Unit 2. Production and Costs

1. Read the article from the CNN Money website and complete it with the expressions listed.

delivery              evaluation              safeguards              pursue

include              awardedbe              worth              suppliers

net loss              bolsters              edged out              bulk

Boeing Wins $ 4.5 b Sale

Seoul, South Korea (Reuters) — South Korea ...

The latest version of Boeing’s F-15 beat the Rafale from Dassault Aviation SA, though the French firm said it would ... (3) an injunction filed earlier this month seeking to overturn the decision.

“We considered security, foreign policy and economic factors in making the decision,” the Ministry of National Defence said.

The deal comes on the heels of a disappointing $ 1.25 billion first-quarter ... (4) for the world’s largest planemaker and ... (5) F-15 production jobs in St Louis, Mo., which analysts said were in doubt without it.

It... (6) a production line that had just 10 US orders lined up and none after 2004.

Seoul also chose US manufacturing titan General Electric to supply engines for the F- 15K, marking a first in the F- 15’s 28-year history. The engine deal is expected to ... (7) $ 350 million.

GE ... (8) United Technologies unit Pratt amp; Whitney, which had supplied engines for every EM 5 ever sold.

The ministry narrowed a four-way race to two finalists last month and in a final round of... (9) Seoul’s close defense and trade relations with Washington proved decisive.

The US has 37,000 troops stationed in South Korea and the ... (10) of aircraft and weapons systems used are from US manufacturers.

The deal is expected to ... (11) almost $ 3 billion in jobs and technology for South Korea, which hopes to develop its own fighter by 2015.

Seoul is expected to take ... (12) of its F-15K fighters between 2005 and 2009.

European rivals had hoped to unseat US makers in supplying South Korea. Dassault is still hunting for its first export order for the Rafale.

2. After filling in the gaps read the article once more and decide which of the statements are True and which are False and write T for True and F for False.

1. Though the challenge from the US rivals was strong South Korea preferred European military suppliers.
2. The French firm gave up and didn’t try to overturn the decision.
3. Without the deal F-15 production jobs in St Louis could have been lost.
4. A production line will have orders only after 2004.
5. Seoul has close defense and trade relations with Washington.
6. European rivals still hope to supply South Korea.

3. Give English equivalents and make up your own sentences:

• избыточная мощность;
• заключение субдоговора на выполнение работ с внешними фирмами;
• материально-производственные запасы;
• незавершенное производство;
• период освоения новой продукции.

4. Translate the following sentences into Russian.

1. Mr. Shilling contends that in its quest to get “lean and mean,” US industry has exchanged variable costs for fixed costs.
2. Many of the blue-collar workers who used to make things have been replaced by more productive machines, usually financed by debt.
3. But while blue-collar workers could be laid off when recession occurred, machines can’t be fired, and interest payments don’t go away.
4. Firms locate their production and other operations internationally for reasons that are more complex than the simple minimization of direct costs.
5. Mainly because of higher indirect costs, a German manufacturing worker costs almost twice as much per hour as a British one.

5. Render the extract from the article using the active vocabulary.

Wella специализируется на трех видах продукции: средствах по уходу за волосами, предназначенные для парикмахерских, на долю которых приходится почти половина оборота; продукции для розничной торговли и относительно новом деле — косметических средствах и парфюмерии.

К новым достижениям концерна относятся приобретение американской торговой фирмы Graham Webb, специализирующейся на средствах по уходу за волосами, и американского же предприятия Johnson Products, оптового продавца «этнических косметических средств по уходу за волосами» для афроамериканцев.

Эти приобретения способствовали увеличению оборота больше, чем на одну треть, — в целом доходы возросли приблизительно на 13 % и достигли 3,2 млрд евро.

При этом прирост во всех трех сферах был примерно одинаков — правда, несколько выделилась самая новая и поэтому меньшая сфера — «косметика и ароматы». Этому способствовало появление новых ароматов, в частности, Montblanc и Dunhill.