Economy
1
Read and discover.
Jobs can be grouped into three economic sectors. The primary sector obtains products directly from nature. The secondary sector processes raw materials and manufactures ma nufactures new products, and the tertiary tertiar y sector provides services. Most people in Europe worked in the past in the primary sector. However, modernisation of farms meant there were not enough jobs in agriculture and people began to move to the city. What are some examples of industries in your area?
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Economy
1
Read and discover.
Jobs can be grouped into three economic sectors. The primary sector obtains products directly from nature. The secondary sector processes raw materials and manufactures ma nufactures new products, and the tertiary tertiar y sector provides services. Most people in Europe worked in the past in the primary sector. However, modernisation of farms meant there were not enough jobs in agriculture and people began to move to the city. What are some examples of industries in your area?
74
2
What economic activity does each photo photo show? Which sectors do they belong to?
3
Look at the large photo on on page 74. Can you identify identify the raw materials that were used to make the products you can see?
4
Look at the photo above. above. What can you see? Which country has the highest deforestation rate?
5
Name things that that are made of wood.
6
Make a list of five countries countries in your notebook. What are their economies based on?
7
Think about the people in rich and poor countries. What kinds of jobs do they have? How are their lives different?
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Analyse and organise
1 In your notebook, copy and complete the table below using the words from the box. •
construction industries •
•
tourism
•
primary sector (extraction of raw materials from the ground) •
livestock farming
•
•
•
.....
mining
•
•
.....
forestry
• •
education
•
capital goods industries
.....
tertiary sector (services) retail
•
…..
•
trade
•
•
•
energy industries
•
consumer goods industries
•
•
•
•
…..
healthcare
…..
•
2 Classify the photos below according to the economic sector they belong to.
a
b
c
d
e
f
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base industries
media and communication
secondary sector (products manufactured)
arable farming
•
fishing
administration
….. transport
Read the text about how milk chocolate is made. Choose the best word for each space.
3
Milk chocolate production (1) ..... with harvesting cocoa beans which grow on cocoa trees. Cocoa trees grow in Central a nd South America, Africa and some parts of Asia. Farmers use hand tools cal led machetes to (2) ..... cocoa beans. They open the pods and remove the (3) ..... . Then, they cover the seeds with banana leaves and leave them to ferment. After fermentation, the seeds are dried in the sun or over a fire and (4) ..... to a factory. In the factory the seeds are cleaned and roasted. When their shell s are removed, the seeds are c rushed and (5) ..... with sugar and milk. After a few hours of stirring, t he liquid chocolate is poured into moulds. Then, the chocolate blocks are cooled and wrapped in (6) ..... . They are now ready to be packed and transported to ma rkets around the world. 1
a. finishes
b. begins
c. continues
2
a. grow
b. eat
c. harvest
3
a. seeds
b. stems
c. trunks
4
a. sent
b. collected
c. harvested
5
a. cleaned
b. mixed
c. washed
6
a. wood
b. cotton
c. foil
4 Classify the activities involved in milk chocolate production according to the economic sector they belong to. 5
Listen to the recording about how bread is produced. Order the sentences in your notebook. a. The bread dough is baked. b. The bread is transported to the supermarket. c. The farmer plants seeds in the soil. d. The flour is transported to a bakery. e. The flour is mixed with water, yeast and salt. f. The farmer harvests the wheat plants. g. The wheat grains are processed to make flour.
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The primary sector What do you understand by active population?
Primary sector activities involve obtaining raw materials directly from nature.
Arable farming This type of farming is the cultivation of land to produce crops. Farmers can grow dry crops (for example, cereals, grapes and olives), which need only rainwater, or irrigated crops, which need extra water to grow (for example, fruit, vegetables and rice).
Livestock farming Another type of farming involves animals. Farmers buy and sell them, or keep them to produce food and other products. We can distinguish two types of farming. In extensive farming , the animals spend a lot of time outdoors, in open spaces. In intensive farming, the animals are kept in enclosed spaces.
Fishing Fishing includes catching both fish and other animals from rivers, lakes and seas or oceans. Most fishing occurs at sea. We can distinguish between deep-sea fishing, which is carried out far away from the coast, and coastal fishing, which is carried out near the coast.
Mining Mining involves taking natural materials from the Earth’s crust in two different ways. Underground mining is carried out in tunnels below the Earth’s surface, and open-cast mining is carried out on the surface.
Forestry Forestry is the exploitation of forests and tree plantations. The number of forests on Earth is decreasing due to human factors. The process of cutting down forests is called deforestation.
1 Classify the following words into dry crops and irrigated crops. • •
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rice pulses
• •
wheat grapes
• •
olives fruit
• •
vegetables oats
2 Which primary sector activities provide us with these products? •
salmon
•
apples
•
coal
•
milk
•
wood
•
marble
•
olives
•
cork
•
eggs
•
wool
•
shrimps
•
silver
Raw materials If we observe all the things around us, we can notice they are all made from different materials. We usually take raw materials and process them to transform them into new products. These materials can either be obtained from underground (for example, sand) or from living things (for example, trees).
The primary sector in Spain In 1900, about 60 per cent of the active population of Spain worked in the primary sector. Today, only about five per cent work in this sector. Among the crops grown in Spain, we can mention olives, mainly in Andalucía, and oranges in the Comunidad Valenciana. Pig farming is very important in the south of the country, mainly in Extremadura. Due to the fact that Spain has many kilometres of coast, fishing is also a very important activity. Nowadays, mining is not as important as it was in the past. The most important forestry product in Spain is cork, which is used for bottling wine. Arable Farming
Mining
País Vasco Comunidad Foral de Navarra
Coal
Apples
Principado Cantabria de Asturias
Iron
Bananas Cereals Lemons and oranges
Forestry
Galicia
Wood
Olive trees
Cataluña
La Rioja Castilla y León
Aragón
Pastures
Comunidad de Madrid
Potatoes Rice Vegetables
Islas Baleares
Wine Grapes
Extremadura
Livestock Farming
Castilla-La Mancha
Cattle
Comunidad Valenciana
Pigs Poultry
Región de Murcia
Canarias Andalucía
Sheep Fishing Fishing ports
Ceuta
1 Which raw material is used to make the following products?
pullover
•
shoes
•
mirror
jewellery
•
bread
•
wallet
• •
Melilla
2 Investigate mining in Asturias and León. Make a list of the consequences. 3 How does landform or relief affect the economic sectors of a country?
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The secondary sector
Workers in the secondary sector take the raw materials that are produced in the primary sector and turn them into products that people can use. This process is called manufacturing. Energy industries are very important because they supply homes and other industries with the energy they need. Most of our power comes from non-renewable sources, such as coal, oil and gas. We can also get energy from renewable sources, such as sunlight, wind and water.
Construction industries use raw materials to make buildings and public works, like bridges and roads.
Base industries transform raw materials into semi-finished products. The metal and chemical industries are examples of base industries.
Secondary sector
Consumer goods industries use the products produced by the base and capital goods industries. They make items that are sold to the public, such as cars, clothing and cosmetics.
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Why are products made by craft workers unique?
Capital goods industries use base industry products to manufacture things like machinery and equipment. The automotive industry is an example of a capital goods industry. It uses machinery and equipment to manufacture parts of cars.
Manufactured products Manufactured products can be produced using traditional craft methods or industrial processes . Craft workers use their h ands or tools to make their products, wh ich take longer to make and are usually more expensive. I ndustrial workers work in factories and use complex machines to manufacture la rge quantities of products very quickly.
A craft worker
The secondary sector in Spain Spain’s secondary sector is growing in size. Today, about 30 per cent of the active population work in this sector. Most industries are found in big cities, such as Bilbao, Barcelona and Madrid. The shoe industries have become more important over the last years. Aeronautics
Industrial cities
Cars
Industrial regions
Gijón Oviedo
Ferrol La Coruña
An industrial worker
Santander Bilbao
Chemical goods Construction materials
Burgos
Vigo
Vitoria Logroño
Valladolid
Electrical goods
Pamplona
Zaragoza
Food and drinks
Terrassa
Reus
Leather and shoes
Sabadell Barcelona Tarragona
Madrid
Machinery
Castellón de la Plana
Cáceres
Sagunto Valencia
Metalworking Paper
Alcoy
Puertollano
Badajoz
Petrochemical
Alicante Elche
Publishing Rubber and plastic Huelva
Shipbuilding Steel industry
Cartagena
Sevilla Málaga
Cádiz
Textile
Melilla
Ceuta
1 Which secondary sector ac tivities provide us with these products? •
furniture
•
clothes
•
processed food
•
bridges
•
roads
•
electricity
3 Explain why big industries are in big cities,
such as Madrid and Barcelona. 4 Give two examples of products produced
in the following industries. 2 Name some advantages and disadvantages of being a craft worker.
•
Textile industry
•
Furniture industry
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The tertiary sector Look at the photos. Do you use any of these services?
The tertiary sector is also known as the service sector because it provides services to customers.
Education
Healthcare
Retail
People who work in education help us learn.
Healthcare workers look after our health.
Retail workers sell us products in shops, supermarkets and department stores.
Administration
Media and communication
Tourism
Administrative workers help organise work in offices.
Media and communication provide us with information. Newspapers, television, the radio and the Internet are a part of our everyday lives.
Tourism supplies accommodation and entertainment to tourists. In Spain this industry provides work for many people and generates lots of money for the country.
Trade
Transport
There are two types of trade ser vice:
Transport workers carr y people and goods from one place to another. There are three transport groups:
•
Domestic trade is the buying and selling of goods within one country.
• •
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Foreign trade is the buying and selling of goods between different countries. The goo ds we buy from other countries are called imports. The goods we sell to other countries are called exports.
land transport road transport rail transport
•
air transport
•
water transport
The tertiary sector in Spain The tertiary sector is the largest economic sector in Spain. Today about 65 per cent of Spain’s active population works in the tertiary sector. The most important activities are tourism, transport and trade. We can distinguish four types of tourism. Beach tourism
•
Rural tourism
•
Cultural tourism
•
Adventure tourism
•
USA 1890053
In 2013 more than 60 million tourists from Europe and the rest of the world came to Spain to enjoy the climate, the culture and the landscape.
•
Rest of the world 2131824
UK 13653864
Rest of Europe 2781683 Scandinavia 4165142 Ireland 1189523 Switzerland 1448941 Belgium 1706354
Spain imports, or buys, machinery, food and textiles. It exports, or sells, chemical products, shoes, fruit and vegetables.
•
Portugal 1861092 Germany 9335870
Netherlands 2548656
Italy 3571660
Spain has an extensive network of motorways, roads, railways, ports and airports.
•
International tourists in Spain
1 Which forms of media or communication do you use for these activities?
4 Classify the words according to the type of transport.
•
do homework
•
chat with friends
•
•
listen to music
•
find out about the news
• •
2 Write two professions for each of these activities: • •
healthcare education transport media and communication •
France 8969009
•
3 Why are sea ports important for trade?
helicopter bicycle aeroplane
• • •
yacht kayak tram
• • •
van
•
coach
train cruise ship hot-air balloon •
5 Find out more about tourism in Spain. What are the main tourist destinations? 6 Think of the transport you would choose to go to the following places. •
Mallorca
•
Gibraltar
•
New York
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Economic sectors in Europe Look at the map. What are the main agricultural areas?
Primary sector in Europe
ICELAND
Land use
Norwegian Sea
Arable farming Livestock farming
Y A W R O N
Forestry Manufacturing centers Major resources
Coal Fishing ports Wood Iron Uranium
N A E C O C I T N A L T A
N E D E WS
FINLAND
Stockholm
RUSSIA ESTONIA LATVIA
L IT H U AN I A
U.K.
Birmingham London
GERMANY
Paris
Natural gas Oil L A G U T R O P
BELARIUS
POLAND
Amsterdam
Katowice CZECH REP.
UKRAINE
SLOVAKIA
MOLDOVA Munich AUSTRIA HUNGARY SWITZERLAND ROMANIA SLOVENIA FRANCE Black Milan CROATIA BOSNIA IA ANDORRA B R E HERZ. S Marseille I BULGARIA T A MONTENEGRO Barcelona
L Y
SPAIN
Donetsk
KOSOVO
MACEDONIA
Sea
Caspian
A Sea Z E R B GEORGIA A I J ARMENIA A N
TURKEY
ALBANIA GREECE
Mediterranean Sea
Secondary sector in Europe
Norwegian Sea Cars Chemical goods Construction materials Electrical goods Food and drinks Leather and shoes Machinery Metalworking Paper Shipbuilding
N A E C O C I T N A L T A
Caspian Sea
Steel industry
Black Sea
Textile
Mediterranean Sea
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Primary sector The diversity of climate and landform in Europe means that the primary sector can produce a variety of natural products. Only about 4 per cent of the active population in Europe work in the primar y sector.
An oil platform in Norway
A vineyard in France
Fishing boats in the UK
Secondary sector People with jobs in the secondary sector t ransform natural products into manufactured products. About 30 per cent of the European active population work in the secondary sector.
Tertiary sector
An automotive factory in Germany
About 66 per cent of the European population work in the tertiary sector. Tourism is an important industry in countries such as Spain, France, Greece and Italy.
A solar power plant in Spain
•
Europe has a very dense road and railway network. It also has very important ports, such as Rotterdam or Hamburg, and airports in cities such as London, Paris, Amsterdam or Frankfurt.
•
Europe imports petroleum and other raw materials from other continents. It exports metal products, cars and chemicals.
•
1 Which countries have more forests? 2 Which non-renewable energy sources can you see on the map? Name their disadvantages. 3 In which countries are ships built? Do these places have anything in common?
The airport in Amsterdam
4 What factors affect the primary sector in Europe? What differences in land use can you identify on the map of Europe? 5 Choose three European countries and name some of their tourist destinations. 6 Find out the names of the Spanish airports. How many are there?
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SCIENCE PROJECT:
The impact of advertising
One way companies promote their products is through advertising. They can use advertisements (or ads) on the radio, television and billboards, or in magazines and newspapers.
Aims •
Design an ad for a product.
•
Analyse what makes a good ad.
Method 1. Work in groups. Think of a product or service you would like to advertise. 2. Present your ideas and, as a class, vote for one. 3. In groups think about how to advertise the product or service that you have chosen. 4. Think of the materials you wil l need to create your ad. 5. Create your ad. Take into account the following: •
a short catchy phrase (slogan)
•
who is going to buy the product or service (target audience)
•
•
type of ad and where it wil l be displayed (video, billboard, leaflet, banner, etc.) design
Test •
When all the ads are complete, study each one carefully.
•
Which ad do you think is the best? Give reasons for your choice.
•
On a piece of paper, vote for the one you liked best.
Conclusions 1 Which ad received the most votes? 2 Why did most students prefer this ad? 3 What makes a good ad? 4 Do we need adver tising? Why or why not?
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Chocolates
Nice Chocolates
FRAGILE WORLD:
Buying what you need
Selling techniques Advertising works in very subtle ways; often we don’t realise that it influences us. Experts study how advertising can affect our thoughts, beliefs and behaviour. Companies use this knowledge to encourage us to buy their products or services. Christmas ads, for instance, usually begin in November. On TV, the number of ads for typical Christmas presents (toys, jewellery, perfumes, gadgets, electronic devices) is higher than those for food, or cleaning and hygiene products. Department stores also use their own techniques to increase sales. They play soft music, which creates a relaxed atmosphere and encourages people to take their time shopping. In supermarkets, the way products are displayed makes us buy things that we don’t necessarily need. This is known as ‘impulse buying’.
Analysing ads Look at the two ads. Analyse them taking into account the following aspects: 1. Where are they placed? Why are some places better for displaying ads than others? 2. What is the target audience? 3. How do visual features catch our attention? Consider: colours;
•
font;
•
•
•
layout; images.
4. Do both ads have a slogan? 5. Why does the first ad use the image of a famous person? 6. What techniques are used to make people think that the products are healthy? Which ad is more convincing? Why? Would you buy the products?
1 How are ads different on T V or radio?
3 Choose your favourite TV ad and analyse it.
2 Next time you go to a supermarket, pay attention to the techniques mentioned in the first text. Describe them to your classmates. Do you think they are effective?
4 Are you an impulse buyer? What makes people impulsively buy products?
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Revise Let’s remember Study skills 1 In your notebook, complete the diagram using the words in the box. • •
receptionist
sculptor
•
•
carpenter
Economic sectors
builder •
•
fisherman
lumberjack
•
•
lawyer
cleaner
•
farmer
journalist
•
• •
miner
factory worker
Primary sector
....., ....., ....., .....
Secondary sector
....., ....., ....., .....
Tertiary sector
....., ....., ....., .....
2 Read the text below (A) written by a primary sector worker. Then, read the text written by a tertiary sector worker (B) on page 108. In your notebook, write down if the sentences below refer to text A, B or both.
Australian open-cast mines operate all day and night. We work in shifts which last 12 hours, so I live on site. All our meals are provided for us. Safety is really important at the mine: I have to wear a hard hat and protective clothing. We use huge excavators and cranes to dig. Some of the machines are as big as a house! We communicate by radio as it’s very noisy on the site. We have to take great care loading the trucks to make sure they don’t tip over. The work is dangerous and dirty, but well paid. a. I work in shifts. b. The job is dangerous. c. I don’t have to cook. d. I use a radio to communicate. e. There’s a lot of noise at work. f. I drive a normal vehicle. g. I’m badly paid. 3 Why is open-cast mining safer than underground mining? Justify your answers.
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Review 1 Complete the table with the products.
TV programme car
chocolate bar
coal guided tour steel wood
painting
English class
5 Look at these cities. Which economic sector do you relate them to?
primary sector
secondary sector
tertiary sector
.....
.....
.....
2 Look at the pictures below. •
•
a
4 Is advertising necessary? W hat would happen if adver tising didn’t exist? Write a short text explaining your ideas.
Order the pictures to show the different stages of producing and selling yoghurts. Identify the different economic sectors in the process. b
•
A Coruña
•
Lanzarote
•
Toledo
•
Bilbao
•
León
•
Valladolid
6 Talk about how marmalade is produced. Complete the text with connectors.
First, we need to harvest the fruit and wash it to remove any dirt. ....., we boil the fresh fruit with sugar and add lemon juice to make it taste better. ....., we wait till water is evaporated. ....., we put the mixture into jars, or glass bottles. 7 Write a short paragraph comparing industrial products with those made by craft workers. Explain the advantages and disadvantages of both.
c
d
8 Complete the summary on page 108.
Checklist •
3 Decide if the sentences below are true or false. Correct the false ones in your notebook.
•
a. The primary sector is the most important sector in Spain. b. Tourism is important in European Mediterranean countries.
•
c. Most Europeans work in the tertiary sector. d. Diverse climate and landform have helped develop the secondary sector in Europe.
•
I can tell the difference between raw materials and manufactured goods, and how they are obtained. I can describe the activities involved in producing goods, and the sectors they belong to. I can describe the different economic sectors of Spain and Europe.
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I can understand the role of advertising and the basic techniques used.
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Business and money
1 Read and discover.
Money has been a part of human history for over 3000 years. Before money was invented, people exchanged goods and services through a system cal led bartering. In 1100 bc, the Chinese began making small metal replicas of objects which they exchanged instead of the objects themselves. Five hundred years later, they invented paper money which had no actual value itself but could be exchanged for gold or silver coins at a bank. Which currency is used in Spain? What was used before?
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2 Make a list of the things that you can buy with money. 3 If we used the bartering system today, what products or services could you offer in exchange for the things on your list? 4 What are the disadvantages of the bartering system? 5 Why do you think people save money in banks? 6 There are lots of different currencies in the world. Which countries use the euro? 7 Which currency do these countries use? •
Scotland
•
Japan
•
India
•
Russia
•
Italy
•
Morocco
8 Do you think there should be just one currency for the whole world? Why?
Analyse and organise
1 Medium and large companies are organised in a hierarchy. Companies have different departments depending on their business. In your notebook, complete the diagram using the words from the box. •
Operations
•
money
•
decision-maker
•
supervisor
•
Executive
•
staff
•
Financial
•
Human
CEO Chief ..... Officer the main ..... and the person with the vision for where the company is going
CFO Chief ..... Officer
COO Chief ..... Officer (President)
responsible for everything to do with
responsible for the daily activities of the company
the company’s .....
Sales
Finance
..... Resources (HR)
Administration
Marketing
Manager
..... .....
2 Have small companies got the same structure as medium and large companies? How are they different? 3 Identify the economic sector the businesses in the photos belong to.
a
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b
c
Other
Read the text about starting a new business. Decide if the sentences below are true or false.
4
A new business has to compete with existing companies for customers. To be successful it has to offer a product that customers prefer. Setting up a business involves risks and rewards. Profit is the potential reward for risk-taking. With the right product the business will make money. But is it that simple? Many new businesses fail in the first year because they don’t plan their strategy carefully. It’s essential to do market research, analyse the competition, plan advertising and predict costs. In this way, the risks are reduced but, of course, there’s no guarantee of making a profit!
a.
Businesses should study their competition.
b. If you have a good product, your business will make c. Most d. The
businesses fail in their first year.
most important aspect for a new business is the planning stage.
e. Carrying
5
a profit.
out market research is one way to have fewer risks.
Listen to an entrepreneur talking about how she started her own business. Complete the missing information in your notebook. •
•
•
•
•
•
Being the boss of your own business means making all the ..... but also taking all the ..... She started her business by buying ice-cream from the ..... and selling it in the ..... But she realised she was giving money to her ..... so she started making her own ice-cream. She only had ..... hour’s sleep for ..... years but people loved her ice-cream. She decided to open her shop after a wet and ..... summer. At first it was hard because she only had enough money to pay the ..... for two months. Three years later she ..... some money from the bank and now she has ..... shops in Europe.
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The costs of running a business Find out how Facebook was created.
Startup costs are what every entrepreneur has to think about before opening a business. For example, a new restaurant needs furniture, kitchen equipment, tableware. It might also be necessary to pay a fee for registering the company or for making a sign for the business. You may need to ask a bank for an investment loan to meet some of the costs. Sometimes it’s possible to get government loans.
Ongoing cost They are fixed costs that continue. They can be daily, weekly, monthly or yearly, but the bill always comes again at some point.
Another expense is insurance, which is necessary in case somebody has an accident or the building is damaged.
Rent is the money a business pays to use a building, such as an office, shop or storage unit.
Utilities like water, gas, electricity, Internet and a telephone line have to be paid for.
Ongoing costs If a business employs staff, they must pay employees a salary.
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1 Look at the photos. What businesses do these signs represent?
a
c
2 Is renting an office better than buying it? Justify your answers.
b
d
Variable costs They vary according to how many sales the business makes. Promotional costs change depending on how much advertising is used. There may be peak seasons (for example, holiday periods) when it’s a good idea to run bigger ad campaigns.
If the business makes a product, it will need materials to manufacture and package it.
Variable costs
There might be shipping costs if products are delivered to customers (for example, from an online shop).
Commissions are sometimes paid to employees for the sales they make, and if they meet sales targets (objectives), they receive a bonus.
1 Why are variable costs difficult to estimate? 2 Why do some businesses pay their sales staff commissions or bonuses? 3 What variable costs are there for these businesses? •
a newspaper or magazine publisher
•
a restaurant
•
an airline
4 What are the advantages and disadvantages of running your own business compared with working for someone else?
Did you know? Amazon.com, the leading e-commerce company, in USA, made more than 75 billion US dollars in 2013. It is said to have more than 237 million custom accounts.
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Saving and spending money
Cashflow is money coming in and money going out. Money is always in motion because you’re either spending it, earning it or saving it. If you save your money in a savings account with a bank, it isn’t actually in your account. The bank uses it to make a profit for itself. It gives you a small percentage of that profit as interest, and you can ask for your capital back whenever you want.
Why is it important to save money?
Saving money Children can have a piggy bank. They can save small coins and break it open when the bank is full. Pros
Children can open a bank account if their parents sign the papers. Pros money is safe
•
quick
•
it might earn interest
•
easy
•
Cons
Cons
interest is usually low
•
money doesn’t earn interest
•
it could get lost or stolen
•
many banks charge a fee for having an account with them
•
Spending less Shops have lots of special offers to get you to spend money with them. If you shop around, you can find bargains (products at a very low price). But you should think carefully before you buy. Use your maths! Ask yourself, ‘Is it really a good deal? Do I need that item?’.
1 Which one of these offers is the best deal?
a. A 15 € book with 50% off
a. 75% off something you want
b. A 9 € book with a ‘buy one get one free’ offer
b. 30% off something you need
c. A 20% discount on a 10 € book
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2 Which of these is smart spending?
Personal budgeting Not only companies need to plan their finances; it’s an important skill for individuals to learn too. Making a budget for yourself is an easy way to minimise expenses and maximise savings. You must distinguish between fixed expenses (which cost the same amount of money each month) and variable expenses (which vary from month to month). While planning your budget you should also distinguish between necessary expenses and optional expenses.
Planning a budget Link it up
1. Keep a record of your income (for example, pocket money, birthday money, car washing money). 2. List the things you want to buy. 3. Check the prices of what you want to buy. 4. Revise your list and delete the things you can’t afford.
People should need to plan a budget before going on holidays if they don’t want to be surprised when they get back. What types of tourism are there? Look at Unit 5.
5. Repeat Step 4 until you are within your budget.
1 Look at your monthly budget and answer the following questions.
a. What is your total income? b. Why can’t you buy the video game? c. How many months will it take you to have enough money to buy it?
2 Give examples of fixed expenses and variable expenses. Are they optional or necessities? 3 If you spend 2 € on sweets every day for a year, how much money will you spend?
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SCIENCE PROJECT:
Be your own boss
Aim Create a small business and learn to manage time and money.
Method 1. Work in a small group to create your own business.
Decide which type of business you want to start. Brai nstorm ideas.
2.
Create a simple business plan. Consider the following questions: •
What services or goods will you offer?
•
What functions will each of you have within the company?
•
Where will you run your business?
•
How much money will you need to start your business?
•
Where will this money come from?
•
How much money will you charge for your product or service?
•
How will you advertise?
•
3.
this is really diffficult. Maybe just ask about how many people they need.
Be creative. Think of a name and logo for your business.
4. When designing advertising material,
consider various types of
advertising: •
•
•
•
•
flyers, posters, emails Internet viral campaigns like Gifs, videos and celebrity endorsements songs word-of-mouth (If you want to tell your neighbours about your business, make sure you are accompanied by an adult.) Be prepared to make mistakes. Don’t give up!
5.
Present your business to your classmates. Reflect on what they like or don’t like about your idea.
6.
Make changes to your business plan based on your classmates’ ideas.
Conclusions 1 What did you find easy about starting a business? What was the hardest part?
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2 What personal qualities do you need to run a business?
FRAGILE WORLD:
Socially responsible companies
More than money The main objective of every company is to earn money and make a profit. However, nowadays the number of companies that support social programmes is rising. One of the reasons for this is that supporting a good cause can give you tax benefits. The other most important reason is the moral value. Some companies go environmentally friendly by reducing waste products or gas emissions. Others collaborate with NGOs (non-governmental organisations), foundations or charities.
Doing good •
Danone helps people in developing countries run their own businesses.
•
PepsiCo uses electric lorries to reduce fossil fuel consumption.
•
•
•
•
•
Ferrovial collaborates on drinking water programmes in South America. IBM donates computers for reading programmes. Atresmedia organises the Ponle Freno race to collect money for traffic accident victims. Mercadona collaborates with soup kitchens. Banks, such as BBVA, give scholarships and grants to encourage education and research.
1 What do NGOs do? Name some examples. 2 Explain the expression ‘environmentally friendly’. 3
Work with a friend. What could you do to collect money? How could you use this money?
4 Look at the photo and answer the questions.
a. What natural disaster does the photo show? b. As part of a community, how could you help this person?
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Revise Let’s remember Study skills 1 Complete the graphic organiser about business finance in your notebook. Use the words from the box. •
insurance
•
ongoing costs
•
shipping costs
•
commissions
•
utilities
running a business
.....
.....
rent
variable costs
.....
salary
materials
.....
promotional costs
2 Read the text below (A) about failed businesses. Then read the text on page 108 (text B). In your notebook, write whether the sentences below refer to text A, B or both.
Eighty per cent of new businesses fail in the first 18 months. This happens for many reasons, but one is that companies lose touch with their customers. They don’t know what people want or when they’re unhappy. Often unhappy customers give negative reviews online or tell their friends about a bad product or service. Another reason is that new businesses fail to look at the competition. If a new business does the same thing as another company, it needs to find a way to stand out and be better than its competitors. Sometimes businesses fail because their leaders make bad decisions or don’t recognise their own l imitations. It’s better to hire an accountant, for example, if maths isn’t your strong point. a.
There are a lot of factors affecting the chances that a company will last.
b. Most
companies go out of business in the first year and a half.
c. Businesses d. Who e.
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should think about their customers’ opinions.
a company employs is vitally important.
Staff with flexible working conditions are happier, better workers.
..... and bonuses
Review 1 Decide if the sentences below are true or false. In your notebook, correct the false sentences.
a. The COO is the head of a company. b. It’s normal to have an element of risk when starting a business. c. Fixed costs depend on how many sales a company makes.
4 Match the words to their definitions in your notebook.
a. variable costs
1. costs that repeat
b. utilities
2. bills such as water and electricity
c. fixed costs
3. expenses that change every time
d. rent
4. money paid to use a building
d. Making a personal budget helps stop people from getting into debt. e. A salary is what an employee earns.
5 Talk about different ways of saving money. Use the diagram to help you.
2 Look at these offers on jeans. For each offer,
piggy bank
calculate the actual cost of one pair of jeans. price
45 € 40
special offer
buy one, get one free
special offers personal budgeting
55 €
25% off
50 €
buy one, get one half price
b
6 Complete the summary on page 108.
Checklist •
•
c
bank account
3 for 2
€
3 Look at the photos and say which economic sector each one belongs to.
a
advantages & disadvantages
d
I can describe the organisation of a company and the costs it may have. I can identify the economic sector that different companies belong to.
•
I can understand why businesses succeed.
•
I can make a personal finance budget.
•
I can name different ways of saving money.
•
I can describe the advantages and disadvantages of running my own business compared with working for someone else.
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