综合商务英语（第1册）第二版 课件 Unit 1 Introduction to Business、Unit 2 Successful Business People

综合商务英语（第1册）Unit1

（第二版）IntroductiontoBusiness目录CONTENTS1Lead-inThreeQuestions2TextA

GoalsandResourcesofaBusiness3ExercisesReferenceKeys4TextB5BusinessCycleCaseStudyLead-in第一单元1Lead-inThreequestions1.Ifyoustartabusiness,what’syourbusinessgoal?2.Whatkindsofresourcescanyouusetostartabusiness?3.Howdoyouunderstandthekeyelementsof

entrepreneurship?Open-mindedTextAGoalsandResourcesofaBusiness第一单元2QuestionsonTextA(1)Howdoyouunderstandthemeaningof“abusiness”?(2)WhatisthegoalofabusinessmentionedinTextA?(3)Theprofitsthatafirmearnsaredependentonthreeconditions.Whatarethey?(4)Discusswithyourpartnerorgroupmembersthequestion:Howshouldentrepreneurs

dotoachievethegoalofabusiness?(5)SequencefivefactorsofproductioninTextAfromthemostimportantonetotheleastimportantone,andgivereasonsforyourchoice.QuestionsonTextA(1)Howdoyouunderstandthemeaningof“abusiness”?--Abusinessisanenterprisethatprovidesproductsorservicesdesiredbycustomers.(2)WhatisthegoalofabusinessmentionedinTextA?--Businessesareestablishedtoservetheneedsofconsumersbyownerswhoseektomakeprofits.Byprovidingaproductthatisdesiredbycustomers,peoplemaybeabletomakeprofitsfortheirbusiness.QuestionsonTextA(3)Theprofitsthatafirmearnsaredependentonthreeconditions.Whatarethey?--First,thereneedstobeademandfortheservicethatafirmoffers.Second,afirmneedtoattractcustomers,meaningthattheychooseafirminsteadoftheircompetitors.Third,toearnhighprofits,afirmneedtokeeptheirexpenseslow.QuestionsonTextA(4)Discusswithyourpartnerorgroupmembersthequestion:Howshouldentrepreneurs

dotoachievethegoalofabusiness?First,theentrepreneurswhocreateabusinessshouldhaveastrongincentivetoensurethatitissuccessful,astheyaredirectlyrewardedfortheirefforts.Second,entrepreneursshouldestimateproperlythepotentialprofitabilityofabusinessandmanagethebusinessorganized;inthiswaytheyearnmoneyandachievethegoals.Finally,ontheonehand,entrepreneursshouldbecautiousandrealisticbeforedecidingtoinvesttheirmoneytocreateanewbusiness;ontheotherhand,theyshoulddevelopgoodbusinessideasthatserveconsumerneedsandmanagethebusinessefficiently.QuestionsonTextA(5)SequencefivefactorsofproductioninTextAfromthemostimportantonetotheleastimportantone,andgivereasonsforyourchoice.Themostimportantoneishumanresources.Humanresourcesarethepeoplewhoareabletoperformworkforabusiness.Theymaycontributetoproductionbyusingtheirphysicalabilities.Thesecondisnaturalresources,anditiscommonlyusedbybusinessestoproduceproductsorservicesisland.QuestionsonTextA(5)SequencefivefactorsofproductioninTextAfromthemostimportantonetotheleastimportantone,andgivereasonsforyourchoice.Thethirdiscapital.Capitalincludesmachinery,equipment,tools,andphysicalfacilities.Allofthesetypesofcapitalarecommonlyusedbyhumanresourcestoproduceproducts.Thefourthistechnology.Byusingtechnologytoimprovetheircapital,manybusinessesareabletoproduceproductsandservicesmorequicklyandatahigherquality.Thelastisentrepreneurship.Entrepreneurscancreatesomebusinessmethodsthusbetterrunthefirm.U1:TextAGoalsandResourcesofaBusiness1

Abusinessisanenterprisethatprovidesproductsorservicesdesiredbycustomers.Aproductisathingthatisproducedorgrown,usuallytobesold.Aservicereferstotheparticularskillsorhelpthatapersonorafirmisabletooffer.Acustomerisapersonoranorganizationthatbuyssomethingfromashop/storeorbusiness.Q1:

Howdoyouunderstandthemeaningof“abusiness”?2

Theprimarygoalofallbusinessesistoearnaprofit,thedifferencebetweenwhatitcoststomakeandsellaproductandwhatacustomerpaysforit.Ifacompanyspends$8.00tomanufacture,finance,promote,anddistributeaproductthatitsellsfor$10.00,thebusinessearnsaprofitof$2.00oneachproductsold.Businesseshavetherighttokeepandusetheirprofitsastheychoose—withinlegallimits—becauseprofitsistherewardfortheriskstheytakeinprovidingproducts.EarningprofitscontributestosocietybyGoalsofaBusinessprovidingemployment,whichinturnprovidesmoneythatisreinvestedintheeconomy.Inaddition,profitsmustbeearnedinaresponsiblemanner.Notallorganizationsarebusinesses,however.Nonprofitorganizations,suchasNationalPublicRadio(NPR)[1],HabitatforHumanity[2],andothercharitiesandsocialcauses,donothavethefundamentalpurposeofearningprofits,althoughtheymayprovidegoodsorservicesandengageinfundraising.Q2:WhatisthegoalofabusinessmentionedinTextA?3

Toearnaprofit,apersonororganizationneedsmanagementskillstoplan,organize,andcontroltheactivitiesofthebusinessandtofindanddevelopemployeessothatitcanmakeproductsconsumerswillbuy.Abusinessalsoneedsmarketingexpertisetolearnwhatproductsconsumersneedandwantandtodevelop,manufacture,price,promote,anddistributethoseproducts.Additionally,abusinessneedsfinancialresourcesandskillstofund,maintain,andexpanditsoperations.Otherchallengesforbusinesspeopleincludeabidingbylawsandgovernmentregulations;actinginanethicalandsociallyresponsiblemanner;andadaptingtoeconomic,technological,political,andsocialchanges.Evennonprofitorganizationsengageinmanagement,marketing,andfinanceactivitiestohelpreachtheirgoals.

Q3:Theprofitsthatafirmearnsaredependentonsomeconditions.Whatarethey?

4

Toachieveandmaintainprofitability,businesseshavefoundthattheymustproducequalityproducts,operateefficiently,andbesociallyresponsibleandethicalindealingwithcustomers,employees,investors,governmentregulators,andthecommunity.Becausethesegroupshaveastakeinthesuccessandoutcomesofabusiness,theyaresometimescalledstakeholders.Manybusinesses,forexample,areconcernedabouthowtheproductionanddistributionoftheirproductsaffecttheenvironment.Othersareconcernedwithpromotingbusinesscareersamongdifferentpeoplesfromdifferentcountries.5

Toproduceaproductorservice,firmsrelyonthefollowingfactorsofproduction[3]:• Naturalresources• Humanresources• Capital• Technology• EntrepreneurshipResourcesofaBusiness6

Naturalresourcesincludeanyresourcesthatcanbeusedintheirnaturalform.Themostobviousnaturalresourcethatiscommonlyusedbybusinessestoproduceproductsorservicesisland.Agriculturalbusinessesrelyonlandtogrowcrops.Otherbusinessesrelyonlandtoestablishasitefortheirproductionorservices.7

Humanresourcesarethepeoplewhoareabletoperformworkforabusiness.They

maycontributetoproductionbyusingtheirphysicalabilities,suchasworkinginafactorytoconstructaproduct.Alternatively,theymaycontributebyusingtheirmentalabilities,suchasproposingachangeintheexistingproductionprocessormotivatingotherworkers.8

Capitalincludesmachinery,equipment,tools,andphysicalfacilities.Allofthesetypesofcapitalarecommonlyusedbyhumanresourcestoproduceproducts.Physicalfacilitiesaretypicallynecessarytoproducemanyservicesaswellasproducts.9

Technologycanbedefinedasknowledgeortoolsusedtoproduceproductsorservices.TheInternet,informationtechnologyandartificialintelligencearetheobviousexamplesoftechnology.Byusingtechnologytoimprovetheircapital,manybusinessesareabletoproduceproductsandservicesmorequicklyandatahigherquality.Thus,theyarebetterabletomeettheneedsofconsumers.10

Entrepreneurshipinvolvesthecreationofbusinessideasandthewillingnesstoacceptrisk.Entrepreneursattempttoidentifybusinessopportunities.Whentheyfindone,theyinvestsomeoftheirownmoneytocreateabusinesswiththeexpectationthattheywillearnadequateprofitsasarewardfortheirefforts.However,theyfacetheriskthatthe

profitsofthebusinessmaynotbeashighasexpected.Infact,ifexpensesexceedrevenue,theprofitsmaybenegativeandthebusinesscouldfail.Inafreemarketeconomy,manybusinessesmaybecreatedwithinthesameindustry,whichresultsinintensecompetition.Inthissituation,afirmthatchargestoohighapriceforitsproductorservicemayfailbecausecustomerswillswitchtoitscompetitors.Similarly,afirmthatisnotwellmanagedmayfailbecauseitsexpensesaretoohigh.Thisriskoffailurecanreducethemotivetocreateabusiness.Entrepreneursrealizethatiftheyoverestimatethepotentialprofitabilityofabusinessormanagethebusinesspoorly,theywilllosethemoneythattheyinvested.Thus,theywillincuradirectpenaltyiftheymakeabaddecision.Tolimittheirrisk,entrepreneursshouldbecautiousandrealisticbeforedecidingtoinvesttheirmoneytocreateanewbusiness.However,thoseentrepreneurswhodevelopgoodbusinessideas

thatserveconsumerneedsandwhomanagetheirbusinessefficientlymayberewardedwithlargeprofits.contribute/kən’trɪbju:t/v.togivesomething,inordertoprovideorachievesomethingtogetherwithotherpeople贡献；奉献eg.这三个儿子也为家族事业做出了贡献。—Thethreesonsalsocontributetothefamilybusiness.

stakeholder/’steɪkhəʊldə/n.apersonsuchasanemployee,customer,orcitizenwhoisinvolvedwithanorganization,society,etc.andthereforehasresponsibilitiestowardsitandaninterestinitssuccess（组织、社团等的）利害关系人，利益相关者—Thegovernmenthassaiditwantstocreateastakeholdereconomyinwhichallmembersofsocietyfeelthattheyhaveaninterestinitssuccess.政府表示希望建立一种人人参与的经济模式，让社会全体成员觉得其繁荣将给每个人带来利益。entrepreneurship/ˌɒntrəprə’nɜ:ʃɪp/n.thestateofbeinganentrepreneur,ortheactivitiesassociatedwithbeinganentrepreneur企业家精神eg.没有好奇心，我们就会失去创新精神和企业家精神。—Withoutcuriositywewilllosethespiritofinnovationandentrepreneurship.switch/swɪtʃ/v.tochangesuddenlyorcompletely,especiallyfromonethingtoanother,ortoexchangebyreplacingonepersonorthingwithanother调换；转换switchto:turnto;transforminto...转向/切换到......eg.随着顾客转而从超市购买牛奶，送牛奶的生意受到了威胁。—Milkroundsarethreatenedascustomersswitchtobuyingfromsupermarkets.StructureofTextAIntroductionABusiness:anenterprisethatprovidesproductsorservicesdesiredbycustomers.

NaturalresourcesHumanresourcesCapitalTechnologyEntrepreneurshiptoearnaprofitGoalsofaBusinessResourcesofaBusinessAproductAserviceAcustomerHowtoachieveandmaintainprofitabilityExercises第一单元32.Paraphrase:Replacetheexpressionsofthebold.(1)

Businessesareestablishedtoservetheneedsofconsumersbyownerswhoseekto

makeprofits.(2)Thus,ownerswhocreateabusinesshaveastrongincentivetoensurethatitissuccessful,astheyaredirectlyrewardedfortheirefforts.makeprofits:earnmoney;getprofits;creategainsOrganizationsarelaidouttomeettheneedsof

buyersbyownerswhotrytocreategains.haveastrongincentive:haveastrongmotivationAsaresult,ownerswhostartafirmhaveahugemotivationtomakeitbecausetheyaredirectlypaidfortheirefforts.2.Paraphrase:Replacetheexpressionsofthebold.(3)Otherbusinessesrelyonlandtoestablishasitefortheirproductionorservices.(4)Theymaycontributetoproductionbyusingtheirphysicalabilities,suchasworkinginafactorytoconstructaproduct.relyon:use;dependon;baseon;rideonOtherfirmsdependonlandtoprovidealocationfortheirmanufacturingorserviceoffering.contributeto:makeacontributionto;conducetoTheycanusetheirphysicalabilitiestomakea

contributiontoproduction,forexample,workinginafactorytoconstructaproduct.2.Paraphrase:Replacetheexpressionsofthebold.(5)Inthissituation,afirmthatchargestoohighapriceforitsproductorservicemayfailbecausecustomerswillswitchtoitscompetitors.switchto:turnto;transformintoUnderthiscircumstance,ifafirmchargestoohighapriceforitsproductorservice,theymayfailbecausecustomerswillturntoitscompetitors.3.

Vocabulary:Completethejobintroductionwiththewordsandexpressionsinthebox,andyoucanmakeyourownjobintroductiononthebasisofthewordsandexpressionsinthebox.a.workon

b.workfor

c.workunderd.workwith

e.manage

f.dealwithg.run

h.responsiblefori.inchargeof“I(1)_____alargeEuropeancarmaker.I(2)_____cardesign.Infact,I(3)_____thedesigndepartmentandI

b

a

ga.workon

b.workfor

c.workunderd.workwith

e.manage

f.dealwithg.run

h.responsiblefori.inchargeof(4)_____ateamofdesigners:20people(5)_____me.It’sveryinteresting.Oneofmymainresponsibilitiesistomakesurethatnewmodeldesignsarefinishedontime.I’malso(6)_____designingbudgets.I(7)_____alotofdifferentpeopleinthecompany.I’m(8)_____coordinationbetweendesignandproduction:I(9)_____managersatourmanufacturingplants.”

e

c

i

f

h

d4.Cloze:Decidewhichofthechoicesgivenbelowwouldbestcompletethepassageifinsertedinthecorrespondingblanks.[A]doubt

[B]active

[C]system

[D]offer

[E]unfairly

[F]unfortunately[G]motive[H]image[I]peace

[J]demand

[K]assert

[L]superior[M]overcome[N]confidence[O]roarHave you ever been afraid to talk back when you

were treated (1)___? Have you ever bought something just because the salesman talked you into it? Are you afraid to asksomeoneforadate?

E[A]doubt

[B]active

[C]system

[D]offer

[E]unfairly

[F]unfortunately[G]motive[H]image[I]peace

[J]demand

[K]assert

[L]superior[M]overcome[N]confidence[O]roarManypeopleareafraidtoassertthemselves.Dr.Albertithinksit’sbecausetheirself

respectislow.“Ourwhole(2)___isdesignedtomakepeopledistrustthemselves,”saysAlberti.“There’salwaysa‘(3)___’around—aparent,ateacher,aboss—who‘knowsbetter.’Thesesuperiorsoftengainwhentheychipawayatyourself-image.”

C

L[A]doubt

[B]active

[C]system

[D]offer

[E]unfairly

[F]unfortunately[G]motive[H]image[I]peace

[J]demand

[K]assert

[L]superior[M]overcome[N]confidence[O]roarButAlbertiandotherscientistsaredoingsomethingtohelppeople(4)___themselves.They(5)___“assertivenesstraining”courses―ATforshort.IntheATcoursespeoplelearnthattheyhavearighttobethemselves.Theylearntospeakoutandfeelgoodaboutdoingso.Theylearntobemore(6)___withouthurtingotherpeople.

KDB[A]doubt

[B]active

[C]system

[D]offer

[E]unfairly

[F]unfortunately[G]motive[H]image[I]peace

[J]demand

[K]assert

[L]superior[M]overcome[N]confidence[O]roarInoneway,learningtospeakoutisto(7)___fear.Agrouptakingacoursewillhelpthetimidpersontolosehis/herfear.ButATusesanevenstronger(8)___—theneedtoshare.Thetimidpersonspeaksoutinthegroupbecausehewantstotellhowhefeels.Whetherornotyouspeakupforyourselfdependsonyourself-image.Ifsomeoneyoufaceismore“important”thanyou,youmayfeellessofaperson.

MG[A]doubt

[B]active

[C]system

[D]offer

[E]unfairly

[F]unfortunately[G]motive[H]image[I]peace

[J]demand

[K]assert

[L]superior[M]overcome[N]confidence[O]roarYoustartto(9)___yourowngoodsense.Yougobytheotherperson’s(10)

___. But, why should you? AT says you can get tofeelgoodaboutyourself.Andonceyoudo,youcanlearntospeakout.

AJ5.

E-CTranslation:TranslatethefollowingsentencesintoChinese.(1)Askillsassessmenttestcanbeafantasticwaytouncoverhiddenopportunitiesanddirectyoutowardsaparticularcareerpath.(2)Fromearlycareerplanningtohelpfulinternships,yourfocusshouldbeonbecomingawell-roundedcollegegraduatewithaneyeonthefuture.技能评估测试有助于你挖掘潜在的机会，也是指引你走向特定职业路径的一种非常好的方式。从早期的职业生涯规划到成为可造之材的实习生，你应该集中精力让自己成为一个能够着眼于未来的多才多艺的大学毕业生。5.

E-CTranslation:TranslatethefollowingsentencesintoChinese.(3)AreportpublishedonMondayfoundthatmanyyoungentrepreneursinChinalaunchedstart-upswithlittleexperienceorpreparation,andexpertsurgedthemtobemorerationalwithbusinessstart-ups.本周一发布的一份报告指出，国内许多年轻创业者在经验和准备均不足的情况下创业，专家敦促他们在创业时应更加理性。5.

E-CTranslation:TranslatethefollowingsentencesintoChinese.(4)Onceanemployeetakesleaveforsomedays,hisorherearningsforthemonthwillbereducedalmosttotheminimum.(5)AsurveybytheChinaYouthDailyhasrevealedthat67.1%ofpeopleseebetterpayastheprimaryincentivewhenapplyingfornewjobs.一旦员工休假几天，他们的薪水几乎会降至最低水平。《中国青年报》近日开展的一项调查显示，67.1%的人将更好的待遇视为其谋新职的主要动力。6.

C-ETranslation:TranslatethefollowingsentencesintoEnglishbasedonthecuewordsinbrackets.(1)他当初上大学时主修的是商务。(majorin)(2)我们愿意为双方贸易提供机会。(providefor)(3)新市长被指控未能履行降低通货膨胀率的诺言。Hehadmajoredinbusinesswhenhewasinuniversity.Wearewillingtoprovideopportunitiesfordevelopingbilateraltrade.Thenewmayorwaschargedwithfailuretofulfillhispromisetodecreasetheinflationrate.6.

C-ETranslation:TranslatethefollowingsentencesintoEnglishbasedonthecuewordsinbrackets.(4)据说当地的卫生组织25年前就成立了。(itisreportedthat...)(5)我公司经营电子产品的进出口业务，希望与贵公司建立商业联系。(specializein...)Itisreportedthatthelocalhealthorganizationwasestablished25yearsago.Ourcorporationspecializesinimportingandexportingelectronicproductsandwishestoenterintobusinessrelationswithyou.Role-playJobinterview:Interviewaclassmateaccordingtothefollowingquestionsandmakenoteswhennecessary.1.Tellmeaboutyourself.2.Whatareyourstrengths?Bestskills?3.Whatisyourmajorweakness?4.Whatareyourcareergoals?Futureplans?5.Whatthingsaremostimportanttoyouinaworksituation?6.Ifyouhadachoice,wouldyouprefertoworkaloneoraspartofateam?Why?7.Whatareyourhobbies?8.Whatsalaryareyouexpecting?

IinterviewedJasmine.(1)Sheis20yearsoldandcomesfromWeihaicity,Shandongprovince.(2)Sheiswarm-hearted,verypositiveandakindofsunshinegirl.Sheishard-workingandoneofthetoptenstudentsinherclass.Sheisgoodatdancingandsinging.(3)Sheisnotgoodatdetailsandoftenmakesmistakesindetail-basedtaskssuchaswriting.(4)SheplanstogetaMaster’sdegreeinbusinessandworkinafamousinternationalcompanyasabusinesswoman.(5)SheReferenceKeytoRole-playlikestohaveaharmoniousworkenvironmentandthecompany’scultureisencouragingemployeestobeinnovative.(6)Shelikestobeoneoftheteambecauseateamcancompletemorechallengingtasks.(7)Herhobbyistravellingaroundtheworld.(8)Sheexpectsthesalarybetween6,000RMBand8,000RMBpermonth.ReferenceKeytoRole-playTextBBusinessCycle第一单元4QuestionsonTextB1.Summarizethemaincharacteristicsofeachphaseinabusinesscycle.2.CompletethefollowingchartwithfourphasesinabusinesscycleaccordingtoTextB.QuestionsonTextB3.Howwellistheglobaleconomydoingnow?Whataboutyourcountry?4.Whatkindsofbusinesseswoulddobetterthanothersindownturnsinthebusinesscycle?5.Canyoufigureoutwhatcausesthebusinesscycle?QuestionsonTextB1.Summarizethemaincharacteristicsofeachphaseinabusinesscycle.(1)Boom:Aneconomicboomincreasesthedemandforbothcapitalandconsumergoods.(2)Recession:Theeconomyslowsdown,andthelevelofsalesandproductionordersstartdeclining.(3)Depression:Aprotractedperiodofrecessionushersinadepression.(4)Recovery:Thisstageischaracterizedbyanincreaseinconsumers’confidenceofthemarket.QuestionsonTextB2.CompletethefollowingchartwithfourphasesinabusinesscycleaccordingtoTextB.recession,depression,recovery,boom3.Howwellistheglobaleconomydoingnow?Whataboutyourcountry?TheInternationalMonetaryFundandothershaverecentlyreviseddownwardtheirforecastsforglobalgrowth.Potentialgrowthhasalsofalleninbothadvancedandemergingeconomies.Forstarters,highlevelsofprivateandpublicdebtareconstrainingspending,especiallygrowth-enhancingcapitalspending,whichfell(asashareofGDP)aftertheQuestionsonTextBglobalfinancialcrisisandhasnotrecoveredtopre-crisislevels.Thatfall-offininvestmentimpliesslowerproductivitygrowth,whileagingpopulationsindevelopedcountries—andnowinanincreasingnumberofemergingmarkets(forexample,China,Russia,andSouthKorea)—reducethelaborinputinproduction.China’ssocialistmarketeconomyistheworld’ssecondlargesteconomybynominalGDP,andtheworld’slargesteconomybypurchasingpowerparityaccordingtotheIMF.DuetothehistoricalandpoliticalrealitiesofChina’sdevelopingeconomy,China’spublicsectoraccountsforabiggershareofthenationaleconomythantheQuestionsonTextBburgeoningprivatesector.Chinaisaglobalhubformanufacturing,andisthelargestmanufacturingeconomyintheworldaswellasthelargestexporterofgoodsintheworld.Chinaisalsotheworld’sfastest-growingconsumermarketandsecondlargestimporterofgoodsintheworld.Chinaisanetimporterofserviceproducts.Asof2016,Chinaisthesecondlargesttradingnationintheworldandplaysaprominentroleininternationaltrade,andhasincreasinglyengagedintradeorganizationsandtreatiesinrecentyears.QuestionsonTextB4.Whatkindsofbusinesseswoulddobetterthanothersindownturnsinthebusinesscycle?Somebusinesses(likehousing)andregions(likepartsoftheindustrialMidwest)arealreadyinrecession.Othersmayfeellittleornoimpactfromthecurrenteconomicdownturn,whichmayormaynotturnouttohavebeenarecessionwhenalltheeconomicdataarecollectedinafewmonths.Somebusinessesaremorevulnerabletorecessionthanothers.Carmakers,forexample,oftensufferbadlybecausebuyingacarisusuallyalonger-termdecision.Whentimesgetbad,peopletendtoputoffbuyinganewcaraslongastheycan.Otherbusinessesaresaidtobe“recession-proof”(thoughfewreallyare).Funeralhomedirectorsandaccountants,forexample,cansafelyassumearecessionwon’thavemuchimpactondeathandtaxes.Butthelistofreliablyrecession-proofbusinessesisprettyshort.Since70percentoftheU.S.economyreliesonconsumerspending—andconsumerstypicallycutbackwhenarecessionhits—therearefewconsistentlysafesheltersfromthestormofaseriousdownturn.Onewaytothinkaboutwhichbusinessesfacethegreatestriskistoask:Whatproductsandservicesarepeoplegoingtocontinuetobuyevenifthere’sarecession?Healthcarecompaniesgenerallydowellbecausepeoplegetsickjustasmuchinarecession(sometimesmore)astheydowhentimesaregood.Eveninarecession,youcan’tdrycleanyourclothesathome,andpeoplestillneedtobuycarinsurance.QuestionsonTextB5.Canyoufigureoutwhatcausesthebusinesscycle?(1)EconomicDisturbances.Adisturbancetotheeconomyimpactstherateofemployment.Forexample,duringwar,thedemandformaterialstofightthewarincreases,resultinginincreasedemployment.Theincreasedemploymenttranslatestoanincreaseinspending,bothpubliclyandprivately.Whenpeoplearespendingmore,theneedforproductsandservicesrisesaswell.Conversely,ifspendingdecreases,sodoestheneedforproduction.Acurtailmentofgovernmentspendingorawaveofpessimismamongconsumersresultsinaneconomicdownturnorarecession.QuestionsonTextB5.Canyoufigureoutwhatcausesthebusinesscycle?(2)EconomicPolicies.WhentheFederalReservemakesamovethataffectsthesizeandgrowthrateofthemoneystock,itimpactsinterestrates.Achangeininterestratescanaffectbusinessandconsumerspending.Businessesmaypullbackbuildingplansifoverallcostsriseasaresultofthehigherinterestthatnowmustbepaidonloans.Likewise,consumersmaypostponetheirpurchasesiftheyneedtotakealoanout.Ifinterestratescomedown,consumerandbusinessspendingwilllikelyincreasebecauseofloweroverallcosts.Thedemandforproductswillincrease,andmoreworkerswillbeneededforproduction.QuestionsonTextB5.Canyoufigureoutwhatcausesthebusinesscycle?(3)SupplyShocks.Whentheavailabilityofrawmaterialscomesintoquestion,adownturninthebusinesscyclemayresult.Naturaldisasters,weathereventsorinternationalconflictsarealllikelyculpritsinthisscenario.ConflictsintheMiddleEastaffectoilandgasproduction,whilehurricanesandearthquakesdisrupttheflowofrawmaterialsneededforproductionincertainmanufacturingsectors.Similarly,newtechnologyandinnovationcanleadtotheobsolescenceofolderoroutdatedproducts.Thedemandforthenewtechnologyrises,whileworkersaredisplacedbecausethemanufacturingoftheobsoleteitemscomestoanend.5.Canyoufigureoutwhatcausesthebusinesscycle?(4)Measurement.Theterm“cycle”canbemisleadingwhenreferringtoabusinesscycle.Acycletypicallyflowsandebbswithsomeregularity,likeatide.Butbusinesscyclescanoccurforanumberofreasonsandatanytime,andthedurationcanfluctuate.Analystsmeasureacyclebeginningwiththefirstsignsofchangeineconomicactivity.Thepeakofthecycleisthelastmonthbeforekeyeconomicindicatorsstarttodrop.Theindicatorsincludeemployment,productionoutputandretailsales.Thetroughofthecycleisthelastmonthbeforethesesameindicatorsbegintoriseagain.Certainmodern-dayeconomistsprefertousetheterm“short-runeconomicfluctuations”asopposedtosayingbusinesscycles.