1. Business English Upper Intermediate U1S09 John Silberstein johnsilb@aol.com

2. Agenda Current Events: Europe Weighs Rescue Plan for Greece Investment and Debt Metaphors – Time Metaphors. Pricing

3. Current Events What may be the most efficient way to prevent the spread of the debt crisis? Why might it be important to just give money to Greece to solve their national debt crisis? Why is the credibility of the Euro important? What would occur if the value of the Euro dropped? What do you think Credit Insurance is? Europe Weighs Rescue Plan for Greece

4. Investment and Debt Companies can put money into investment projects in other countries in private direct investment. With free cross-border capital flows, they can repatriate their profits to their own country, or withdraw their investment altogether. There is debate about whether governments should try to limit capital inflows, and outflows with capital controls or whether they should follow the global trend towards liberalization. Some economists say that too much liberalization leads to instability in a country’s economy, with foreign exchange crises which lead to devaluation or depreciation – its currency becomes worth less in terms of other currency (relative value). For example, some say that China’s growth has benefited from the fact that its currency is not freely convertible, thus avoiding the capital outflows that other Asian economies have suffered from at various times. Direct Investment

5. Investment and Debt The International Monetary Fund (IMF) and the World Bank play an important role in the development of less-developed countries. A main function of the World Bank is to lend money to countries so that they can obtain the conditions for economic growth. For example, it sponsors infrastructure projects – road building, water supply systems, etc. – and projects in health education and agriculture. But developing countries may build up unsustainable levels of debt and be unable to repay their debts. The IMF has debt reduction programs for Heavily Indebted Poor Countries (HIPCs) that will reduce the amount of money that they owe. It also contributes to work on the Millennium Development Goals – specific targets relating to poverty reduction and the stimulation of growth in poor countries. Borrowing

6. Investment and Debt Burden:The amount of debt that a country has – this is seen as a problem. Service:making payments on a debt. Rescheduling:When lenders agree that a debt can be repaid in a different way or at a different time – also, Restructuring Relief:When lenders agree that debts do not need to be repaid – also, Forgiveness. Word Combinations with Debt

7. Investment and Debt 1.Withdraw 2.Depreciate 3.Pull out 4.Soar 5.Spur 6.Vulnerable 7.Perilous 8.Calamity 9.Vicious circle 10.Inflation Exercise: match expressions with definitions 1.Very Dangerous 2.Take out 3.Disaster 4.Leave 5.Easily affected by something else 6.Cause 7.Lose value 8.Rising prices 9.Rise fast 10.When a problem occurs that causes another problem to occur, which causes...

8. Metaphors Time is money! In English, time is like money, it is something that you can buy and use. Look at the following Expressions: We need to buy some more time for our assignment. I can’t afford to spend more time on this! It was worth waiting for! This is wasting my precious time!

9. Metaphors Money Metaphors: Time is Money In English, time is like money, it is something that you can buy and use. Look at the following Expressions: We need to buy some more time for our assignment. I can’t afford to spend more time on this! It was worth waiting for! This is wasting my precious time!

10. Metaphors Money Metaphors: Money is like Liquid What are they talking about. What do the following expressions mean: I wouldn’t if I were you. Investing in their stock is like pouring money down the drain. They have started to liquidate their assets. I wonder how long they can stay afloat. In a situation like that, anybody would find it difficult to keep their head above water. I can’t believe that the bank went under. They sank like a rock during the financial crisis!

11. Marketing Pricing Since the only legitimate object of a business is to make a decent profit, few things can be as important as the price tag you put on your product. The difficulty is that pricing is the most difficult things to determine. Which of these pricing methods is best: As a true reflection of value, Cost plus markup, Whatever the market will stand.

12. Marketing Pricing Since the only legitimate object of a business is to make a decent profit, few things can be as important as the price tag you put on your product. The difficulty is that pricing is the most difficult things to determine. Which of these pricing methods is best: As a true reflection of value, Cost plus markup, Whatever the market will stand.

13. Marketing Pricing Remember, there are two types of pricing to consider, B2C and B2B. Most B2C pricing is not negotiable. The price is listed and that is the price you will pay. You do not negotiate at the cashier for each item. You will negotiate a price for high priced items such as a new car. B2B sales tends to be price negotiable. Any product that a business uses in quantity can be negotiated, from Phone Service to Computers to Stationary.

14. Marketing Pricing When pricing a product, you need to consider cost. What are the elements that determine cost? For a Product: Raw Materials Production Costs Labor Costs Sales and Advertising Costs Distribution Costs Misc. Overhead Costs/Back Office Costs For a Service: Development Costs Labor Costs Sales and Advertising Costs Misc. Overhead Costs/Back Office Costs

15. Marketing If the Price is right… Why would a cup of coffee purchased on the Champs-Elysees or the Eiffel Tower be more expensive than a cup of coffee purchased in Colombia? On the first paragraph of page 2, what is the meaning of the phrase, “prices remain alarmingly elastic.” Why does is the pricing of products between countries create tension?