3 After You Read. Find the missing expressions from the reading. Paragraph numbers are given. Write your answer on line. 1. Par. 1: Countries do not exchange goods and services directly, but use money as the. (3 words) 2. Par. 3: It was a good car for a good price. I knew I was. (4 words) 3. Par. 5: Some countries depend on foreign trade too much, and let the domestic economy remain undeveloped. We might say they are too. (2 words) 4. Par. 6: The doctor warned us that, although the medicine would probably work, we should expect some unpleasant. (2 words) 5. Par. 6: I was the last one to leave the table. So, when the waiter brought the check, I found myself. (4 words) 6. Par. 7: If a job is too easy for you, you may not be able to live up to your (2 words) 7. Par. 8: It used to be only the US dollar. But now the euro is also wanted by many nations as a. (2 words) 8. Par. 8: Some speculators want to make money, and do not care who gets hurt. That is why their efforts to buy and sell money are sometimes called a. (2 words) 4 9. Par. 8: If one group of people cannot succeed alone, they may.with another group. (2 words) Comprehension. Read the passage again if necessary and decide if the following statements express an opinion or a fact. Write O for opinion or F for fact. Lines 1. 1-5 All commodities are goods necessary for survival. 2. 6-12 Money is a commodity. 3. 6-12 Central banks have the responsibility of controlling the exchange rate. 4. 15-19 Prices show us the purchasing power of money. 5. 29-30 An appreciating currency is good for business. 6. 50-58 Foreign trade always helps the domestic economy. 7. 63-87 Forex trading is a harmless way to make money. Understanding Business News Created by Joseph T. Rodolico 31
5 6 Talk it over. Discuss these statements. 1. Selling off all of a major reserve currency could lead to disaster. 2. Foreign trade both helps and damages a nation. 3. Exports are wealth; paper money is not wealth, it is debt. Reading Tables. A. Study the table below and complete the exercise. Look carefully. Major Currency Cross Rates Currency Last Trade U.S.$ N/A en Euro 9:00am ET Can$ U.K. AUS$ 8:59am ET Swiss Franc 1 U.S. $ = 1 109.4000 0.7993 1.1862 0.5418 1.3020 1.2330 1 en = 0.009141 1 0.007306 0.010843 0.004952 0.011901 0.011271 1 Euro = 1.2511 136.8703 1 1.4841 0.6778 1.6289 1.5426 1 Can $ = 0.8430 92.2273 0.6738 1 0.4568 1.0976 1.0395 1 U.K = 1.8457 201.9195 1.4753 2.1894 1 2.4031 2.2757 1 AUS $ = 0.7680 84.0246 0.6139 0.9111 0.4161 1 0.9470 1 Swiss Franc = 0.8110 88.7267 0.6483 0.9620 0.4394 1.0560 1 Scanning. Complete these tasks. Find a. the exchange rate for US dollars to Japanese yen. b. how many Australian dollars buys one euros. c. the conversion rate of pounds ( ) to euros. d. how many Swiss francs you need to buy one Australian dollar. e. how much one British pound costs in Canadian dollars. f. which currency buys more yen, the euro or the pound. B. Think and Discuss. Economic prosperity has greatly benefited the world, but it has also done harm. Study pictures 1 and 2 below and decide what the problem is. Where might the island in Picture 2 be located? TOKYO 9,503 km. LOS ANGELES 6,623 km. Picture 1. Eskimo Picture 2. Tropical Island Understanding Business News Created by Joseph T. Rodolico 32
Picture 3. Where are these ships bound? Study the pictures and decide the destination for each one. Fill in the boxes. Afterwards, explain your answers. From second world (developing) to first world countries From third world (undeveloped) to second world countries From first world (developed) to third world countries è è ç C. Matching. Major Currencies of Asia. Match the name of each currency with the country that uses it. More than one country uses dollars. yen ruble baht won rupee dong yuan ringgit dollar peso rupiah Country Currency Name Investment Club Australia You and your friends have managed to pool NT China India 10 million in order to speculate in foreign currencies. Based on your knowledge of the economies, market trends and financial news Indonesia of the countries below, decide how much to Japan spend on each currency. Discuss your answers Malaysia New Zealand and come to a consensus before deciding. Group of five. Write the amount on the line. Philippines Russia Singapore South Korea Taiwan, ROC Thailand Vietnam USD Yen HKD British Pound Chinese Yuan Euro Australian dollar Understanding Business News Created by Joseph T. Rodolico 33
7 Grammar Point THE PASSIVE VOICE PROCESS Passive voice: be + verb (past participle) Look at these two sentences: Active: International trade connects money to all other money. Passive: Money is connected to all other money (through international trade). In the active sentence, the subject International trade performs the action of the verb connects. In the passive sentence the subject receives the action of the verb. The agent may or not be identified. In fact, this form is frequently used when we do not want to identify the performer of an action. Active Dogs chase cats. Doctors recommend this medicine. No one told me the meeting was today. Passive Cats are chased by dogs. This medicine is recommended by doctors. I was not told the meeting was today. Exercise. Find more passive voice sentences in the reading. Write them below. Paragraph numbers are given. Para. Passive Voice 2 6 7 7 8 Understanding Business News Created by Joseph T. Rodolico 34
8 Reading Exercise. Read the passage below. The first time, read it in chunks and time yourself. Read again and time yourself again. The forex is the place where currencies of all countries are bought and sold. Its total value is much greater than the stock market, however we see very little of it on TV news. It could take the stock market more than two months to reach the amount traded on the forex in a single day! In order to control the price of the local currency, it must be bought with, and sold for, another currency. That is why central banks cannot hold on to only one currency, but must have at least two one a local currency and the other a reserve currency. In fact, central banks will hold on to as many currencies as countries with which its nation trades: US dollars, Japanese yen, euros, renminbi, Thai baht, etc. One danger central banks must always be aware of is the possibility of a forex attack! Yes, attack! The attack begins when speculators from around the world combine forces to change the price of a currency up or down in their favor. In this way, it is possible to make or lose billions in a single day; although, the attack may last many months. 1st time: 2 nd time: Understanding Business News Created by Joseph T. Rodolico 35
REVIEW Vocabulary. Choose eight new or difficult words or expressions to remember from this unit. Write one in each of the inner boxes of these figures. In the outer boxes, write any other four words you associate with them. They do not have to make sense to anyone but you. See example on the right. After you have completed all eight figures, exchange books with a partner. Your partner says the outer box words and you try to remember the inner box words. common soybeans commodities goods oil What else have you learned from this unit? 1. 2. 3. Understanding Business News Created by Joseph T. Rodolico 36