Match the English words and word combinations with the Ukrainian equivalents.

TEXT 14

1. Read and translate the text, decide if the statements are ‘true’ or ‘false’.

1. Currency speculation is nothing more than the old rule of buying low and selling high – only with foreign money.

2. Currency speculations create an insuperable obstacle to international trade.

3. Charging transaction fees by currency traders for buying foreign currency is an example of currency speculations.

4. FDI takes place when foreign citizens buy or establish capital goods in our country.

5. There are two types of the exchange market: primary and secondary.

6. Most currency transactions occur in the speculative market.

7. Currency speculations always undermine the economic situation related to trade and investment.

WHAT IS CURRENCY SPECULATION?

Currency speculation exists whenever someone buys a foreign currency, not because she needs to pay for an import or is investing in a foreign business, but because she hopes to sell the currency at a higher rate in the future (in technical language the currency "appreciates").

Some currency speculation is necessary to facilitate international trade. Take, for example, a car manufacturer in Germany which exports cars to the United States. As the U.S. importer of German cars is paying her bill in U.S. dollars, the German exporter receives U.S. currency. But the exporter has to pay her workers and suppliers in German currency, and thus needs to exchange the U.S. currency into Deutsche Marks (DM). Someone has to buy U.S. dollars (U.S.$) so that she can buy DM. Currency traders can make money from simply being middlemen in this process, buying the U.S.$ and charging transaction fees. But many also act as speculators, hoping that they can profit from selling the dollars at a higher price in the future.

Another transaction for which currency speculation is needed is so-called foreign direct investment (FDI). FDI occurs when residents of one country buy or establish production facilities in another country. If a foreign company wants to build a plant here they need to exchange their foreign currency for our native one. Again, they need to find currency speculators who will buy Yen, DM or French Francs because they expect these currencies to gain in value.

The sum of currency transactions that are directly related to trade and investment is considered the "primary exchange market," because it is linked to the exchange of real goods and services. Most currency transactions do not occur in the primary market, though, but in the secondary, or speculative, market.

Treasury Secretary Robert Rubin and other financiers argue that "the proper operations of secondary markets ensure liquidity in the primary markets." In layman's terms, this means that currency speculation is necessary for importers, exporters, and investors, and that more speculation is generally better than less. The more currency speculators are involved in the secondary market, the easier it is for traders and investors to buy and sell foreign exchange when they need to.

Despite this rosy picture, currency speculation can disrupt international trade and economic development. Currency speculators engage in a "guessing game" on whether a currency will increase or decrease in value. To minimize their risk, speculators use strategies that they hope make their guesses more accurate. These include following the actions of other speculators, especially large ones; and using "forward exchange" markets. All these strategies can involve self-fulfilling prophecies that lead to financial turmoil, and may prevent governments from implementing humane economic policies

2. Find the English equivalents in the text:

1. Валютна спекуляція

2. Торговець валютою

3. Посередник

4. Операційний збір

5. Отримувати прибуток

6. Прямі іноземні інвестиції

7. Виробничі фонди

8. Міністр фінансів (США)

9. Фінансист

10. Фінансові потрясіння

3. Answer the following questions:

1. Do you agree with the statement that currency speculation makes for a healthy economy? Why/ why not?

2. How is the notion of «guessing game» related to currency speculations?

3. What is Robert Rubin?

TEXT 15

1. Read the text and answer the following questions:

1. What is labour efficiency?

2. What is the goal of labour efficiency assessment?

3. What are the main parameters (correlations) taken into account while estimating labour efficiency?

4. Where are the results of the labour efficiency assessment usually mentioned?

5. Can a third party be involved in the labor efficiency assessment?

WHAT IS LABOR EFFICIENCY?

Labor efficiency is a measure of how efficiently a given workforce accomplishes a task, when compared to the standard in that industry or setting. There are several different ways to measure labor efficiency, depending on the type of products and services being produced, and the end goal. Companies periodically assess efficiency along with other characteristics to identify weak points in the labor force and determine where they have room for improvement, with the goal of improving the overall quality of goods and services while keeping costs down.

One way to look at labor efficiency is to compare the number of hours actually required to produce a given product or service with those usually required. If the workforce is producing products and services at below the usual rate, it is operating with high efficiency, cutting time off production. This can translate into significant savings, as the company will spend less money on wages and overhead because it is turning out finished services and products at a more efficient rate.

Companies may also look at how many units of products or services are produced within a given time. This calculation for labor efficiency can help a company determine what the standard is. A company making a new model of car, for example, would see how many labor hours it requires to make one, and will track changes in labor efficiency over time. The goal is to reduce the number of hours through familiarity with the process, introduction of new parts and techniques to streamline car manufacturing, and similar measures.

As labor efficiency goes up, costs go down. It may also be possible to ramp up production, because more labor hours are available for producing goods and services. This can be critical in periods of increased demand, where the company needs more laborers available to make more goods or offer more services. More efficiency can also translate into wider opportunities for research and development, as the company has workers available to put on these tasks instead of having to focus on meeting the needs of the production line.

Companies usually measure labor efficiency for internal purposes and may not discuss it in external reports and filings unless it becomes directly relevant to an issue of interest in such documents. In some cases, a third party consultant performs this assessment as part of an overall evaluation of a business. Consultants can help companies improve overall efficiency and quality by bringing a fresh perspective to the workplace.