ATEXTBOOKOFBASICCOLLEGEENGLISHINECONOMICSANDMANAGEMENT(CIP)/-:,19988ISBN730103802XH31::::ISBN730103802X/H0399::100871:627520156275971262752032:::85011683285227199831200082:1200CONTENTSPREFACE1PARTONEMICROECONOMICSTheObjectivesofFirmsinEconomics1TheRoleoftheEntrepreneurinEconomicDevelopment11TheUseofOpportunityCostinEconomics22HowFirmsMakePricingDecisions33PARTTWOMACROECONOMICSAnIntroductiontotheTheoryofEconomicGrowth42RoleofFiscalPolicyinPromotingEconomicGrowth53RoeofMonetaryandFinancialPolicyinPromotingEconomicsGrowth62TheBusinessCycleandItsUniversalRelevance71PARTTHREEMANAGEMENTINFORMATIONSYSTEMTheImpactofInformationSystemsTechnology81TheComponentsofanInformationSystem90ApplicationSoftware100ManagementInformationSystemsAnalysisandDesign1111PARTFOURFINANCEHistoryoftheInternationalMonetarySystem121InternationalBanking132ImportandExportFinancing143TheForeignExchangeMarket154PARTFIVEMARKETINGElementsofMarketing165MarketSegmentationandTargetMarkets176PulicRelations:AMarketingToolinManagementStrategy185ThRiseofChina'sJointVenturesinanInterdependentGlobalEconomy195PARTSIXINTERNATIONALECONOMICSOverviewofInternationalEconomics206InternationalTradeandGrowth218TradePolicyinDevelopingCountries229ExportsandEconomicGrowthinDevelopingEconomies240APPENDIX2522PREFACEWhenstudentsstarttolearnspecializedEnglish,say,ATextbookofBasicCollegeEnglishinEconomicsandManagement,theirpreviousconceptsaboutlearningEnglishshouldbetotallychanged.Nomatterhowmanyexaminationstheyhavetakeninthepast,orwilltakeinthecomingyears,nowtheirobjectiveinlearningEnglishshoulddefinitelybefocusedonhowtouseEnglishratherthanhowtotakeexaminations.Ashortstorysometimesclarifiesanimportantidea.Forexample,alittlebabywithseveralboxesofvariousbricksmaynotbeabletobuildatoyhousebecausehedoesnotknowhowtousehiscolorfulbricks.Inthiscase,buyingmorebricksforhimishopeless.SimilarcasescanbefoundinthefieldofteachingandlearningEnglishinChina.Mostuniversitystudentshavefourthousandwordsormoreintheirmemoryandcanwellhandleanykindofexamination,buttheyhavebigproblemsinwritingandspeaking,eventhosestudentswithhighscoresinCollegeEnglishTest4or6.Thisrealityiscruel.Why?TheyarenevertrainedtoconcentrateonusingEnglish.Frequently,Englishclassesaredesignedtobeexaminationoriented.Thiskindofapproachtolanguagetrapsstudentstoconcentratetheireffortsinbuildingtheirvocabularies.TheybelievethatabigvocabularyleadstogoodEnglish.Theyarewrongandthisisamyth.TherearemanymoreEnglishwordsthanChinesewords.Whenpeoplespeakandwriteinbusinessandtheirdailylife,theysimplydonotneedthatmanywordsforeffectivecommunication.1WhatisgoodEnglish?SmallwordsandshortsentencesaregoodEnglish.Thispointisespeciallytruewhenusedtoassessanindividual'ssecondlanguage.Therearetwomajorstandardsofevaluation:first,tobeabletoexpressyourselffreelyandmakeyourselfcompletelyunderstoodbyothers;second,tobeabletounderstandothers.Followingthesetwostandards,peoplecanconfidentlyputaccentandshynessaside.Whatisasmallword?Bigisasmallword,whilethewordenormousistoobigtobeusedindailyEnglish.MostpartsofthetextsinAtextbookofBasicCollegeEnglishinEconomicsandManagementuseneithersmallwordsnorshortsentences.Theyarecontributedforreading.Ifstudentsaregoingtousewords,phrases,expressions,orideasinthetextbook,theyhavetobreakdownthesentencesintosmallpartsandpickoutthosewhichcanbeused.Learningstepbystepisanotherpopularbeliefwhichmisleadsstudents.Consequently,manystudentsonlysticktotheirtextbooks.CurrentresearchindicatesthatoverninetypercentofsenioruniversitystudentshaveneverreadanEnglishbookofovertwohundredpages.Thesolutionmaycomefromsomesimpleexamples.Aspeoplemayknow,thetrainingprogramforanexcellentshortdistanceswimmerisseventeenkilometersperday,likewise,atwoyearsoldchild'slanguagelearningprocessextendsuntilhebecomesanelementaryschoolpupil.IfaChinesestudent'smemoryhasroomtokeepChinesewords,itshouldhavespaceenoughtostorenewEnglishwordsaswell.IfhismemoryonlyrejectsnewEnglishwords,itisaproblemofmethodratherthanbrainspaceormemory.Ithasbeenprovedbymanystudentsthatswiftrepetitionofawordisnotaneffectivewaytoretainanewwordinmind.Obviously,observinga2wordtentimesinahundredpagesisdifferentfromseeingawordhundredoftimesinavocabularylist.Theformermethodhelpspeopletoretainwordsforever,andthelatteronlymakeswordspauseinpeople'smemory.Readingisthebestwaytolearnnewwords.ComparedwithotherEnglishlanguagetextbooks,thetextsinthisbookareconsiderablylonger.Eachcoversabouteightpages.ThepurposeofthiskindofarrangementforanEnglishtextbookistoemphasizetheimportanceofreading.Throughreadingtexts,studentspickuptheirownsmallwordsandbuilduptheirownshortsentencesundertheguidanceoftheirinstructorssothattheyareabletolearnhowtouseEnglish,howtoexpressthemselves,and,howtomakethemselvesunderstoodbyothers.Thetextsselectedforthisbookinvolvesixbasicfieldsofeconomicsandmanagement,includingmicroeconomics,macroeconomics,managementinformationsystems,finance,marketing,andinternationaleconomics.Theseareaswillbeattractivetouniversityfreshmenandsophomoresmajoringineconomics,management,finance,andbusiness.Thetextbookc