Organism Physiology Paper

Organism Physiology Paper R. Steiner Principles of Biology Anette Griego “Humans and chimpanzees split around five million years ago. Ever since then, we (and they) have changed a bit to adapt to the different environments we invaded and created” (Gitig 2009). Organisms need to adapt both physiologically and anatomically in order to survive in changing environments find more info . For example, Tibetans have developed genes to help them adapt to life at high elevation. While most humans would become very ill at such high altitudes in south-central Asia, the Tibetan highland people thrive in this climate.
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Researchers have concluded that, “through thousands of years of natural selection, those hardy inhabitants evolved 10 unique oxygen-processing genes that help them live in higher climes” (Science Daily 2010). In a recent study, researchers from the University of Utah School of Medicine and Qinghai University Medical School in the People’s Republic of China report that thousands of years ago, Tibetan highlanders began to genetically adapt to prevent polycythemia, as well as other health abnormalities such as swelling of the lungs and brain and hypertension of the lung vessels leading to eventual respiratory failure (Science Daily 2010).

Even at elevations greater than 14,000 feet above sea level, Tibetans do not over produce red blood cells thus, allowing them to be immune to severe illness due to such climate. The Utah and Chinese researchers found that, “this might be related to at least 10 genes, two of which are specific genes strongly associated with hemoglobin, a molecule that transports oxygen in the blood” (SD 2010). Adaptations at high elevations have happened before in humans, such as those living in the Andes Mountains or Ethiopian regions of Africa.

However, the Tibetan people have developed a gene to eliminate their reaction to such great climates that others have not. “For the first time, we have genes that help explain that adaptation” (SD 2010). To conclude, there is still a lot of research to be done and there could be other reasons the Tibetans thrive at such high altitudes. Researchers believe that these ten genes also contribute to a higher metabolism. The Tibetans are able to live a healthy and comfortable lifestyle due to these ten specific genes.

All organisms must learn how to adapt in order to live a full life in their environment. As the Tibetans adapted to their elevated climates, they are a perfect example of how this phenomenon occurs. Reference Gitig, Diane. (2009) Genomic analysis shows humans evolved with few sweeping change. March 13, 2010. www. arstechnica. com. Tibetans Developed Genes to Help Them Adapt to Life at High Elevations. (May 2010). March 13, 2010. www. ScienceDaily. com.

Bangladesh Launches National Tree Plantation Movement

Bangladesh launches national tree plantation movement 0 CommentsPrint E-mail Xinhua, June 2, 2010 Adjust font size: Bangladeshi Prime Minister Sheikh Hasina Tuesday inaugurated a three-month National Tree Plantation Movement-2010 and one-month National Tree Fair-2010 with a call to plant at least three saplings by each individual on all open spaces to protect environment and biodiversity. I call upon you all including the people’s representatives, government officials and people from all walks of life to plant at least three saplings of fruit-bearing, timber and other medicinal trees and play a pivotal role to involve others with the government’s tree plantation movement in this regard,” she said. Mentioning the role of trees in poverty alleviation, employment generation and protecting environment, the Prime Minister said her government has undertaken various programs for increasing the country’s forest resources to this end through creating of social afforestation. We are also working for creating greenbelt across the coastal belt to protect it from natural calamities side by side with saving bio-diversity and environment there,” she said. Sheikh Hasina also asked the authorities concerned to increase the country’s forest area to 25 percent, which is now a mere 10 percent. She said her government has undertaken a project involving 1. 09 billion taka (15. 57 million U. S. dollars) through social afforestation to alleviate poverty. ————————————————- write an essay for me free

Besides, she said it has already initiated a Climate Change Trust Fund of 7 billion taka (100 million U. S. dollars) of its own to face the challenges of adverse impact of climate change. Nearly 140 million people are living in the limited area of Bangladesh. The agriculture sector has not developed enough to produce adequate food grains for the country and as such deficit is met through import from the neighboring countries. The country has become a land of ecological imbalance due to deforestation and lack of afforestation.

On the other hand Bangladesh has tremendous possibilities of improvement in the field of traditional and specialized agriculture as well as in the field of afforestation. Bangladesh Agriculture and Forest Development Ltd. (BAFD), an unit of Bangladesh Development Group is aiming to utilize its natural resource of fertile land and tropical climate for economical development of the country as well as to revert the ecological imbalance. It has the plan to set up Medicinal Plantation as specialized agriculture project and Oil Palm Tree Plantation as agricultural as well as forest development project.

The Oil Palm Tree Plantation will also contribute towards improving the condition of ecological imbalance. Moreover, Palm Oil Production will significantly reduce its import volume. Since Oil Palm Tree Plantation cum Palm Oil Production is a new technology in Bangladesh, the company intends to march forward in collaboration with experienced foreign associates to implement its objectives. ————————————————- OUR ACTIVITIES * 1. Medicinal Plantation * 2. Palm Oil Production * ————————————————- 3. Tree Plantation Tree Plantation

Unilever Bangladesh is aware of global warming, the seemingly irreversible condition resulting to extreme climate changes. This is why the Company launched a programme to take steps towards creating a Greener Bangladesh and to help protect the country by restoring its greenery Tree Plantation The consequences of global warming is very significant when we consider Bangladesh, this being a low-lying country. The recent occurrence of Hurricane Aila which left death and destruction in its wake, just over a year after Hurricane Sidr should tell us that our weather patterns are already changing, and that it’s only going to get worse.

Bangladesh being a low-lying delta country is particularly vulnerable, standing to loose 15% of its land mass, which includes the world heritage site, the Sundarbans, home to thousands of species. Already a country battling with poverty, the problems will be made worse if the rise in sea level contaminates our fresh water supplies. Unilever Bangladesh is aware of global warming, the seemingly irreversible condition resulting to extreme climate changes. This is why the Company launched a programme to take steps towards creating a

Greener Bangladesh and to help protect the country by restoring its greenery. UBL in collaboration with Tengamara Mohila Shabuj Shanga (TMSS) initiated its tree plantation program on 30th October 2009. The aim of this program is to promote environmental care and raise environmental awareness. As a start, the Company planted 10,000 trees that will be scaled up to higher numbers in the coming years. The initiative began at Taranagar Union under Keranigonj Upazilla of Dhaka District.

The Unilever Managers also participated by planting saplings demonstrating their commitment to the cause. Tree plantation can help protect barind tract RAJSHAHI, July 3: Speakers at the inaugural ceremony of a fortnight-long tree plantation movement and tree fair here on Sunday unequivocally called for extensive afforestation to protect the high barind tract from further degradation, reports BSS. In this regard, they viewed that the optimum afforestation could help stop degradation of environment, ecology and biodiversity to make the country a safe habitat for all.

Creation of more forests through tree plantations to expand the country’s forest area up to 25 percent of the total landscape will protect Bangladesh from the possible alarming consequences of the ongoing climate changes, they added. Social Forestry Division (SFD) and Deputy Commissioner Office jointly organized the tree plantation movement and fair- 2011 at the Green Plaza of Rajshahi City Corporation Bhaban with a call to make the tree plantation campaign a social movement as part of the current National Tree Plantation Drive.

Commissioner of Rajshahi division Abdul Mannan addressed the ceremony as the chief guest while Commissioner of Rajshahi Metropolitan Police Md Obaiduallh and Chief Executive Officer Rajshahi City Corporation Ajahar Ali spoke as special guests with Deputy Commissioner Dilwar Bakth in the chair. In his address of welcome, Divisional Forest Officer Abul Basher Mian gave an overview of the fortnight-long tree plantation movement and tree fair.

The speakers urged the people irrespective of age, sex, creed and cast to plant at least three saplings each around their respective homesteads or on any open space to help maintain environmental and ecological balance and save the region from the wrath of any future natural catastrophe. They said there is no alternative to plant more saplings to protect the ecological balance after facing the adverse effect of Farakka barrage in the region. All concerned should put in their best effort to make the region green by enhancing forest area.

Different government and non-government organizations and individuals including nursery owners and local entrepreneurs have set up 50 stalls on the fair ground displaying saplings of over 100 varieties, including 40 indigenous plants of fruit-bearing trees, timber and medicinal trees. Earlier, a colourful rally, participated by the officials, students and heads of the educational institutions, socio- cultural activists and professionals, paraded the city roads to aware the people about tree plantation. Bangladesh to plant 100 mln trees to fight floods, cyclones by Staff Writers Dhaka (AFP) May 24, 2008 Disaster-prone Bangladesh announced on Saturday that it would plant 100 million trees to create a “natural fence” against frequent floods and cyclones. The head of the country’s military-backed government Fakhruddin Ahmed launched the project in the capital, Dhaka, saying the trees would “fight storms, tidal surges, floods and droughts” in a “natural way. ” He appealed to all Bangladeshis to build “a wall of trees in the coastal belt as a strong deterrent to disaster. “Our main weapon to face these disasters is tree plantation,” he said. Impoverished Bangladesh has suffered numerous natural calamities that have been occurring more frequently in recent years due to global warming, environmentalists say. The intensity of the storms have also risen in the low-country country where 40 percent of its 144 million people live below poverty level. The trees will be planted over the next three months during the rainy season, deputy environment minister Raja Debashish Roy told AFP. “It’s the country’s biggest-ever planting programme.

We’ve undertaken it to protect our natural calamity-prone country from frequent cyclones and floods that has been exacerbated by climate change,” he said. Last summer the country was hit by two major floods while a cyclone tore through its coastal districts in November, killing at least 5,000 people and leaving tens of millions homeless and desperately short of food. Environmentalists said the deaths in the storm would have been even greater had not the world’s largest mangrove forest stood as a “green bastion” against the cyclone.

Some 1,500 square kilometres (600 square miles) of the 10,000-square-kilometre Sunderbans forest, which straddles Bangladesh and India and is home to the famed Royal Bengal tigers, were badly damaged. “We will be planting 100 million saplings and we have an estimated 180 million saplings in the nurseries so we won’t run short,” said forest ministry secretary Rezaul Kabir. The sapling planting programme is double last year’s level, he said. Kabir said most of the saplings would be planted in the coastal areas to build a “green belt” in the southern districts. Like in the Sunderbans, these trees will work as a natural fence against regular storms and tidal surge. It will reduce the number of casualties in natural disasters,” he said. Some 14 percent of the country is covered by forest and trees and the government aims to increase that figure to 20 percent. Bangladesh has been under emergency rule since January 2007 when the military- backed government took power after elections were cancelled following vote-rigging allegations.

Essay on Pacemaker

Essay ON PAcemaker A pacemaker (or artificial pacemaker, is a medical device that uses electrical impulses, delivered by electrodes contacting the heart muscles, to regulate the beating of the heart. The primary purpose of a pacemaker is to maintain an adequateheart rate, either because the heart’s native pacemaker is not fast enough, or there is a block in the heart’s electrical conduction system. Modern pacemakers are externally programmable and allow the cardiologist to select the optimum pacing modes for individual patients. Some combine a pacemaker anddefibrillator in a single implantable device.
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Others have multiple electrodes stimulating differing positions within the heart to improve synchronisation of thelower chambers of the heart. In 1958, Arne Larsson (1915-2001) became the first to receive an implantable pacemaker. He had a total of 26 devices during his life and campaigned for other patients needing pacemakers. In 1899, J A McWilliam reported in the British Medical Journal of his experiments in which application of an electrical impulse to the human heart in asystolecaused a ventricular contraction and that a heart rhythm of 60-70 beats per minute could be evoked by impulses applied at spacings equal to 60-70/minute. 1] In 1926, Dr Mark C Lidwell of the Royal Prince Alfred Hospital of Sydney, supported by physicist Edgar H Booth of the University of Sydney, devised a portable apparatus which “plugged into a lighting point” and in which “One pole was applied to a skin pad soaked in strong salt solution” while the other pole “consisted of a needle insulated except at its point, and was plunged into the appropriate cardiac chamber”. “The pacemaker rate was variable from about 80 to 120 pulses per minute, and likewise the voltage variable from 1. to 120 volts” In 1928, the apparatus was used to revive a stillborn infant at Crown Street Women’s Hospital, Sydney whose heart continued “to beat on its own accord”, “at the end of 10 minutes” of stimulation. [2][3] In 1932, American physiologist Albert Hyman, working independently, described an electro-mechanical instrument of his own, powered by a spring-wound hand-cranked motor. Hyman himself referred to his invention as an “artificial pacemaker”, the term continuing in use to this day. [4][5] An apparent hiatus in publication of research conducted etween the early 1930s and World War II may be attributed to the public perception of interfering with nature by ‘reviving the dead’. For example, “Hyman did not publish data on the use of his pacemaker in humans because of adverse publicity, both among his fellow physicians, and due to newspaper reporting at the time. Lidwell may have been aware of this and did not proceed with his experiments in humans”. [3] An external pacemaker was designed and built by the Canadian electrical engineer John Hopps in 1950 based upon observations by cardio-thoracic surgeonWilfred Gordon Bigelow at Toronto General Hospital .

A substantial external device using vacuum tube technology to provide transcutaneous pacing, it was somewhat crude and painful to the patient in use and, being powered from an AC wall socket, carried a potential hazard of electrocution of the patient by inducing ventricular fibrillation. A number of innovators, including Paul Zoll, made smaller but still bulky transcutaneous pacing devices in the following years using a large rechargeable battery as the power supply. [6] In 1957, Dr. William L. Weirich published the results of research performed at the University of Minnesota.

These studies demonstrated the restoration of heart rate, cardiac output and mean aortic pressures in animal subjects with complete heart block through the use of a myocardial electrode. This effective control of postsurgical heart block proved to be a significant contribution to decreasing mortality of open heart surgery in this time period. [7] The development of the silicon transistor and its first commercial availability in 1956 was the pivotal event which led to rapid development of practical cardiac pacemaking. In 1958, engineer Earl Bakken of Minneapolis, Minnesota, produced the first wearable external pacemaker for a patient of Dr.

C. Walton Lillehei. This transistorised pacemaker, housed in a small plastic box, had controls to permit adjustment of pacing heart rate and output voltage and was connected to electrode leads which passed through the skin of the patient to terminate in electrodes attached to the surface of the myocardium of the heart. The first clinical implantation into a human of a fully implantable pacemaker was in 1958 at the Karolinska Institute in Solna, Sweden, using a pacemaker designed by Rune Elmqvist and surgeon Ake Senning, connected to electrodes attached to the myocardium of the heart by thoracotomy.

The device failed after three hours. A second device was then implanted which lasted for two days. The world’s first implantable pacemaker patient, Arne Larsson, went on to receive 26 different pacemakers during his lifetime. He died in 2001, at the age of 86, outliving the inventor as well as the surgeon. [8] In 1959, temporary transvenous pacing was first demonstrated by Furman et al. in which the catheter electrode was inserted via the patient’s basilic vein. 9] In February 1960, an improved version of the Swedish Elmqvist design was implanted in Montevideo, Uruguay in the Casmu Hospital by Doctors Fiandra and Rubio. That device lasted until the patient died of other ailments, 9 months later. The early Swedish-designed devices used rechargeable batteries, which were charged by an induction coil from the outside. Implantable pacemakers constructed by engineer Wilson Greatbatch entered use in humans from April 1960 following extensive animal testing.

The Greatbatch innovation varied from the earlier Swedish devices in using primary cells (mercury battery) as the energy source. The first patient lived for a further 18 months. The first use of transvenous pacing in conjunction with an implanted pacemaker was by Parsonnet in the USA,[10][11][12] Lagergren in Sweden[13][14] and Jean-Jaques Welti in France[15] in 1962-63. The transvenous, or pervenous, procedure involved incision of a vein into which was inserted the catheter electrode lead under fluoroscopic guidance, until it was lodged within the trabeculae of the right ventricle.

This method was to become the method of choice by the mid-1960s. World’s first Lithium-iodide cell powered pacemaker. Cardiac Pacemakers Inc. 1972 The preceding implantable devices all suffered from the unreliability and short lifetime of the available primary cell technology which was mainly that of themercury battery. In the late 1960s, several companies, including ARCO in the USA, developed isotope powered pacemakers, but this development was overtaken by the development in 1971 of the lithium-iodide cell by Wilson Greatbatch.

Lithium-iodide or lithium anode cells became the standard for future pacemaker designs. A further impediment to reliability of the early devices was the diffusion of water vapour from the body fluids through the epoxy resin encapsulation affecting the electronic circuitry. This phenomenon was overcome by encasing the pacemaker generator in an hermetically sealed metal case, initially by Telectronics of Australia in 1969 followed by Cardiac Pacemakers Inc of Minneapolis in 1972. This technology, using titanium as the encasing metal, became the standard by the mid-1970s.

Others who contributed significantly to the technological development of the pacemaker in the pioneering years were Bob Anderson of Medtronic Minneapolis, J. G (Geoffrey) Davies of St George’s Hospital London, Barouh Berkovits and Sheldon Thaler of American Optical, Geoffrey Wickham of Telectronics Australia,Walter Keller of Cordis Corp. of Miami, Hans Thornander who joined previously mentioned Rune Elmquist of Elema-Schonander in Sweden, Janwillem van den Berg of Holland and Anthony Adducci of Cardiac Pacemakers Inc. Guidant

Imaginary Friends (Published)

Imaginary friends Imaginary friends are very common in kids with big imagination, very lonely or mentally ill. The most probable would be loneliness. These are usually caused by children whose parents are away or always busy. Thus, their time being with their children is limited find . It is said that because of their loneliness, imaginary friends are born. They would usually talk with them, play with them or just stay by their sides. These are very normal, but they also have side effect. Some of the rare causes of having imaginary friend are having a real spiritual friend.

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Many causes of paranormal stuffs involving hallucinations or mentally ill, but some are real. These rare cases are only experienced by children who have physical abilities or just victims of their super natural world. Sometimes, when a family moves to another place, there is a small percentage that their children would experience having an imaginary friend, depending on the things that took place where they live. Some fortunate kids would make new spiritual friends. They might even become their guardian angel, but not all of them are lucky.

I was one of the lucky few who have met such a kid. Her name was Antonia. She was one of my best friends until they move to a new house in Boston. I remember very well, that Antonia would come to my place and tell me stories of her childhood days. One of the stories she told me happed when she was like seven years old when she stayed at her grandparents’ house at summer in Tennessee. There at their house in Tennessee, she had no friends, so she had “Imaginary Friends”, for she thought it is common for children of all ages to have imaginary friends.

Yet, children usually aren’t able to tell a story to adults so many times without it being true. As I can recall, the story happened like this… That night before she went to sleep, she laid there in the bed and stared at the ceiling. The room has many kinds of antiques, since that room belonged once to Antonia’s how many greats grandmother. In the middle of the room there was a crystalline chandelier, which any home probably from the eighteen hundreds. I remembered her telling me that whenever she’s looking at this chandelier every night, all of a sudden many little sparkles would come piling out.

The only way she can describe them is when its dark and you look around, you can see tons of little lights blinking, or when you look into the sun for too long. Anyway, these were not just from looking into the dark… they moved, without her moving my eyes. Every night, her “sparkling imaginary friend” would appear out from the chandelier. Every night they would talk about things that they have in common. Also she told me that whenever she would talk to her, they did not speak to her aloud nor whisper, but she could hear them in her head and would answer them aloud.

Which was weird for a kid like her, but she didn’t care much back then. I would, in conversation, mention my “sparkling imaginary friends”, my parents would think nothing of it. Then I started to talk about them more frequently, maybe trying to tell my parents about them. One night, my parents were putting me to bed and brought a glass of milk for me to drink. I insisted that my friends were mad at me. I don’t remember why they were upset now, but I’m thinking because I told my parents. They left the room and the glass of milk with me.

The next morning my big brother came to wake me up and found that the glass of milk had been dumped on my head. He ran and got my parents, who woke me up and asked me why would you do this? I simply replied, I told you they were mad at me. My so-called imaginary friends never forgave me. I never saw them again but throughout the year some more odd things have happened to me, but as she got older her imaginary friends slowly fade away and thus she had made friends with real people. Real friends that will be by her side no matter what’ll happen.

Industry Life Cycle

Paper to be presented at the DRUID Summer Conference 2007 on APPROPRIABILITY, PROXIMITY, ROUTINES AND INNOVATION Copenhagen, CBS, Denmark, June 18 – 20, 2007 ENTERING A MATURE INDUSTRY THROUGH INNOVATION: APPLE S IPHONE STRATEGY Joel West San Jose State University joel. [email protected] edu *Michael Mace Rubicon Consulting [email protected] com Abstract: Innovation competencies are valuable in emergent and high-growth phases of the lifetime of a product or industry segment.

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For mature industries, researchers have emphasized trengths in operations and execution, with the implication that innovation-oriented companies must enter early in the product lifecycle or not at all. Here we examine the decision of Apple Inc. to enter the mobile handset business. We link the iPhone entry strategy to its historic competencies and the industry context of commodization and convergence. From this we offer conclusions about openness in mobile phones and prospects for a single dominant design for convergence devices.

JEL – codes: O30, L16, L1 Entering a Mature Industry Through Innovation: Apple’s iPhone Strategy Submitted to DRUID Summer Conference 2007 February 28, 2007 Abstract Innovation competencies are valuable in emergent and high-growth phases of the lifetime of a given product or industry segment. For mature industries, researchers have emphasized strengths in operations and execution, with the implication that innovation-oriented companies must enter early in the product lifecycle or not at all. Here we examine the decision of Apple Inc. o enter the mobile handset business. We link the iPhone entry strategy to its historic competencies and the industry context of commodization and convergence. From this we offer conclusions about openness in mobile phones and prospects for a single dominant design for convergence devices. Few electronics-based industries have both the same scale and the ongoing rate of technological change as the mobile handset business. The industry was driven initially by rapid adoption in previously unserved major markets — first in Europe, then Japan, the U.

S. , and China, such that in 2006 more than 1 billion new handsets were sold. At the same time, the industry has seen ongoing technological change, both in the mobile telephone system (through the adoption of new technologies such as SMS, WAP, 3G, camera phones and now mobile TV) and in key component technologies such as LCD screens and rechargeable batteries. At the same time, developed markets have approached saturation as per capita adoption rates have exceeded 75% in these major markets.

In such markets, network operators face steadily falling unit prices and must offer new services in hopes of increasing (or maintaining) average revenue per user (ARPU). Handset makers face similar challenges — commoditization of voice handsets and an imperative to offer ever more-capable phones to maintain high average selling prices in developed markets. The few remaining growth markets (such as China and now India) offer little consolation, as they feature highly price sensitive buyers and strong local competition.

Throughout, handset makers face a unique distribution system, where even the most strongly branded firm must sell its phones in a given national market through one of three or four local operators: by one estimate, only 0. 5% of the handsets sold in the U. S. are not sold directly an operator or its agents. 1 Manufacturers thus face both high bargaining power by their main distributors, and the requirement to introduce new technology to align to their distributors’ business models. -1-

Despite such pressures, leadership in the mobile handset business has remained a remarkably stable oligopoly, with today’s market share leaders reflecting successful entry decisions made at the beginning of the cellular era. Motorola invented the portable cell phone in 1973, while both Nokia and Ericsson rode the rapid adoption of Nordic Mobile Telephones in the 1980s. Other European makers have come and gone, while Japanese makers have dominated their home markets but have enjoyed limited export success.

The only new firm in the list of 2006 top three manufacturers is Samsung of Korea, which has been in 3rd place since 2001 (Table 1). In 2007, a new entrant unveiled its strategy for challenging this stable oligopoly. Unlike the three long-established handset makers — or challengers like Samsung, Matsushita and LG — this niche player has no manufacturing and has never been a high-volume phone producer. It has pre-announced its product more than a year before entry into the competitive European and Asian markets, giving competitors plenty of time to match its product features.

Customers loyal to the incumbents and many analysts dismissed the entry strategy as doomed to fail. However, the new entrant is Apple Inc. ,2 and its unreleased iPhone is the industry’s most talked-about product of the year. Despite a lack of telecommunications experience, the company can draw upon core competencies in product innovation and marketing developed over its 30 year history. It also hopes to leverage the market-leading ecosystem it has built for online music distribution.

Here we analyze Apple’s market entry strategy in the light of three key constraints: its own competencies, the existing industry value network, and the ongoing efforts to deliver a converged mobile device that equally provides voice, entertainment and the mobile Internet. From this, we offer observations about Apple’s strategies and the future of the convergence market. -2- Apple’s Differentiation Competencies Apple Computer has introduced a series of innovative products that changed the industry, of which the best known are the Apple II, Macintosh and iPod (Table 1).

Over the past decade, the company has combined product innovation with industrial design and clever marketing to gain a reputation far out of proportion to its size or market share. Since its earliest days suing makers of unauthorized Apple II clones, Apple has had a reputation of aggressively protecting its trademark, copyrights and other intellectual property. Its IP strategy — particularly its decision (with a brief exception) to ban clones of its computers — has made it an exemplar for many of a “closed” business model. At the same time, the company has long sought to nurture a vibrant ecosystem.

Software developers were crucial to its Macintosh adoption, while both content providers and third-party add-on suppliers helped drive success of its iPod/iTunes music business. Finally, no discussion of Apple’s strategy of the past decade would be complete without acknowledging the influence of company founder Steve Jobs, who returned to become interim CEO in 1997 and officially CEO in 2000. Both his perfectionism and his ability to enforce decisions solved the product execution difficulties that plagued the company during its previous decade (West, 2002).

Historic Differentiation Strategy In its early years, the company’s initial success came from the technical innovation of cofounder Steven Wozniak, such as his ability to use software and clear hardware design to reduce chip counts and thus manufacturing parts costs. Apple’s personal computers increasingly reflected a systems approach, from the Apple III (1979), Lisa (1983) and then the Macintosh (1984). -3- Throughout its first decade, Apple demonstrated two key marketing-related competencies inextricably linked to co-founder Steve Jobs, culminating in the 1984 introduction of the Macintosh: Product design.

Its Apple II is widely credited as the first personal computer designed as a consumer product, with a molded plastic case instead of a hobbyist-style metal case. Beginning with the Macintosh, Jobs pushed Apple engineers to produce “insanely great” products that differed substantially from anything marketed before (cf. Levy, 1994). Public relations. Apple was able to build excitement with product launch events that were unmatched in the industry until Microsoft’s launch of Windows 95. Under Jobs, such launches created suspense through pre-release secrecy and spectacular gestures.

The marketing itself became a news story. This culminated in the “1984” advertisement for the Macintosh, which is widely remembered as one of the most successful Super Bowl commercials in history. Apple’s Partly Open Ecosystem Strategy One criticism of Apple has been that it pursued a “closed” strategy. But as West (2006) argues, the nature and value of openness differs between various stakeholders: suppliers, customers, end-users and complementors. With regards to systems vendors, Apple’s architecture was less open than the “IBM PC” (later “Wintel” platform) eventually led by Microsoft and Intel. Except for a brief period of authorized cloning (1994-1997), Apple operated as a vertically-integrated supplier of operating system software and hardware, exclusively available from Apple. Meanwhile Microsoft and Intel gladly sold their technology to systems vendors such as IBM and Dell — but vigorously fought rival attempts at competing implementations of their respective de facto standards. -4- However, with regards to third-party complements, as the leader of the Apple II (and later Macintosh) ecosystem, Apple worked nearly as vigorously to attract a supply of crucial software and hardware.

For hardware, Apple helped create a market for third-party expansion cards with its Apple II, which was the largest market for such cards until the 1981 introduction of the IBM PC. Its 1984 Macintosh — sold as an information appliance — had no such internal expansion, but it promoted external expansion through such industry standard technologies as SCSI, Firewire and USB. Beginning in 1987, it allowed internal expansion of its desktop computers through the NuBus and later PCI standards. 4 Unlike Microsoft, Apple sold only a limited range of software applications and aggressively courted third party suppliers.

For the Macintosh, it created a new job category — “software evangelist” — to attract 500 new titles from independent software vendors (ISVs) in the first year after the computers’ introduction (Levy 1994). Such complements are in the platform owner’s interest because they make it more valuable — the “hardware-software paradigm” identified by Katz and Shapiro (1985). In its strategy of controlling the entire platform but encouraging third party software, Apple was consistent with the longstanding strategy of computer platform developers such as IBM and Digital Equipment.

The Microsoft and Intel role — unintended beneficiaries of IBM’s longstanding market power — marked an exception where proprietary platform leadership was divided between multiple firms. (Moschella, 1997; Bresnahan & Greenstein, 1999). As with nearly all personal computer makers, Apple purchased its microprocessors from third parties who also supplied potential competitors. 5 -5- This computer-centric model of complements is not the only approach towards industry standardization. For decades, consumer electronics appliances — such as radios, televisions and CD players —were not user extensible, but ommunicated with external devices via well-defined standards. 6 Until they were cross-pollinated with handheld computers in 1996, cell phones more closely followed the appliance model than the computing one. And even today, there’s not a clear correlation between openness and sales in mobile phones. 1987-1997: The Lost Decade After the 1987 introduction of the Macintosh II, the first Macintosh with color graphics and internal expansion cards, Apple’s rate of innovation slowed to eventual stagnation. One key problem was losing the loyalty of an ecosystem that turned its attention to the fastergrowing IBM PC platform.

Apple had helped launch the ComputerLand franchise chain in the U. S. with its Apple II product, but after 1981 the retailer increasingly used that nationwide network to sell IBM PCs (Moritz 1984). In 1985, Apple had used its advertising dollars to promote the new Aldus PageMaker software package, but in 1986 Aldus released a version for the IBM PC that bundled Microsoft’s fledgling Windows 1. 0 software (Woolf, 2002). To counter the threat of Windows, Apple in 1988 filed a lawsuit accusing Microsoft of copying the Macintosh user interface with Windows.

Apple lost its lawsuit on the strength of a 1985 GUI license that (Apple partisans charge) was extorted by Microsoft under threat of Apple losing its right to ship the Microsoft-developed Basic interpreter for the Apple II, then Apple’s main revenue-generating product (Linzmayer 1999). Some (including even Bill Gates) once suggested that Microsoft should license its Macintosh technology to PC rivals (Carlton, 1997). However, such a shift could have reduced Apple’s margins and overall revenue stream to support its R&D budget (which was larger than -6- Microsoft’s until 1994) (West, 2005).

There have been no successful examples of a computer company shifting from a systems to licensing model (with NeXT, Apple and Palm being notable failures) and only one major example (Novell) of a hardware company shifting to software — very early in the product lifecycle. Whether or not Apple would have done better as a licensing company, from 1987-1997 it suffered major problems in terms of strategic leadership, implementation and operations. Mobilized to release the Macintosh in 1984, the company drifted after Jobs left in a 1985 power struggle with successor John Sculley.

In the absence of the strong leader, the company’s freewheeling culture spiraled out of control. From 1987-1997, the company spent about $1. 5 billion in R&D for cancelled or failed technologies, and lost another $1 billion in 1997 due to poor inventory management (Carlton, 1997; West, 2005). In particular, Apple failed with two attempts to update its aging operating system. In desperation, in December 1996 it purchased NeXT — where Jobs was chairman — and six months later Jobs became de facto CEO of Apple once more.

Turnaround in the Jobs II Era In Steve Jobs’ second turn as CEO, the company moved dramatically both to fix operational problems and reassert its innovation leadership. Some of the changes were straightforward, such as outsourcing manufacturing and improving inventory turns to match Dell, the industry leader (West, 2002). In doing so, in the formulation of Moore (2005), Apple put its primary emphasis on marketing innovation but achieved strategic parity in process innovation. In minor ways, Apple’s product strategy became more open.

Rather than various proprietary hardware interfaces that it had maintained for 15 years, it moved to embrace de facto or open -7- industry standards. These included the VGA video connector, the IEEE-1394 (“Firewire”) bus standard, and the Intel-created Universal Serial Bus (West, 2002). With its Mac OS X operating system (released in 2001), it sought to de-emphasize its own AppleTalk networking standard in favor of TCP/IP and other Internet standards. In 2006, it began shipping computers using the same Intel processors as the rest of the PC industry.

However, in other ways, Apple became more vertically integrated and (at least as defined by Chesbrough 2003) less “open” in its innovation strategies: Distribution. From 1997-2000, Apple created its own online stores in the U. S. and 14 other countries, shifting distribution away from dealers that primarily sold Wintel machines. In May 2001, Apple opened its first retail stores in the US in May 2001, and six years later has some 170 stores in four countries. In Fiscal Year 2006, 16. 7% of its computer unit sales were through the Apple-owned stores — not counting online stores (Apple Computer, 2006).

Applications. Jobs’s first major step as acting CEO in 1997 was to negotiate an agreement with Microsoft CEO Bill Gates to continue to provide Microsoft Office for the Macintosh. But since that time, Apple has bundled its own web browser, e-mail program, contact manager and music player with its OS, and developed separate software for page layout, presentations, photo layout, music editing and movie editing. Apple also pursued a vertically integrated strategy in its music business, as discussed below. Ironically, recent trends have seen increasing convergence in strategies between Apple and Microsoft.

For its video game business, like its rivals Sony and Nintendo, Microsoft buys its microprocessors but designs its own software and hardware, and does not license them to others. Meanwhile, Microsoft’s “Zune” music players emulate Apple’s iPod vertically integrated product strategy ([email protected], 2006). -8- Successful Entry into Music Jobs’ largest strategic change was to engineer a successful related diversification into the music industry, beginning with a PC-based MP3 player application, then its iPod portable music player, and finally with its iTunes Music Store.

The diversification has been crucial to Apple’s success, with music-related products accounting for 49. 5% of $19. 3 billion in 2006 revenues (Apple Computer, 2006). It has also had a major impact on the industry: It’s hard to overstate the impact of the iPod on the computer, consumer electronics and music industries since it was introduced in 2001. The iPod, arguably, is the first “crossover” product from a computer company that genuinely caught on with music and video buffs. It’s shown how a computer can be an integral part of a home entertainment system. Krazit 2006) One key to Apple’s success has been the iPod family of products — designed by Apple but assembled from third-party components by Chinese contract manufacturers (Cf. Sherman, 2002). 7 The iPods have won praise for elegance and ease of use, as have its iTunes software and music store download sites. As a result, in 2006 Apple held roughly 62% unit share in the US market for music players, and 29% of the global market, with a greater share of revenues (Wolverton, 2006; “A High Point for Apple”, 2007).

The widespread adoption has brought a broad supply of complementary hardware and accessories, such as cases, home stereos and automobile adapters. Apple also successfully navigated the content landmines that plague any new entertainment media — in this case the “Big Six” (now “Big Four”) music labels. In the unfamiliar situation of high supplier power, Apple was still able to complete its catalog by attracting all the majors and -9- many independents, while capping the retail prices for individual songs at $0. 99 or €0. 9 in the US and EU, respectively. However, Apple made three other key strategic decisions: • Systems innovation. As with its computers, Apple designed an entire system to work well together, including the player and music store. This was a contrast to most other manufacturers, which concentrated on either the store or the player, and could not coordinate their interaction as closely as Apple could. Even when Apple’s music players did not have the best price or features, the overall system capabilities and integration set it apart. • Platform agnostic.

Apple made its entire system work equally well on Windows as on the Mac — something that it did with its QuickTime media software of the 1990s but not with its LaserWriter laser printers of the 1980s. The latter was later cited by Sculley as one of his major strategic mistakes (Yoffie, 1992). • Closed design. Apple used a proprietary encryption system for encoding its music downloads, which meant that songs purchased from Apple could only be used on Apple players. On the one hand, as Jobs argued in an open letter to record companies, the secrecy made it less likely that the encryption would be cracked by hackers (Jobs, 2007).

On the other hand, the decision created switching costs and helped protect Apple’s market share lead. Desperately Seeking Convergence The original idea of digital convergence — specifically convergence of communications and computing — is credited to a 1977 speech by NEC chairman Koji Kobayashi (cf. Kobayashi, 1986). During the 1980s and early 1990s, key aspects of the convergence idea were developed – 10 – and popularized by futurist Nicholas Negroponte and Apple CEO John Sculley (Sculley, 1987; “From Idiot Box to Information Appliance,” 1994; Gordon, 2003).

By the mid-1990s, convergence was a reality, and strategists like David Yoffie (1997) were offering broad strategies for firms to cope with these changes. A variety of different approaches towards convergence devices have been tried (Table 3). Over time, both the optimism and the technology of convergence devices have affected the product design strategies of mobile phone makers, particular for the more expensive (and more profitable) upper end of the market. Even before mobile phones, convergence has been a recurring theme in the technology industry for years, with decidedly mixed results.

In the late 1980s, Canon offered a converged personal computer called the Navi which incorporated a PC, fax machine, phone, answering machine, and printer into a single case. It died quickly (Johnstone, 1994). Converged GPS – PDA systems were popular in Europe for several years, but were supplanted by dedicated car navigation systems (Canalys, 2006). On the other hand, converged printer-scanner-fax devices have been quite successful in the computing peripherals market. Convergence Imperatives in Mobile Handsets The appeal of convergence to the mobile phone industry is grounded in economics.

With Europe’s mobile markets saturated, and the US close behind, the operators’ best hope to increase billings in those countries is to drive more revenue per user. That means people must be convinced to do more than just talk and send text messages with their mobile phones. Handset vendors, too, feel substantial pressure to add more features to their phones. A company that gets an edge in a new feature can gain a substantial margin and share advantage. For example, the Razr slim phone helped rescue Motorola’s leadership in the US market, while – 11 – Nokia’s lead in cameraphones in Europe helped it solidify its position there.

Meanwhile, Nokia’s failure to emphasize flip phones cost it significant momentum in the US market. Converging a personal computer and a mobile phone seems like a logical way to get a new feature advantage. It ought to create new (data transmission) revenue streams for the operators as users browse the web wirelessly. And presumably a well converged phone might give the handset vendor that made it a major advantage in the market. Market Experiments The first five years of convergence mobile phones brought a series of failures and no true marketplace successes.

Some of the problems were — as with the Newton PDA — due to an incomplete understanding of the product category by both producers and users. The products were also limited by the available hardware, including LCD screens, computing-capable microprocessors, and the batteries that both power-hungry components required. What is widely considered to be the first convergence phone came in 1996, when Nokia introduced the Nokia 9000, a mobile phone with built-in QWERTY keyboard marked in Europe as a replacement for a small laptop.

However, the computer weighed 397 grams (about 3. 5 iPhones), and was not a major sales success. For the US market, in 1998 Qualcomm shipped the pdQ, the first converged mobile phone based on Palm OS. Like the Nokia 9000 it was too large and heavy (285 grams) for a cellphone, and found only a small audience, as did Qualcomm’s 208 gram follow-on product, sold as the Kyocera 6035 two years later. In 1998, Nokia, Psion, Motorola, and Ericsson banded together to create Symbian, a joint venture to adapt Psion’s EPOC PDA operating system for use in mobile phones.

The next year, Ericsson shipped the first mobile phone based on Symbian, the r380, which did not sell well. – 12 – However, by 2001, both the device size and the design choices began to more closely match what customers wanted. The first such product was the Handspring Treo 180, the best-integrated (and almost immediately the most popular) Palm OS-based smartphone. In 2002, two other important smartphones came to market. The RIM Blackberry 5810 was the first RIM e-mail device to include a built-in phone.

And Ericsson released the p800, a touchscreen-based smartphone whose early sales in Europe were comparable to what the Treo was doing in the US. The year 2002 also saw the first shipments of smartphones based on Windows Mobile (called Pocket PC at the time). As with other device makers who witnessed the rents extracted by Microsoft from PC makers, the major mobile phone vendors were leery of partnering with Microsoft, so it focused on working with second-tier Asian manufacturers eager to gain market entry using Microsoft’s brand and access to key enterprise buyers.

RIM smartphone sales quickly surpassed those of both Palm and Ericsson (later SonyEricsson), but its dominance in North America had little impact elsewhere in the world, garnering only 8% of overall 2006 smartphone shipments. The leading smartphone vendor in 2006 was Nokia, with 50. 2% of the world market, while Symbian OS is the leading smartphone OS, with 67% share (Canalys 2007). Since its initial Nokia 9000 smartphone, Nokia has developed 10 subsequent models in its Communicator family, cutting the weight nearly in half with the 9300/9500 and the planned E90.

However, most of its smartphone sales come either from phones in more traditional form factors or those (such as the E61/E62) that resemble the RIM BlackBerry. Canalys (2007) estimates 2006 smartphone sales as 64 million units — less than 7% of the total market. Even that figure is misleading, because it includes all mobile phones that have a “smartphone” operating system in them, regardless of whether the customer uses its features. – 13 – Market research conducted by Palm in 2004 showed that the vast majority of Symbian customers were unaware that the OS was built into their phones and were not making substantial use of its data features. This is more than an academic distinction, since the motivation for the industry’s investment in smartphones was to drive more use of mobile data. If the customers don’t use the data features, the investment in smartphone software and hardware was largely wasted. As of 2007, the most successful converged phones in terms of actual data usage in the US and Europe are the e-mail devices, led by the RIM Blackberry. The Blackberry’s basic screen and keyboard layout has been copied by a wide range of competitors, including the Palm Treo, Nokia E-series, Motorola Q, and Samsung Blackjack.

Efforts to create a converged entertainment device have been much less successful. The Nokia N-Gage gaming phone, launched in 2003, was a spectacular failure,9 as was (on a much smaller scale) the TapWave Zodiac, a converged PDA and game device. The Danger Hiptop youth communicator has been a mild success in the US and several other countries, but is offered by only a single operator and shows no signs of rapid growth. In 2005, Motorola launched the Rokr, a merged iPod and a mobile phone. It could hold only about 100 songs, and disappeared from the market quickly.

Steve Jobs said later that his experience with the Rokr made him realize that Apple needed to completely control the mobile phone’s design in order to be successful — although critics at the time argued that the phone’s music capabilities were deliberately crippled by Apple to avoid cannibalizing iPod sales. As of early 2007, the most successful entertainment phones are probably the SonyEricsson Walkman phones. They are not widely available in the US, but in Europe they have helped increase SonyEricsson’s share and improved its image as a design leader. 14 – Apple’s iPhone Strategy Product Concept While the existence (and name) of the iPhone had been anticipated, Steve Jobs nonetheless enjoyed tremendous interest when he announced the iPhone at the annual Macworld trade show on January 9, 2007. If the goal was creating interest, Jobs was successful: less than two months later, the term “iPhone” could be found (by Google) on some 60 million pages on the World Wide Web. 10 Compared to earlier generations of convergence phones, the main difference in the iPhone’s features was the screen.

The iPhone featured the largest screen (8. 9cm diagonal, 320×480) of any standard-sized cellphone. 11 To make room for the larger screen, the phone deleted a dialing keypad, and instead uses a touchscreen for dialing and other input functions. Under this screen was a stripped-down version of Apple’s Unix-based OS X operating system, with an iPhonespecific user interface that’s claimed to match the ease of use of the Macintosh and iPod. Despite an overwhelming avalanche of free publicity, the phone was not without its detractors.

As with the original iPod, many analysts proclaimed the product overpriced, too big, or a niche product. Others questioned the lack of tactile feedback from the touchscreen keyboard, lack of a user-replaceable battery, lack of support for 3G networks, absence of an expansion slot, or more than a dozen other possible features (e. g. , O’Grady, 2007). The greatest criticism about Apple’s strategy was that the phone was “closed”. The most user-visible way was that (the initial model of) the iPhone was restricted to a single carrier, Cingular (which was renamed AT in January 2007).

While new phones in the U. S. are typically “locked” to a single carrier to assure payback of an initial handset subsidy by the carrier, Apple used its iPod success to demand unprecedented control of iPhone distribution. – 15 – Cingular, the largest US carrier (26. 6% market share), was more willing to agreed to Apple’s terms that Verizon (24. 4% market share)12 (Sharma et al, 2007). The other major criticism was that Apple’s phone — unlike its PCs and even its iPods — allowed almost no user-installable software.

In this regard, Apple was following a platform strategy distinct from both its own PC and other convergence phones. Platform Strategy Most of the earlier attempts at making convergence phones— as well as other convergence devices such as PDAs and handheld game players — have utilized the general-purpose computing platform strategy, first developed by IBM and adapted for minicomputers, workstations and personal computers (Moschella, 1997). Successful platform strategies have been shown to have three key attributes. New platforms identify a need (i. . customer market segment) not met by prior platforms —and win adoption by serving that segment better than other existing alternatives (Bresnahan & Greenstein, 1999). Over time, winning platforms have shifted from vertically integrated strategies (e. g. , the IBM S/360) in which a single firm controlled the entire platform, to divided technical leadership where different firms control different parts of the platform (Bresnahan & Greenstein, 1999). And controlling the value provided by the platform requires control of the complements (e. g. through application programming interfaces) that make the platform valuable (West and Dedrick, 2000). The leading cell phone vendors have adopted inconsistent and changing strategies in operating systems. At first they embraced a business model styled after the PC market. Several vendors — including Nokia and Motorola — banded together to create Symbian, a shared operating system that they were all to use. Palm licensed its operating system to a spinout – 16 – company, PalmSource, and it was adopted by several major vendors including Sony and Samsung.

Microsoft focused on licensing its Windows CE operating system to as many companies as possible, with its biggest successes coming from HP, Dell, and a series of companies in Asia. But recently the handset vendors’ OS strategies have become more proprietary. Nokia runs a proprietary software layer, called S60, on top of its Symbian based phones. SonyEricsson runs an incompatible layer called UIQ on its Symbian devices. Palm now has regained rights to its OS, and can make proprietary changes to it.

Motorola is a Microsoft and Symbian licensee, but is investing heavily in its own version of Linux. As of early 2007, the mobile phone market appears to be headed toward a situation where the leading vendors will each have their own incompatible operating software (Table 4). Apple’s strategy is even more proprietary. It adapted its desktop operating system — in this case an unspecified subset of its Mac OS X desktop operating system — to run the iPhone. This lets Apple leverage some of its desktop software, including TCP/IP, web browser, and its QuickTime media player.

Apple claims this will let the iPhone display standard HTML and http websites that were created for personal computers. This could be a substantial advantage, as most mobile device browsers have trouble displaying some websites designed for PCs. Although mobile browsers have made substantial progress, differences between the mobile web and the PC web have been an ongoing source of confusion for users, dating back to the introduction of the Wireless Application Protocol, which (among other problems) promised a mobile internet experience that it could not deliver (cf.

Sigurdson, 2001; Palomaki, 2004). – 17 – However, Apple’s overall platform strategy is more akin to a consumer electronics appliance than a general-purpose computer. Unlike Symbian, Palm, and Microsoft, Apple is not allowing open development of third party applications for the iPhone,13 which has generated considerable controversy (e. g. Claburn, 2007). The idea of providing new functionality through software has been a common thread for computers and video games, but not for televisions, radios or (pre-”smartphone”) mobile phones.

The utility of the home consumer electronics device has been provided by the content — whether pre-recorded or broadcast — and thus such platforms have evolved only rarely due to the high switching costs for infrastructure (or consumer library) investments to support a fixed standard. The different pattern of technological change has meant a different strategy for the adoption of new platforms.

As with computing platforms, one entry opportunity for appliances is the unmet need, as with video recorder or MP3 format. Another option is superior performance — which is less often used for computing platforms, because all competing platforms will incorporate incremental improvements on an ongoing basis. However, the fixed standards of consumer appliance make improvements episodic: to compete with vinyl records, the compact cassette offered portability while the CD offered sound quality (cf. Grindley, 1995).

In parallel, to improve sound quality broadcast audio progressed from AM to FM to digital (via the Internet, satellite, or over-the-air). Segmentation Strategy Despite predictions of convergence devices taking over the entire electronics industry, many of the results thus far has been disappointing. The Apple strategy illustrates the controversy between two market conceptions. – 18 – On the one hand is the goal of producing the device that converges the maximum number of functions for a broad mass market.

This has been fueled by both the Kobayashi and Sculley utopian visions, and the product strategies of many firms offering convergence devices — whether it is MP3 players in cell phones, DVD (or Blu-ray or HD DVD) players built into videogame consoles, or Sony’s UMD movie format for its PlayStation Portable. With this market conception, the ideal mobile device would span the various possible roles: computing, communications, entertainment content, information management and any other function that could be offered in a portable device.

In this case, the device supplants the need for a phone, an MP3 or video player, a laptop computer, handheld game console, and any other similar function. Both the Microsoft Windows Mobile phones and many of the Symbian phones (particularly those from Nokia) have sought this goal. The Apple strategy of an appliance device allows for an Internet-enabled web appliance, but without user-installable applications, it is not a general purpose extensible computer. Some believe this has doomed the iPhone; as venture capitalist Paul Kedrosky wrote: Is Apple serious that it won’t let third-party developers build software for the thing?

If so, and put simply, the device will fail. A closed-box consumer electronics mentality will work in music players, but the future of mobile devices is as a platform, and that requires developers. (Kedrosky, 2007). Others have argued that the design tradeoffs in making devices means that no one product can be optimal on all dimensions. Strategy consultant Michael Mace (2007) argues that there are three distinct drivers for mobile devices: communications (as with a mobile phone), entertainment (as with an MP3 player or handheld game console) and information access (such as provided by a PDA).

Each driver serves a different, distinct group of customers who don’t – 19 – want the other drivers. Under this typology, the iPhone would be an entertainment device with some communication and information capabilities — as with some of the Sony Ericsson Walkman phones — while most smart phones are more focused on communication (Figure 1). If this latter view is correct, then the mobile device market — like many other product categories — would be segmented into different types of users and user needs.

The iPhone might be a poor substitute for a Nokia E90 (which seeks to be a laptop replacement), but instead would be competing with the Walkman phones and other entertainment devices. Mace concluded: Rather than looking for the mobile market to “converge” the way that most PCs converged to Windows, I think we should expect mobile devices to diverge into different segments. The right analogy for the mobile market isn’t PCs, it’s cars. As the car market grew in the 1900s, it stratified into trucks and minivans and SUVs and sports cars and so on. Mace 2007) Conformance and Deviation from Earlier Strategies Research on strategic management has traditionally emphasized how managerial discretion allows the manager to choose strategies that maximize a firm’s success (e. g. , Finkelstein & Hambrick, 1996). More recent research has emphasized the durable interfirm differences that drive both strategies and the success of these strategies — either from scarce, inimitable and valuable resources, or from a firm’s capabilities and competencies derived from those resources (Barney, 1991; Grant, 1991; Galunic & Rodan, 1998).

Here we suggest the complex inter-dependencies of Apple’s iPhone strategy with its existing resources and competencies, as illustrated by Figure 2. From top to bottom: iPod. If resources are valuable, rare and inimitable, then clearly Apple’s greatest asset in entering the convergence phone business relates to the iPod. That includes not only its – 20 – innovation competencies, but brand awareness, reputation and distribution. In particular, the market-leading iTunes Music Store is an asset that none of the competing hardware vendors (or their operator customers) have fully replicated.

Existing business model. The leveraging of the iPod ecosystem (particularly music and video downloads) directed Apple towards an iPhone business model, as would concerns about cannibalizing the existing iPod and download sales that comprise half the company’s revenues. Entertainment segment. Leveraging the iPod and iPod ecosystem would mean that Apple’s best opportunity for market entry lay in addressing what Mace (2007) terms as the entertainment segment of the device market that most closely matched existing resources and capabilities.

This segment also had a strong affinity with the Macintosh market, which has traditionally been focused on creative users as opposed to mainstream business professionals. Entertainment-centric phone. From its segmentation and capabilities — including the lack of phone competencies — the device would be more oriented towards entertainment than a phone. Appliance. As with the iPod or a CD player, the device would be more like an appliance than a computer. “Locked” or “closed” strategy.

The company’s business model — particularly the switching costs created by the copy-protection of its music store — encouraged the choice of a closed business model. The company appears to believe that the choice of an entertainment segment and an appliance concept allows it to use a more closed model, and by doing so it can avoid the price wars and commodization facing other mobile phone makers, – 21 – Lack of a software ecosystem. The choice of a closed strategy (for applications) makes Apple independent of the need to build an ecosystem of third-party software developers, as have Symbian, Microsoft and Palm.

Power of the network operators. The oligopoly power of the mobile phone operators both supports and allows Apple’s model. As Claburn (2007) wrote: “Only the phone and cable companies want to remain closed, which is why … everyone hates them. ” Need to acquire phone competencies. Although software is often a problem for electronics makers — as with the HP and IBM examples reported by Leonard-Barton (1992) — Apple has long been strong in software. With the iPod, it has developed capabilities for designing portable battery-powered devices.

However, even with help from experienced manufacturers, Apple may need several years to develop and integrate the necessary competencies for selling world-class phones — including radio engineering, regulatory compliance and working with network operators. For example, in 2000 PDA maker Handspring sought to become a mobile phone company by releasing an expansion card for its PDA, but more than six years (and 10 Treo models) later, its phones have still have disadvantages compared to the top four phone makers (Nokia, Motorola, Samsung, Sony Ericsson).

Discussion Openness in Mobile Devices Firms face an inherent trade-off in choosing the level of openness in their platform strategies. A completely open strategy will not capture value, while a completely closed one will not create value, so the optimal profit is obtain by an intermediate selection (Simcoe, 2006). While Apple’s strategy for the iPhone was criticized as being “closed,” the relevant questions are: Compared to what? And closed to whom? – 22 – The later computer industry was relatively open, particularly in the 1990s.

With two major operating systems available for license —Windows and Unix — there were many entry opportunities for both systems vendors and markets of application software, increasing competition and presumably reducing buyer prices. However, such licensing did not facilitate entry by competing operating systems vendors (Bresnahan and Greenstein, 1999; West, 2006). At the other extreme, the most popular computerized entertainment device — videogame consoles — have a largely closed system.

Since the 2001 exit by Sega, the home console market has been a cozy oligopoly with only three firms: Sony, Microsoft, Nintendo. Meanwhile, console makers use intellectual property law both to decide which complements will be provided, and to extract royalties from complement makers (Sheff, 1993; Gallagher and Park, 2002). Console makers today attract new adoption by setting a low initial hardware price, which is cross-subsidized by the subsequent revenue stream of videogame sales.

But this “razor and razor blade” strategy was actually initiated by US cell phone carriers (and later imitated by their overseas counterparts), in which phones were “locked” to a specific network in order to recover the handset subsidy through subsequent monthly service revenues. Apple’s decision to lock the first model of a popular phone series to a single carrier is comparable to the rollout strategies of many earlier phone families. Its decision to block (or at least restrict) the addition of third party software is unusual for a convergence phone, but would not be considered unusual for an appliance phone or a home electronics product.

This raises the question as to whether iPhone users will see the complement that adds the most value as being software (which is not allowed) or content (which is encouraged). Finally, its locking of its copyprotected music downloads to its own product is consistent with its current iPod strategy (later – 23 – imitated by Microsoft), and thus far consumers have favored Apple’s integrated (but highswitching-cost) ecosystem over more open alternatives.

Apple’s Strategy It would be silly to judge a company on the success of a single product strategy — or, even more so, to judge the success of such a strategy before a single product had been shipped. However, Apple’s iPhone strategy is of huge importance to Apple, marking only its fourth industry entry after personal computers (1977), PDAs (1993) and portable music players (2001). 14 Many of the strategies are dictated by the core competencies that the company has acquired over its thirty year history — notably in product marketing and innovation.

It also reflects the competencies not available to Apple — but to its competitors — such as the financial assets and market power of Microsoft and the mobile phone distribution channels of Nokia and Motorola. Still, there have been important changes in Apple’s strategies over the years. To use the typology developed by Leonard-Barton (1992) in her study of Hewlett-Packard and IBM, Apple had a consistently high level of technical skills, the effectiveness of the managerial systems varied dramatically between the two reigns of Steve Jobs as CEO and the intervening period of ineffective leadership.

Absent strong leadership, the innovation empowerment culture became an dysfunctional entitlement, both as predicted by Leonard-Barton and recounted in various early and later histories of the company (Moritz, 1984; Carlon, 1997). Meanwhile, although Apple has sought to both nurture and control its ecosystem since the Apple II days, the iPhone reflects the least nurturing and most controlling strategy to date. Whether this is because of organizational learning (the use of Macintosh complements to support rival platforms) or the product model (a music appliance) is hard to determine from outside the – 24 – nusually secretive company. A third possible explanation is that the iPhone reflects the intersection of a platform with an increasing number of bundled applications (OS X) with a product category that has seen disappointing third-party software sales. Still, the decision to break from the PC-centric model of platform and application software — to an appliance-centric entertainment device — suggests that Apple is less constrained by the “dominant logic” (in the terms of Prahalad and Bettis, 1986) of PC platform competition than its non-PC rivals.

The Apple strategy might appear to match the Bresnahan & Greenstein (1999) typology of indirect entry of a new platform into a contested market, by using the iPod to first serve an untapped need and then extend to cover the convergence device market. The problem with such a characterization is that this assigns an intentionality (or strategic foresight) to the 2001 market entry strategy that appears to be absent from both accounts of the iPod’s development (Kahney, 2004) and accounts that the decision to enter the phone market dated only from 2005 (Sharma et al, 2007).

Instead, the utilization of the iPod as a beachhead to convergence devices fits Mintzberg’s (1978: 946) classic definition of an emergent strategy, in which the absence of perfect a priori information, “Strategy formation then becomes a learning process, whereby socalled implementation feeds back to formulation and intentions get modified en route. ” As with the Mintzberg critique, it would appear that the indirect entry can be subdivided into the a priori and ex post facto alignment of a new market as entry to an existing one.

Dominant Design An extensive literature has postulated that new technologies converge onto a single “dominant design” (Anderson & Tushman, 1990; Utterback, 1994). But even supporters have questioned whether some definitions of a dominant design are tautological — i. e. the design that dominates is the one that gets dominant market share (Suarez and Uttterback, 1995). – 25 – The current trajectory of the convergence device market raises a more fundamental question: is it reasonable to assume a priori the emergence of a single converged design?

And, if the definition of a “dominant” design is the common subset across multiple successful product approaches, then is it possible for managers to anticipate which features will be common to the ultimate winner and which ones will allow for firm variation and market experimentation? As of today, neither the unified nor segmented model of convergence devices has been proven (or disproven). But there are more example of the latter — multiple winning designs — model than has been emphasized in the dominant design literature. Take the typewriter, a product ategory commoditized by the mid-20th century but still subject to product variation. Prior research posits the design was crystallized by the beginning of the 20th century, with the Underwood manual desk typewriter. But does this allow for the portable variant, or the electric typewriter? If the dominant design includes typebars, then how does that allow for the main office typewriters of the 1970s , the typeball (from IBM) and daisywheel (from Xerox)? Closer to the convergence example, broadcast radios tended to have a volume and tuning knob and some sort of dial — but these are merely examples of form following function.

Within radios, there are a variety of form factors — desktop radios, pocket radio, portable “boom box,” clock radio, component and min-component stereos: are these all reflecting a single dominant design? Among home phones, three models emerged: desk phones, wall phones and cordless phones, while personal computers had different desktop and laptop designs. So if firms stop experimenting when a design takes the lead, are they conforming to the dominant design or foreclosing the opportunity to service significant untapped markets? – 26 – References “A High Point for Apple,” New York Times, 10 January, 2007, URL: http://www. nytimes. om/imagepages/2007/01/10/technology/20070110_APPLE_GRAP HIC. html derson, Philip and Michael Tushman, “Technological Discontinuities and Dominant Designs: A Cyclical Model of Technological Change,” Administrative Science Quarterly, 35, 4 (December 1990), 604-633 Apple Computer, Inc. , Form 10-K, U. S. Securities and Exchange Commission, 29 Dec. 2006. Barney, Jay, “Firm Resources and Sustained Competitive Advantage,” Journal of Management, 17, 1 (1991): 99-120 Bresnahan, Timothy F. , Greenstein, Shane, Technological competition and the structure of the computer industry, Journal of Industrial Economics 47, 1 (March 1999), 1-40.

Canalys, “64 million smart phones shipped worldwide in 2006,” news release, 12 Feb 2007, URL: http://www. canalys. com/pr/2007/r2007024. htm Canalys, “Smart mobile device and navigation trends 2006/2007,” product brochure, 2006, URL: http://www. canalys. com/reports/tr2006flyer. pdf Carlton, Jim, Apple: The Inside Story of Intrigue, Egomania, and Business Blunders, New York: Times Business, 1997. Chandler, Alfred D. , Jr. , Inventing the Electronic Century. The Epic Story of the Consumer Electronics and Computer Industries, New York, NY: Free Press, 2001 Chesbrough, Henry, Open Innovation, Boston, MA: Harvard University Press, 2003.

Chposky, James and Ted Leonsis, Blue Magic: The People, Power and Politics Behind the IBM Personal Computer, New York: Facts on File, 1988. – 27 – Claburn, Thomas, “Is a closed iPhone doomed to fail? ” Information Week, 11 Jan 2007, URL: http://www. informationweek. com/showArticle. jhtml? articleID=196802882 Finkelstein, Sydney and Donald Hambrick, Strategic leadership: top executives and their effects on organizations. Minneapolis/St. Paul: West Pub. Co. , 1996. “From idiot box to information appliance,” Economist, 330, 7850 (Feb. 12, 1994), pp. 5-7.

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Linzmayer, Owen W. , Apple Confidential: The Real Story of Apple Computer, Inc. San Francisco: No Starch Press, c1999. Mace, Michael, “The shape of the smartphone and mobile data markets,” Mobile Opportunity (weblog), January 21, 2007, URL: http://mobileopportunity. blogspot. com/2007/01/shapeof-smartphone-and-mobile-data. html – 29 – Mintzberg, Henry, “Patterns in strategy formation,” Management Science, 24, 9 (Sept. 1978), 934-948. Moore, Geoffrey A. , Dealing with Darwin: how great companies innovate at every phase of their evolution. New York: Portfolio, 2005. Moritz, Michael. The little kingdom: the private story of Apple computer. New York: W. Morrow, 1984. Moschella, David C. , Waves of power: dynamics of global technology leadership, 1964-2010, New York: AMACOM, 1997. “N-Gage,” Wikipedia, revised 22 Feb 2007, URL: http://en. wikipedia. org/wiki/N-Gage Negroponte, Nicholas, “Bit by Bit, PCs Are Becoming TVs. Or Is It the Other Way Around? ” Wired 3, 8 (August 1995), URL: http://www. wired. com/wired/archive/3. 08/negroponte. html O’Grady, Jason D. , “iPhone’s missing features – Part II,” The Apple Core (weblog), 19 January 2007, URL: http://blogs. zdnet. com/Apple/? =396s Palomaki, Juha, “Case WAP: Reasons For Failure,” working paper, Department of Computer Science and Engineering, Helsinki University of Technology, 2004. Pogue, David, “Ultimate iPhone FAQs List, Part 2,” Pogue’s Posts (weblog), 13 Jan 2007, URL: http://pogue. blogs. nytimes. com/2007/01/13/ultimate-iphone-faqs-list-part-2 Prahalad, C. K. ; Bettis, Richard A. , “The Dominant Logic: A New Linkage Between Diversity and Performance” Strategic Management Journal, 7, 6 (1986),: 485-511 Sculley, John with John A. Byrne, Odyssey: Pepsi to Apple—a journey of adventure, ideas, and the future, New York: Harper & Row, 1987. 30 – Sharma, Amol, Nick Wingfield and Li Yuan, “How Steve Jobs Played Hardball In iPhone Birth,” Wall Street Journal, 17 Feb. 2007, p. A1. Sheff, David, Game over: how Nintendo zapped an American industry, captured your dollars, and enslaved your children. New York: Random House, 1993. Sherman, Erik, “Inside the Apple iPod Design Triump,” Electronics Design Chain, Summer 2002, pp. 12-15. Sigurdson, Jon, “WAP OFF- Origin, Failure and Future,” Stockholm School of Economics, European Institute of Japanese Studies Working paper 135, October 2001, URL: http://www. hhs. e/eijs/wp/135. PDF Simcoe, Tim, “Open Standards and Intellectual Property Rights,” in Henry Chesbrough, Wim Vanhaverbeke, and Joel West, eds. , Open Innovation: Researching a New Paradigm. Oxford: Oxford University Press, 2006, pp. 161-183. Suarez, Fernando F. and James M. Utterback, “Dominant Designs and the Survival of Firms,” Strategic Management Journal, 16, 6 (Sep. , 1995), 415-430. Utterback, James M. , Mastering the dynamics of innovation: how companies can seize opportunities in the face of technological change. Boston, Mass. : Harvard Business School Press, c1994.

West, Joel, “Apple Computer: The iCEO Seizes the Internet,” University of California, Center for Research on Information Technology and Organizations, Working Paper 348, October 2002, URL: http://repositories. cdlib. org/crito/globalization/348 West, Joel, “The fall of a Silicon Valley icon: Was Apple really Betamax redux? ” in Richard A. Bettis, ed. , Strategy in Transition, Oxford: Blackwell, 2005, pp. 274-301. – 31 – West, Joel, “The Economic Realities of Open Standards: Black, White and Many Shades of Gray,” in Shane Greenstein and Victor Stango, eds. Standards and Public Policy, Cambridge: Cambridge University Press, 2006, pp. 87-122. West, Joel and Jason Dedrick, “Innovation and Control in Standards Architectures: The Rise and Fall of Japan’s PC-98,” Information Systems Research, 11, 2 (June 2000): 197-216. Wolverton, Troy, “Zune doesn’t shake iPod’s market lead,” San Jose Mercury News, 17 Dec. 2006, http://www. mercurynews. com/mld/mercurynews/16263552. htm Woolf, Gordon, “What We Might Have Done,” PC Update (newsletter of Melbourne PC User Group), Nov. 2002, URL: http://www. melbpc. org. au/pcupdate/2211/2211article3. htm Yoffie, David B. “Apple Computer — John Sculley, Chairman & CEO — Presentation to ISMP Participants, July 6, 1992,” videotape, catalog #793507, Harvard Business School Publishing, December 1992. Yoffie, David B. in “CHESS and competing in the age of digital convergence,” in David B. Yoffie, ed. , Competing in the Age of Digital Convergence, Boston, Mass. : Harvard Business School Press, 1997. – 32 – Figures and Tables Table 1: Durability of global market share by leading mobile phone makers Company 1994 2000 2006 Nokia 21. 0% 30. 6% 34. 1% Motorola 32. 5% 14. 6% 21. 3% Sony Ericsson§ 10. 9% 10. 0% 7. 3% Samsung ; 5% 5. 0% 11. 6% LG ; 5% ; 5% 5. % NEC 8. 9% ; 5% ; 5% Matsushita 5. 4% 5. 2% ; 5% Source: Dataquest (1994, 2000) and IDC (2006) § 1994, 2000: Combined share of Sony Ericsson joint venture partners. Table 2: Key milestones in Apple product strategies Date April 1976 April 1977 Jan. 1983 Jan. 1984 Sept. 1985 March 1987 Oct. 1991 1987 Aug. 1993 Dec. 1996 Sept. 1997 May 1998 Nov. 1997 May 1998 Jan. 1999 March 2001 May 2001 Oct. 2001 Apr. 2003 Oct. 2003 Jan. 2004 Sep. 2005 Oct. 2005 Jan. 2007 Segment corporate PC PC PC corporate PC PC PDA PDA corporate corporate PC distribution distribution distribution PC distribution music music music music music music music

Milestone Steve Wozniak demonstrates Apple I circuit board Apple introduces Apple II Lisa introduced with $10,000 list price Macintosh introduced at $2,500 Co-founder Steve Jobs leaves Apple to found NeXT First Macintosh with color and built-in expansion slots First PowerBook laptop computer John Sculley touts “Knowledge Navigator” product concept Newton MessagePad introduced Apple purchases NeXT for NextStep operating system; Jobs returns to Apple Jobs named interim CEO Jobs introduces iMac Apple opens first online store, serving U. S. customers Apple U. K. pens first online store outside US Apple Store extended to France, Germany and five other countries Apple ships Mac OS X based on NextStep and BSD Unix, its first all-new PC operating system in 17 years First Apple-owned retail stores open near Los Angeles and D. C. First iPod models introduced at $400 and $500 iTunes Music Store opens in U. S iPod, iTunes Music Service add Windows support Apple, Motorola begin phone collaboration Motorola introduces ROKR mobile phone with iTunes Apple adds video to iPod, iTunes Music Store; featured on cover of Time magazine iPhone announced; company renamed from “Apple Computer” to “Apple” 33 – Table 3: Evolution of convergence phones Date 1967 1972 1984 1987 April 1993 Aug. 1993 Sept. 1993 March 1996 1996 Nov. 1996 Sept. 1998 Feb. 1999 March 1999 Oct. 1999 2000 July 2001 Oct. 2001 2001 2001 May 2002 2003 June 2003 Sept. 2005 Jan. 2007 Company NEC Xerox Psion Apple AT Apple Sharp Palm Computing Nokia Microsoft Qualcomm Research in Motion Ericsson Samsung Nokia Psion Handspring Research in Motion Ericsson Audiovox Nokia Palm Motorola Apple Product Announcement Chairman/CEO touts CCC.

Researcher Alan Kay publishes paper advocating handheld computer (“DynaBook”) Psion Organizer, keyboard-based database CEO John Sculley touts “Knowledge Navigator” product concept EO pen-based PDA Newton MessagePad pen-based PDA Sharp PI-3000 (“Zaurus”) pen-based PDA Palm 1000, 5000, pocket-sized pen-based PDAs Nokia Communicator 9000, keyboard-based cell phone Windows CE 1. shipped in H/PC (“Handheld PC”) devices from NEC and Casio pdQ, first Palm OS-based cell phone First BlackBerry keyboard-based e-mail appliance Pen-based Ericsson R380 is first smartphone with Symbian OS MP3 Phone supports eight downloadable songs Nokia Communicator 9210, keyboard-based smartphone with Symbian OS Exits PDA business Treo 180, phone with stylus and keyboard based on Palm OS First BlackBerry e-mail device with voice telephony built in p800 touchscreen-based smartphone with Symbian OS Thera is first US phone shipped with Microsoft Pocket PC operating system N-Gage game/phone device Acquires Handspring and its Treo phone line ROKR phone with support for Apple’s iTunes Music Store iPhone touchscreen handset – 34 – Table 4: Comparison of mobile device platforms Vendor Model Intro date Weight Height Width Thickness Screen size Screen resolution Form factor Input mode Network WiFi OS Downloadable apps Memory capacity Memory card MP3 Java Camera Apple iPhone 7-Jan-2007 Samsung SGH-F700 12-Feb-2007 Sony Ericsson W950 13-Feb-2006 Nokia E90 7-Feb-2007 Nokia E61i 12-Feb-2007 Research in Motion 12-Feb-2007 Palm 15-May-2006 Motorola Q 16-May-2006 BlackBerry 8800 Treo 700p 134 g 114mm 66mm 14mm 2. 5” 320×240 BlackBerry Thumb keyboard GSM+EDGE proprietary BlackBerry 64mb microSD X X 180 g 112mm 58mm 23mm 2. ” 320×320 BlackBerry Thumb keyboard CDMA; EvDO Palm OS 5. 4 Palm OS 128mb SD X X 1. 3 mp 135 g 114mm 61mm 11. 7mm 3. 5” 480×320 Tablet Touchscreen GSM+GPRS X Modified Mac OS X 4GB,8GB X 2. 0 mp n. r. 104mm 50mm 16mm 2. 8” 440×240 Slide-out Mini keyboard GSM; HSDPA proprietary n. r. n. r. microSD X X 5. 0 mp 112 g 106mm 54mm 15mm 2. 6” 240×320 Candy bar 10 key GSM; WCDMA Symbian OS 9. 1 UIQ 4GB X – 210 g 132mm 57mm 20mm 4. 0” 800×352 Clamshell Mini keyboard GSM; HSDPA X Symbian OS 9. 2 S60 n. r. microSD X X 3. 2 mp 150 g 117mm 70mm 13. 9mm 2. 8” 320×240 BlackBerry Thumb keyboard GSM; WCDMA X Symbian OS 9. 1a S60 n. r. microSD X X – 115 g 116mm 64mm 11. 5mm 2. ” 320×240 BlackBerry Thumb

Vocabulary on Finance and Banking

CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE Jon Marks A & C Black London www. acblack. com First edition published 1997 This second edition published in Great Britain 2007 A & C Black Publishers Ltd 38 Soho Square, London W1D 3HB © Jonathan Marks 2007 All rights reserved. No part of this publication may be reproduced in any form without the permission of the publishers.

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A CIP entry for this book is available from the British Library ISBN-10: 0 7136 8250 7 ISBN-13: 978 0 7136 8250 2 eISBN-13: 978-1-4081-0250-3 Text typeset by A & C Black Printed in Great Britain at Caligraving Ltd, Thetford, Norfolk This book is produced using paper that is made from wood grown in managed, sustainable forests. It is natural, renewable and recyclable. The logging and manufacturing processes conform to the environmental regulations of the country of origin. Contents page Introduction 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16 17. 18. 19. 20. 1. 22. 23. 24. 25. 26. 27. 28. 29. 30. Money – the basics Banks – the basics Operating an account Credit and debit cards Internet banking Mortgages The housing market The consumer credit boom Pensions and other financial products Insurance Wills and other legal matters Money and work Currency markets 1 Currency markets 2 International payments International Banking and investments National central banks (NCBs) National economies and international trade Taxation Profit and loss accounts Balance sheets Corporate finance Mergers and acquisitions Investments The dot. om bubble Banking and financial problems Numbers and statistics Phrasal verbs for banking and finance Financial idioms and expressions Pronunciation and word-building Answer key Index 5 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 76 3 Introduction Who is the book for? This book has been written for people whose first language is not English, and who need to use English in the context of banking and finance. It covers language useful for working in retail banking, company finance departments and other situations involving financial transactions.

There is a strong focus on the language needed to communicate on financial topics, discuss financial problems and plan projects. It does not cover rarely-used terms, or academic terms used by economists. All the language in the book is intended to be accessible to intermediate level students and above. How can the book be used? The vocabulary is arranged by topic. Choose the topics that interest you. The pages do not have to be completed in any particular order, and there is no need to complete all the pages if some are on topics which are not useful to you.

It is better to complete one or two pages in a day, and remember the vocabulary, rather than completing as many pages as possible. The answers to the exercises can be found at the back of the book. There is also an index to help you find the pages which are most useful to you. Write new words and phrases you learn in a notebook or file. Review this language regularly so that it becomes part of your active vocabulary. A good general dictionary will be very helpful, providing pronunciation guides and more contexts.

For vocabulary relating specifically to Banking and Finance, Dictionary of Banking and Finance (A&C Black, ISBN 978-07136-7739-3) will be a useful reference source. 5 1. Money – the basics A. Put the correct word in each space. account change lent sum 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. back coin note wages banknotes currency salary waste borrowed earn spend win In the USA, “quarters” (25 cents) and “dimes” (10 cents) are types of _______________. In the United Kingdom, “a tenner” means a ten pound _______________. The US dollar, the Yen and the Euro are types of _______________.

Hundred dollar bills and twenty pound notes are _______________. 2,000,000 Swiss francs is a large _______________ of money. I need to _______________ some Euros into Australian dollars. My friend _______________ a hundred pounds from me. I _______________ a hundred pounds to my friend. When she can, she’ll pay me _______________ I buy a lottery ticket every week, but I never _______________ anything. Most dentists _______________ at least ? 30,000 a year. __________ are paid to employees weekly. _______________ are paid to employees monthly. In business, you have to _______________ money to make money.

A: Do you have a bank _______________? B: Yes. I bank with the Bank of Scotland. 14. In my opinion, eating in expensive restaurants is a _______________ of money. B. Match the words on the left with the words on the right. 1. 2. 3. 4. 5. 6. 7. 8. a small an income donate high make pay by pay in winners and a. b. c. d. e. f. g. h. a profit amount of money cash cost of living credit card losers money to charity of ? 25,000 a year 6 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). C. Choose the correct word. 1. Spain now uses the euro.

Pesetas are no longer ____________. a. good money b. legal money c. legal tender 2. I bought a TV which doesn’t work. I’ll take it back to the shop to get ___________. a. my money returned b. a refund c. a repayment 3. In a shop, to get a refund, you usually have to show the ___________. a. receipt b. recipe 4. I’m paying for my new car in 36 monthly __________. a. instalments b. pieces 5. I earn a lot of money, but I have a lot of _________. a. payouts b. expenses 6. Famous paintings are usually sold by __________. a. bid b. highest price c. payment ticket c. parts c. paying c. uction 7. In an auction, the item is sold to the person who makes the highest __________. a. bid b. price c. offer 8. In Japan, the US dollar is __________ . b. strange money a. foreign money 9. In Britain, it’s not usual to discuss your personal __________ a. money b. finances 10. You can _________ a house and __________ a car. a. hire / rent b. hire / hire 11. Here’s the fifty dollars I __________. a. owe you b. pay you back 12. The best things in life are __________. a. free b. not for sale c. a foreign currency c. money arrangements c. rent / rent or hire c. must return c. ot bought and sold D. Find the opposites of these words in the grid. 1. 2. 3. 4. 5. 6. spender / _______________ A S S R A H G D O X J E A P V A S E W Z O E Y P E C R V Q W J P A U R B L E N D E R C F E D G Q V E D O I O U Y C X T I W F B L O S S E S S L I Z O N F L E T K I T U E N M B U Y E R S O borrower / _______________ winnings / _______________ losses / _______________ high prices / _______________ prices sellers / _______________ T R L H N K I 7 For reference see A & C Black Banking and Finance (978-07136-7739-3) Unit 0000 the basics 2. Banks – A. Choose the correct words.

Grimleys Bank Open an account today! Open an account with Grimleys Bank, and start benefiting from our great 1 rates / levels of interest and 2 small / low charges. With over 3,000 3 branches / outlets, you’ll never be far from us, and unlike many other 4 high street / town centre banks, we’re open all day on Saturdays. Grimleys customers can 5 take money / make withdrawals from more than a million 6 cash dispensers / money machines worldwide, and of course you’ll receive a 7 cheque book / book of cheques and a 8 paying card / debit card within a few days of opening your account.

Computer-users may be interested in our e-account – all the benefits of a regular Grimley’s 9 current / day-to-day account, with the added convenience of being able to view your 10 lists / statements and 11 make / do payments online. Whether you’re opening your first current account, 12 switching / changing from another bank or simply want to take advantage of our 13 range / variety of savings accounts, you’ll be glad you chose Grimleys – the bank that always 14 makes / puts the customer first. B. Match the method of payment with the definition. 1. Credit card a.

A piece of paper which transfers money from your account to somebody else’s account. b. Similar to a credit card, but usually operated by a chain of shops or other retailer. c. The money is deducted from your bank account almost immediately. d. These can be exchanged for foreign currency, or in some cases used instead of cash. e. You owe the card provider money. You can pay it back in one instalment, or over a longer period if you wish. f. You owe the retailer money. 2. Debit card 3. Charge card 4. Cheque 5. Traveller’s cheque 6. Charge account 8 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).

C. Choose the best word. The Grimleys Bank current account TERMS AND CONDITIONS 1. Regular bank statements will be sent to you by post, listing recent __________. a. payments b. events c. transactions 2. New current account customers can borrow up to ? 200 in the form of a low-interest __________. a. overdraft b. overtake c. overspend 3. The current rate of interest for __________ overdrafts is 6. 7% APR. a. permitted b. allowed c. authorised 4. While your account is __________ credit, there are no charges. a. under b. in c. with 5. If your account is overdrawn, charges may __________. a. appen b. apply c. occur 6. When you acknowledge __________ of your new debit card… a. receipt b. the receiving c. reception 7. …you will be sent a PIN (Personal _________ Number) a. identifying b. identifier c. identification 8. You will need to _________ your PIN each time you use the card. a. put in b. type c. enter 9. Two or more customers may apply for a __________. a. two-person account b. joint account c. together account 10. Current account __________ may apply for a Grimleys Credit Card. a. holders b. owners c. users 11. Credit cards will be issued __________. a. if you’re rich enough b. f you have money c. subject to status 12. You may __________ your account at any time. a. close b. finish c. end 9 For reference see A & C Black Banking and Finance (978-07136-7739-3) 3. Operating an account Unit 0000 A. Match the formal phrases on the left with the informal phrases on the right. 1. I deposited some money. 2. I withdrew some money. 3. The funds have been transferred. 4. My account is overdrawn. 5. It’s paid by standing order. 6. My account was debited. 7. My account was credited. 8. I used an ATM. 9. I made a balance enquiry. a. The money’s been sent. b. I paid in some money. c.

It goes out of my account every month. d. I went to a cashpoint. e. I took out some money. f. I’m in the red. g. I checked my balance. h. It went into my account. i. It went out of my account. B. Match the words with the parts of the cheque. account number logo amount in figures payee amount in words signature sort code cheque number Central and Eastern Bank 14 – 16 St James’s Lane Northampton NT5 8JQ Date 13/08/2007 ? 122. 50 A/C Payee Pay Jon Marks One hundred and twenty-two pounds + 50p only 000375 22-34-06 27863201 Liz Allen C. Answer the questions. 1. Who has this cheque been made out to? . Has it been signed and dated? 3. Is it crossed or uncrossed? 4. Can it be paid into somebody else’s account? __________________________ __________________________ __________________________ __________________________ 10 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). D. Choose the words to complete the sentences. 1. After they have been paid in, cheques usually take three working days to __________. a. pass b. credit c. clear 2. When I write out a cheque, I keep a record by filling in the __________. a. receipt b. invoice c. counterfoil 3.

If you don’t have a cheque book, you can pay by getting a _________ from a branch of your bank. a. banker’s draft b. bank paper c. bank ticket 4. Unlike a personal cheque, a banker’s draft can’t __________. a. be rejected b. bounce c. crash 5. A banker’s draft is also known as a bank draft or a __________. a. banker’s cheque b. banker’s note c. banker’s ticket 6. If you need to borrow money, you can apply to your bank for an __________. a. overdraft possibility b. overdraft facility c. overdraft opportunity 7. If you need to borrow more money from your bank, you can ask them to increase your _________. . overdraft limit b. overdraft level c. overdraft supply 8. If you want to borrow money from a third party*, you may have to supply a __________. a. banker’s support b. banker’s promise c. banker’s reference 9. A banker’s reference proves to a third party that you are __________. a. moneyed b. creditworthy c. rich enough 10. Regular automatic payments of the same amount (e. g. to a charity) are called __________. a. standing orders b. direct debits c. direct orders 11. Regular automatic payments of varying amounts (e. g. electricity bills) are called __________. a. standing orders b. direct debits c. irect orders 12. With my savings account, I have to ________ 30 days notice if I want to ________ a withdrawal. a. say / do b. give / make c. ask for / take 13. Many employees receive their salaries directly into their accounts by __________. a. BACS payment b. BATS payment c. BAPS payment 14. BACS stands for Bankers Automated __________. a. cheque system b. cost system c. clearing system * “A third party” means another person or company 11 For reference see A & C Black Banking and Finance (978-07136-7739-3) 4. Credit Unit 0000and debit cards EPOS and EFTPOS A. Choose the correct words.

EPOS (electronic point of sale) terminals are cash 4 1 registers / machines found in 3 2 selling / retail outlets such as shops and restaurants. Data about each sale is entered / put via barcode scanners, keyboards or touch / finger screens. The data is used to provide an itemised 5 receipt / ticket for the customer. It can also be used for stock control and to help with marketing. EFTPOS (electronic funds transfer point of sale) terminals are similar to EPOS terminals, but they can also 6 understand / read credit and debit cards, and 7 transfer / transmit funds directly from the customer’s account to the retailer’s account.

When customers pay 8 by / with card at an EFTPOS terminal, they either 9 sign / signature a sales voucher, or enter a PIN (Personal 10 identifying / identification number). Obviously, a PIN is a more 11 secure / safe method of verification than a 12 signing / signature, and in many countries, all EFTPOS 13 transactions / sellings are now 14 checked / verified by PIN. Chip and PIN payments A. Number the following in the correct order. The transaction appears on the customer’s bank statement. 1 The customer arrives at a supermarket checkout. The card’s electronic chip is read, and the customer enters his or her PIN.

Funds are transferred from the customer’s account to the retailer’s account. The customer inserts her/his card into the chip and PIN keypad. The payment is authorised. The PIN is verified. The cashier scans the barcodes on the products. 12 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). Magstripes and chip cards C. Write the words into the spaces. encrypted magnetic erased expiry microprocessor guarantee swipes The stripe on the back of a credit card is a 1 ______________ strip, often called a magstripe. ATMs and EFTPOS terminals can read the information stored on the strip.

If a card can’t be read, it is usually because the magstripe is scratched, or has been 2 ______________, usually from being placed close to a strong magnet. When the cashier 3 ______________ a credit or debit card through the card reader of an EFTPOS terminal, the terminal is connected by telephone to a company which takes credit-authentication requests from retailers and provides them with payment 4 ______________. When one of these companies receives a request, it checks for retailer identification, valid card number and card 5 ______________ date. This information is 6 ______________ for security reasons.

Similarly, when a card is inserted into an ATM, the ATM is linked to the bank’s central computer over an encrypted connection. Chip cards (also known as smart cards) offer greater security and versatility than magstripe-only credit and debit cards. These cards also have a 7 ______________, and each time a transaction is made, the user must enter a PIN number (in the same way that PINs are used with ATMs). D. Number these phrases from a part of a telephone conversation. And finally, the name as it’s printed on the card. And the expiry date? Can I take credit or debit card details, please?

Can you give me the card number, please? December 2011. It’s 4293 5274 3877 3305. Mr J C Smith. Sure. I have my card right here. That’s fine. Your payment has gone through. 13 For reference see A & C Black Banking and Finance (978-07136-7739-3) 5. Internet Unit 0000 banking A. Write the words into the spaces below. applications facilities protected authentication passwords transactions encrypted PINs victims a. b. c. Customers with facilities for Internet banking (also known as online banking) can use their bank’s or building society’s website to carry out payments and other 1 _______________ over the Internet.

This form of banking can be done outside business hours and from anywhere with Internet access. Features of Internet banking include payment of bills, funds transfers between a customer’s own accounts, transfers to a third party’s account, loan 2 _______________ and viewing bank statements. In addition to the Internet banking 3 _______________ offered by high-street banks, a new generation of banks operate exclusively online. These banks tend to offer high interest rates on savings accounts and low rates on loans because their overheads are much lower than those of traditional banks. Security has become a key issue in Internet banking.

For most secure Internet sites, such as Internet shopping sites, single password 4 _______________ is considered sufficient. In an increasing number of countries, this is no longer considered adequate for Internet banking. In these cases, entry to the site requires the input of one of a selection of passwords and multiple 5 _______________. All information is 6 _______________, making it almost impossible for a third party d. e. f. (i. e. a hacker) to access the information. However, hackers can gain access to inadequately 7 _______________ home PCs, and can record the password as it is typed in (keylogging).

Spyware and other malicious programs can record private banking details, and send them to a third party. A more commonplace danger is written passwords and PINs falling into the wrong hands. Internet banking is perceived by some as being too vulnerable to fraud to consider using. However, the number of 8 _______________ of Internet banking fraud is very small. Statistically, in fact, conventional banking activities carry a higher risk of fraud than Internet banking – simple credit card fraud and various forms of identity theft are far more widespread.

It is far easier to obtain banking and other details by going through a bag of rubbish and collecting old bank statements etc. than it is to obtain it by hacking. Generally speaking, unless users are careless or gullible, Internet banking does not carry a great level of risk. Nevertheless, criminals continue to come up with inventive ways to access accounts. An example is “phishing” – using emails purporting to be from the customer’s bank to persuade people to hand over their 9 _______________. B. Find words in the article which mean the same as the following. 1. money (paragraph a) 2. nother person or company (paragraph a) 3. only (paragraph b) 4. business expenses (paragraph b) ______________________ ______________________ ______________________ ______________________ 14 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). 5. more than one (paragraph c) 6. person who illegally access somebody else’s computer (paragraph c) 7. a program which steals private information from a computer (paragraph d) 8. intended to do bad things (paragraph d) 9. financial crime (paragraph e) 10. stealing money by pretending to be somebody else (paragraph e) 11. ommon (paragraph e) 12. easily deceived / will believe anything (paragraph f) 13. pretending (paragraph f) 14. give (paragraph f) __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ C. Match the verbs with the nouns. 1. access 2. carry 3. click on 4. enter / input / key in / type in 5. fall into 6. make 7. pay 8. transfer a. a bill online b. a password c. a risk d. an electronic payment e. an icon f. funds g. the internet h. the wrong hands D.

Match the words on the left with words on the right. 1. a high 2. a low risk of 3. an Internet-only 4. offer higher-than-average 5. outside 6. vulnerable a. business hours b. fraud c. interest rates d. level of security e. savings account f. to fraud 15 For reference see A & C Black Banking and Finance (978-07136-7739-3) 6. Mortgages Unit 0000 A. Choose the best words from each pair in grey type. For the majority of 1 homeowners / houseowners, the purchase of their property is financed by a mortgage. The bank or building society which lends the money to buy a property is called a mortgage 2 lender / giver or mortgagee.

The person who borrows money in the form of a mortgage is called a mortgage 3 borrower / taker or mortgagor. There are several different types of mortgage 4 in / on the market. Probably the most common is a repayment mortgage, in which the 5 capital sum / capital price and the interest are paid in 6 instalments / pieces over a long period (for example 25 years). An alternative is an interest-only mortgage, in which the interest is paid, and the capital sum is 7 repaid / paid in another way, for example with an endowment assurance policy (see unit 9). This type With an offset mortgage, the mortgage borrower’s 8 f mortgage is known as an endowment mortgage. daily / current account is combined with her/his mortgage. Provided the current account is usually 9 in / with credit, this can reduce the interest repayments 10 on / for the mortgage. B. Match the types of mortgage with the definition (you can find some of the information above). 1. repayment mortgage a. The mortgage interest rate is linked to the interest rate of country’s central bank (see unit 16). 2. interest-only mortgage b. The mortgage interest rate stays the same. 3. endowment mortgage c. You pay the capital sum and the interest. . offset mortgage d. You pay the interest in instalments, and you pay the capital sum by another method. 5. fixed rate mortgage e. The mortgage interest rate can only rise as far as a certain level. 6. base-rate tracker mortgage f. An interest-only mortgage, with the capital repaid by an endowment (see unit 9). 7. variable rate mortgage g. Your current and mortgage accounts are combined to reduce the interest. 8. capped mortgage h. The mortgage lender can change the interest rate as they wish. 16 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).

C. Choose the best word. 1. Houses, bungalows, apartments, offices, shops and any other type of building you can own are called __________. a. housing b. property c. buildings 2. The __________ are a document which proves who owns a property. a. owner’s deeds b. owner’s papers c. title deeds 3. In some countries you can get a mortgage for __________ your annual salary. a. times five b. five times c. five of 4. If a mortgage borrower ___________ the instalments… a. doesn’t pay b. defaults on 5. …the mortgage lender will eventually __________ the property. a. retake b. ake back c. fails on c. repossess 6. Before a property can be repossessed, the lender must apply to a court for a __________. a. repossession order b. repossession paper c. repossession document 7. When the lender has a repossession order, the occupants of the property can be __________, a. evicted b. put out c. ejected 8. Generally, mortgage lenders only repossess as ____________. a. a desperate action b. a last resort 9. A mortgage lender can also be called a mortgagee or a __________. b. mortgage maker a. mortgage provider c. the final option c. mortgage producer 10.

A mortgage borrower can also be known as a mortgagor or a __________. a. mortgage owner b. mortgage possessor c. mortgage holder 11. To change your mortgage agreement is to __________ your property. b. remortgage a. mortgage again 12. A mortgage paid over 25 years is called a __________ mortgage. a. 25 b. 25 year c. unmortage c. 25 years 13. When somebody’s mortgage is the most they can possible afford, you can say they are “mortgaged up to the __________”. a. hilt b. top c. head 14. If property prices go down, and your house is mortgaged for more than its current value, you have __________. . negative money b. negative value c. negative equity 15. After you have paid your last mortgage instalment, you can say that you have __________ your mortgage. c. paid off a. paid out b. paid up 17 For reference see A & C Black Banking and Finance (978-07136-7739-3) 7. The housing market Unit 0000 Mortgage arrears reduce building society profits 1. The growth in building society profits for this financial year is expected to be restrained due to a sharp increase in the number of buy-to-let property owners going into mortgage arrears.

However, the recent interest rate cut is likely to cause arrears to level off, and recentlyintroduced government measures aimed at supporting the buy-to-let market are likely to provide a last-minute boost to building society annual profits. James Edwards, chief executive of the market leaders City and Provincial Building Society, said in a trading statement last week that he broadly concurred with analysts’ forecasts of full-year profits for his company to rise by 5% to ? 240m. However, the fact that soaring growth in the buy-to-let market (where C&P has a 19% share) has cooled significantly coupled with concerns about arrears has knocked 7. 5p off the company’s share price, leaving it at 264p. Despite predictions for growth across the sector as a whole averaging around 4. 5%, the share prices of the five leading players in the market have declined by an average of just under 3%. Yields may be falling, but the restricted supply of new-build homes and continuing enthusiasm for buy-to-let have kept the housing market buoyant, and only the most pessimistic of analysts are predicting a slump. Nevertheless, cautious corporate investors have been reducing their holdings.

Such fears may well prove to be misplaced. Hints by the Bank of England regarding a further interest rate cut could underpin further growth. An additional boost is likely to be provided by changes to pension rules from April 5th next year. Holders of Self Invested Personal Pensions (SIPPs) will be permitted to invest funds from their pensions in residential property. Up to ? 15bn of pension cash is expected to flood into the market, including tax relief worth as much as ? 5bn. This is certain to create a boom in buy-to-let nvestment, shoring up building society yields, and to push up house prices, especially in areas where they have been in decline, creating more attractive investment opportunities. In addition, the buy-to-let market is likely to continue to benefit from the fact that many would-be first time buyers remain priced out of the market, ensuring healthy demand for rental properties. Evidence suggests that large numbers of potential first time buyers are also delaying their plans to buy to due uncertainty on house prices, creating a build-up of demand which is likely to be released when house prices stabilise.

A spokesperson for the number two mortgage lender Bolton and Rochdale reported last month that new business volumes have grown steadily month on month from a low base, and that the growth of both the residential and buyto-let mortgage markets remains robust. However, this upbeat stance was offset by Banker and Mortgage Lender magazine, which predicted that house prices are poised to fall by an average of up to 7% across the UK. The South West in particular was viewed as overvalued, with prices in some areas set to see a drop as high as 15%.

In contrast, London is now seen as slightly undervalued, following some dramatic falls over the last year and, according to the magazine, house prices there are set to rise by a minimum of 4% a year for the next three years. 7. 2. 3. 8. 4. 9. 10. 5. 6. A. Choose the definition which is closest to the meaning in the article. 1. buy-to-let property owners (paragraph 1) a. people who rent their homes b. people who buy homes to rent to others 2. growth has cooled significantly (paragraph 3) a. it’s growing more slowly b. it’s declining 3. a boom in buy-to-let investment (paragraph 7) a. a lot more people buying-to-let b. lightly more people buying-to-let 4. tax relief worth as much as ? 5bn (paragraph 7) a. up to ? 5bn reduction in tax to be paid b. up to ? 5bn increase in tax to be paid 18 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). 5. would-be first-time buyers… (paragraph 8) a. people who are going to buy their first home. b. people who would like to buy their first home 6. …remain priced out of the market (paragraph 8) a. find it very expensive b. can’t afford it B. Find words in the article with the same meaning as the following. 7. overdue mortgage payments (paragraph 1) 8. profits (paragraph 4) 9. upport (paragraph 7) 10. low starting point (paragraph 9) 11. worth less than the current price (paragraph 10) m____________ a_____________ y____________ s____________ u____________ l____________ b____________ o____________-v____________ C. Complete the definitions. 12. Mortgage arrears are starting to level off means that mortgage arrears … a. have stopped increasing b. are decreasing c. are increasing more slowly than they were 13. There was soaring growth in the buy-to-let market means that… a. profits from buy-to-let mortgages increased b. house prices increased c. buy-to-let mortgages became more expensive 14.

The housing market is buoyant means that … a. house prices are rising c. house prices are falling b. house prices are static 15. Investors have been reducing their holdings means that investors have been… a. buying more shares b. selling all their shares c. selling some of their shares 16. Interest rate cuts could underpin further growth means that interest rate cuts could… a. cause further growth b. prevent further growth c. be caused by further growth 17. Pension cash will flood into the market means that pension fund managers will… a. avoid this market b. invest heavily in this market c. ake a lot of money from this market 18. New business volumes have grown steadily month on month means that… a. business has increased every month b. profits have increased every month c. the number of new customers has increased every month 19. Prices are poised to fall by 7% means that… a. prices are falling c. prices will fall b. prices are expected to fall 19 For reference see A & C Black Banking and Finance (978-07136-7739-3) 8. The consumer credit boom Unit 0000 A. Read the article, and put these word into the spaces. credit rating loans 1. creditors owe creditworthy pay it back into the red write off . 3. The people of the United Kingdom are estimated to _____________ around a trillion pounds in personal debt, which is about ? 16,000 for every man, woman and child. Much of this debt is of course in the form of mortgages, but an ever-increasing proportion is in the form of consumer credit: unsecured _____________ in the form of overdrafts, credit card debts, store card debts, hirepurchase agreements and the numerous other ways in which the British public are able to “buy now, pay later”. An inevitable result of this is that an increasing number of people are taking on more debt than they can service.

Credit cards and store cards especially can have very high APRs*, and the interest soon mounts up, pushing the borrower further and further _____________. Repayment in full may simply become impossible. Of particular concern are so called “loansharks”. While the major lenders such as banks _____________ millions of pounds every year in bad debts, small credit companies sometimes 4. 5. resort to heavy-handed measures such as sending in the bailiffs and even (although of course this is illegal) threatening physical violence. Naturally, creditors try to avoid lending money to people who won’t be able to _____________.

Although they may not know it, every person who has ever had dealings with a financial institution (for example, had a bank account) has a credit rating. This data is stored on computers by credit reference agencies, and before agreeing to a loan, most creditors will check the applicant’s _____________. However, this information can be misleading. Apparently _____________ people may already be struggling to keep up the payments on their existing debts. As well as having potentially disastrous consequences for people who get too heavily into debt, the boom in consumer credit could have serious repercussions for lenders.

If people are genuinely unable to repay their debts, ultimately there is very little their _____________ can do about it. *APR = Annual Percentage Rate B. Find words in the text which mean the same as the following. 1. Money owed by people, not businesses (paragraph 1) p____________ d____________ 2. Paying for something like a sofa or a car in instalments (paragraph 1) h____________-p____________ 3. Increases (paragraph 2) m____________ u____________ 4. …of all the money (paragraph 2) i____________ f____________ 5. Having problems (paragraph 4) s____________ 6. Maintain (paragraph 4) ____________ u____________ 7. Cause big problems (paragraph 5) h____________ s____________ r____________ 20 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). B. Answer these questions in your own words. 1. What’s the difference between a secured loan and an unsecured loan? ____________________________________________________________ ________________________________ ____________________________________________________________ ________________________________ 2. What’s a bad debt? ____________________________________________________________ ________________________________ 3.

What does a credit reference agency do? ____________________________________________________________ _______________________________ 4. What does a bailiff do? ____________________________________________________________ ________________________________ D. Match the phrases on the left with the alternatives on the right. 1. apply for a loan 2. set up a loan 3. take out a loan 4. pay back a loan 5. pay off a loan 6. write off a loan a. arrange a loan b. decide the borrower will never repay the loan c. get a loan d. repay the loan in instalments e. repay all the loan at once f. sk for a loan E. Which of the following sentences best summarises the article? 1. Creditors have lent too much money, and are starting to have serious problems. 2. British people love to “buy now, pay later”, but the majority of them are not very creditworthy. 3. Creditors are lending more and more money, and this is causing an increase in debt-related problems. 4. If more creditors used credit-reference agencies, there would be fewer debtrelated problems. 21 For reference see A & C Black Banking and Finance (978-07136-7739-3) 9. Pensions Unit 0000 and other financial products A. Pensions

A pension is a 1 sum / quantity of money paid regularly to a person who has reached a certain age or retired. It is usually paid until the 2 receiver’s / recipient’s death, although in some cases a 3 widow / wife may continue to receive payments after her husband’s death. State pensions Pensions paid by the state. In many countries, these are contribution-based: people who have not paid 4 sufficient / satisfactory contributions during their 5 work lives / working lives do not receive the full amount. Occupational pension schemes Pension schemes for employees working in a particular industry or for a particular company.

In some cases, these are administered by insurance companies who invest the 6 payments / premiums and use the profits from this to pay out the 7 benefits / rewards. In other cases they are self-administered: the premiums are invested by the pension fund 8 trustees / trusteds. Personal pension schemes Schemes provided by 9 pension givers / pension providers such as insurance companies and banks. The premiums are invested in a 10 pension treasure / pension fund, and on retirement the pensioner receives a 11 lump sum / chunk sum to invest in an annuity (see below).

Personal pension schemes are also known as 12 “private pensions” / “alternative pensions”. B. Financial products Match the financial product with the benefits. 1. annuity a. If you’re too ill to work, you receive payments. b. You pay a lump sum, and receive regular payments for the rest of your life. c. You receive a lump sum on a certain date (or earlier if you die). d. Your beneficiaries receive money if you die young. e. You borrow money to buy a house. Many years later, your 5. endowment mortgage endowment repays the loan. f. You borrow money. When you die, your house is sold to repay the loan. 7. ickness insurance g. Your beneficiaries receive money when you die. h. Your private hospital bills are paid. 2. life insurance 3. life assurance 4. endowment assurance 6. private health insurance 8. equity release scheme 22 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). C. Choose the best word to complete the sentence. 1. A person who gives you information about financial products is a __________. a. financial adviser b. financial helper c. financial assistant 2. Some financial advisers only earn money by giving advice. Others earn ________ from selling financial products. . wages b. payments c. commission 3. An actuary is a person who __________ insurance risk and calculates premiums. a. thinks about b. assesses c. decides 4. When an endowment __________, you receive a lump sum. a. finishes b. ends c. matures 5. Prices go up every year. This is because of __________. a. inflation b. expansion c. evolution 6. Some pension payments increase every year __________ inflation. a. in time with b. in line with c. at the speed of 7. Pension payments which increase in line with inflation are __________. a. index connected b. index linked c. index controlled 8.

Many financial analysts predict a __________ caused by too many pensioners and not enough workers. a. pensions crisis b. pensions disaster c. pensions emergency 9. A small additional pension is known as a __________. a. topper pension b. topping pension c. top-up pension 10. Banks and insurance companies are types of __________. a. financial institution b. finance company c. financier 11. Pension funds are usually administered by a __________ of trustees. a. group b. bunch c. board 12. Pension funds, insurance companies and other financial institutions that invest on the stock market are known as __________. . commercial investors b. institutional investors c. company investors 13. Individual people who invest on the stock market are known as __________. a. private investors b. personal investors c. one-man investors 14. In most countries, financial products and services are __________ by the government. a. watched b. decided c. regulated 23 For reference see A & C Black Banking and Finance (978-07136-7739-3) 10. Insurance Unit 0000 A. Match these types of insurance with the definitions. 1. Third party only 2. Third party fire and theft 3. Fully comprehensive 4. Buildings only 5. Buildings and contents 6.

Third party liability 7. Worldwide travel 8. Private health 9. Indemnity insurance 10. Personal injury 11. Life a. Home insurance covering the fabric of the building only. b. Pays out if you die or after a set period – whichever is later. c. Home insurance covering most risks. d. Motor insurance. Will only pay claims made against you by others. e. Covers the costs of private health care. f. Motor insurance. Will pay claims made against you by others plus damage caused by fire. g. Motor insurance covering all risks. h. Covers claims made against you by others, for example if you run a business. i.

Insurance cover for problems while on holiday abroad. j. Any insurance which covers financial loss (numbers 1 to 8 are types of indemnity insurance). k. Pays out in the event of a personal accident. B. Put the words into the correct spaces. take out covered broker claim quote pay out premium fill in How to ______________ an insurance policy. 1. Choose an insurance ______________, or contact an insurance company direct. 2. Phone up and get a ______________ (or you can do this on the internet). 3. Pay the ______________. 4. Now you’re ______________. 5. If you need to make a ______________, contact the insurance company. . You will probably have to ______________ a claim form. 7. You may have to wait several weeks for the insurance company to ______________. 24 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). C. Choose the best words to go into each space. 1. A person who assesses insurance claims is called a __________. a. loss adjuster b. claim adjuster 2. Your home insurance will be expensive if you live in a _________ area. a. big risk b. risky c. insurance adjuster c. high risk 3. An insurance broker usually __________ several different insurance companies a. deals with b. contacts c. orks for 4. In many cases, the insurance company doesn’t take the financial __________. a. problem b. risk c. damage 5. The financial risk is taken by _________ such as Lloyds of London. a. underwriters b. undertakers c. underpasses 6. Natural disasters usually mean that insurance underwriters suffer __________. a. heavy losses b. high expenses c. big debts 7. A __________ proves you have insurance while the policy is being processed. a. cover letter b. cover paper c. cover note 8. If you agree to pay, for example, the first ? 200 of a claim, then your policy has a ? 200 __________. b. extra c. excess a. urplus 9. A company giving insurance cover is known as the __________. a. insurer b. insured c. insurance 10. A person who has taken out insurance cover is known as the __________… a. insurer b. insured c. insurance 11. …or the __________. a. policyholder b. policy-taker c. policy 12. A life insurance policy pays out __________ your death or after a set period, whichever is first. a. in case of b. if c. in the event of D. Choose the correct prepositions. 1. I’ve never claimed on / from my insurance. 2. Don’t worry. It’s covered by / with my insurance. 3. I’m insured for / by the Lion Rock Insurance Company. . This sculpture is insured for / at ? 100,000. 5. I’m insured to / for drive any car. 6. I’m covered by / for all risks. 7. Which insurance company are you with / in? 25 For reference see A & C Black Banking and Finance (978-07136-7739-3) 11. Wills and other legal matters Unit 0000 A. In each space put a word which means the same as the word in brackets. In each case, the words in the list below are more suitable than the words in brackets. assets frozen inheritance tax nearest and dearest own pockets deceased heirs intestate prior claim estate inherit liability no-obligation Have you made a will?

Millions of people have not made a will, yet dying (1. without a will) ______________ can have disastrous consequences for the families of the (2. dead person) ______________. If you have not yet made a will, consider what would happen if you were to die unexpectedly. Your (3. money and possessions of a dead person) ______________ would be (4. stopped) ______________ while a court decided how it should be distributed. Your (5. people inheriting money) ______________ would be left to cover funeral and other expenses from their (6. personal money) ______________. Also, don’t assume that your (7. oney and property) ______________ will automatically go to your (8. immediate family) ______________. There may be a distant relative with a (9. reason why they should get it) ______________. Make sure the right people (10. receive from a dead person) ______________. Make a will today. At Barnaby and Allen, making a will is quick, easy, and may cost less than you think. And we can also help you reduce your (11. amount that has to be paid) ______________ for (12. death tax) ______________. Call today for a (13. you don’t have to continue if you don’t want to) ______________ consultation with a member of the team.

Barnaby and Allen Solicitors 26 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). B. Match the word with the definition. 1. solicitor 2. barrister 3. advocate 4. attorney 5. lawyer 6. legal practice 7. executor 8. beneficiary 9. probate 10. conveyancing a. (British English) a person qualified to act as a legal advocate, especially in higher courts b. a law firm c. (British English) a person qualified to draw up wills, deal with conveyancing etc, and to represent clients in lower courts d. somebody who represents somebody else in court e. person appointed by the deceased to carry out the terms of a will f. the process of proving a will is genuine g. (American English) a barrister h. drawing up contracts for the buying and selling of houses i. a person who benefits from a will j. a solicitor, barrister or attorney C. Use the verbs below to complete the sentences. act draw up prosecute be exchange sue comply grant take defend hear 1. In the UK, it takes several weeks for the authorities to ________________ probate. 2. I’ll get a lawyer to ________________ a contract. 3. We’re going to ________________ contracts on Tuesday, and then we can move into our new house. . We going to ________________ them for a million pounds in damages. 5. If you don’t ________________ you will ________________ in breach of contract. 6. They are going to ________________ legal proceedings against us. 7. The court will ________________ the case next Monday. 8. My solicitor will ________________ for me in this matter. 9. The police are going to ________________ him for fraud. 10. He’s hired a very good barrister to ________________ him against the charges. 27 For reference see A & C Black Banking and Finance (978-07136-7739-3) 12. Money and work Unit 0000 A.

Put words into the spaces. a year makes salary Set 1: 1. She’s ________________ 40k a year. 2. She’s on forty thousand ________________. 3. Her monthly ________________ is about ? 3,300. 4. She ________________ forty thousand pounds a year. 5. Parker Publishing offer an excellent remuneration ________________ to executives. Set 2: 6. He works ________________ Parker Publishing. 7. He’s employed ________________ Parker Publishing. 8. He’s ________________ of Parker Publishing. 9. He’s on the ________________ of Parker Publishing. 10. He’s a Parker Publishing ________________. Set 3: 11.

Parker Publishing pay their delivery drivers a good ________________ rate. 12. Parker Publishing pay their delivery drivers ________________. 13. Parker Publishing delivery drivers are on ________________. 14. Parker Publishing delivery drivers are ________________. 15. Parker Publishing delivery drivers get a good weekly ________________. by on the staff staff member good money package wage hourly payroll well paid for on well B. Choose the best words to go into the spaces. 1. Tony doesn’t pay tax. He gets paid ________________. a. cash in pocket b. cash in hand c. cash in fingers. 2.

Anna is a ________________ illustrator. She works for many different ________________. a. freelance / customers b. free / clients c. freelance / clients 3. Anna is ________________. a. self-employed b. self-working c. self-paid 4. Steve works for BurgerPlanet. He only earns about ? 6 ________________. a. for an hour b. an hour c. the hour 28 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). Unit 0000 5. Working in a fast-food restaurants is usually a __________ occupation. a. bad-pay b. short-pay c. low-pay 6. Many company executives receive a performance-related __________. . bonus b. gift c. extra 7. Extra benefits from employers such as free health insurance, free cars and free mobile phones are called __________. a. presents b. extras c. perks 8. Factory workers who get paid for each item they make are ___________. a. in pieces b. on piecework c. on pieces C. Which two of these sentences are not possible? 1. I think you should ask for a pay rise. 2. I think you should ask for a pay increase. 3. I think you should ask for more pay. 4. I think you should ask for higher money. 5. I think you should ask for a salary increase. 6. I think you should ask for bigger money.

D. Put the words / phrases into the correct boxes. attractive salary dynamic line manager remuneration package boss highly motivated loads of money they pay peanuts committed huge salary member of a team worked off your feet JOB ADVERTISEMENT INFORMAL CONVERSATION 29 For reference see A & C Black Banking and Finance (978-07136-7739-3) 13. Currency markets 1 Unit 0000 Today’s exchange rates 1 US dollar = 1 Euro = 1 GB pound = Euro 0. 82 US dollar 1. 23 US dollar 1. 90 GB Pound 0. 53 GB Pound 0. 65 Euro 1. 54 A. Which is correct? (Choose one from each group. ) 1. a. There are 1. 3 dollars to a Euro. b. There are 1. 23 dollars for a Euro. c. There are 1. 23 dollars to the Euro. d. There are 1. 23 dollars to a Euro. a. The euro is currently at 1. 23 against the dollar. b. The euro is currently at 1. 23 for the dollar. a. No. 1 above is how ordinary people say it; no. 2 is how it’s reported in the news. b. No. 2 above is how ordinary people say it; no. 1 is how it’s reported in the news. 2. 3. B. Look at the exchange rate chart, and write words or numbers into the spaces. 1. 2. 3. 4. 5. 6. 7. 8. At the moment there are _________________ euros to the pound.

The pound is standing _________________ _________________ against the dollar. You’ll get just _________________ two dollars to the pound. A dollar is worth just _________________ fifty pence. How many euros will I _________________ for ? 100? How much is $39. 95 _________________ pounds? I’d like to change these pounds _________________ euros please. I’d like to exchange these pounds _________________ euros please. C. Look at the chart, and answer true or false. $ 0. 60 0. 58 0. 56 0. 54 0. 52 0. 50 January February March April ? 30 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). . The dollar started the year just below sixty pence. 2. The dollar went into free fall in January and February. 3. The decline of the dollar levelled off in March 4. The dollar hit a low of ? 0. 50 at the beginning of March. 5. Since March, the dollar has made a full recovery. 6. The dollar has recovered very slightly since March. 7. Since March, the dollar has made a partial recovery, but remains weak. 8. The dollar halved in value in the first three months of the year. 9. The dollar lost nearly a fifth of its value in the first quarter. 10. The dollar is currently trading at around 53p.

TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE D. Put the words into the correct columns. All could go into this sentence: The dollar __________ against the euro. rose gently gained slightly levelled off rose sharply soared slid a little dropped slightly hit a new high remained steady remained level plummeted shot up fell sharply weakened gained strongly hit a new low bottomed out slipped half cent went up half a cent went into free fall gained some ground went down several cents fell very slightly plunged rose gently

See also Unit 28 Numbers and statistics 31 For reference see A & C Black Banking and Finance (978-07136-7739-3) 14. Currency markets 2 Unit 0000 A. Put the words into the spaces below. black market stability hard currency transactions pegged convertible A soft currency The Kzarnian florint is not 1_______________ outside the Republic of Kzarnia. Until recently, the official exchange rate was KF20 to the US dollar, although the 2_______________ rate was at least double that. However, last month the government 3_______________ the currency to the dollar at a lower level, and the gap between the official and unofficial rates has narrowed.

The official rate currently stands at around KF35. Despite the improved 4_______________ of the currency, most major 5_______________ within the country are still carried out in 6_______________. Tourists may never even see a Kzarnian florint, as all goods and services they are likely to require can be paid for in euros or US dollars. B. Look at the article. Are the following sentences true or false? 1. The Kzarnian florint can be bought in any bureau de change that has them in stock. 2. At the moment, the black market rate is only slightly better than the official rate. 3. KZ are mostly used for small everyday transactions. . In Kzarnia, you can pay for you hotels, restaurants and taxi drivers in any hard currency. TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE C. Put the words into the spaces below. cost of living legal tender denominations monetary unit Eurozone rounding up A hard currency The euro is the 1_______________ of the majority of countries within the European Union. Notes come in 2_______________ of 5, 10, 20, 50, 100 and 500 euros. The currency was introduced on 1st January 2002, and shortly afterwards the national currencies of the countries in the 3_______________ ceased to be 4_______________.

One effect of the introduction of the euro was “euro inflation”, with the 5_______________ rising sharply as a result of the 6_______________ of prices. 32 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). D. Choose the best words. 1. When the government doesn’t control the exchange rate in any way, the currency is __________. a. freely convertible b. totally convertible c. absolutely convertible 2. The Japanese yen is trading for less than its usual value. You can talk about __________. a. a small yen b. a bad yen c. a weak yen 3. The Mexican peso is trading for more than its usual value.

You can talk about __________. a. a big peso b. a good peso c. a strong peso 4. A sovereign is a coin made of 7. 3 grams of gold, and is worth a lot of money. However, its __________ is just one pound. a. front value b. face value c. written value 5. Changes in the values of currencies are called __________. a. currency fluctuations b. currency alterations c. currency changes 6. An Internet site which does currency calculations based on the latest exchange rates is called a __________. a. currency changer b. currency converter c. currency setter 7. When you change money, you usually have to pay a __________. a. ommission b. percentage c. fee 8. When changing money, banks tend to offer a _________ exchange rate than bureaus de change. a. better b. nicer c. fatter 9. Traders sometimes agree to trade currency in the future for an agreed rate. A “long position” means that the trader will make a profit if the currency __________. a. goes up b. goes down c. stays the same 10. A “short position” means that the trader will make a profit if the currency __________. a. goes up b. goes down c. stays the same E. Which two of the following are not a way of saying €1. 50? 1. One euro fifty 2. One-and-half-euros 3. One euro fifty cents 4.

One euro and fifty cents 5. One point fifty euros 6. One point five euros 7. A euro with fifty 33 For reference see A & C Black Banking and Finance (978-07136-7739-3) 15. International payments Unit 0000 A. Match the type of payment with the description, and choose the best word from each pair in grey type. Four methods of payment for imports/exports advance payment documentary credit (or letter of credit) a. ________________________________ The exporter sends the goods and 1 documents / papers to the foreign buyer. The buyer pays the invoice when the goods arrive, or within a certain period from the invoice date.

This can be risky, as the exporter trusts the buyer to 2 respect / honour the original sales contract. bill of exchange open account b. _______________________________ A foreign bank issues 3 a promise / an undertaking to the exporter (through a bank in the exporter’s country) to pay for the goods as long as the exporter 4 matches / complies with the conditions of the contract. This is a much safer form of payment for the exporter. To be even safer, the exporter can arrange for the bank in his/her country to 5 act as / be “confirming bank”, which means that the bank in the exporter’s country is responsible for the transaction. . _______________________________ A 6 legally-binding / legally-holding agreement that the importer will, on acceptance of the bill, pay the exporter for the goods. The risks are that the importer does not accept the bill even though the goods have arrived, or 7 doesn’t pay / dishonours an accepted bill when it 8 matures / is time to pay. d. _______________________________ The exporter does not 9 send / dispatch the goods until payment has been received from the importer. There is no risk for the exporter – all the risk is 10 taken by / with the importer. 34

For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). B. Put words below into the spaces in the sentences. bill of lading defer issuing bank release shipment title consignments courier forwarded import duty payment on delivery penalty remit remittance shipped tariffs vessel wire 1. We are expecting two ___________________ of computer printers from China. 2. Another word for a consignment is a ___________________, even if it doesn’t travel on a ship. 3. The consignment ___________________ ten days ago. I’m surprised you haven’t received it yet. A detailed list of a ship’s cargo is called a ___________________. 5. Another word for ship is ___________________. 6. In many cases, when goods are imported, an ___________________ has to be paid. 7. Another word for import duties is ___________________. 8. A document proving that you own a consignment of goods is called a ___________________ to the goods. 9. After payment, the bank will ___________________ the title to the goods. 10. The bank took a long time to ___________________ payment to my account. 11. If we don’t deliver on time, we’ll have to pay a late-delivery ___________________ 12.

We would like to ___________________ payment until delivery of the shipment. 13. We usually ask our customers for ___________________. 14. If there’s a problem with the letter of credit, I suggest you contact the ___________________. 15. The quickest way to send money to another country is to ___________________ it, for example, by Western Union. 16. Thank you for sending the ___________________ by Western Union. I collected it this morning. 17. An effective way to ship consignments is to use a ___________________ such as UPS, DHL or FedEx. 18. The exporter’s bank has ___________________ the bill of exchange to the importer’s bank. 5 For reference see A & C Black Banking and Finance (978-07136-7739-3) 16. International banking and investments Unit 0000 A. Choose the best words to go into the spaces. 1. Because Britain is an island, in British English, a bank account in another country is known as an __________ account. a. off-island b. off-coast c. offshore 2. Transferring money from Britain to another country is called sending money _________. a. overseas b. over-water c. over-waves 3. A country with very low taxes is known as a __________. a. tax heaven b. tax haven c. tax paradise 4.

The principal aim of offshore banking in tax havens is to reduce the customer’s tax __________. a. liabilities b. expenses c. costs 5. A person of any nationality who normally lives in the UK is called a UK ________. a. resident b. inhabitant c. citizen 6. A person with a UK passport is called a ________, even if they don’t live in the UK. a. UK resident b. UK inhabitant c. UK citizen 7. A person who is has a UK passport but doesn’t normally live in the UK is called a ________. a. non-resident b. non-inhabitant c. non-citizen 8. Jim mostly lives in Spain, but for tax __________ he’s resident in the UK. . purposes 9. Jim is __________. a. UK taxed b. UK taxable c. a UK tax-payer b. registration c. payment 10. Although she lives and works in Germany, Maria’s company is __________ in Liechtenstein. a. registered b. recorded c. officially situated 11. An informal way of saying that Maria lives in Germany is that Maria is __________ in Germany. a. housed b. domiciled c. based 12. A formal way of saying that Maria lives in Germany is that Maria is __________ in Germany. a. housed b. domiciled c. based 13. A __________ payment is a fast and secure way to make an international payment. a. fast-track b. riority c. top priority 14. SWIFT is an international __________ payment system. a. electric b. electrical c. electronic 15 A person who receives an international payment is called the __________. a. getter b. beneficiary c. receiver 36 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). B. Fill in the missing words. Then number these stages in order, 1 to 6. funds sterling identification tradable prevailing working days Making a priority payment from the UK If the payment is in a foreign currency, the bank carries out the currency exchange at the _________________ rate.

The payment is sent by SWIFT. Instruct your bank to make the payment. If transferring __________ to a bank account, quote the beneficiary’s IBAN (International Bank Account Number). The transfer usually takes three or four _________________ The payment is credited to the beneficiary’s account, or can be collected by the beneficiary upon production of a suitable means of _________________ Decide if you want to send the payment in _________________ or in another _________________ currency. C. Complete the chart below. Is each sentence true for UK-based unit trusts*, offshore funds, both or neither?

UK-based unit trust Aimed at private investors Aimed at institutional investors, such as pension funds Usually operated by fund managers Liable for UK tax Based in a tax haven Usually based on a portfolio of stocks and shares Regulated by UK authorities May carry additional risks A no-risk investment Called a “mutual fund” in the United States * For a definition of unit trust, see Unit 24 Investments x offshore fund x 37 For reference see A & C Black Banking and Finance (978-07136-7739-3) 17. National central banks (NCBs) Unit 0000 Bank of England raises interest rate to 5% 1.

Mortgage repayments, along with the cost of overdrafts and credit card debts, are set to rise after the Bank of England surprised the City yesterday by announcing its first rise in interest rates for more than a year. News of the quarter-point rise to 5% was cautiously welcomed by some financial institutions, but was largely condemned by industry and trades unions. A statement from the Bank of England’s monetary policy committee said that strong growth, a recent recovery in consumer spending, buoyant export markets and signs of a pick-up in investments meant that action was necessary in order to meet the government’s 2. % inflation target. The statement said: “With inflation likely to remain above target for some while, it was judged necessary to bring consumer prices inflation back to target in the medium term. ” A response from the London Board of Businesses and Exporters described the move as premature, and likely to damage businesses, especially those dependent on export earnings. 6. Many homeowners will face higher monthly bills through increased mortgage costs, especially those with variable rate and base-rate tracker mortgages. If mortgage lenders pass on the rise in full, it will add around ? 20 to the monthly repayments on a ? 00,000 mortgage. According to Sarah Parker of the Family Income Monitoring Unit, the average family will need to find around another ? 40 a month. 7. Few analysts predicted a rate increase, and some had even been expecting a decrease to help boost a subdued housing market. Many were talking about the increase being a pre-emptive strike, with the small increase in borrowing costs now intended to ward off the need for a more painful rise later. 8. In the City’s money markets, however, there were expectations of a further tightening of the Bank’s policy and further interest rate rises perhaps up to 5. 5% – unfolding over the next twelve months. Fears that further rate increases would affect consumer spending wiped ? 17bn off the value of the London stock market. 2. 3. 4. 5. A. Choose the definition which is closest to the meaning in the article. 1. the Ci

Jai Shree Krishna

As a child I remembered Janamashtami (J) for the gobinda aala re song. Boys would form a ring, one floor after another till one of them broke the earthen pot, the curd spilling out. I loved it and always stood next to these guys hoping that some of the curd would fall on me. J is the birthday or janamdin of Lord Krishna (K). On this day he was born in Mathura. We are inspired by his stories for infinity. Lord K was an incarnation of Vishnu. His incarnation has had a profound impact on Indian culture, philosophy, civilization as none other.

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K is Sanskrit means Dark indicating the Supreme Consciousness. Darkness is not to be confused with light. It exists in the life of men who remained rooted in terrestrial experiences i. e. some one who is attached to the materialistic objects of the world. The incarnation of K represents the descent of the Infinite Brahman ( a person who has is self-realized, reached nirvana. ) K has always been known to have a Blue color with Yellow clothes. The Blue color is associated with the infinite like the blue sky, sea. ( not Mumbai ka polluted sea which is greyish black. Yellow is accepted as the color of the earth, since the earth when introduced into a colorless flame emits a yellow hue. Hence these colors indicate that the Pure, Infinite Consciousness of K that has descended on earth to play a finite role. K was born in Mathura. His tyrant uncle Kamsa, imprisoned his father, usurped the throne of Mathura creating confusion and chaos. K destroyed the tyrants and restored peace in the land. Taking the logic forward to man. Every human being is born a good person, pure. However, sometimes his mind gets taken over by two evil forces i. e. go and ego-centric desires which cause agitation’s and anxieties within. When a man conquers these two evils peace gets restored. K has been criticized for dancing amongst the Gopis. K, the Infinite Brahman had reached the stage of Divine Consciousness. Inspite of being in their midst, he remained unaffected by their presence. Even today a man who has conquered his desires would remain unaffected if Aishvarya Rai were to dance before him. It is all in the mind. Thus, if the lives of such God men are read without the understanding of their mystical symbolism, one comes to wrong conclusions.

K played the flute and brought out enchanting music. The flute by itself cannot bring any music. But when the Lord plays the music is divine. So also the human body by itself is inert and capable of nothing. It contains sense organs ( eyes etc ), mind-intellect ( compared to the wholes in a flute ) through which the consciousness expresses itself and brings out harmony and peace. Thus by identifying with one’s Divine Self , the melody and music of life can be drawn out of oneself. Concentration on the self could be one of the reasons why some call Hinduism a introvert religion. Actually it is only Self Realization.

Unless we delve upon ourselves, look within, discover ourselves we will always be unhappy as we would try to become something that we are not. You can take a horse to a pond and ask him to drink. Unless the call comes from “within” the horse will not drink the water. Another criticism of K was getting Yudhister to lie to Dronacharya about the death of his son Ashwathama. The story goes – K knew that there was no way the Pandavas could control their Guru Dronacharya on the battlefield with one exception. If his son Aswathama died , Dronacharya would give up arms. Now there was an elephant by the name of Ashwathama.

After the elephant was killed Droncharya was told about it. Over come with grief he asked Dharmraj Yudhister whether it was true that Ashwathama was no more. Yudhister replied in the affirmative. Dronacharya laid down his arms and was killed. K masterminded this plan for which he has been criticized. I call this an Aswathama lie. When a lie is said for a good purpose it no longer remains a lie. Its akin to misleading an enemy so what if he looses his life in the process. Its a question of a fight between Dharma and Adharma. Lets celebrate the birth of Lord Krishna, The Light.

Health Care and Community

Community Organizing Participatory Action Research (COPAR) – is a continuous and a sustained process of: 1. Educating the people – to understand and develop their critical consiousness 2. Working with people – to work collectively and effectively on their immediate and long term problems 3. Mobilizing with people – develop their capability and readiness to respond, take action on their immediate needs towards solving the long term problems The process and structure through which members of a community are/or become organized for participation in health care and community development activities

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Process: – the sequence of steps whereby members of a community come together to critically assess to evaluate community conditions and work together to improve those conditions. Structure: – refers to a particular group of community members that work together for a common health and health related goals. Emphasis of COPAR: 1. Community working to solve its own problem 2. Direction is established internally and externally 3. Development and implementation of a specific project less important than the development of the capacity of the community to establish the project 4.

Consciousness raising involves perceiving health and medical care within the total structure of society Importance of COPAR: •COPAR maximizes community participation and involvement •COPAR could be an alternative in situations wherein health interventions in Public Health Care do not require direct involvement of modern medical practitioners •COPAR gets people actively involved in selection and support of community health workers •Through COPAR, community resources are mobilized for selected health services •COPAR improves both projects effectiveness during implementation Phases of COPAR Process: . Pre-Entry Phase – is the intial phase of the organizing process where the community organizer looks for communities to serve and help. Acitivities include: Preparation of the Institution oTrain faculty and students in COPAR. oFormulate plans for institutionalizing COPAR. oRevise/enrich curriculum and immersion program. oCoordinate participants of other departments. Site Selection oInitial networking with local government. oConduct preliminary special investigation. oMake long/short list of potential communities. oDo ocular survey of listed communities.

Criteria for Initial Site Selection oMust have a population of 100-200 families. oEconomically depressed. oNo strong resistance from the community. oNo serious peace and order problem. oNo similar group or organization holding the same program. Identifying Potential Municipalities oMake long/short list. Identifying Potential Barangay oDo the same process as in selecting municipality. oConsult key informants and residents. oCoordinate with local government and NGOs for future activities. Choosing Final Barangay oConduct informal interviews with community residents and key informants. Determine the need of the program in the community. oTake note of political development. oDevelop community profiles for secondary data. oDevelop survey tools. oPay courtesy call to community leaders. oChoose foster families based on guidelines. Identifying Host Family oHouse is strategically located in the community. oShould not belong to the rich segment. oRespected by both formal and informal leaders. oNeighbors are not hesitant to enter the house. oNo member of the host family should be moving out in the community. 2.

Entry Phase – sometimes called the social preparation phase. Is crucial in determining which strategies for organizing would suit the chosen community. Success of the activities depend on how much the community organizers has integrated with the commuity. Guidelines for Entry oRecognize the role of local authorities by paying them visits to inform their presence and activities. oHer appearance, speech, behavior and lifestyle should be in keeping with those of the community residents without disregard of their being role model. Avoid raising the consciousness of the community residents; adopt a low-key profile. Activities in the Entry Phase oIntegration – establishing rapport with the people in continuing effort to imbibe community life. ?living with the community ?seek out to converse with people where they usually congregate ? lend a hand in household chores ?avoid gambling and drinking oDeepening social investigation/community study ?verification and enrichment of data collected from initial survey ? conduct baseline survey by students, results relayed through community assembly Core Group Formation Leader spotting through sociogram. Key persons – approached by most people Opinion leader – approach by key persons Isolates – never or hardly consulted 3. Organization-building Phase Entails the formation of more formal structure and the inclusion of more formal procedure of planning, implementing, and evaluating community-wise activities. It is at this phase where the organized leaders or groups are being given training (formal, informal, OJT) to develop their style in managing their own concerns/programs.

Key Activities oCommunity Health Organization (CHO) ?preparation of legal requirements ?guidelines in the organization of the CHO by the core group ? election of officers oResearch Team Committee oPlanning Committee oHealth Committee Organization oOthers oFormation of by-laws by the CHO 4. Sustenance and Strengthening Phase Occurs when the community organization has already been established and the community members are already actively participating in community-wide undertakings.

At this point, the different committees setup in the organization-building phase are already expected to be functioning by way of planning, implementing and evaluating their own programs, with the overall guidance from the community-wide organization. Key Activities oTraining of CHO for monitoring and implementing of community health program. oIdentification of secondary leaders. oLinkaging and networking. oConduct of mobilization on health and development concerns. oImplementation of livelihood projects.

Synthesis Outline

Analysis of the Non-Correspondence between Central Luzon State University Business Administration sophomore students’ major field of study and their freshmen preferred accounting course Title Page Approval Sheet Biographical Sketch Acknowledgement Table of Contents List of Figures List of Tables List of Appendices I. The Problem and its Background Introduction Statement of the Problem Objectives of the Study Significance of the Study Scope and Limitation Definition of Terms Conceptual Framework II. Review of Related Literature Local Foreign III. Research Methodology Overview Research Strategy

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Respondent Sampling Technique Data Gathering Tool Data Processing and Analysis IV. Results and Discussion V. Conclusions VI. Recommendations References Appendices The Problem and Its Background Introduction Statement of the Problem Generally, this study aims to answer the question “How does the CLSU BA Sophomore students’ major Field of study not correspond with their freshman preferred accounting course? ” Specifically, it aims to seek to answer the following questions: 1. What are the factors considered by the CLSU BA Sophomore students in their choice of major field of study? 2.

What are the sources of information that CLSU BA Sophomore students used in their major field of study selection process? 3. How do those factors and sources of information affect the CLSU BA Sophomore students’ decision of not choosing accounting as a major field of study? Objectives of the Study The general objective of this study is to analyze the non-correspondence between CLSU BA Sophomore students’ major field of study and their freshman preferred accounting course. The specific objectives are the following: 1. To determine factors considered by the CLSU BA Sophomore students in their choice of major field of study. . To determine the sources of information that CLSU BA Sophomore students used in their major field of study selection process. 3. To evaluate how those factors and sources of information affect the CLSU BA Sophomore students’ decision of not choosing accounting as a major. Significance of the Study This study will provide significant contribution to the students, CLSU Department of Accountancy and accounting education. For the students, this study will guide them in their major field of study selection process. This may assist them for better decision-making.

For the CLSU Department of Accountancy, this study may be of interest because it will give information of what underlies the non-correspondence between CLSU BA sophomore students’ major field of study and their freshmen preferred accounting course. In addition, it will help the department in more actively screening and recruiting students to major in accounting course. For the accounting education, this study will yield insights where the accounting educators may base the activities that can be undertaken to improve the accounting education in our country.

Scope and Limitation The scope of the study will be the sophomore students of academic year 2011-2012 with major field of study other than accounting in the College of Business Administration and Accountancy in Central Luzon State University. In addition, these sophomore students have accounting as their preferred freshman accounting course. This study will not include those students whose preferred freshman accounting course is accounting but did not enroll in the College of Business Administration and Accountancy during their first year.

Moreover, this study will not cover those students with preferred freshman accounting course that enrolled in College of Business Administration of Accountancy during their first year but did not take their second year in the same college and/or university. Conceptual Framework Independent variablesDependent Variable The above figure provides the explanatory framework upon which the entire analysis of the non-correspondence between CLSU Business Administration sophomore students’ major field of study and their freshman preferred accounting course will rest.

The framework shows the independent and dependent variables. It is based on the input-process-output relationship. This relationship reflects the decision-making process of the students in their major field of study selection. The decision-making process is shown within circle with broken lines. There will be no theoretical framework used on the study since it will focus only on determining the relative importance of criteria used to select a major not on the decision-making process itself.

The factors and sources of information are considered as the key inputs present in the decision-making process of the students; hence, these elements are within the circle. These key inputs will be considered as the independent variables. To guide the analysis, it is assumed that the students take into account all the relevant factors in their decision-making given three limitations: one year time frame, opportunity cost of choosing the wrong major is high and taking double major is not allowed. It is based on the premise that students maximize their resources given the three limitations.

Furthermore, the analysis will be based on the premise that the students make decisions using the information from important referents and not on isolation. The dependent variable is the decision of not choosing accounting as a major field of study. It is related to the output of the decision-making process where the sophomore students chose majors which are not corresponding to their freshman preferred accounting course. As shown in the figure, the dependent variable is outside the circle with broken lines. This is because the decision of not choosing accounting is only indirect product of the selection process.

Still, this decision is dependent on the key inputs because once the sophomore students chose business majors other than accounting they cannot choose accounting anymore. This is when the third limitation- taking double major is not allowed is present. Broken lines are used to show that decision of not choosing accounting as a major is not an isolated decision and to portray the association between the key inputs and the dependent variables. Research Methodology Overview Research Strategy The research strategy that will be used for the study is Survey Approach.

It will be used to view comprehensively and in detail the data that will be gathered to analyze the non-correspondence between CLSU BA sophomore students’ major field of study and their freshmen preferred accounting course. This approach will be adopted the survey approach to emphasize the quest for details of tangible data—data that can be measured and recorded. The research strategy will contain two (2) phases. In the first phase, the researchers will run focus groups of CLSU BA sophomore students with major field of study non-corresponds with their freshmen preferred accounting course.

The focus group is a research in which students are informally interviewed in a group discussion setting. The researchers will gather together these students to discuss the issues affecting the research study. In addition, there will be a moderator, aside from the researchers, to facilitate free and open discussion in the group. In the second phase, the researchers will then use what they will learn in focus groups to design a questionnaire that will allow collecting systematic and quantitative data about the non-correspondence of the major field of study of CLSU BA sophomore students and their freshmen preferred accounting course.

The questionnaire will be distributed in broader range of sample students. Respondents The respondents of this study will be the CLSU Business Administration sophomore students whose major field of study does not correspond with their preferred freshman accounting course. These are the students whose first choice is accounting in their application for College Admission Test in Central Luzon State University but selected business major other than accounting in their sophomore year in College of Business Administration and Accountancy in the university.

Sampling Technique The study will use purposive sampling wherein the respondents will be ‘hand picked’ for the research. The term is applied where the researcher already knows the names of CLSU BA sophomore students, whose major field of study did not correspond with their freshmen preferred accounting course, and will deliberately selects particular ones because they are seen as instances that are likely to produce the most valuable data.

Data Gathering Tools The research will use: documents containing the list of names of the respondents; tape-recorded conversation in the focus group; and questionnaires that will be distributed to the respondents. Data Processing and Analysis The data that will be gathered using the data gathering tools will be presented and analyzed to attain the objectives of the study.

Analysis of Distribution Channel of Reliance Communication

Names of Companies and their websites 1) Reliance Communications: http://www. rcom. co. in/Rcom/personal/home/index. html 2) Reliance Capital: http://www. reliancecapital. co. in/ 3) Reliance Infrastructure: http://www. rinfra. com/ 4) Reliance Big Entertainment: http://www. rbe. co. in/ 5) Reliance Power: http://www. reliancepower. co. in/ Geographical presence/area of operation Reliance communication State| Project Name| Areas of Operations| Logo|

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Gujrat| Gujarat EGRAM CSC Project| Gandhinagar, Kheda, Anand, PanchMahal, Dahod, Sabar Kantha| | Madhya Pradesh| Madhya Pradesh Nagrik Suvidha Kendra CSC Project| Jabalpur, Katni, Dindori, Mandla, Balaghat, Seoni, Chindwara, Narsinghpur| | Maharashtra| Maha e Seva Kendra, Maharashtra CSC project| Nagpur, Wardha, Chandrapur, Gadchiroli, Bhandara, Gondiya| | Uttarakhand| Uttarakhand Uttara CSC Project| Haridwar, Pauri Garhwal, Chamoli, Almora, Bageshwar, Nainital, Udhamsingh Nagar, Champawat, Pithoragarh| | Reliance Capital

Reliance Mutual Fund: 159 cities and includes international locations as Dubai, Malaysia, UK, Mauritius & Singapore. Reliance Life Insurance: 1248 branches across India Reliance Commercial Finance: 18 Indian Metros Reliance General Insurance: 2000 branches and 4000 intermediaries Reliance Securities/ Reliance Money: 6100 outlets in India Reliance spot exchange (RSX): Received state licenses from Gujrat, Karnataka and Rajasthan Governments. The process for obtaining licenses for Maharashtra, Andhra Pradesh and Madhya Pradesh is initiated. Reliance Big Entertainment 0,000 Villages and 24,000 Towns Reliance Power: Power Projects| Locations| Wind Energy| Maharashtra, Gujrat, Tamil Nadu, Karnataka| Coal Based| Uttar Pradesh, Madhya Pradesh, Jharkhand, Maharashtra, Andhra Pradesh| Hydro Based| Arunachal Pradesh, Uttarakhand, | Gas Based| Uttar Pradesh, Maharashtra, Andhra Pradesh, Gujrat, Kerala, Karnataka| Fuel Business| Locations| Sasan Coal Mines| Madhya Pradesh| Tilaiya Coal Mines| Jharkhand| Coal Mines| Indonesia| Coal Bed Methane| Rajasthan, Andhra Pradesh, Madhya Pradesh| Oil and Gas Explorations| Mizoram|

Carbon Credits| Madhya Pradesh, Jharkhand, Andhra Pradesh, Rajasthan| Key Personnel’s associated with the group Reliance Communication: Name| Designation| Shri Anil Dhirubhai Ambani| Chairman| Prof. J. Ramachandran| Director| Shri S. P. Talwar| Director| Shri Deepak Shourie| Director| Shri A. K. Purwar| Director| Shri Hasit Shukla| President, Company Secretary and Manager| M/s. Chaturvedi & Shah| Auditor| M/s. B S R & Co| Auditor| Reliance Capital: Name| Designation| Shri Anil Dhirubhai Ambani| Chairman| Shri Amithabh Jhunjhunwala| Vice Chairman| Shri Rajendra P.

Chitale| Director| Shri C. P. Jain| Director| Dr Bidhubhusan Samal| Director| Shri V. N. Kaul| Director| Shri V. R. Mohan| Company Secretary and Manager| M/s. Chaturvedi & Shah| Auditor| M/s. B S R & Co| Auditor| Reliance Infrastructure: Name| Designations| Shri Anil Dhirubhai Ambani| Chairman| Shri Satish Seth| Vice Chairman| Shri S C Gupta| Director (Operations)| Shri Lalit Jalan| While time Director| Gen V P Malik| Director| Shri S L Rao| Director| Dr Leena Shrivastava| Director| Shri Ramesh Shenoy| Company Secretary| M/s Price Waterhouse| Auditor| M/s.

Chaturvedi & Shah| Auditor| Reliance Power: Name| Designation| Shri Anil Dhirubhai Ambani| Chairman| Shri K H Mankad| Whole time Director| Shri S L Rao| Director| Shri J L Bajaj| Director| Dr Yogrendra Narain| Director| Dr VK Charuvedi| Director| Shri Paresh Rathod| Company Secretary and Manager| M/s Price Waterhouse| Auditor| M/s Chaturvedi & Shah| Auditor| Reliance Big Entertainment Name| Designation| Shri Anil Dhirubhai Ambani| Chairman| Shri Rajesh Shwaney| President| Shri Sanjeev Lamba| CEO| Shri Utpal Acharya| Head of Distribution| Shri Anil Arjun| Senior Vice President| P’s of marketing for Reliance Communications Product Reliance mobile always faced the problem of weak network. So to correct the major have invested over Rs 300 crore to upgrade to NGIP (Next Generation IP) network. Product has to sell itself. Now they are launching about more than 1100 network towers to provide more coverage to its customers. Price There are many ways to price a product. The pricing policy/ strategy vary in various situations. In case of Reliance mobiles they have priced their product at a very low price & they also come up with new plans.

Place Another element of Marketing Mix is Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. Reliance Mobiles do not find it very difficult to find the distribution channel because they are the old players and distribute their product in India. Promotion Another one of the 4P’s is promotion. This includes all of the tools available to the marketer for ‘marketing communication’.

Reliance has recently started doing heavy promotions. Physical Evidence Physical Evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. As Reliance mobile provide various rental plans. People Reliance always valued their customers. They provide a very cheap call rates affordable to the lower class. Process Process is another element of the extended marketing mix, or 7P’s. There are a number of perceptions of the concept of process within the business and marketing literature.