Reference no: EM133016217

English for Economy and Business

Question 1. Read the the passage, and answer the questions that follow

THE INTERNATIONAL CAPITAL MARKET

During the 1970s, banks in advanced countries lent large sums to firms and government i poorer nations, especially in Latin America. In 1982, however, this era of easy credit came to a sudden and when Mexico and a number of other countries, found themselves unable to pay the money they owned. The resulting "debt crisis" persisted until 1990. In the 1990s, investors once again became willing to put hundreds of billions of dollars into "emerging market", both in Latin America and in the rapidly growing economies of Asia. All too soon, however, this investment booms to come to grief. Mexico experienced another financial crisis at the end of 1994, and many of Asia countries were caught up in massive crisis beginning in the summer of 1997. The roller coaster history contains many lessons, the most undisputed of which is the growing importance of the international capital market.

In any sophisticated economy, there is an extensive capital market; a set of arrangement by which individuals and firms exchange money for promises to pay in the future. The growing impotance of international trade sonce 1960s has been accompanied by a growth in the international capital market of individual countries. Thus, in 1970s oil-rich Middle Enations placed their oil revenuesin banks in London or New York, and these banks in turn lent money to the governments and corporations in Asia and Latin America. During the 1980s, Japan converted much of the money it earned from its booming exports into investment in the United States, including the establisment of a growing number of U.S. subsidiaries of Japanese Corporation.

International capital market differs in imporant ways from domestic capital markets. They must cope with special regulations that many countries impose on foreign investment; they also sometimes offeroppostunities to evade regulation placed on domestic markets. Since 2960s, huge internationalcapital market have risen, most notably the remarkalbe London Eurodollar market, in which billions of dollars are exchanged each day without ever touching the United States.
Krugmann (2000), International Economics (Theory and Policy)

A. Write T (True) if the statement reflect the information inthe text, F (False) if it contradicts and NG (Not Given) if it is not found in the text. (Score 10)
1. Only individuals are allowed to exchange money in the capital market (T/F)
2. International capital market links the capital market of individual countries. (T/F)
3. International capital markets are similar to domesticl capital markets. (T/F)
4. International capital markets offer opportunities to evade regulation placed on domestic markets (T/F)
5. There is no risk associated with international capital markets (T/F)

B. Mach the words in columnA with the meaning provided in colmn B (score 20)
A B
1. Debt a. property used for the production
2. market b. time of difficulty
3. capital c. payment that must be paid
4. crisis d. the total annual income of the state
5. revenue e. very great
6. subsidiary f. an inface between buyers and sellers where the exchange of commodities takea place
7. huge g. money that is acually used in a country
8. court h. place where the law-cases is held
9. currency i. printed paper issued by a government or a corporation acknowledging that money has been lebt tomit and will be paid with interest
10. bond j. money or things given as a help or support

Question II. Read the second text and answer the questions

Pulp Friction
Every second, 1 hectare of the world's rainforest is destroyed. That's equivalent to two football fields. An area the size of New York City is lost every day. In a year, that adds up to 31 million hectares -- more than the land area of Poland. This alarming rate of destruction has serious consequences for the environment; scientists estimate, for example, that 137 species of plant, insect or animal become extinct every day due to logging. In British Columbia, where, since 1990, thirteen rainforest valleys have been
clear-cut, 142 species of salmon have already become extinct, and the habitats of grizzly bears, wolves and many other creatures are threatened. Logging, however, provides jobs, profits, taxes for the government and cheap products of all kinds for consumers, so the government is reluctant to restrict or control it.

Much of Canada's forestry production goes towards making pulp and paper. According to the Canadian Pulp and Paper Association, Canada supplies 34% of the world's wood pulp and 49% of its newsprint paper. If these paper products could be produced in some other way, Canadian forests could be preserved. Recently, a possible alternative way of producing paper has been suggested by agriculturalists and
environmentalists: a plant called hemp.

Hemp has been cultivated by many cultures for thousands of years. It produces fiber which can be made into paper, fuel, oils, textiles, food, and rope. For many centuries, it was essential to the economies of many countries because it was used to make the ropes and cables used on sailing ships; colonial expansion and the establishment of a world-wide trading network would not have been possible without hemp. Nowadays, ships' cables are usually made from wire or synthetic fibers, but scientists are now suggesting that the cultivation of hemp should be revived for the production of paper and pulp. According to its proponents, four times as much paper can be produced from land using hemp rather than trees, and many environmentalists believe that the large-scale cultivation of hemp could reduce the pressure on Canada's forests. However, there is a problem: hemp is illegal in many countries of the world. This plant, so useful for fiber, rope, oil, fuel and textiles, is a species of cannabis, related to the plant from which marijuana is produced. In the late 1930s, a movement to ban the drug marijuana began to gather force, resulting in the eventual banning of the cultivation not only of the plant used to produce the drug, but also of the commercial fiber-producing hemp plant. Although both George Washington and Thomas Jefferson grew hemp in large quantities on their own land, any American growing the plant today would soon find himself in prison -- despite the fact that marijuana cannot be produced from the hemp plant, since it contains almost no THC (the active ingredient in the drug).

In recent years, two major movements for legalization have been gathering strength. One group of activists believes that ALL cannabis should be legal -- both the hemp plant and the marijuana plant -- and that the use of the drug marijuana should not be an offense. They argue that marijuana is not dangerous or addictive, and that it is used by large numbers of people who are not criminals but productive members of society. They also point out that marijuana is less toxic than alcohol or tobacco. The other legalization movement is concerned only with the hemp plant used to produce fiber; this group wants to make it legal to cultivate the plant and sell the fiber for paper and pulp production. This second group has had a major triumph recently: in 1997, Canada legalized the farming of hemp for fiber. For the first time since 1938,
hundreds of farmers are planting this crop, and soon we can expect to see pulp and paper produced from this new source.

Answer the questions below (score 20)

1. How long does it take for 100 hectares of rainforest to be destroyed?
a) less than two minutes b) about an hour c) two hours d) a day
2. Why is pulp and paper production important to Canada?
a) Canada needs to find a way to use all its spare wood.
b) Canada publishes a lot of newspapers and books.
c) Pulp and paper export is a major source of income for Canada.
3. Who is suggesting that pulp and paper could be produced without cutting down trees?
a) the logging industry b) the government
c) the environmental lobby d) the people
4. Why was the plant hemp essential to world-wide trade in the past?
a) Ships' ropes were made from it. b) Hemp was a very profitable export.
c) Hemp was used as fuel for ships. d) Hemp was used as food for sailors.
5. Why do agriculturalists think that hemp would be better for paper production than trees?
a) It is cheaper to grow hemp than to cut down trees.
b) More paper can be produced from the same area of land.
c) Hemp produces higher quality paper
6. When was hemp production banned in Canada?
a) 1930 b) 1960 c) 1996 d) 1938 7. Why was hemp banned?
a) It is related to the marijuana plant. b) It can be used to produce marijuana. c) It was no longer a useful crop. d) It was destructive to the land.

8. What chemical ingredient of cannabis plants is a powerful drug?
a) Fibre b) Marijuana c) THC
9. True or False or Not Given: Some activists believe that both marijuana and hemp should be legal.
a) True b) False c) Not Given
10. True or False or Not Given: Canada has just legalized marijuana.
a) True b) False c) Not Given

Question III. Find the similar meaning for the underlined words (the vocabulary items are from the reading passage) (score: 10)
1. "Every second, 1 hectare of the world's rainforest is destroyed. That's equivalent to two football fields."
a) more than b) less than c) the same as d) much more than
2. "In British Columbia, where, since 1990, thirteen rainforest valleys have been clearcut, 142 species of salmon have already become extinct."
a) a few trees have been cut down b) many trees have been cut down
c) all the trees have been cut down d) a couple of trees have been cut down
3. "Logging, however, provides jobs, profits, taxes for the government and cheap products of all kinds for consumers, so the government is reluctant to restrict or control it."
a) doesn't want to b) is not allowed to c) would like to d) want to
4. "According to its proponents, four times as much paper can be produced from land using hemp rather than trees."
a) people who are against something b) people who support something
c) people in charge of something d) people who want to do something
5. "In the late 1930s, a movement to ban the drug marijuana began to gather force."
a) appear b) get stronger c) get weaker d) get worker

Question IV. Choose the word or phrase that means the same as the phrasal verb used. (score: 10)

1. He has gone through a lot over the past two years.
a. has experienced b. has traveled c. has done
2. He mustered up enough to go to the horror film.
a. have good grades b. gather courage c. make money
3. He gobbled up the turkey before I could have any.
a. cooked b. threw away c. finished eating
4. He is going to have to face up to his past.
a. accept b. explain c. forget
5. I would appreciate it if you could stick up for me the next time we see your mother.
a. introduce b. help with the work c. defend

Question V. Write your CV (score 30)

Attachment:- Economy and Business.rar