商务英语阅读第二版王关富Unit Timetorebalanc课后答案e

Unit 3

Time to rebalance

Exercises

1.Answer the questions on the text.

1)How did Steve Hilton feel when Lehman Brothers collapsed?

The world was coming to an end.

2)What did Mr. Hilton do to save his company?

(1)Giving up options to buy thousands of lots.

(2)Laying off 3/4 of his employees.

(3)Redesigning his houses to cut construction cost.

(4)Serving customers with guaranteed payment.

3)In what sense America as a country is similar to Mr. Hilton’s company?

Dismissing workers in the whole country and experiencing one of the worst economic recessions in history.

4)What does “the biggest transformations” mean?

Macroeconomically, the US will change from debt and consumption to saving

and exports.

Microeconomically, Americans will have different lifestyles and do different jobs in different places.

5)According to the McKinsey Global Institute, what is the common practice

of consumers during economic crises?

Consumers generally try to cut their debt to more manageable levels. 6)What is the major difference between credit cards and charge cards?

Both are a line of credit for a customer. For a credit card, the customer can choose to pay in full or partially at the end of a month. When paying partially, the customer can pay interest on the balance until it is paid in full. Some people just keep making partial payments and pay interest on credit cards for years and years. But for a charge card, the customer has to pay the entire amount off each time he/she receives a bill. It is not allowed to make a partial payment and no interest is involved.

7)How is the current recession different from the previous ones?

It was triggered by a financial crisis that made it impossible to channel savings to productive investment and left customers and enterprises struggling with things from the boom.

8)What is the dilemma the Obama administration in concerning the stimulus?

On the one hand, the administration expects to reduce federal deficit.

On the other hand, it worries that the withdrawing the stimulus may push the American economy back into recession.

9)What are the reasons for economic restructuring according to the report?

Tighter credit, lower consumer borrowing, and higher energy prices. 10)What is said about business investment?

It is expected to be robust, especially for equipment. But it can never substitute consumer spending.

11)What changes have occurred in the United States in terms of consumption?

(1)American consumers spend less but save more.

(2)American companies thus look to an export boom abroad.

(3)The US has changed from a consuming nation to an exporting economy,

accounting for only 27% of global consumption this year, much less than that of emerging markets.

12)What makes the report optimistic about the American economy?

(1)The US has been increasing exports abroad, particularly emerging

markets.