be2

BUSINESS ENGLISH

Lekcja 2

THE EURO and US dollar

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The Euro and US dollar:
www.europe.int

The Euro and US dollar

On 1 January 2002, the single European currency became a reality. Bank notes and coins of the new currency, called the Euro (€), replaced former national currencies in the 12 participating countries. The Euro had formally been adopted on 1 January 1999, as part of a gradual process of transition towards this historic goal.

The new currency zone covers some 300 million Europeans. At the moment of its inception, the Euro accounted for 19.4% of the world's GDP, compared with 19.6% for the United States. The Euro confirms the EU's importance as a commercial power in the world with an 18.2% share of world trade, roughly equal to that of the United States. Shortly after the establishment of the Euro currency zone, its exports were already a 25% higher than those of the US and twice those of Japan. The Euro is expected to play a growing role in international trade in the future.

Good news for the United States

The advent of the Euro had immediate beneficial effects. Stability within the Euro zone was increased; the costs to businesses of currency exchange and risks associated with exchange rate fluctuations were removed and economic growth was promoted. And all of these also benefited the United States. Global economic stability was enhanced. US exporters to, and investors in, the EU shared in the cost savings. And the European currency proved its stability over the last years.

Europe's currency is not a rival to the US dollar but complements it, allowing for diversification and reducing the risk of countries being faced with currency fluctuations.

The launch of the Euro was therefore a historic event for the United States in particular, which for so long has been used to bearing alone the burdens associated with the dominance of the “greenback”' in financial markets.

Stimulation of international trade

The independent European Central Bank's primary goal is price stability. Greater economic efficiency and stability in Europe is not only good for Europe; the global economy benefits from this stabilising force and Europe's trading partners - amongst which the US is the most important - gain from increased transparency, lower costs and greater predictability in the EU market.

Currently 85% of stock-market transactions and half the world's trade is settled in US dollars. Countries around the world are expected to turn increasingly to the Euro as an alternative to the US dollar, both in trade invoicing and in financial markets.

Growing international financial markets in Euro

By virtue of the size and stability of the economies that have adopted the Euro, it will become increasingly sought-after as the currency in which investors choose to denominate their assets when investing in world stock markets. Fiscal policy will be stable too, based on the European Union's strong commitment to budgetary discipline.

The benefit of Economic and Monetary Union in Europe is therefore felt not just in London and Frankfurt but in Wall Street as well. US companies benefited worldwide from a more stable economic environment than would be the case without the Euro.

Vocabulary:

currency - waluta

currency zone - strefa walutowa

inception - zapoczątkowanie, wprowadzenie

rate fluctuation - wahanie kursu

to enhance - podnosić

to complement - uzupełniać, dopełniać

diversification - zróżnicowanie

currency fluctuation - wahanie waluty

price stability - stabilność cen

predictability - przewidywalność

stock-market - rynek papierów wartościowych

by virtue of - na mocy, za pomocą

assets - aktywa

budgetary discipline - dyscyplina budżetowa

Speaking: (dotyczy kursów stacjonarnych)

Which currency is safer to take a loan in? Euro or US dollar?
Would you call Polish zloty stable currency?
Why the currency zone is getting larger and larger?
What are the benefits of the same currency in the EU?
When will we have Euro zone in Poland?
What requirement should Poland meet in order to be involved in this zone?
Is Euro competitive to US dollar?
Which currency is the most frequently chosen by investors in Poland?
Can you pay in Euro in Poland?
Which currency is more stable?
What is “budgetary discipline? How do you understand it?

FINANSOWANIE TRANSAKCJI BIZNESOWYCH

BILANS FINANSOWY

Kiedy chcecie Państwo prosić Bank o pożyczkę z pewnością każdy bankier poprosi Państwa o przedstawienie bilansu start i zysków Państwa firmy. Poniżej przedstawiamy standardowy bilans finansowy oraz praktyczne słownictwo w języku angielskim i polskim. Każdy bilans ilustruję aktualną kondycję finansową Państwa firmy z wyszczególnieniem pasywów i aktywów firmy... Popatrzmy.

ASSETS - AKTYWA

Liabilities - PASYWA

Cash - (gotówka)

Inventory (rezerwy)

Short-term loans - (pożyczki krótkoterminowe)

Prepaid expenses - (wydatki pokryte z góry)

Long-term loans - (pożyczki długoterminowe)

Land - (własności ziemskie, posiadany teren)

Buildings - (nieruchomości)

Equipment - (wyposażenie)

Furniture - (meble)

Vehicles - (pojazdy)

Other Assets - (inne dobra)

Cash in Bank - (gotówka w banku)

Prepaid Expenses - (wydatki pokryte z góry)

Real Estate - (nieruchomości)

Household Goods - (art. gospodarstwa domowego)

Deposits Paid - (depozyty)

Investments/Stocks/Funds - (inwestycje/akcje/obligacje)

Retirement Plans - (fundusze emerytalne)

Life Insurance - (polisy ubezpieczeniowe)

TOTAL ASSETS - (aktywa razem)

Short-term notes payable - (płatności krótkoterminowe)

Interest payable - (odsetki)

Taxes payable - (podatki)

Long-term notes payable - (płatności długoterminowe)

Accounts Payable - (rachunki bieżące)

Other Current Liabilities - (inne zobowiązania)

Mortgage Payable - (hipoteka)

Bank Loan Payable - (pożyczki bankowe)

Other Long Term Debt - (inne zobowiązania długoterminowe)

TOTAL LIABILITIES - (pasywa razem)

Ćw 1) Połącz słowa w kolumnie pierwszej z wykropkowanymi miejscami w kolumnie drugiej.

prepaid expenses
current liabilities
accounts payable
long term debt
other current assets
inventory
balance sheet
inflation
tax-deferred

............................... - In the course of every day operations, businesses will have to pay for goods or services before they actually receive the product.
............................... - Finished product that's ready for sale, but hasn't been sold yet. l
............................... - The tendency for prices and wages to become more expensive.
............................... - is the opposite of accounts receivable. It arises when a company receives a product or service before it pays for it.
............................... - assets that are owed to the company within one year.
............................... - An investment in which some or all taxes are paid at a future date, rather than in the year the investment produces income.
............................... - are the debts a company owes which must be paid within one year. They include things such as short term loans, accounts payable, dividends and interest payable, bonds payable, consumer deposits, and reserves for Federal taxes.l
............................... - A document detailing a company's assets and liabilities.
............................... - These items are sometimes referred to as notes payable. They are the most important item under current liabilities. Most of the time, they represent a company's bank loans.

Ćw 3) Wstaw podane w rubryce słowo w odpowiednim miejscu poniżej.

Coupon	Asset	Momentum
Profit Margin	Depreciation	Profitability
Deficit Spending	Sales Costs	Float
Fiscal Policy	Annual Report	Earnings
Gross Domestic Product	Income Statement	Cash Flow Statement

1) .........................................

Expenses directly related to creating the goods or services being sold (like the cost of raw materials, salaries of persons turning raw materials into sellable goods, depreciation of equipment); but sales costs exclude other important expenses, like R & D, marketing, and interest payments on debt.

2) .........................................

Earnings expressed as a percentage of Revenue, i.e. the percentage of sales the company has left over as profit after paying all expenses.

3) .........................................

Property that allows moving things to overcome resistance and keep moving in the same direction. Works well with physical objects like cars and bowling balls.

4) .........................................

Financial document showing a company's income and expenses over a given period

5) .........................................

Total annual output of the one country's economy, measured by its final purchase price.

6) .........................................

Total income minus total expenses; synonymous with profit.

7) .........................................

Method to account for assets whose value is considered to decrease over time.

8) .........................................

Government spending in excess of what they take in as tax revenue.

9) .........................................

Financial document detailing the exchange of cash between a business and the outside world.