The Name Of Investment Advisory Service The Motley Fool Was Inspired By A Work Written By Whom?

��, �� , ��, �� , �� , �� (�� ), � �� (�� ). ��, ��, �� , �� , � �� . ��, �� , � �� . � �� , �� , �� , �� , �� .

TEXT ii

Taxes and Public Spending

�� .

�� 10 �� � �� .

In most economies government revenues come mainly from direct taxes on personal incomes and visitor profits as well equally indirect taxes levied on buy of goods and services such every bit value added tax (VAT) and sales revenue enhancement. Since state provision of retirement pensions is included in government expenditure, alimony contributions to country-run social security funds are included in revenue, too. Some small-scale component of government spending is financed through government borrowing.

Government spending comprises spending on goods and services and transfer payments.

Governments mostly pay for public appurtenances, that is, those appurtenances that, even if they are consumed past one person, can still be consumed by other people. Clean air, national defence, wellness service are examples of public goods. Governments also provide such services as police, fire-fighting and the assistants of justice . A transfer is a payment, usually by the authorities, for which no respective service is provided in render. Examples are social security, retirement pensions, unemployment benefits and, in some countries, nutrient stamps.

In nearly countries there are campaigns for cutting government spending. The reason for it is that high levels of government spending are believed to frazzle resources that can be used productively in the private sector. Lower incentives to piece of work are besides believed to issue from social security payments and unemployment benefits.

Whereas spending on appurtenances and services directly exhausts resources that can be used elsewhere, transfer payments do not reduce society'due south resources. They transfer purchasing power from 1 group of consumers, those paying taxes, to another grouping of consumers, those receiving transfer payments and subsidies.

Some other reason for reducing authorities spending is to brand room for revenue enhancement cuts.

Government intervention manifests itself in revenue enhancement policy which is different in different countries. In the United Kingdom the government takes nearly xl pct of national income in taxes. Some governments take a larger share, others a smaller share.

The most widely used progressive tax construction is the one in which the average taxation rate rises with a person's income level. As a result of progressive tax and transfer system most is taken from the rich and most is given to the poor.

Rising tax rates initially increment tax revenue but eventually result in such large falls in the equilibrium quantity of the taxed article or activity that revenue starts to autumn again. High tax rates are said to reduce the incentive to work. If half of all we earn goes to the government, we may prefer to piece of work fewer hours a week and spend more time in the garden or watching television.

Cuts in tax rates will usually reduce the deadweight revenue enhancement burden and reduce the amount of taxes raised just might increase eventual acquirement.

If governments wish to reduce the deadweight taxation burden and balance spending and revenue, they are supposed to reduce government spending in order to cut taxes.

�� 1

�� .

1. Taxes of the firm to central government (corporation tax) plus taxes to local regime (tax on the property the firm owned) were expected to come to £25,000 that year.

2. Function of the income of households is taxed past the government, which reduces the income share to be allocated to consumption expenditure.

3. Less efficient resources allocation is believed to result from raising the additional taxation acquirement necessary to fund regime programmes.

iv. Aggressive United states subsidization of production and exports of subcontract products was followed by that of other exporting countries, mainly the European Customs and Canada, which resulted in competitive subsidization and price discrimination.

v. Levying taxes or borrowing, governments pay for the goods they buy and for the transfer payments they brand.

6. In a mixed economy, the regime is known to command a considerable share of output through taxation, transfer payments, and such services as defense and the constabulary force.

vii. Unemployment do good systems are said to vary considerably from country to state.

eight. The purpose of that book is to show that at that place are limitations in the economic system that no person and no policy can overcome.

ix. Both those who provide capital for a new business organisation and those who run the business concern are known to bear the take chances whereas workers of such businesses are not expected to deport whatever chance.

x. Social security programmes may contain retirement pensions, invalidity benefits, kid benefits paid for every kid in a family unit, housing benefits for depression income households, etc.

�� 2

�� .

i. �� .

2. ��, �� .

3. �� , �� , �� .

iv. �� - ��, �� , �� , �� .

�� 16

�� . ��

TEXT1

Foreign Trade

�� .

�� �� �� �� .

What is now called international merchandise has existed for thousands of years long before in that location were nations with specific boundaries. Foreign trade means the exchange of appurtenances and services betwixt nations, but speaking in strictly economic terms, international trade today is not between nations. Information technology is between producers and consumers or between producers in dissimilar parts of the earth. Nations do not trade, just economical units such equally agricultural, industrial, and service enterprises tin participate in trade.

Goods tin can exist defined as finished products, as intermediate appurtenances used in producing other appurtenances, or as agricultural products and foodstuffs. In�ternational merchandise enables a nation to specialize in those appurtenances it can pro�duce most cheaply and efficiently and it is one of the greatest advantages of merchandise. On the other hand, trade also enables a country to consume more than than it can produce if it depends only on its ain resources. Finally, trade expands the potential market for the goods of a particular economy. Trade has always been the major factor ensuring adept economic relations amongst nations.

Dissimilar aspects of international merchandise and its office in the domestic economy are known to have been developed by many famous economists. International merchandise began to assume1 its nowadays class with the establish�ment of nation-states in the 17th and 18th centuries, new theories of eco�nomics, in particular of international merchandise, having appeared during this menstruation.

In 1776 the Scottish economist Adam Smith, in The Wealth of Na�tions, proposed that specialization in production leads to increased out�put and in order to see a constantly growing need for goods it is necessary that a country'southward scarce resources be allocated efficiently. Air-conditioning�cording to Smith'south theory, it is essential that a country trading interna�tionally should specialize in those goods in which it has an accented ad�vantage - that is, the ones it can produce more cheaply and efficiently than its trading partners tin. Exporting a portion of those goods, the country can in turn2 import those that its trading partners produce more cheaply. To evidence his theory Adam Smith used the example of Portuguese wine in dissimilarity to English woolens3.

Haifa century afterwards, having been modified by the English language economist Dav�id Ricardo, the theory of international trade is still accepted by most mod�ern economists. In line with the principle of comparative reward, it is im�portant that a state should proceeds from trading certain goods even though its trading partners can produce those goods more cheaply. The compara�tive advantage is supposed to exist realized if each trading partner has a prod�uct that will bring a amend toll in some other country than it will at home. If each state specializes in producing the goods in which it has a compara�tive advantage, more goods are produced, and the wealth of both the buying and the selling nations increases.

Merchandise based on comparative reward still exists: France and Italy are known for their wines, and Switzerland maintains a reputation for fine watches. Aslope this kind of trade, an exchange based on a competitive advantage began late in the 19th century. Several countries in Europe and North America having reached rather an advanced stage of industrialization, competitive advantage began to play a more important role in trade. With relatively similar economies countries could start competing for customers in each other's home markets. Whereas comparative advantage is based on location, competitive advantage must exist earned past product quality and cus�tomer acceptance. For example, German manufacturers sell cars in the United States, and American automakers sell cars in Germany, both coun�tries too as Japanese automakers competing for customers throughout Europe and in Latin America.

Thus, international trade leads to more efficient and increased world pro�duction, allows countries to consume a larger and more various amount of appurtenances, expands the number of potential markets in which a country tin sell its goods. The increased international demand for goods results in greater production and more than extensive apply of raw materials and labour, which means the growth of domestic petition from international trade tin can also force domestic firms to become more efficient through moderniza�tion and innovation.

It is obvious that within each economy the importance of foreign trade varies. Some nations export only to expand their domestic market or to aid economically depressed sectors inside the domestic economy. Other nations depend on trade for a large function of their national income and information technology is often im�portant for them to develop import of manufactured goods in order to supply the ones for domestic consumption. In recent years foreign trade has also been considered as a means to promote growth within a nation's economic system. Developing countries and international organizations have increasingly em�phasized such trade.

strange merchandise � �� syn international merchandise

wholesale trade � �� syn wholesaling

wholesaler � ��

retail trade � �� syn retailing

retailer � �� participate

to enable smb to do smth � �� -�. �� -�. ��; �� -�. �� -�.

expand ��, ��

major �� , ��

co-ordinate to prep ��, � ��

in accord with � � �� -�., �� -�. syn in line with

absolute advantage � ��

comparative advantage - �� to compare with smth � �� -�.

to compare to smth � �� -�.

in comparison with smth � � �� -�.

proceeds ��; ��; ��

gain ��; ��; ��

gains ��; ��; ��, ��; ��, ��

competitive ��, ��

competitive reward � ��, ��

competition ��; ��; ��

competitiveness ��

compete ��, ��

to compete in smth � �� -�.

to compete with smb � �� -�.

to compete for smth � �� -�.

relatively ��, ��

relative adj ��

customer ��; ��; ��

acceptance ��, ��

�� i

�� :

development (two), developing (2 or 3), adult (3), less developed (1 or 2), to develop

i. Economists should clearly empathise the divergence between the economical growth and economic... of the country.

2. The... countries include Western Europe, N America, Japan, Australia and New Zealand, these rich countries contributing the largest share to world trade and globe income.

iii. To hold the leading part in the market information technology is important... new technologies and materials and introduce dissimilar innovations more than widely.

4. The Full general Associates of the Un called for international cooperation to reduce the growing gap (��) betwixt the... and the... countries.

five. Many countries have realized that the style to the economic... lies through the expansion of industries producing manufactured goods.

6. The... countries ranging from rather poor, such as Yemen and India, to nearly rich, such as Brazil and United mexican states, desire to brand their own manufactured goods and consign them throughout the world including the... countries.

7. Both... middle-income countries, such every bit Argentina and Republic of chile, and very poor... countries of Africa and Asia belong to the countries of the 3rd World.

�� two

�) �� .

��: to deliver � commitment

to employ (ii), to depend, to gain, to insure, to aggrandize, to credit (two), to tend, to construct (2), to exchange, to measure (2), to decide, to cost, to value, to prepare, to increase, to promote

�) �� , �� :

��: innovation -> to introduce

manufacture, operation, consumer, study, cause, divergence, contest, market place, development, emphasis, fall, seller, force, comparing

�) �� , �� :

to differ, advantage, to make clean, to gratis, to market, to add, to depress (ii), to rely, to close, diversity, alternative, to direct, to vary, to lower, to warm, majority, practise, finance, to take

�) ��, �� (�), (�), (�) �� , � �� , � �� .

��: ane. Many developing countries trade in natural resources such as coal, petroleum, ores and others across national boundaries, (trade - ��)

2. The share of Asian countries in world trade is gradually increasing, (merchandise - ��)

�� 3

�� , �� .

�� .

1. Very low reported per capita GNP levels in less (to develop) countries underestimate true income as not all transactions (to record).

2. (To exist) an important part of distribution process, wholesaling helps manufacturers and retailers to avoid the risk of a autumn in need, for instance due to fashion changes.

iii. Part of national spending includes the purchase of (to import) goods and services.

4. In the early on 1950s the Indian regime policy (to adopt) emphasized the land responsibleness for setting upwards new industrial enterprises.

v. concur stocks of goods wholesalers perform a valuable economic function (to maintain) the necessary level of appurtenances supply.

half-dozen. While some domestic income leaks abroad, foreigners buy domestically (to produce) appurtenances and services, the land'southward exports.

7. The LDCs (to allow) individual sector to develop and expand will exist able to savor significant gains from trade in the near future.

eight. (To destroy) by the Bang-up Depression of the 1930s and Globe State of war Ii, international trade reached its level of 1928 merely past the 1960s.

9. At the end of the 19th century, (to apply) innovation of refrigeration, Argentina became the main supplier of frozen meat to the globe marketplace.

x. Product equipment (to include) in physical upper-case letter, the buy of new equipment (to call) investment.

xi. Even (to exist limited) by import quotas and various consign restrictions, the value of international commerce, that is exports plus imports, (to increase) steadily throughout the world.

12. (To pattern) by the British government in 1984, special changes in government policy fabricated fiscal assist more available to service industries (to know) as more labour intensive and (to require) the job cosmos.

�� four

�� , �� .

Goods can be moved direct... the producer... the consumer, merely generally manufactured consumer appurtenances are delivered... consumers... indirect and more complicated channels. Wholesaling is a part... the marketing system continuing ... the manufacturer and the retailer and providing channels... goods distribution.

Wholesalers purchase goods... big quantities and sell them... small quantities... retailers, thus they simplify the distribution procedure. Dealing directly... diverse producers and trading... a large array of items, wholesalers... the same time merchandise... numerous independent retailers, so wholesaling is... great importance both... manufacturers and retailers. Small businesses are known to participate... the field of wholesaling, about 1-quaternary... wholesaling units accounting... ane-third of total sales.

�� 2

A stock exchange

�� :

A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and uppercase events including the payment of income and dividends. Securities traded on a stock exchange include shares issued past companies, unit of measurement trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it must be listed in that location. Usually, at that place is a fundamental location at least for tape keeping, but merchandise is increasingly less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of increased speed and reduced cost of transactions. Trade on an exchange is by members just.

The initial offer of stocks and bonds to investors is past definition done in the principal market and subsequent trading is done in the secondary market place. A stock exchange is often the most of import component of a stock market. Supply and demand in stock markets is driven past various factors that, as in all free markets, touch the toll of stocks (come across stock valuation).

There is usually no compulsion to issue stock via the stock substitution itself, nor must stock be subsequently traded on the exchange. Such trading is said to exist off exchange or over-the-counter. This is the usual mode that derivatives and bonds are traded. Increasingly, stock exchanges are office of a global market for securities.

The part of stock exchanges Stock exchanges have multiple roles in the economy. This may include the following:

Raising uppercase for businesses The Stock Substitution provide companies with the facility to raise capital for expansion through selling shares to the investing public.

Mobilizing savings for investment

When people describe their savings and invest in shares (through a IPO or the issuance of new company shares of an already listed company), it normally leads to rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to assist companies' management boards finance their organizations. This may promote concern activeness with benefits for several economic sectors such as agriculture, commerce and industry, resulting in stronger economic growth and higher productivity levels of firms. Sometimes it is very hard for the stock investor to determine whether or not the resource allotment of those funds is in skillful religion and will be able to generate long-term company growth, without examination of a company's internal auditing.

Facilitating visitor growth

Companies view acquisitions every bit an opportunity to aggrandize product lines, increase distribution channels, hedge confronting volatility, increment its market share, or acquire other necessary business avails. A takeover bid or a merger agreement through the stock marketplace is one of the simplest and most common ways for a company to grow by acquisition or fusion.

Profit sharing

Both coincidental and professional stock investors, equally large as institutional investors or every bit small as an family, through dividends and stock cost increases that may consequence in capital letter gains, share in the wealth of profitable businesses. Unprofitable and troubled businesses may effect in capital losses for shareholders.

Corporate governance

By having a broad and varied scope of owners, companies generally tend to ameliorate management standards and efficiency to satisfy the demands of these shareholders, and the more stringent rules for public corporations imposed by public stock exchanges and the regime. Consequently, it is declared that public companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchanges) tend to have improve management records than privately held companies (those companies where shares are not publicly traded, often endemic past the company founders and/or their families and heirs, or otherwise by a modest group of investors).

Despite this claim, some well-documented cases are known where it is alleged that there has been considerable slippage in corporate governance on the part of some public companies. The dot-com bubble in the late 1990s, and the subprime mortgage crisis in 2007-08, are classical examples of corporate panies like (2000), Enron Corporation (2001), One. Tel (2001), Sunbeam (2001), Webvan (2001), Adelphia (2002), MCI WorldCom (2002), Parmalat (2003), American International Grouping (2008), Conduct Stearns (2008), Lehman Brothers (2008), General Motors (2009) and Satyam Computer Services (2009) were amid the most widely scrutinized by the media.

Withal, when poor financial, ethical or managerial records are known by the stock investors, the stock and the visitor tend to lose value. In the stock exchanges, shareholders of underperforming firms are often penalized by significant share price decline, and they tend every bit well to dismiss incompetent direction teams.

Creating investment opportunities for small investors As opposed to other businesses that crave huge capital letter outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they tin can afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares of the same companies as large investors.

Government capital-raising for development projects

Governments at various levels may decide to infringe money to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known every bit bonds. These bonds can exist raised through the Stock Commutation whereby members of the public buy them, thus loaning money to the government. The issuance of such bonds can obviate the need, in the short term, to straight tax citizens to finance evolution�though by securing such bonds with the full faith and credit of the regime instead of with collateral, the government must somewhen tax citizens or otherwise raise additional funds to make any regular coupon payments and refund the primary when the bonds mature.

Barometer of the economic system

At the stock commutation, share prices ascent and fall depending, largely, on market forces. Share prices tend to ascent or remain stable when companies and the economy in general show signs of stability and growth. An economical recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore the motility of share prices and in general of the stock indexes tin be an indicator of the general tendency in the economy. The stock exchanges are also fashionable places for speculation, in a financial context, the terms "speculation" and "investment" are actually quite specific. For example, although the give-and-take "investment" is typically used, in a general sense, to hateful whatsoever act of placing money in a fiscal vehicle with the intent of producing returns over a catamenia of time, near ventured money�including funds placed in the world'south stock markets�is actually not investment but speculation.

The London Stock Exchange is governed by a council of xxx-six people who are elected by its members. The quango analyses applications by firms who wish their shares to be quoted on the exchange. Very stringent requirements have to be met earlier a quotation is given.

In addition to managing the Stock Substitution and ensuring the protection of the public confronting fraudulent or hundred-to-one companies, the Stock Exchange Council has besides washed much to inform the public about the work of the Stock Exchange and remove the view that it exists only for the wealthy. The visitors' gallery is open up to the public and people may watch brokers and jobbers at work, while listening to an explanatory commentary. The Council provides lecturers, has made films which are available gratuitous of charge, and published many useful booklets and leaflets on the work of the exchange.

There are still relatively few direct investors in U.k.. Even so, ii out of every three adults in United kingdom are indirect investors on the Stock Substitution, since banks, insurance companies, pension funds, trade unions and other similar bodies invest function of their funds in stocks and shares, thereby enabling them to pay to their members a college rate of interest or dividend than they would otherwise be able to give. Direct investors number only about four,000,000 people.

The Wider Share Buying Council formed for the specific purpose of familiarizing people with the functions and workings of the Stock Exchange, has done much to remove barriers of ignorance and fear.

�� 17

�� . ��.

�� 1

WHAT IS Economic science ?

�� :

Ane of the things that people find every day is that you can't have everything. You are reminded of it every time you shop. Although you may see twenty or thirty items that y'all would really like to buy, you know that you will have to limit your choice to 1 or ii. Everyone goes through life having to make choices.

Every business organisation, fifty-fifty sports teams, must pick and cull from among the things they would like to have considering they cannot have everything. Governments, too, cannot have everything. Every year the most important political debates concern questions nigh spending taxpayers' money.

Neither individuals nor societies can have all the things they would like to accept. At that place but is not enough of everything. Economists note that there is no limit to the amount or kinds of things that people want. There is, nonetheless, a limit to the resources, things used to produce goods and services, bachelor to satisfy those wants. Once that limit is reached, nothing else tin can be produced. In other words, when nation's resources (all its workers, factories, farms, etc.) are fully employed, the simply way it will exist able to increase the production of one affair will exist by reducing the product of something else.

To summarize: human being wants are unlimited, only the resources necessary to satisfy those wants are limited. Thus, every society is faced with the identical trouble, the problem of scarcity.

�� 2

ECONOMICS: THE STUDY OF SCARCITY AND Option

�� � �� �� :

Since there is not plenty of everything, everyone� individuals, concern firms, and authorities� needs to make choices from among the things they want. In the procedure they volition try to economize, to become the well-nigh from what they have. With this in mind, we can define economics as the social science that describes and analyzes how social club chooses from amid scarce resource to satisfy its wants.

The need to choose is imposed on us all by our income, wealth and ability to infringe. Individuals and families are limited by the size of their personal income, savings and ability to infringe. Similarly, business firms are limited by their profits, savings and borrowing power, and governments by their power to tax and infringe.

Income, savings, profits and taxes enable people, institutions and government to purchase goods, products you can see or touch, and services, work performed for pay that benefits others. The problem that each must face up, withal, is that once the decision has been made to choose one set of alternatives, i loses the opportunity to cull the other. Economists draw these kinds of trade-offs equally opportunity costs. The opportunity cost of something is its cost measured in terms of what you have to give up to become it.

Business is also faced with the problem of choices and opportunity costs.

�� 3

WHAT DO ECONOMISTS Practise?

�� .

Economics deals with the problems of scarcity and option that have faced societies and nations throughout history, just the development of modern economics began in the 17th century. Since that time economists have developed methods for studying and explaining how individuals, businesses and nations apply their available economic resources. Large corporations employ economists to written report the means they practise business organization and to advise methods for making more efficient utilise of their employees, equipment, factories, and other resources.

Answer the questions:

one. What is the trouble of scarcity?

2. How tin can we ascertain economics?

3. What is the opportunity toll of something?

4. What bug are dealt with by econon. ics?

5. What do economists do?

�� four

MICROECONOMICS VS. MACROECONOMICS

Economists have two means of looking at economics and the economy. Ane is the macro approach, and the other is the micro. Macroeconomics is the study of the economy every bit a whole; microeconomics is the report of individual consumers and the business business firm.

Macroeconomics examines questions such equally how fast the economy is running; how much overall output is being generated; how much total income. It too seeks solutions to macro-economic issues such as how employment can be increased, and what can be done to increase the output of goods and services. Microeconomics examines cause-and-effect relationships that influence choices of indi�viduals, business firms and order.

It is concerned with things such as scarcity, pick and opportunity costs, and with product and consumption. Main emphasis is given past micro economists to the written report of prices and their relationship to units in the economy.

Factors of Production

The resources that go into the creation of appurtenances and services are called the factors of production. The factors of product include natural resources, homo resources, capital and entrepreneurship. Each factor of production has a place in economical system, and each has a detail function. People who own or use a cistron of production are expecting a �render or reward.� This generates income which, as information technology is spent, becomes a kind of fuel that drives the economy.

Natural Resources or �Land�

Natural resources are the things provided by nature that get into the cosmos of appurtenances and services. They include such things as minerals, wild fauna and timber resources. Economists too utilize the term �state� when they speak of natural resources as a factor of production. The price paid for the employ of land is called rent. Hire becomes income to the owner of the land.

Human Resources or �Labor�

Economists call the concrete and mental endeavor that people put into the creation of appurtenances and services labor. The toll paid for the utilize of labor is chosen wages. Wages represent income to workers, who own their labor.

Capital

To the economist, physical capital (or �uppercase� as it is commonly called) is something created by people to produce other goods and services. A factory, tools and machines are capital resource because they can exist used to produce other goods and services. The term uppercase is often used past business people to refer to money they tin can apply to purchase factories, machinery and other similar productive resource. Payment for the use of someone else's coin, or capital, is called involvement.

Entrepreneurship

Closely associated with labor is the concept of entrepreneurship, the managerial or organizational skills needed by near firms to produce goods and services. The entrepreneur brings together the other three factors of production. When they are successful, entrepreneurs earn profits. When they are not successful, they suffer losses. The reward to entrepreneurs for the risks, innovative ideas and efforts that they have put into the business, they obtain the coin that remains after the owners of land, labor and capital letter have received their payments.

�� 5

THE Basic Economic PROBLEM

�� .

The central problem of economic science is to determine the almost efficient ways to allocate the factors of production and solve the problem of scarcity created by lodge'south unlimited wants and express resources. In doing so, every order must provide answers to the following 3 questions:

1. What goods and services are to be produced, and in what quantities are they to exist produced?

2. How are those goods and services to be produced?

3. Who volition receive and consume (go to use) those goods and services?

The solution of these questions depends on the economical organization of each item club.