Self-study task reading Read the given text and define the underlined words. Then answer the following questions

SELF-STUDY 3
TASK 3.1 Reading
Read the given text and define the underlined words. Then answer the following questions.

• 
  What drives the world economy?
  
• 
  What is 'consumer spending' ?
  

GDP growth for different countries
Gross domestic product (GDP) measures the size of a country's economy. It represents the total value of all goods and services produced over a specific time period. Growth in GDP is one of the primary indicators used to gauge (= measure) the health of a country's economy. Usually, GDP is expressed as a comparison to the previous quarter or year.
Government trade policy
The two poles of government policy are liberalization and protectionism.
' 'Liberalization' is associated with free markets, open borders, deregulation and the free movement of capital around the world.
'Protectionism' is associated with government intervention, subsidies, quotas and tariffs, and restrictions on the movement of capital.
Consumer confidence
If consumers are confident about tomorrow, they will spend more. The main factors affecting consumer confidence are the level of unemployment - if people's jobs are at risk, or they don't have a job, they will spend less - and house prices - if people's houses are worth more than they paid for them, they feel rich and will spend more freely.
Interest rates
Interest rates are set by Central Banks. When interest rates are low, consumers and businesses can borrow money cheaply and there is a stimulus to the economy. But the cheap credit also causes inflation and too much liquidity in the system. This liquidity leads to bubbles in stock markets, housing markets, etc. When the Central Bank sees the need to control inflation and cool growth a little, it raises interest rates.
Exchange rates
Currencies fluctuate against each other: the euro against the dollar, the yen against the yuan. This is due to many complex factors such as the underlying strength of the economy, interest rate differentials and speculation. Having a strong currency makes imports cheap for domestic consumers, but hurts exporters (whose products become more expensive overseas).
TASK 3.2 Vocabulary
Make phrases by matching an item from each column and translate the completed phrases.
1 consumer movement of capital
2 free and contraction
3 growth borders
4 life spending
5 open of living
6 standard expectancy
7 environmental rates
8 goods strength
9 interest and services
10 cheap mobility
11 social damage
12 underlying credit
TASK 3.3 Grammar
Ex. 1 Complete the anecdote by choosing the best tense in each case: past continuous (was / were doing), past simple (did) or past perfect (had done).
A large corporation had just hired a new CEO. As the old CEO was leaving, he discreetly presented his successor with three envelopes numbered one, two and three. 'If you have a problem you can't solve, open the first of these,' he (1)_______________ (tell) the new CEO.
Well, at first things went smoothly, but after six months sales (2)______________(fall) by 10% and the shareholders were getting very impatient. The CEO (3)__________ (begin) to despair, when he remembered the envelopes the old CEO (4)________________ (give) him.
He went to his office, closed the door and opened the first envelope. The message read, 'Try blaming your predecessor.' The new CEO (5)__________ (call) a press conference and tactfully blamed the previous CEO for the company's problems. The shareholders and the press were satisfied with his explanations, and a few weeks later the CEO was relieved to see that sales (6)_____________ (improve) by 12%.
About a year later, the company was having serious production problems. The CEO (7)________ (learn) from his previous experience: as soon as he (8)_________ (close) his office door, he opened the second envelope. The message read, 'You ought to reorganize.' He immediately reorganized production, and the company quickly recovered.
TASK 3.4 Write an essay on topic “Free trade creates jobs in some industries and unemployment in others. Which? Why?” (about 250 words)
TASK 3.5 Prepare a presentation about arguments in favour of globalization, and arguments against .