Exercise 2. Fill in the gaps with the appropriate words
from the text below.
a. Using the latest multimedia_____________ would improve the quality of any
performance.
b. Polyglots are usually _____________ with tremendous abilities that in its turn
an _____________ expanding of worldview.
c. I’m doing my best in the way of education and tomorrow sees m e_________ .
d. Mr. X was the _____________ behind the plan to acquire the
newest_____________ .
e. There are so m any_____________ to choose from and some are arguably better
than others.
Task 2. Reading
Investment activity
In economic science, investment is capital expenditure on physical productive
assets, e.g. machinery, factory buildings, roads, bridges, houses, and stocks.
Real investments generally involve some kind of tangible asset.
As a financial term investment embraces purchases of stock exchange securities or
deposits of money in banks, building societies, or other financial institutions, with
a
view to income and, in appropriate cases, capital gains.
Users of capital, from governments to every kind of industrial or commercial joint-
stock company, all depend for the supply of their financial resources on those who
are willing to invest their funds, on investors.
Investment is closely associated with other aspects of economic order such as the
role of financial centres, labour migration, and the regime of international trade
prevailing at the time.
Technological
advances, the removal of exchange controls and financial
deregulation have all contributed to the expansion of international capital flows. As
a result foreign investment has become a fundamental feature of international
economic development.
There are two main channels for international investment: foreign direct
investment (FDI) and foreign indirect investment, or portfolio investment.
Foreign direct investment (FDI) occurs when citizens of one nation (the "home"
nation) acquire managerial control of economic activities in some other nation (the
"host" nation). Setting up a foreign operation through a joint venture, establishment
of a foreign branch or the purchase or formation of a foreign subsidiary are
examples of foreign direct investment.
Firms controlling activities in several nations have become known as
"multinational enterprises" (MNSs), "transnational corporations" (TNCs) and,
more
recently, "global corporations".
The reasons why effects of FDI are generally assessed as positive can be
summarized as follows: first, FDI speeds the international diffusion of new
technologies and other efficiency enhancing intangible assets, such as
organizational skills. Then, FDI in many national
markets will stimulate
competition among firms.
The process of supplying capital to a foreign institution, through a loan or purchase
of stock, without sharing in the institutions management is foreign indirect
investment.
An investor, when confronted with a list of investment possibilities, will want to
assess the risks and general advantages and disadvantages connected with putting
his or her money into this or that security. To receive higher return, investors must
be prepared to accept a higher level of risk. Trying to
limit or minimize the risk
investors construct and diversify portfolios and spread their foreign investments
among a number of different countries.
Institutional investors have contributed to development of new types of investment
management techniques, sophisticated portfolio monitoring, have pioneered the
application of quantitative security valuation techniques, such as dividend discount
models.
