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TEXT 3. Planned Economies
Answer the following questions on the text. TEXT 2. English Business Letters Answer the following questions on the text.
Letter writing is an essential part of business communication. A cheque, a contract or any other business paper sent by mail should always be accompanied by a letter. The letter says what is being sent, so that the recipient should know exactly what you intended to send. It is a typical business letter called “routine”. A well arranged letter will make a better impression on the reader, thus good letters make good business partners. Nowadays more and more agreements are made in English, for English is a universal business language. Joint ventures, bank loans, and trademark licenses are frequently written in English. There are three stages of transactions involving business contacts: first – negotiation of terms, second – drafting documents reflecting these terms and third – litigation (спор) to enforce or to avoid executing of these terms. Business letters may be divided into official and semi-official. The first kind of letters is characteristic of those people working in business: an executive, a department manager, a salesperson, a secretary or a specialist in business and technology. In addition, many people may want to buy something, to accept an invitation or to congratulate somebody – this is a kind of semi-official letters. The first kind of letters may in turn be subdivided into such groups as inquiries, offers, orders, and so on.
1. What is a business letter? 2. Does a letter always accompany business papers? 3. What is a typical business letter called? 4. What are the stages of transactions involving business contacts? 5. What are the types of official business letters? 6. What can be named a semi-official letter?
Planned economies are sometimes called “command economies” because the state commands the use of resources (such as labour and factories) that are used to produce goods and services, as it owns factories, land and natural resources. Planned economies are economies with a large amount of central planning and direction, when the government takes all the decisions, the government decides production and consumption. Planning of this kind is obviously very difficult, very complicated to do, and the result is that there is no society, which is completely a command economy. The actual system employed varies from state to state, but command or planned economies have a number of common features. Firstly, the state decides precisely what the nation is to produce. It usually plans five years ahead. It is the intention of the planners that there should be enough goods and services for all. Secondly, industries are asked to comply with these plans and each industry and factory is set a production target to meet. If each factory and farm meets its target, then the state will meet its targets as set out in the five-year plans. You could think of the factory and farm targets to be objectives that, if met, allow the nation’s overall aim to be reached. A planned economy is simple to understand but not simple to operate. It does, however, have a number of advantages.
Several disadvantages also exist. These disadvantages have led to many nations abandoning planned economies over recent years:
A major problem faced by command or planned economies is that of deciding what to produce. Command economies tend to be slow when responding to changes in people’s tastes and fashions. Planners are likely to underproduce some items, as they cannot predict changes in demand. Equally, some products, which consumers regard as obsolete and unattractive, may be overproduced. Planners are afraid to produce goods and services unless they are sure substantial amounts will be purchased. This leads to delays and queues for some products.
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