of foreign money. The government prevents the market-increasing
price to eliminate this shortage by outlawing private transactions in
foreign exchange and requiring citizens who obtain foreign exchange
to sell it to the government. Because the government becomes the only
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legal source of foreign money, those who want to buy products from
abroad must obtain those funds from the government, which rations
these funds to those purposes it deems most worthy. Though this
system is hard to justify on economic grounds, and is often evaded
with extensive black-marketing, the system gives rulers a powerful
tool to reward friends and punish enemies.
The second method is a fixed and convertible exchange rate.
With this method a government does not abolish the private market
for foreign exchange, but fixes exchange rates by standing ready to
absorb any surpluses or to fill any shortages.
If the price of foreign exchange is set above the market-clearing
price, there will be a surplus of foreign exchange (and a shortage of
the domestic currency). At this price, people will want to sell more
foreign exchange than they want to buy. The government can prevent
this surplus from lowering price by stepping into the market and
buying the excess foreign exchange. On the other hand, if the price
that the government sets is below the market-clearing price, there will
be a shortage of foreign exchange called a balance of payments deficit.
The government can prevent the shortage from raising price by selling
foreign exchange into the market. The government can obtain this
foreign exchange from reserves it stored up when there was a surplus,
or by borrowing from other countries, or by selling assets such as
gold. It should be obvious that a government can only fill a balance of
payments shortage temporarily and that if it runs for too long; the
country will run out of foreign exchange to provide to the market.
Now most of the industrial world has floating exchange rates.
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6. Adjective Intensifiers
6.1. Expressions and Phrases
There are some words which can be used to 'intensify' many
adjectives – 'very' 'really' 'totally' 'absolutely' 'completely' 'utterly'
'entirely'.
• It's very tall.
• We're really happy.
• She's totally exhausted.
• I'm absolutely horrified.
• He's completely hopeless.
• You look utterly miserable.
• I'm entirely satisfied.
Certain adjectives have their own 'special' intensifiers which are
often used with them. Here are some common ones:
blind drunk
• He was blind drunk and behaved really badly.
bone dry
• I must have a drink. I'm bone dry.
brand new
• I've just bought a brand new car.
crystal clear
• The sea near Rhodes is crystal clear.
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dead easy
• That exam was dead easy. I've certainly passed.
dead lucky
• He's won three lottery prizes this year. He's dead lucky.
dead right
• I agree entirely. You are dead right.
dirt cheap
• I bought my car for a dirt cheap price from an old lady who
had hardly driven it.
fast asleep / sound asleep
• I was in bed and fast asleep by nine.
• I was sound asleep and I didn't hear anything.
paper thin
• These office walls are paper thin. You can hear everything
said in the next office.
pitch black
• There's no moon. It is pitch black out there.
razor sharp
• Be careful with that knife- it is razor sharp.
rock hard
• It's impossible to dig this soil – it is rock hard.
stark naked
• The hotel door slammed behind me and I was left standing
stark naked in the middle of the corridor.
stone deaf
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• He can't hear a thing. He's stone deaf.
wide awake
• I was wide awake by six.
wide open
• Who left the door wide open?
Food Phrases2
If you 'bolt down' food, you eat it very quickly. This expression
is informal.
• He bolted down the food. He really enjoyed it.
• I'm so busy that I'm going to bolt down some food and get
straight back to work.
If you 'wolf down' food, you also eat it quickly but specifically
because you are hungry. This is also informal.
• Did you see the way she wolfed down that food? She must
have been ravenous.
• After the marathon, I wolfed down some fish and chips.
If you consume a lot of drink (usually alcohol) quickly, you
'knock it back'. This is informal and is often used quite negatively.
• He was knocking back the champagne at the reception.
• We must watch Bill carefully in the bar with the clients. He
can really knock it back.
If you eat an excessive amount of food, you 'pig out'. This is
informal.
2 From: http: // business – english. com
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• I'm not hungry because I pigged out on chocolate this
afternoon.
• We really pigged out in the restaurant.
If you 'plough through' some food, you eat it all but with some
difficulty because there is a lot of it. In American English, 'plough' can
be written as 'plow'.
• He served a huge plate of spaghetti and it took me ages to
plough my way through it.
• They served us snake. I didn't like it but I plowed my way
through it to be polite.
If you 'put away' food or drink, it can mean you eat or drink a
lot of it. (Obviously, it can also mean that you place the food or drink
in a fridge or cupboard – the context of the sentence should make
clear the meaning.)
• Watch Peter. He's been putting away a lot of beer and he
sometimes turns aggressive when he's drunk.
• He has put away some sandwiches but is still hungry.
If you 'pick at' your food, you only eat a small amount of it,
usually because you are not hungry, you are on a diet or because you
are ill.
• She only picked at her food, even though it was delicious.
• We were so busy talking that we only picked at our food.
If you 'cut down' or 'cut back' on a particular food or drink,
you consume less of it.
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• My doctor told me to cut back on the amount of salt in my
diet.
• I need to cut down the amount of fried food I eat.
If you 'eat up', you finish all your food.
• I don't like tripe but I ate it all up when it was served to us by
our hosts.
• Eat up. It's time to go.
If you 'drink up', you finish all your drink.
• We seem to have drunk up all the orange juice.
• Drink up. It's time to go.
If you 'polish off' some food, you finish it completely and
quickly.
• The guests polished off all the food in the first thirty minutes.
• He has just polished off two whole pizzas and still says he is
hungry.
If you 'dish up' some food, you put it onto plates or dishes,
ready to be served.
• I've heard she is going to dish up something really special.
• Can you collect up the starter plates, while I dish up the main
course?
'Serve up' is another way of saying the same thing as 'dish up'.
• They served up a six-course meal for their guests.
• It's no better than the food we serve up in our canteen and
twenty times more expensive.
If you 'lay on' some food or drink, you provide it.
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• We've laid on a buffet lunch for our visitors.
• They lay on a small drinks party for us.
If you make a meal very quickly and easily, you 'whip it up'.
This is informal.
• Have a seat and I'll whip us up something to eat.
• I could whip up a salad, if you are hungry.
If you make food quickly and without much effort, you 'knock
it up'.
• I knocked myself up a quick meal from what was left in my
fridge.
• Do you want me to knock up some lunch?
If you make food hot so that it can be eaten, you 'heat it up'.
• I've already prepared the food for the party. All we need to do
is to heat up the pizzas.
• I could heat up a can of soup if you are hungry.
If you 'warm up ' cold food, you are making it hot again so that
it can be eaten.
• I'll warm up that stew from last night.
• The canteen makes a large quantity once a week and then just
warms up the amount needed every day.
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7. Marketing Campaigns
7.1. Case study: - Verity, - Impact ads, - Transworld
Definition: A specific, defined series of activities used in
marketing a new or changed product or service, or in using new
marketing channels and methods
Effective marketing is often what separates rapidly growing
companies from slow-growing or stalled companies that started at the
same time, serve the same market and offer similar merchandise.
Companies such as Gillette, Frito-Lay and Coca-Cola have succeeded
in highly competitive mass markets for consumer goods because,
while they certainly produce competitive products, they out-market
their rivals. If you expect your business to grow to any size, you'll
have to become an effective marketer, advertiser and promoter of your
business. In fact, you're likely to grow to the extent that you master
marketing, and no more
A marketing campaign isn't something that comes to you while
you're taking a shower. Successful campaigns tend to be carefully
researched, well thought-out and focused on details and execution,
rather than resting on a single, grand idea. Planning a marketing
campaign starts with understanding your position in the marketplace
and ends with details such as the wording of an advertisement.
Keep in mind that your plan for a marketing campaign is not
supposed to be a prison. You have to leave room to make changes as
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you go along because no plan can perfectly capture reality. But you
should also be able to commit fully to implementing your plan--or
some future version of it--if you want to take a strong step toward
growth.
Here are some ways to launch your campaign:
Speak at community events. Offering your expertise at public
occasions is an easy way to get the word out about your business.
You'll maximize your impact and lend credibility to your product or
service.
Ask customers for referrals. Generating referrals from current
customers is one of the best ways to market your business. Don't
forget to query your vendors (they're likely to have many contacts)
and explain to your customers exactly what kinds of referrals you're
looking for and how they can help.
Spend two days in your customers' shoes. To find out what
your customers really want, visit a wide range of businesses they're
likely to frequent. Observe how customers are treated, as well as the
kinds of services that appear important to them; then adapt your
business accordingly.
Offer free samples. If you can get someone to try your product
or service, chances are they'll buy it later. Have employees pass out
product samples in front of your business; if you provide a service,
offer free services on a trial basis.
The chapter is dedicated to a description (case studies) of three
marketing companies: - Verity, Impact Ads and Transworld.
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CASE STUDY: I.
This is a conversation between the managing director Andrew
Hodge to Stephen Johnson, the assistant sales director who will
choose who will manage his company's marketing campaign:
Andrew Hodge: Well, have you decided which one it is going to
be?
Stephen Johnson: Well, its tough - but I think it is between
Impact Ads and Verity.
Andrew Hodge: What is wrong with Transworld?
Stephen Johnson: Well, they are a little low on substance. They
keep saying they are a 'top' company, but they do not say what they
are top of! They say they have original designs, and ideas, but they do
not give any examples. I would like to know more about their
campaigns and their clients. The only thing they do say is that they are
cheaper than the others - but do they give value for money? I could
find more about them, but if a marketing company can't sell itself, can
it sell for us?
I like Verity's idea; of working closely with us at every stage of
the process … I think we need something like that. They seem to me
to be a good company, and all the people who have worked with them
tell me that they do exactly as they say - they work with you, and they
don't mess you around.
Andrew Hodge: And Impact?
Stephen Johnson: That's the problem. They are good, very good.
They are very expensive, but they do a fantastic job. If you look at
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their list of satisfied customers, it is as long as your arm. They are a
young team, very professional, very innovative … but they are a bit
light on their management consultancy side - they know it too, so they
have brought in an outside partner. They will do a very good
campaign, but we will have to organize it a lot more for them - their
service is less complete.
Andrew Hodge: So they do less, but do it well?
Stephen Johnson: Very well. And they are cheaper than they
look.
Andrew Hodge: So it's going to be Impact then?
Stephen Johnson: Well, if we end up with Impact, it will be no
bad thing. But I have been talking to George Halds at Verity - they
have a new young employee, Sandra Sean. She's got some original
ideas, and they want to give her a try on a big project. And she is
almost as good as Impact in one way - they tried to poach her from
Verity earlier this year!
CASE STUDY: II
Who we are: When John Weznik lost his job in 1935, he started
an advertising company from his own kitchen at home. Verity
advertising was born. Now Verity has 85 employees and offices in
London, Paris and New York. Still today, we keep to our founder's
principles of integrity, customer service, and dynamic advertising
campaigns tailored in close consultation with our clients.
What we do: Verity advertising makes you, the client, an active
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partner in our advertising campaigns, combining our knowledge of the
advertising market with your knowledge of your product to make an
unbeatable partnership.
How we do it: Verity has an intimate knowledge of the markets,
and our skilled analysts will work with your managers and designers,
bringing marketing into every aspect of design, production and sales,
optimizing them to meet what you are seeking. Market share, and all
the rest are all very well, but what you really, really want, is customers
buying your product in large amounts, and at good margins. That is
what it is all about. And that's what Impact Ads will get you.
You have seen our award-winning marketing campaigns; you
know our clients are some of the top companies in the Fortune 500.
We have come from nowhere to the top in 10 years, because we are
good, we hire the best, we have one of the most creative and
innovative teams in the business.
We are not just a talented team. We work closely with Valerie
Maxim management consultants guaranteeing that our campaigns do
not just grab the attention of the public, but make good business sense
too. We are not the cheapest in the business, but the ROI we generate
speaks for itself!
CASE STUDY: III
Your campaign needs a company that is top for quality top for
price and top for performance. You need Transworld - the advertising
company with the ideas and results that are changing the industry.
Contact us today, to find how we can turn your campaign into a
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dynamic, powerful monster that leaves your competition stopped dead
in their tracks!
For the past two decades, we have combined innovation, high-
quality concept designs and strategic vision, to make ourselves the
first choice to help you meet the challenge of successfully reaching
your target audience. From concept to completion, Transworld
supplies the experience and the support that gives your message
maximum impact.
No other advertising agency supplies the value for money that
Transworld can bring to your campaign. With our slim, flat
management structure, helped by the latest in IT, we put more of your
expenses back into your campaign than any other agency in the
business.
Questions concerning the three case studies:
1. Which company emphasizes that it costs less?
2. Which company stresses its relationship with clients?
3. Which company puts most weight on the quality of its
product?
4. Which is the oldest company?
5. Which company has the least aggressive sales pitch?
6. Which company tells you least about itself?
7. Which company offers the least complete service?
8. Which company stresses it will generate income?
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SEMESTRUL II
8. Styles in Written Communication
8.1. Technical Specifications
This chapter deals with company or newspaper reports,
marketing, advertising and public relations and discusses some basic
guidelines for writing style for some of the types of business
documents including business letters.
To begin with, we will briefly define different types of report:
• Organizational policies and procedures
These are the operating documents for organizations; they
contain rules and regulations on how the organization and its members
are expected to perform. Policies and procedures are like instructions,
but they go much further.
• Feasibility, evaluation, recommendation reports
This group of similar reports does things like compare several
options against a set of requirements and recommend one. It considers
an idea (plan, project) in terms of its "feasibility," in terms of some
combination of its technical, economical, social practicality or
possibility. It passes judgment on the worth or value of a thing by
comparing it to a set of requirements, or criteria.
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• Technical background reports
This type is the hardest one to define but the one that most
people write. It focuses on a technical topic, provides a certain
background on that topic for a specific set of readers who have
specific needs for it. This report does not supply instructions, nor does
it supply recommendations in any systematic way, nor does it report
new and original data.
• Primary research reports
This type presents findings and interpretation from laboratory or
field research.
• Business plans
This type is a proposal to start a new business.
• Technical specifications
This type presents descriptive and operational details on a new
product.
Business Plans and Technical Specifications3
A business plan is a document used to start a new business or
get funding for a business that is changing in some significant way.
Business plans are important documents for business partners who
need to agree upon and document their plans, government officials
who may need to approve aspects of the plan, and of course, potential
investors such as banks or private individuals who may decide to fund
the business or its expansion.
3 From: Online technical writing resources
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A business plan is very much like a proposal, except for at least
one big difference. The prospectus seeks to start a new business or
significantly expand an existing business. A proposal, on the other
hand, seeks approval to do a specific project. For example, a business
plan might seek funding and other support to start a software company
to create computer games. A proposal, on the other hand, might bid to
do the development work for some specific computer game.
Common sections in business plans:
Many of the elements of the plans are only typical and not
necessarily in any required order. For your plan, you will need to think
about the best sequencing of the sections and about other sections that
might also be necessary.
• Product or service to be offered - One of the most important
sections of the business plan is the description of the actual
product or service to be offered by your company. If it is a
description of a product--a physical object - you need to use
the techniques for description. If you are going to offer a
service, explain it, and take readers on a step-by-step tour of
how the service will be handled.
• Technical background on the product or service - If your
product or service involves technologies or technical
processes potentially unfamiliar to your readers, explain
these. Remember that business plans often go to non-
specialists who, despite their lack of technical expertise,
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have the investment funds or the legal understanding to get
your business going.
• Market for the product or service - Critical also to any
business plan is the exploration of the existing marketplace
into which your product or service fits. What other
companies offer the same thing you plan to offer? How
much business do they do? How are they different from each
other? How will your business differ from them?
• Process by which the product or service is produced - If
applicable, explain how the product or service will be
produced. Explain how the proposed business will operate
on a day-to-day basis.
• Facilities and personnel needed for the operation - Plan to
discuss the facilities (storefronts, warehouses, production
facilities, vehicles) your business will require as well as the
personnel that will be needed.
• Projected revenues from the operation - Of obvious
importance in any business plan is the discussion of the
revenues you project for your business. If you know the
estimate of total revenues for the market area in which you
plan to operate, what percentage do you explain to win?
Obviously, in your first few years, you may operate at a loss
- at what point in time do you project to break even?
• Funding necessary for start up and operation - The plan
should also discuss the funding you'll need to get the
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business started as well as the operating costs - the funding
needed to run the business on a daily basis.
• Legal issues related to the proposed business - Your
business plan may also need to discuss your business, its
products, or its services in relation to government
regulations - for example, environmental restrictions.
• Qualifications and background of the personnel - Important
too is the section that presents your qualifications to start
and operate the business you are proposing. Of course,
"you" can mean a number of people with whom you are
working to start the business. This section can be very much
like a collection of resumes, although you want to write an
introduction in which you describe your group's
qualifications as a whole.
• Discussion of feasibility and investment potential - You will
want to include in your plan a discussion of the likelihood of
the success of your business. Obviously, you believe that it
will be a success, but you must find a way to support this
belief with facts and conclusions in order to convince your
readers. In addition, you must discuss what sort of return on
investment readers can expect.
• Investment offering - And finally, you may need to present
what kinds of investment apparatus you are actually
offering.
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In planning your business plan, remember that you try to provide
whatever information the audience may need to consider your idea.
Your goal is to convince them you have a good idea and to encourage
them to invest in it (or to approve it in some way). It is okay to
provide marginal information - information you are not quite sure that
readers will want. After all, you section off the parts of a business plan
with headings; readers can skip over sections they are not interested
in.
Format for business plans:
Business plans, even those for small operations, can run well
over 15 pages - in which case you will want to bind the plan. As you
plan the format of your business plan, you will want to think about
designing it so that readers can find and read essential information
quickly. This means setting up an abstract, but calling it "Executive
Summary" or "Prospectus Overview."
Try to group similar sections. In the preceding section that lists
the various kinds of information to include in a plan, some of the
suggestions should be combined - for example, the sections on
financial aspects of the proposed business.
Finally, make use of appendixes for unwieldy, bulky
information. Enable readers to quickly find the main sections of the
plan, without having to wade through tables and charts that go on for
pages and pages.
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Technical Specifications are descriptions of products or product
requirements. More broadly, they can provide details for the design,
manufacture, testing, installation, and use of a product. You typically
see specifications in the documentation that comes in the package with
certain kinds of products, for example, CD players or computers.
These describe the key technical characteristics of the item. However,
specifications are also written as a way of "specifying" the
construction and operational characteristics of a thing. People who
actually construct the thing or go out and attempt to purchase it then
use them.
When you write specifications, accuracy, precision of detail, and
clarity are critical. Poorly written specifications can cause a range of
problems and lead to lawsuits.
Graphics, tables, and lists are heavily used, but some details can
only be provided through sentences and paragraphs.
For these reasons then, specifications have a particular style,
format, and organization.
Make every effort to find out what the specific requirements are
for format, style, contents, and organization. If they are not
documented, collect a big pile of specifications written by or for your
company, and study them for characteristics like those described in
the following.
• Use two-column lists or tables to lists specific details. If the
purpose is to indicate details such as dimensions, materials,
weight, tolerances, and frequencies, regular paragraph-style
writing may be unnecessary.
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• Make sure that each specification receives its own number-
letter designation. In sentence-style specifications, make
sure each specific requirement has its own separate sentence.
• Use the decimal numbering system for each individual
specification. This facilitates cross-referencing.
Graphics and tables used to present information in
specifications:
• Use either the open (performance) style or the closed
restrictive style, depending on the requirements of the job.
In the open or performance style, you can specify what the
product or component should do, that is, its performance
capabilities. In the closed style, you specify exactly what it
should be or consist of.
• Cross-reference existing specifications whenever possible.
Various government agencies as well as trade and
professional associations publish specifications standards.
You can refer to these standards rather than include the
actual specifications details.
• Use specific, concrete language that identifies as precisely as
possible what the product or component should be or do.
Avoid words that are ambiguous - words that can be
interpreted in more than one way. Use technical jargon the
way it is used in the trade or profession.
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• Test your specifications by putting yourself in the role of a
bumbling contractor--or even an unscrupulous one. What are
the ways a careless or incompetent individual could misread
your specifications? Could someone wilfully misread your
specifications in order to cut cost, time, and quality?
Obviously, no set of specifications can ultimately be
"foolproof" or "shark-proof," but you must try to make them
as clear and unambiguous as possible.
• For specifications to be used in design, manufacturing,
construction, or procurement, use "shall" to indicate
requirements. In specifications writing, "shall" is understood
as indicating a requirement. Provide numerical
specifications in both words and symbols: for example, "the
distance between the two components shall be three
centimetres (3 cm)."
• Writing style in specifications can be very terse: incomplete
sentences are acceptable as well as the omission of functions
words such as articles and conjunctions that are understood.
• Exercise great caution with pronouns and relational or
qualifying phrases. Make sure there is no doubt about words
such as "it," "they," "which," and "that" refer to. Watch out
for sentences containing a list of two or more items followed
by some descriptive phrase - does the descriptive phrase
refer to all the list items or just one? In cases like these, you
may have to take a wordier approach for the sake of clarity.
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• Use words and phrasing that have become standard in
similar specifications over the years. Past usage has proven
them reliable. Avoid words and phrases that are known not
to hold up in lawsuits.
• Make sure your specifications are complete - put yourself in
the place of those who need your specifications; make sure
you cover everything they will need.
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9. The Memorandum, The Report
9.1. The Business Letter, E-mails
A memorandum or memo is a document or other
communication that helps the memory by recording events or
observations on a topic, such as may be used in a business office. The
plural form is either memoranda or memorandums.
A memorandum may have any format, or it may have a format
specific to an office or institution. In law specifically, a memorandum
is a record of the terms of a transaction or contract, such as a policy
memo, memorandum of understanding, memorandum of agreement,
or memorandum of association.
Alternative formats include memos, briefing notes, reports,
letters or binders. They could be one page long or many. If the user is
a cabinet minister or a senior executive, the format might be rigidly
defined and limited to one or two pages. If the user is a colleague, the
format is usually much more flexible. At its most basic level, a
memorandum can be a handwritten note to one's supervisor.
Dean Acheson famously quipped that "A memorandum is not
written to inform the reader but to protect the writer". Charles Peters
wrote that "bureaucrats write memoranda both because they appear to
be busy when they are writing and because the memos, once written,
immediately become proof that they were busy."
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A specific type of memorandum is the policy briefing note
(alternatively referred to in various jurisdictions and governing
traditions as policy issues paper, policy memoranda, or cabinet
submission amongst other terms), a document for transmitting policy
analysis into the political decision making sphere. Typically, a
briefing note may be denoted as either “for information” or “for
decision”.
Origins of term
The origins of the term “briefing” lie in legal “briefs” and the
derivative “military briefings”.
Purpose
The primary purpose of a briefing note “for decision” is to
support decision making – to “help (or sometimes influence) a
decision-maker to make a better decision in a particular problem
situation than he might otherwise have made without the analysis”.
This is the summary of a management consultancy report
commissioned by Chapman clothing.
Summary of Report
Situation analysis:
Chapman Clothing co has been selling clothes for the past 73
years. They have two factories making their product domestically, and
they use contract work from abroad. Their product is retailed at
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department stores across the country, and they feature in a number of
mail order catalogues. Recently they launched an internet site for
customers who want to buy direct.
As can be seen from the sales figures for the past 12 months,
sales dropped sharply in the first part of the year. There has been some
recovery in clothing sales to men and women but sales of children's
clothing remain flat.
Market trends
Recently the market for their product has expanded, with a
greater proportion of the national income being spent on clothing.
As can be seen from chart 1A sales in the early part of the
decade have been flat, and even fell in the recent recession, but they
have since recovered strongly. Though there was a slight dip the year
before last, figures have climbed ever since, and there is no sign yet
that the market has peaked.
Outlook
Strong competition both at home and abroad has forced down
the cost of fabrics, and the company's buyers have closed a number of
very favourable deals, locking suppliers into long-term contracts on
very favourable terms. However, it appears the company's competitors
have done the same. This means that the market over the coming two
years will be very competitive. Therefore, it is important that
Chapman clothing find a strong selling point, either in terms of price,
style, quality image or some combination of these.
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Competition
As you can see from the pie charts, which show Chapman’s
share of the market as a dark blue wedge, it can be seen that the
company's market share today (chart A) is less than it was five years
ago (chart B). In short, Chapman’s has been losing market share. This
is mainly due to the expansion of the market leader Tommy Dee and
Andreas. The red wedge represents imported clothing from foreign
brands, and it can be seen that this sector too is expanding. This means
that smaller domestic companies, such as Chapman’s are being
squeezed.
Risks and opportunities
The fact that more people are spending more money on their
clothes means that Chapman’s has a chance to approach new
customers in an expanding market. Technological change means that
there are new ways to find customers, such as marketing through the
internet. Chapman’s has good brand recognition, and an established
customer base. The challenge for this company is to break out of its
present market, and expand into new ones. The risk is clearly shown
in the falling sales figures at a time when the market is expanding.
New brands such as Andreas are expanding aggressively, and their
products are seen as very attractive by certain key market segments.
The risk is that Chapman’s sales might continue to decline to the point
where retailers lose interest in stocking their goods, after which the
company has a serious risk of failing.
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Questions:
1. Who is this report for?
- A newspaper
- Shareholders
- A management consultancy
- Company directors
2. What is the challenge mentioned in the sector headed
'Outlook'?
- To keep prices down
- To find cheaper suppliers
- To make the product distinctive
- To compete for two years
3. How would you describe the tone of the risks and
opportunities?
Critical
Optimistic
Pessimistic
Balanced
Electronic mail, most commonly abbreviated email or e-mail,
is a method of exchanging digital messages. E-mail systems are based
on a store-and-forward model in which e-mail server computer
systems accept, forward, deliver and store messages on behalf of
users, who only need to connect to the e-mail infrastructure, typically
an e-mail server, with a network-enabled device for the duration of
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message submission or retrieval. Originally, e-mail was always
transmitted directly from one user's device to another's; nowadays this
is rarely the case.
An electronic mail message consists of two components, the
message header, and the message body, which is the email's content.
The message header contains control information, including,
minimally, an originator's email address and one or more recipient
addresses. Usually additional information is added, such as a subject
header field.
The basics of good business letter writing are easy to learn. The
following guide provides the phrases that are usually found in any
standard business letter. These phrases are used as a kind of frame and
introduction to the content of business letters. At the end of this guide,
you will find links to sites that give tips on the difficult part of writing
successful business letters – arguing your business objective. By using
these standard phrases, you can give a professional tone to your
English business letters.
The Start
Dear Personnel Director,
Dear Sir or Madam: (use if you don't know who you are writing to)
Dear Dr, Mr, Mrs, Miss or Ms Smith: (use if you know who you are
writing to, and have a formal relationship with.
- VERY IMPORTANT use Ms for women unless asked to use Mrs
or Miss)
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Dear Frank: (use if the person is a close business contact or friend)
The Reference
- With reference to your advertisement in the Times, your letter of 23 rd
March,
- your phone call today,
- Thank you for your letter of March 5 th .
The Reason for Writing
- I am writing to inquire about
- apologize for
- confirm
Requesting
- Could you possibly?
- I would be grateful if you could
Agreeing to Requests
- I would be delighted to
Giving Bad News
- Unfortunately
- I am afraid that
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Enclosing Documents
- I am enclosing
- Please find enclosed
- Enclosed you will find
Closing Remarks
- Thank you for your help Please contact us again if we can help in
any way.
- there are any problems.
- you have any questions.
Reference to Future Contact
- I look forward to ...
- hearing from you soon.
- meeting you next Tuesday.
- seeing you next Thursday.
The Finish
- Yours faithfully, (If you don't know the name of the person you're
writing to)
- Yours sincerely, (If you know the name of the person you're
writing to)
- Best wishes,
- Best regards, (If the person is a close business contact or friend)
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Sample Letter
Here is a sample letter using some of these forms:
Ken's Cheese House
34 Chatley Avenue
Seattle, WA 98765
Tel:
Fax:
Email: [email protected]
October 23, 2006
Fred Flintstone
Sales Manager
Cheese Specialists Inc.
456 Rubble Road
Rockville, IL
Dear Mr Flintstone:
With reference to our telephone conversation today, I am writing to
confirm your order for: 120 x Cheddar Deluxe Ref. No. 856
The order will be shipped within three days via UPS and should arrive
at your store in about 10 days.
Please contact us again if we can help in any way.
Yours sincerely,
Kenneth Beare
Director of Ken's Cheese House
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10. Guidelines for writing business documents
10.1. Operating Documents
Style in Business Correspondence4
Writing business letters and memos differs in certain important
ways from writing reports. Keep the following advice in mind when
you write and especially when you revise your business letters or
memos.
State the main business, purpose, or subject matter right away.
Let the reader know from the very first sentence what your letter
is about. Remember that when business people open a letter, their first
concern is to know what the letter is about, what its purpose is, and
why they must spend their time reading it. Therefore, avoid
roundabout beginnings. If you are writing to apply for a job, begin
with something like this: "I am writing to apply for the position you
currently have open...." If you have bad news for someone, you need
not spill all of it in the first sentence. Here is an example of how to
avoid negative phrasing: "I am writing in response to your letter of
July 24, 1997 in which you discuss problems you have had with an
electronic spreadsheet purchased from our company."
If you are responding to a letter, identify that letter by its subject
and date in the first paragraph or sentence. Busy recipients who write 4 From the internet: site maintained by Patrick Burne, a retired business communication consultant
79
many letters themselves may not remember their letters to you. To
avoid problems, identify the date and subject of the letter to which you
respond:
Keep the paragraphs of most business letters short. The
paragraphs of business letters tend to be short, some only a sentence
long. Business letters are not read the same way as articles, reports, or
books. Usually, they are read rapidly. Big, thick, dense paragraphs
over ten lines, which require much concentration, may not be read
carefully - or read at all.
To enable the recipient to read your letters more rapidly and to
comprehend and remember the important facts or ideas, create
relatively short paragraphs of between three and eight lines long. In
business letters, paragraphs that are made up of only a single sentence
are common and perfectly acceptable.
"Compartmentalize" the contents of your letter.
When you "compartmentalize" the contents of a business letter,
you place each different segment of the discussion - each different
topic of the letter - in its own paragraph. If you were writing a
complaint letter concerning problems with the system unit of your
personal computer, you might have these paragraphs:
• A description of the problems you've had with it
• The ineffective repair jobs you've had
• The compensation you think you deserve and why
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Study each paragraph of your letters for its purpose, content, or
function. When you locate a paragraph that does more than one thing,
consider splitting it into two paragraphs. If you discover two short
separate paragraphs that do the same thing, consider joining them into
one.
Provide topic indicators at the beginning of paragraphs.
In the first sentence of any body paragraph of a business letter,
try to locate a word or phrase that indicates the topic of that paragraph.
If a paragraph discusses your problems with a personal computer,
work the word "problems" or the phrase "problems with my personal
computer" into the first sentence. Doing this gives recipients a clear
sense of the content and purpose of each paragraph.
Place important information strategically in business letters.
Information in the first and last lines of paragraphs tends to be
read and remembered better. Information buried in the middle of long
paragraphs is easily overlooked or forgotten. Therefore, place
important information in high-visibility points. For example, in
application letters that must convince potential employers that you are
right for a job, locate information on appealing qualities at the
beginning or end of paragraphs for greater emphasis. Place less
positive or detrimental information in less highly visible points in your
business letters. If you have some difficult things to say, a good (and
honest) strategy is to de-emphasize by placing them in areas of less
emphasis. If a job requires three years of experience and you only
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have one, bury this fact in the middle or the lower half of a body
paragraph of the application letter. The resulting letter will be honest
and complete; it just will not emphasize however weak points
unnecessarily.
Find positive ways to express bad news in your business letters.
Often, business letters must convey bad news: a broken
computer keyboard cannot be replaced, or an individual cannot be
hired. Such bad news can be conveyed in a tactful way. Doing so
reduces the chances that business relations with the recipient of the
bad news will end. To convey bad news positively, avoid such words
as "cannot," "forbid," "fail," "impossible," "refuse," "prohibit,"
"restrict," and "deny" as much as possible.
Focus on the recipient's needs, purposes, or interests instead of
your own.
Avoid a self-centred focusing on your own concerns rather than
those of the recipient. Even if you must talk about yourself in a
business letter a great deal, do so in a way that relates your concerns
to those of the recipient. This recipient-oriented style is often called
the "you-attitude," which does not mean using more you but making
the recipient the focus of the letter.
Avoid pompous, inflated, legal-sounding phrasing.
Watch out for puffed-up, important-sounding language. This
kind of language may seem business-like at first; it is actually
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ridiculous. Of course, such phrasing is apparently necessary in legal
documents; but why should we use it in other writing situations?
When you write a business letter, picture yourself as a plain-talking,
common sense, down-to-earth person (but avoid slang).
Give your business letter an "action ending" whenever
appropriate.
An "action-ending" makes clear what the writer of the letter
expects the recipient to do and when. Ineffective conclusions to
business letters often end with rather limp, noncommittal statements
such as "Hope to hear from you soon" or "Let me know if I can be of
any further assistance." Instead, or in addition, specify the action the
recipient should take and the schedule for that action. If, for example,
you are writing a query letter, ask the editor politely to let you know
of his decision if possible in a month. If you are writing an application
letter, try to set up a date and time for an interview.
If you operate a small business, you naturally want to cultivate a
professional image while not spending tons of money to do it. This
can be tricky, since everything associated with doing business costs
quite a bit these days. However, there are some shortcuts you can take
to develop an expert image that won't cost an arm and a leg.
1. Design your own stationery. You can buy discount or
clearance computer paper at any business supply store or outlet. Make
it simple, not fancy or extravagant, in off-white or pastel shades. The
effect should be simple and stately, not garish or brash. Using MS
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Word or another software program, experiment with the font, ink, and
proportion sizes to center your company's name at the top, or move it
to one side. Below the name in smaller print should come your
address and contact information. You can design a logo to arrange this
information, and then use the logo.
2. Create labels or make envelopes to match. You can buy
matching stationery envelopes from the office supply store.
Then have them pre-printed from a local graphics artist or do it
yourself with a personal hand stamp that you can order.
Another option is to print labels with your return address in logo
format, or you can always print one envelope at a time, as needed.
Prepare both large (9x12) and letter-size envelopes as well.
3. Use your newly designed logo for other personally made
forms for office use, such as memorandums, invoices, and fax
transmittal sheets. Keep a supply of several forms on hand. When the
logo starts to fade from too much copying, you may want to re-do
your logo or letterhead or farm it out to a local printer if it doesn't cost
too much.
4. Create excel spreadsheets, or another type, for charts, graphs,
and business accounts and records. Name these and store print copies
in files by the same name. You can use a smaller version of the logo in
the corner or at the top if you prefer.
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5. Phone pads, note pads, and other office forms can be created
by using the logo as indicated. You will need order forms, billing
statements, receipts, and bank statements that reflect your
company's image. You can also design a Website or start a newsletter
to get your company's name and image out into the community. You
want customers (and even potential customers) to associate your logo
with your name so they will remember it for the future. Keep colors,
sizes, and designs consistent when possible. Buy from the same
supplier for this reason, or match as closely as you can when your
current supply runs out. You may have to switch to another item
number or supplier if the items no longer match to avoid looking
unprofessional. In addition, you will need to get plain bond paper for
other types of forms and writing, along with file folders, a rolodex,
and storage boxes or cabinets for supplies and files. Keep plenty of
paper on hand, as you will need to keep good records for future
reference.
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11. The Pronoun and qualifying expressions
The Conventions of Formal Written Register
If you decide that your writing should be more formal, or your
professor has asked you to write more formally, here are some
conventions to follow.
a) Avoid Words and Expressions from Spoken English
Informal words and expressions common in spoken English
(colloquialisms) are often inappropriate when using formal written
register. Try to:
Remove slang
Hillary totally flipped after the Speaker of the House ragged her in the
press.
First Lady Hillary Clinton became incensed after the Speaker of the
House criticized her in the press.
Where possible, choose more formal vocabulary
Following the clean-up, algae levels in the river were pretty good
compared to before.
Following the clean-up, algae levels in the river were much improved.
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The President’s assistant checked out the incident and got back to her
the next day.
The President’s assistant investigated the incident and reported to her
the next day.
Avoid contractions
The English Monarchy wasn't responding to the needs of the
population.
The English Monarchy was not responding to the needs of the
population.
Find alternatives to beginning a sentence with so, and, or but
So, air pollution increased significantly across the region.
As a result, air pollution increased significantly across the region.
And postmodernists agree that her opinions are steeped in nineteenth
century thinking.
In addition, postmodernists agree that her opinions are steeped in
nineteenth century thinking.
But this essay will argue in favor of a neo-structuralist approach to the
problem.
However, this essay will argue in favor of a neo - structuralist
approach to the problem.
Rephrase lists which include etc.
The consequences were higher taxes, lower wages, unemployment,
etc.
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The consequences included higher taxes, lower wages, and
unemployment.
b) Use Impersonal Constructions When Expressing Opinions
I believe NATO’s strategy was poorly designed and carelessly
implemented.
We argue that NATO’s strategy was poorly designed and carelessly
implemented.
You can see that NATO’s strategy was poorly designed and carelessly
implemented.
In all the examples above, the writer believes that NATO’s strategy
was poorly designed and carelessly implemented.
The phrases I believe, we argue, and you can see can all be found in
samples of academic writing across the disciplines. However, as
mentioned above, some professors believe I, we and you are not
always appropriate in formal written register. If you need to increase
formality in this area, we recommend you use impersonal structures.
This can be done in a variety of ways.
First, an opinion can be stated directly. It should be obvious what the
writer believes if she/he writes:
NATO’s strategy was poorly designed and carelessly implemented.
The writer can also invoke authority.
Jane Kay has argued that NATO’s strategy was poorly designed and
carelessly implemented.
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Many scholars believe that NATO’s strategy was poorly designed and
carelessly implemented.
Whether the writer agrees or not with the opinion will become clearer
in the sentences which follow:
Jane Kay has argued that NATO’s strategy was poorly designed and
carelessly implemented. This is confirmed by the catastrophic events
which followed.
Many scholars believe that NATO’s strategy was poorly designed and
carelessly implemented. However, this paper will challenge these
claims.
Using Qualifying Words and Phrases
Sometimes writers state opinions directly:
American cultural hegemony is destroying local traditions all over the
world.
Research shows, however, that academic writers are often cautious
about making such strong claims or statements in their work; that is,
they prefer to comment on, or hedge, an opinion:
It is possible that American cultural hegemony is destroying local
traditions all over the world.
or Arguably, American cultural hegemony is destroying local
traditions all over the world.
or American cultural hegemony may be destroying local traditions all
over the world.
This is done in formal writing for several reasons. As stated above, the
approach of formal register is objective and rational, rather than
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subjective and polemical. If you state your opinions directly, without
qualifications, then you may sound dogmatic, and the reader might
think that you are simplifying the issue(s) involved. In addition, by
leaving room for some uncertainty - even when you are convinced
yourself - you leave space for your readers to reach their own
conclusions, based on the evidence you present. In the end, they may
indeed be persuaded by your evidence that American cultural
hegemony is destroying local traditions all over the world.
As Joseph Williams has pointed out, academic disciplines have
various approaches to how doubt and certainty should be expressed;
you should examine texts in your field to see when and how
qualifying comments are made. Some common techniques include
using modals (such as can and may) adverbs (including possible and
apparently) as well as adjectives (such as certain and probable).
Sentence Length, Complexity and Punctuation
There are no rules governing sentence length or complexity in
English. Sentences can be short and complex, or long and simple.
Generally, it is best to vary the length and complexity of sentences so
the reader’s interest is maintained and/or they are not overburdened.
In general:
Try to combine very simple sentences.
Not
In 1976, he was assassinated. This was bad politically. Chaos
resulted.
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But
His assassination in 1976 resulted in political chaos.
Do not include too many ideas in the same sentence:
Not
His assassination in 1976 resulted in political chaos as all three
opposition parties refused to recognise the president’s hand-picked
successor, and for several weeks the situation remained uncertain and
tense until a delegation from the OAU arrived in the country and met
with members from all sides in the dispute, and brokered a peaceful
resolution to the crisis before any violence took place.
But
His assassination in 1976 resulted in political chaos. All three
opposition parties refused to recognise the president’s hand-picked
successor, and for several weeks the situation remained uncertain and
tense. Finally, a delegation from the OAU arrived in the country, met
with members from all sides in the dispute, and brokered a peaceful
resolution to the crisis before any violence took place.
In other words, use punctuation, conjunctions and linkers to vary
sentence complexity. In some cases, punctuation choices can
drastically change meaning. We suggest you read work aloud; often
the placement of commas, semi-colons and periods (full stops)
becomes clearer when you listen to the text. For further
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recommendations on the use of other elements of punctuation, such as
dashes or quotation marks, consult style manuals in the library.
There are some rules to help you make comparisons in English.
1 If the adjective (describing word) is one syllable, you can add -er.
For example, small – smaller; big – bigger; nice – nicer.
2 If the adjective has two syllables, but ends in -y, you can change the
end to -ier.
For example, lucky – luckier; happy – happier.
3 With other English adjectives of two syllables and more, you can't
change their endings. Instead, you should use more + adjective.
For example, handsome – more handsome; beautiful – more beautiful
and so on.
4 When you compare two things, use 'than'.
"She's younger than me."
"This exercise is more difficult than the last one."
5 When you want to say something is similar, use 'as – as'.
For example, "She's as tall as her brother" or "It's as nice today as it
was yesterday."
6 When you want to say one thing is less than another, you can either
use 'less than' or 'not as – as'.
For example, "This programme is less interesting than I thought" or
"This programme is not as interesting as I thought."
7 Remember that some adjectives are irregular and change form when
you make comparisons.
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For example, good – better; bad – worse; far – further.
Using qualifying expressions
You can vary the strength of the comparison by using "qualifying"
expressions.
1. Comparing two things
You can use "a lot", "much", "a little", "slightly" and "far" before
"more / less than":
"She's a lot more intelligent than him."
"This car is much faster than the other one."
"They are much less wealthy than they used to be."
"He's a little taller than his sister."
"She's slightly less interested in football than him.
"We are far more involved in charity than they are."
When you use these qualifying expressions in English, remember the
rules about using -er. If the adjective is one syllable, or ends in -y, add
-er:
"He's far taller than her." (NOT "He's far more taller…")
"I'm much lazier than you!"
When the adjective is two syllables and more, you need either "more"
or "less":
"He's a little more prepared for the exam than she is." (NOT "He's a
little prepareder…")
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2. Saying how two things are similar
You can use "almost as … as", "not quite as … as", "(not) nearly as …
as", "nowhere near as … as", "twice as … as" and "half as … as" to
change the extent of the similarity.
"She's almost as good as you!"
"He's not quite as confident as Susie."
"I'm not nearly as intelligent as her!"
"This painting is nowhere near as famous as the first."
"She's twice as old as him!
"He's half as interesting as you!"
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12. The contract: - types
12.1. - content
12.2. - negotiation
In daily life, most contracts can be and are made orally, such as
purchasing a book or a sandwich. Sometimes written contracts are
required by either the parties, or by statutory law within various
jurisdiction for certain types of agreement, for example when buying a
house or land.
As a means of economic ordering, contract relies on the notion
of consensual exchange.
In American English, the term extends beyond the legal meaning
to encompass a broader category of agreements.
Contract management or contract administration is the
management of contracts made with customers, vendors, partners, or
employees. Contract management includes negotiating the terms and
conditions in contracts and ensuring compliance with the terms and
conditions, as well as documenting and agreeing on any changes that
may arise during its implementation or execution. It can be
summarized as the process of systematically and efficiently managing
contract creation, execution, and analysis for the purpose of
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maximizing financial and operational performance and minimizing
risk.[1]
Common commercial contracts include employment letters,
sales invoices, purchase orders, and utility contracts. Complex
contracts are often necessary for construction projects, goods or
services that are highly regulated, goods or services with detailed
technical specifications, intellectual property (IP) agreements, and
international trade.
A study has found that for "42% of enterprises...the top driver
for improvements in the management of contracts is the pressure to
better assess and mitigate risks"
Contracts can be of many types’ sales contracts (including
leases), purchasing contracts, partnership agreements, trade
agreements, and intellectual property agreements.
A sales contract is a contract between a company (the seller) and
a customer that where the company agrees to sell products and/or
services. The customer in return is obligated to pay for the
product/services bought.
A purchasing contract is a contract between a company (the
buyer) and a supplier who is promising to sell products and/or services
within agreed terms and conditions. The company (buyer) in return is
obligated to acknowledge the goods / or service and pay for liability
created.
A partnership agreement may be a contract which formally
establishes the terms of a partnership between two legal entities such
that they regard each other as 'partners' in a commercial arrangement.
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However, that such expression may be merely a business-expression
to reflect the desire of the contracting parties to act 'as if' both are in a
partnership with common goals.
Having a negotiation strategy going into contract negotiations is
critical. As the person negotiating a contract you must be willing to
concede on some terms and conditions to get what you want. Of
course, any contract negotiation requires two parties willing and able
to accept that each has their own agendas in writing a contract in favor
of one party versus the other. Developing a sound contract requires
both parties to share in the potential risks.
Some of the negotiation strategies used by contract lawyers and
contract negotiators can be recognized as soon as you meet the other
party. One of the most common negotiation strategies is to be
overbearing and create an image of intimidation by coming to a
contract meeting with a large group. Another common contract
negotiation strategy is to state that you can't change any term or
condition and it is what is. However, just remember every term and
condition is negotiable the key is to find a win win negotiation or
common ground between both parties.
The person initiating or paying for the contract has a little more
bargaining power in negotiations even though the other party will act
like they can't accept risks. As the person negotiating a contract you
must decide what is the repercussions if I just walk away from the
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deal if you can't reach a common ground. If the other party is standing
their ground and you really need a term or condition in your favor
don't be afraid to tell them that you're going to cancel the deal. This
will get the attention of the other party and then open the line of
communication.
Contracts are a tool to establish who, what, when and how a
particular service or product with perform. The art of negotiation is
nothing more than talking and reaching a common understanding of
the duties of each party.
Some people negotiating a contract make it really more
complicated than it really is all about. When negotiating a contract
you have to minimize risks and after that all the little details are about
making a business decision and standing by your word to get the job
done or that the product will perform according to the specification
and requirements.
The outsourcing contract is one of the most important documents
in an outsourcing relationship. The contract, terms and the quality of
the contract will largely influence the outsourcing relations,
governance and overall the success of the outsourcing venture.
In order to take full advantage of outsourcing and minimize risks
all involved parties should carefully consider a few guidelines;
Align the goals and objectives of both the service provider and
the customer
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• Measure accurately what work is being accomplished. Match
the work performed with invoices.
• Accurately forecast the demand for outsourced resource.
• Jointly, with the service provider, innovate, re-engineer work
processes and achieve technology innovation to improve productivity,
efficiency and quality. Use rewards and incentives for innovation and
improvements.
• Build in the contract gainsharing, incentives and penalties.
• Ensure transparency and accountability. This will largely
determine the development of the outsourcing relationship
• Plan for change.
• Build in as much flexibility as possible.
• Negotiate and re-negotiate agreements.
• The contract must provide enough flexibility to meet
unforeseen demand changes upward or downward. Effective
outsourcing contract negotiation requires that needs, business and
technology requirements, projected demand growth, peak periods,
projected business shifts, and required service levels are all known.
- Manage contract cycle, maintain version history and control
change process. Keep the contract and related documents up to date.
- Hope for the best but prepare for the worst. Be realistic. After
the “honeymoon” is over difficult issues might arise along the way
and hurt the outsourcing relationship badly.
- Preparation should start before the contract is signed. Be clear
on dispute resolution, termination rights, change control, approval
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process, intellectual property ownership and handling of
subcontractors. Have a clear exit strategy.
- Pricing should be negotiated in order to reflect planned growth
and projected as well as un-projected peak demand. Wherever
possible, demand should be quantified in advance to obtain a more
favorable price. Un-projected demands will likely drive costs higher
because of the service provider's motivation to build as much into the
annuity portion of the contract as possible. Reserve the right to
renegotiate requirements and pricing if necessary.
Today, contracts between the customer and the service
provider(s) generally fall into one of the following categories;
- Labor based contracts. There is an hourly or monthly labor
rate assigned to different skill levels. Here the contract anticipates a
general volume of work, has quality of service goals, and places
constraints on the total labor anticipated for accomplishing the work
within that framework. In this type of contract there is little to no
incentive for the service provider to improve efficiency, since the
result is fewer billable hours and less revenue.
- Transaction based contracts. The service provider is paid for
completed transactions. Usually there are service quality goals, as well
as expected transaction volume. This type of contract could encourage
the service provider to find ways to be more efficient to process more
transactions with the same resources. This type of contract is typical
for BPO services.
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- Goal based contracts – gainsharing. The customer and the
service provider establish efficiency and effectiveness goals together
in a way that it encourages improvements. This is accomplished as a
result of transparency and accountability. The customer and the
service provider can jointly investigate efficiency and effectiveness
initiatives, quantify the potential impact, and share the benefits of
achieving the goal of the initiative.
Key terms to negotiate
The most difficult issues that arise in the outsourcing transaction
involve pricing and service levels and how the parties measure
performance and adjust for changes in the customer’s needs and the
business and technology environment in which they are operating.
To resolve those issues it is necessary to examine and understand
the different perspectives of the supplier and the customer.
The customer is turning to the supplier for its expertise in
providing various services and dealing with technology and/or
business process issues in a professional, cost effective manner. The
customer wants the supplier to take responsibility for the operation of
a portion or all parts of the outsourced functions/process. The
customer, however, is dependent to a certain degree upon the
outsourced functions for the success of its business. Accordingly the
customer wants to be sure that it achieves the predefined goals of
outsourcing gets quality service at the lowest price.
The supplier, on the other hand, wants a long-term, profitable
relationship. At the same time it has to be concerned about any threats
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against its return on investment such as financial penalties for failure
to meet service levels or missing deadlines, re-pricing or re-scoping as
a result of benchmarking. These are threats to the supplier’s
profitability and the return on investment.
The contents of an outsourcing contract
- The scope and detailed definition and description of services
and/or products to be delivered.
- Provide a clear statement on the rights and obligations of both
parties, so that each party know what it must do under the agreement
and what benefits it will receive in return.
- Governance structure, representation and reporting
requirements
- General conditions about security, privacy and warranties
- Set out the plan and schedule that will apply to the delivery and
implementation of the products and services specified in the
agreement.
- Provide a clear procedure for the parties to control changes to
the project and agree on the impact that any changes will have on the
timetable and the price.
- Set out the basis by which the customer will measure and
accept the services/products delivered and how the payment(s) will
then apply.
- Define the procedures to resolve any disputes promptly and
provide effective and commercially realistic remedies for both parties
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in the event of contractual default by the other. It also should include
any limitation of liability, termination and re-negotiation conditions.
- Define any ownership of rights, products, licenses and
intellectual property.
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13. Who’s Who in economics
Selection of Who's Who related to Economics
(For more detail on most of these entries, see the History of
Economic Thought website at http://cepa.newschool.edu/het/)
Becker, Gary. b. 1930. One of the many prominent economists
associated with the University of Chicago, Becker won the Nobel
Prize in economics for his applications of economic methods to a
variety of novel situations.
Boulding, Kenneth. b. 1910. This British born economist taught
for many years at the University of Michigan and then at the
University of Colorado.
Buchanan, James. b. 1919. A founder of a branch of economics
called Public-Choice economics; Buchanan won a Nobel Prize for his
contributions to economics in 1986.
Fischer, Irving. 1867-1947. an amazingly prolific writer on a
wide range of topics, Fisher may have been the most important
American-born economists during the first half of the twentieth
century. A professor at Yale University, he made contributions in
many areas of economics, including monetary theory, mathematical
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economics, index numbers, and the theory of interest. Among the
reform movements he championed were prohibition of alcohol and
eugenics.
Friedman, Milton. b. 1912. One of the most important
economists of the twentieth century, Friedman is noted for his studies
of monetary history, his development of the permanent income
hypothesis, and his argument that most intellectuals overvalue
political processes and underestimate the importance of market
processes in a free and prosperous society. Friedman won the Nobel
Prize in economics in 1976.
Hayek, Friedrich. - Austrian borne economist who taught both
in England and the United States, Hayek won the Nobel Prize for
economics in 1974. He opposed most government interventions into
the economy. He is perhaps best knows for his early recognition that
markets have the ability to coordinate widely dispersed information.
Hicks, John. b. 1904. This British economist is best known for
his development of the IS-LM model of macroeconomics.
Jevons, W. Stanley. 1835-1882 an economist who was part of
the "Marginalist Revolution" in the late nineteenth century.
Keynes, John Maynard. 1883-1946. the author of the General
Theory of Employment, Interest, and Money (1936), the ideas of this
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British economist have dominated the approach to macroeconomics
for most of the twentieth century.
Knight, Frank. 1885-1972. Knight taught at the University of
Chicago from 1928 until 1958, helping to give the economics
department at that institution its special flavour.
Malthus, Thomas. 1766-1834. An English economist who is
remembered for his theory of population, published originally in 1798
as Essay on the Principle of Population.
Marshall, Alfred. 1842-1924. the most influential economist at
the end of the nineteenth and the beginning of the twentieth century,
his textbook was the standard for several generations of students.
Marshall taught at Cambridge University in England from 1885 until
1908.
Marx, Karl. 1818-1883. A German social philosopher whose
writings have had enormous influence on the theory and practice of
socialism. His Communist Manifesto (1848) was a call to action, while
his Das Kapital, unfinished at his death, contains his theoretical
structure.
Mill, John Stuart. 1806-1873. the son of James Mill (1773-1836)
who was also an influential writer in economics, John Stuart Mill's
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most important work in economics was Principles of Political
Economy (1848).
Modigliani, Franco. Though born in Italy, Modigliani has spent
most of his professional career teaching in American universities. He
won the Nobel Prize in economics in 1985 for several important
contributions to the field, one of which was the life-cycle hypothesis
of consumption.
Okun, Arthur. 1928-1980. An American economist who came to
prominence as a member and then chair of the Council of Economic
Advisors during the Kennedy and Johnson Administrations during the
1960s. Okun's Law is named after him. It is a statistical regularity that
says a 1% reduction in unemployment yields a 3% increase in real
GDP.
Pareto, Vilfredo. 1848-1923. - An Italian economist and
sociologist.
Popper, Karl. - An Austrian-born philosopher whose writings on
the methods of science have been influential.
Rawls, John. Rawls is not an economist, but rather a philosopher
whose writing on justice, based on a social contract model, have
influenced many economists.
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Ricardo, David. 1772-1823. Ricardo was the most influential
economist in the generation after Adam Smith. His principle work was
The Principles of Political Economy and Taxation (1817). He made
important contributions in the understanding of foreign trade, but his
theory of value sent economics down a blind alley that was not
abandoned until the 1870s.
Robbins, Lionell. 1898-1984. - A British economist prominent
between World War I and II.
Say, Jean Baptiste. 1767-1832. This French economist spread
the message of Adam Smith in France.
Schumpeter, Joseph. 1883-1950. This Austrian-born economist
was one of the giants among economists in the first half of the
twentieth century. Schumpeter emphasized the dynamic nature of
market economies.
Smith, Adam. 1723-1790. A Scottish intellectual who’s most
important work was The Wealth of Nations in 1776. Smith is often
called the father of economics.
Stigler, George. b. 1911. This Nobel Prize winner of 1982 was
one of the mainstays of the Chicago school of economics. His work
was in several fields of microeconomics.
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Stiglitz, Joseph. b. 1943. Stiglitz is well known for his work in
analyzing markets where price determines quality rather than the
reverse.
Thornton, Henry. 1760-1815. a banker, philanthropist, and
Member of Parliament, Thornton's is now only remembered for as
author of An Enquiry into the Nature and Effects of the Paper Credit
of Great Britain (1802), which many economists consider the most
insightful work on monetary theory written prior to the late nineteenth
century.
Walras, Leon. (1834-1910). – He was one of the first
mathematical economists; a man who formally developed the theory
of general equilibrium.
Wicksell, Knut. 1851-1926. Wicksell was a Swedish economist
who wrote at the turn of the century and had a profound influence on
the Swedish economists who came after him. His work only gradually
was recognized in the English-speaking world for its originality and
depth. He made important contributions to the literature on business
cycles and capital theory.
Thumbing through the entries in Who's Who in Economics does
give a unique insight into the concerns and findings of the world's
leading economists - a vital resource for the profession.
