2015-10-14
2339Market economies (Рыночная экономика).
The best examples of this type of economy are to be found in small South-East Asian states like Hong Kong and Singapore, though even they are not pure examples of market economies. Even they contain some businesses owned and run by the state.
In a true market economy the government plays no role in the management of the economy, the government does not intervene in it. The system is based on private enterprise with private ownership of the means of production and private supplies of capital, which can be defined as surplus income available for investment in new business activities. Workers are paid wages by employers according to how skilled they are and how many firms wish to employ them. They spend their wages on the products and services they need. Consumers are willing to spend more on products and services, which are favoured. Firms producing these goods will make more profits and this will persuade more firms to produce these particular goods rather than less favoured ones.
Thus, we can see that in a market economy it is consumers who decide what is to be produced. Consumers will be willing to pay high prices for products they particularly desire. Firms, which are privately owned, see the opportunity of increased profits and produce the new fashionable and favoured products.
Such a system is, at first view, very attractive. The economy adjusts automatically to meet changing demands. No planners have to be employed, which allows more resources to be available for production. Finns tend to be highly competitive in such an environment. New advanced products and low prices are good ways to increase sales and profits. Since all finns are privately owned they try to make the largest profits possible. In a free market individual people are free to pursue their own interests. They can become millionaires, for example. Suppose you invent a new kind of car. You want to make money our of it in your own interests. But when you have that car produced, you are in fact moving the production possibility frontier outwards. You actually make the society better-off by creating new jobs and opportunities, even though you become a millionaire in the process, and you do it without any government help or intervention.
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Not surprisingly there are also problems. Some goods would be underpurchased if the government did not provide free or subsidized supplies. Examples of this type of good and service are health and education. There are other goods and services, such as defence and policing, that are impossible to supply individually in response to consumer spending. Once defence or a police force is supplied to a country then everyone in this country benefits.
A cornerstone of the market system is that production alters swiftly to meet changing demands. These swift changes can, however, have serious consequences. Imagine a firm, which switches from labour-intensive production to one where new technology is employed in the factory. The resulting unemployment could lead to social as well as economic problems.
In a market economy there might be minimal control on working conditions and safety standards concerning products and services. It is necessary to have large-scale government intervention to pass laws to protect consumers and workers.
Some firms produce goods and then advertise heavily to gain sufficient sales. Besides wasting resources on advertising, firms may also duplicate one another's services. Rival firms, providing rail services, for example, could mean that two or more systems of rail are laid.
Finally, firms have to have confidence in future sales if they are to produce new goods and services. At certain times they tend to lack confidence and cut back on production and the development of new ideas. This decision, when taken by many firms, can lead to a recession. A recession means less spending, fewer jobs and a decline in the prosperity of the nation.
VOCABULARY NOTES
to own and run ( syn. to manage, to operate) businesses владеть и управлять бизнесом
to intervene вмешиваться
private enterprise ( syn. entrepreneurship) частное предпринимательство
private ownership ( syn. property) of the means of production частная собственность на средства производства
public property, common ownership общественная собственность
personal property личная собственность
state-owned property, state ownership государственная собственность
private supplies of capital частный капитал
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surplus income available for investment in new business activities дополнительный доход (излишек дохода), который можно вложить (инвертировать) в новое дело (бизнес)
to employ использовать; предоставлять работу, нанимать
employer работодатель
employee служащий
employment занятость
unemployment безработица
to persuade убеждать
at first view ( syn. at first sight) на перный взгляд
to adjust automatically автоматически приспосабливаться; приводиться в соответствие
competitive конкурентоспособный
to make the largest profits possible получить наибольшую возможную прибыль
to pursue one's own interests преследовать свои интересы
to make money out of it заработать деньги на этом
to move the production possibility frontier outwards продвинуть вперед предел производственных возможностей
to make the society better-off сделать общество более состоятельным
to create new jobs and opportunities создать новые рабочие места, новые возможности
to undcrpurchase (ant. to overpurchase) недостаточно раскупать
to provide free or subsidized supplies обеспечить бесплатное или субсидированное (дотированное) предоставление (товаров, услуг)
in response to (syn. in answer to) в ответ на
a cornerstone краеугольный камень
to alter swiftly быстро меняться
consequences последствия
labour- intensive production трудоемкое производство
working conditions условия работы
safety standards нормы техники безопасности
large- scale intervention широкомасштабное вмешательство
to pass laws принимать законы
to gain sufficient sales добиться достаточного объема продаж
rival firms фирмы-конкуренты, соперники
to have confidence иметь уверенность
to lack confidence не хватать уверенности
Assignments
I. Suggest the Russian equivalents
new advanced products; products which are favoured; they try to make the largest profits possible; provide free or subsidized supplies; produce goods and then advertise heavily; a firm which switches from labour- intensive production to a new one; a decline in the prosperity of the nation
II. Replace the parts in italics by synonyms
businesses owned and run by the state; products and services, which are favoured; at first view; production alters swiftly
III. Fill in the gaps with the words and expressions from the text
1.____ Small South-East Asian states like Hong Kong and Singapore contain some businesses__ by the state.
2. The system is based on__ with of.
3. Private supplies of capital can be defined as available for in.
4. Consumers are willing to spend more on products and services, which.
5. More profits will more firms to produce those particular goods that are favoured.
6._____________ In a market economy it is who decide what is to be produced.
7.__________________ firms see the opportunity of and produce the new fashionable
and favoured products.
8. The economy automatically to meet changing demands.
9. Firms tend to be highly in such an environment.
10. In a free market individual people are free.
11. But when you have that car produced, you are moving___________________________.
12. You actually make by, even though you become a millionaire in the process, and you do it without or.
13.__________ Some goods would be__ if the government did not provide supplies.
14.__ Some other goods and services, such as defence and policing, are impossible to _ in response to consumer spending.
15._____________________ of the market system is that production to meet changing demands.
16.____________ If a firm switches from_ to one where new technology in the factory, it can lead to__ and________________ problems.
14. It is necessary to have__ to pass laws consumers and workers.
15. Firms have in future sales if they are to produce new goods and seivices.
16.A recession means__ spending, jobs and of the nation
IV. Find in the text English equivalents for the following
управление экономикой; процветание нации; широкомаеппабмос вмешательство правительства; принимать законы; быстро меняться; конкурирующие фирмы; автоматически изменяться (приспосабливаться); быть конкурентоспособным; частные фирмы; фирмы, принадлежащиe государству и управляемые им; краеугольный камень; иметь серьезные последствия для...; трудоемкое производство; сокращать производство; быть уверенным в...; не хватает уверенности в...; дорого платить за что-либо
V. Answer the questions
1. What's a market economy?
2. What's the main difference between a market economy ami л planned economy?
3. Do changing demands affect production? In what way?
4. What's the mechanism of producing goods and seivices in a market economy?
5.Give the advantages of a market economy.
6.Give the disadvantages of a market economy.
VI. Translate using all the active possible
1.В рыночной экономике невелика или очень мала необходимость в планировании, контроле и широкомасштабном вмешательстве со стороны государства (правительства) в экономический процесс.
2. В условиях рыночной экономики изменения потребительского спроса играют заметную роль в формировании политики фирм.
3. Чтобы быть конкурентоспособными и увеличивать доходы, фирмы должны постоянно изучать спрос и менять свою деятельность в ответ на его изменения.
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4. Чем более модный товар, тем более высокую цену надо за него платить.
5. Некоторые виды услуг, например здравоохранение и образование, не могут быть полностью обеспечены только частными фирмами.
6. Рыночная экономика характеризуется частной собственностью на ресурсы и использованием системы рынков и цен для управления экономической деятельностью.
7. В такой системе каждый ее участник волен преследовать свои собственные интересы; каждая экономическая единица стремится получить наибольший возможный доход на основе индивидуального принятия решений.
Unit 5.
Mixed economies (Смешанная экономика)
Command and market economies both have significant faults. Partly because of this, an intermediate system has developed, known as mixed economies.
A mixed economy means very much what it says as it contains elements of both market and planned economies. At one extreme we have a command economy, which does not allow individuals to make economic decisions, at the other extreme we have a free market, where individuals exercise considerable economic freedom of choice without any government restrictions. Between these two extremes lies a mixed economy. In mixed economies some resources are controlled by the government whilst others are used in response to the demands of consumers.
Technically, all the economies of the world are mixed: it is just the balance between market and planned elements that alters. Some countries are nearer to command economies, while others are closer to free market economies. So, for example, Hong Kong has some state-controlled industry, while Cuba has some privately owned and controlled firms.
The aim of mixed economies is to avoid the disadvantages of both systems while enjoying the benefits that they both offer. So, in a mixed economy the government and the private sector interact in solving economic problems. The state controls the share of the output through taxation and transfer payments and intervenes to supply essential items such as health, education and defence, while private firms produce cars, furniture, electrical items and similar, less essential products. %
The UK is a mixed economy: some services are provided by the state (for example, health care and defence) whilst a range of privately owned businesses offer other goods and services. The Conservative government under Margaret Thatcher switched many businesses from being state-owned and controlled to being privately owned as part of its privatization programme. This has taken the UK economy further away from the planned system.
