Download Vocabulary, Economic terms, page 99

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A stable economy
is beneficial because businesspeople are able to plan
better when there is less uncertainty about future
inflation, taxes, etc.
A strong currency
in manufacturing means that imported raw materials are
cheaper but your exports will be more expensive than
those from some competing countries. However, if
products offer more benefits, they may justify a higher
price.
Cheap rents
for office and factory space are more attractive than
expensive ones, but having your office in the right place at
a higher rent may be more attractive than having it in the
wrong place at the lower rent.
Good transport links
are important for employees to get to work, for
salespeople to get to customers as well as for the
distribution of goods.
Government grants
may be used to try to persuade companies to set up in
areas with high unemployment but, if the area is
unsuitable for other reasons (unskilled staff, distance
from markets, …) these grants will not be enough.
High unemployment
may mean that the wages an entrepreneur has to pay may
be lower but it may also happen that he is not able to find
the people with the required skills.
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UNIT 11
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Low interest rates
mean that it is cheap to borrow money to develop new
business activities.
Low taxes
are a characteristic of flexible labour market where there
are low taxes on companies but also low social costs (low
payments from companies and employees for benefits
such as health care and unemployment benefit), where it
is easy to fire people when activity decreases, and where
people quickly find jobs when activity increases again.
Skilled staff
partly results from a good national education system and
good training of employees.
Training courses
provided or funded by the government may be helpful in
developing the skills of new entrepreneurs.
UNIT 11
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UNIT 11
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Vocabulary, Economic terms, page 99
balance of trade
trgovačka bilanca
the difference in value between imports and exports of goods over a particular period:
If we sell more than we buy, we have a favourable balance of trade. a balance-oftrade deficit (= when a country spends more on imports than it earns from exports)
exchange rate
devizni tečaj
the relation in value between one currency and another:
The current exchange rate is 50 rupees to the euro. the rupee/euro exchange rate
The euro has a high exchange rate against the yen. movements/fluctuations in the
exchange rate We need a competitive exchange rate (= attractive to buy) to get the
economy growing. The peso was pegged to the US dollar at a one-to-one exchange
rate. SYN CURRENCY RATE
a high/low/stable/strong/weak exchange rate a competitive/favourable
exchange rate the exchange rate drops/falls/rises an exchange rate
regime/system
foreign investment
inozemno ulaganje
GDP (gross domestic product)
bruto domaći proizvod (BDP)
the total value of all the goods and services produced by a country in one year:
Tourism contributes about 5% of GDP. GDP grew by 0.5 per cent in the fourth
quarter.
government bureaucracy
državna birokracija
inflation rate
stopa inflacije
interest rate
kamatna stopa
labour force
radna snaga
tax incentives
porezni poticaj (stimulans)
a reduction in tax that encourages companies or people to do sth:
The regional government is offering tax incentives to companies who move to the
region.
unemployment rate
stopa nezaposlenosti
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Vocabulary from exercise A, p. 98
grant
an amount of money that is given by the government or by another organization to be
used for a particular purpose:
The study was supported by a $70 000 grant from a research group. They were
awarded grants to develop new methods of crop production.
currency
(plural currencies)
the system of money that a country uses; the value of the country’s money:
Brazil’s currency, the real trading in foreign currencies I had to change my euros into
local currency. A weaker currency would help our exports. The government has
devalued the national currency by 29%. The dollar rose against European currencies
but fell against the Japanese yen. The new currency will be pegged to the US dollar
(= the value of the new currency will be linked to the value of the dollar).
common/domestic/foreign/local/national currency a
stable/strong/volatile/weak currency to buy/change/exchange/sell currency
to devalue/depreciate/peg/prop up a currency currency
devaluation/fluctuation/movement a currency dealer/speculator/trader
stable
firmly fixed; not likely to move, change or fail:
Imports have dropped but exports have remained stable. They promised better service
and stable prices for the basic phone service. The economy is becoming more stable.
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