Download Dato: Torsdag 12. mai 2016

Fakultet for samfunnsfag
Handelshøyskolen ved HiOA
Professional English (15 stp.)
____________________________________________
Dato:
Torsdag 12. mai 2016
Tid:
6 timer / kl. 9 -15
Antall sider (inkl. forside): 5
Antall oppgaver:
3
Tillatte hjelpemidler: Longman Dictionary of Contemporary English (eller
tilsvarende)
Kandidaten besvarer all oppgavene.
Kandidaten må selv kontrollere at oppgavesettet er fullstendig.
Besvarelsen skal merkes med kandidatnummer, ikke navn.
Digital eksamen.
Emnekode: ØASPR2400
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Part I (33 %)
Translation
Translate the following Norwegian text into English, including the heading and the date:
Må Norge heve renten?
USAs nest største bank tror sterk krone og kraftig prisvekst vil få sentralbanksjef Øystein Olsen til å
stramme inn pengepolitikken i løpet av året. «Fem G10-land har overrasket markedene med rentekutt
i år, men valutaene deres er senere blitt styrket, og aksjemarkedene har falt eller holdt seg uendret,»
skriver en kjent analytiker. Også andre økonomer mener at dette skyldes at investorene begynner å
spekulere på hvilken sentralbank som først må gi opp disse tiltakene. I følge analytikeren er det
mange bevis som peker i retning av at flere sentralbanker kan bli tvunget til å heve renten allerede i
år, noe som vil utløse store bevegelser i valutamarkedet.
Sjeføkonom Harald Magnus Andreassen i Swedbank er skeptisk til konklusjonene til den
amerikanske banken. «Her er det minst to feil,» hevder Andreassen. Han viser først til at en sterk
krone ikke nødvendigvis er et argument for renteheving i Norge – snarere tvert imot. «Det andre er at
Norges Bank ikke bryr seg om at inflasjonen er blitt høyere når det utelukkende skyldes dyrere
importpriser som følge av at kronen har vært svak». Andreassen, som lenge har trodd at renten skal
kuttes i Norge i år, begynner å tvile på dette. «Det skyldes dels at oljeprisen har steget, dels at
problemene i oljesektoren ikke ser ut til å smitte over på resten av økonomien, og fordi boligprisene
og gjelden fortsatt stiger», sier han.
Samtidig er norske næringslivsledere opptatt av at den stigende oljeprisen trolig vil ha en markert
innvirkning på kronen.
Dagens Næringsliv, 15.04.2016 (adapted)
Translate the following sentences:
1. Umiddelbart falt DNB-aksjen med 3,4 prosent, og nedgangen i aksjekursen er et tap for
bankens aksjonærer på ca. 1,6 milliarder kroner.
2. Konjunkturoppgangen har ført til en forbedring av reallønnen og til at bedriftene ansetter
tidligere permitterte arbeidstakere.
3. Under finanskrisen økte den gjennomsnittlige statsgjelden i industrilandene dramatisk, fra
75% av bruttonasjonalproduktet til 90%.
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Part II (33%)
a) Text comprehension
Read the text below carefully and answer the following questions in complete sentences and, as
far as possible, in your own words:
1. What are the most important reasons mentioned in this text for postponing the budget cuts?
(4-5 sentences)
2. According to this article, which other ways of increasing its income might the Indian
government use? (2-3 sentences)
3. Why has India benefited so much from falling oil prices? (2-3 sentences)
4. As indicated in the text, why does JPMorgan Chase advise the government “to think of
disinvestments not as asset sales but as asset swaps”? (2-3 sentences)
India’s budget
Leap of faith
Despite good economic conditions, India faces tricky budget decisions
Feb 27th 2016 | MUMBAI | From the print edition
LEAP years are a plus for finance ministers: the extra day boosts annual output by a little bit and so
flatters their record. Arun Jaitley, India’s finance minister, should be especially grateful for any boost
to GDP on “leap day”, when he unveils his third budget. Although the Indian economy continues to
do better than both richer and poorer rivals, the government’s fiscal options are narrowing.
Given volatile markets and total public debt of around 65% of GDP, a high figure for an emerging
market, the question is not whether the government should cut its budget deficit, but by how much.
The deficit is projected to be 3.9% in the fiscal year that ends on March 31st. The government has
promised to reduce it to 3.5% in the coming year and 3% the following one. But these targets are
already less ambitious than the ones Mr Jaitley had set previously, and ministers seem to be
preparing the ground to push them back further.
As always, politicians can create convincing arguments for another delay in budget cuts. Government
employees are expecting a huge pay increase as a result of a once-a-decade wage negotiation; there is
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also a boost to military pensions that will cost around 1.1 trillion rupees. Fresh funds will have to be
found to recapitalize 29 state-owned banks, most of which have a lot of bad loans and so are making
heavy losses. Local governments, which add further to the central government’s deficit, are being
asked to bail out bankrupt power-distribution companies.
There is an economic case for delaying cuts, too, given nervous global economic conditions. Private
investment is at a low point, due to firms’ heavy debt and weak earnings. Two disappointing rainy
seasons in a row have depressed incomes in rural regions, where most Indians live. And though
India’s growth, at more than 7 % last year, looks good by global standards, it is below the 9-10% the
government wants to achieve. (Many, including some government officials, in any case question the
accuracy of the data.)
There is some debate among economists about whether further spending by the government is
desirable in such circumstances. Some of them have compared India’s economy to Brazil’s, which is
similarly indebted and shrinking fast. They point out that India has already received a large stimulus,
although this is not one of Mr Jaitley’s doing: No other country has benefited quite so much from the
tumbling price of commodities, particularly oil, of which it is a huge net importer. When Narendra
Modi came to power in May 2014, with crude at nearly $110 a barrel, whatever tax the government
put on petrol and other oil products was largely spent on fuel subsidies for the poor. The subsidy bill
has since been reduced, while the government has pocketed much of the benefit of falling prices by
raising the tax on petrol. It has received unexpected revenue of 1.5% of GDP, even as consumers’
spending power has risen.
Modest rises in other taxes have been suggested, and may be necessary if Mr Jaitley sees public
investment or rural handouts as a political necessity. But there is another obvious way of raising
money: selling down the government’s stakes in hundreds of Indian companies. However, targets
for privatization have been missed in nine of the past ten years. Although many of the government’s
holdings have little strategic value—it owns stakes in cigarette-makers, engineering firms and hotels,
for instance—it has resisted a sell-off. This resistance should end, argues Sajjid Chinoy of JPMorgan
Chase, a bank that advises the government to think of disinvestments not as asset sales but as asset
swaps*, trading stakes in companies for the money to build new roads and railways.
Selling a large number of the government’s holdings would allow Mr Jaitley to reduce the budget
deficit to his 3.5% target. Yet, will he risk it?
*swap = exchange
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b) Questions from English for Business Studies
Answer the following questions in complete sentences:
1. Explain the phenomenon LBOs. What does the following statement mean: «the
conglomerate’s market capitalization is lower than the value of its total assets», and what is
often the consequence of this? (3-4 sentences)
2. After a brief definition of the difference between the stockholder model and the stakeholder
model, go on to explain why Milton Friedman could insist that «socially responsible actions
by businesses are undemocratic»? (3-4 sentences)
3. Mention five different advertising and sales promotion techniques and discuss to what extent
they are effective. (3-4 sentences)
4. Outline the five major tasks that Peter Drucker used to describe the work of a manager. To
what extent might these tasks be regarded as skills that can be learnt? (4-5 sentences)
5. What are the advantages of a hierarchical structure, and what factors might lead a company to
flatten their hierarchies? (2-3 sentences)
6. What are the main advantages and disadvantages of bonds? Why would a company issue both
bonds and shares? (3-4 sentences)
Part III (33 %)
Essay
Write an essay on ONE of the following topics. Suggested length of the essay: 400-500 words.
EITHER
1. Give a brief description of the state of the UK economy today. Then go on to discuss the
present and future prospects for the UK economy.
OR
2. Give a brief outline of the system of presidential elections in the USA. Then go on to
discuss the advantages and disadvantages of this system as well how the two main
political parties stand on one controversial issue, either immigration, uneven distribution
of wealth or gun control.
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