TEI ΔΥΤΙΚΗΣ ΜΑΚΕΔΟΝΙΑΣ
ΠΑΡΑΡΤΗΜΑ ΚΑΣΤΟΡΙΑΣ
ΤΜΗΜΑ ΔΙΕΘΝΟΥΣ ΕΜΠΟΡΙΟΥ
ΣΤ' ΕΞΑΜΗΝΟ
ΑΓΓΛΙΚΑ V
PRICE (money)
Can you find the missing words in the paragraph?
Price is all around us. You pay ……………… rent
for your apartment, tuition for your education and a …………………to your
doctor or dentist. The airline, taxi and bus companies charge you a
…………………, the local services call their price a rate. The price for
driving your car on a motorway is a toll and the company that insures
you charges a premium. The guest speaker charges you an honorarium to
tell you about the government official who took a ………………………to help
some character steal dues collected by the trade union. Your regular
lawyer may ask you for a retainer to cover his/her services. The price
of an executive is a …………………, the price of a salesperson may be a
commission and the price of a worker is a ……………………….
Choose the most suitable word or phrase underlined in each sentence.
1. It is a good school but the fares/fees are rather high.
2. There is a small flat to hire/let in Bridge street.
3. I haven't got enough money, I'm afraid. Could you borrow/lend me some?
4. This car is too expensive. We can't afford/pay it.
5. It was a very good meal. Can we have the account/bill, please?
6. How much do you earn/gain in your new job?
7. She is a good dentist, but she doesn't charge/spend too much.
8. How much do you reckon/value that house would cost?
9. I bought this coat in the sales. It was decreased/reduced a lot.
10. Jack made his fortune/treasure buying and selling property.
STRATEGIES
Caterpillar, Inc., the world's leading maker of heavy construction and mining equipment, has been locked in a
pricing war with Japanese challenger Komatsu Ltd. In this bloody battle, both companies are using price to
buy long-run market share, even if it means lower profits or even losses in the short run. For over fifty years,
caterpillar has dominated the world market for giant construction equipment. It built its 40% market share by
emphasising high product quality, dependable after sales service and a strong dealer body. It used premium
price strategy - making high profit margins by convincing buyers that Cat's higher quality and trouble free
operation provided greater value and justified a higher price.
But all this began to change when Komatsu entered the market. The Japanese firm started cautiously
in the United States with only a few products. It realised the importance of non-price factors in the buyer's
purchase decision. Like Caterpillar, Komatsu stressed high quality and it expanded slowly to allow its parts
and service capacity to keep up with sales. But Komatsu's major weapon for taking share from Caterpillar was
price. A strong dollar and lower manufacturing costs allowed Komatsu to cut prices ruthlessly - its initial
prices were as much as 40% lower than Caterpillar's. on a giant dump truck sold by Cat for $500,000, that
could mean a saving of up to $200,000. Riding its strong price advantage, Komatsu grabbed a 17% market
share by 1986.
Caterpillar fought back to protect its number one market position and the price war was on. to9
support lower prices, Cat reduced its workforce by a third and slashed costs by 22%. It vowed to meet
Komatsu's prices and in some cases even initiated price cutting. With heavy discounting by both companies,
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manufacturer's list prices became meaningless. For example, a bulldozer that listed $140,000 regularly sold for
$110,000. In the battle for market share, all competitors lost out on profits, lesser companies were driven to
the brink of ruin. Caterpillar lost $1 billion in less than five years and Komatsu, even with its cost advantages,
saw its profits decline by 30%.
By 1988, thanks to a falling dollar and its cost-cutting programmes, Caterpillar had managed to regain
a quarter of Komatsu's US market share. With a weaker dollar eating into Komatsu's price advantage, the
challenger recently raised its prices 5 to 10%. Though fierce price competition continues, Komatsu may be
signalling that it wants an end to the fighting and a return to peaceful coexistence and better profits for both
companies. It hopes that Caterpillar will respond by raising its prices too.
Answer the following questions




What was Komatsu's marketing objectives?
Why was Komatsu able to charge lower prices?
Did Caterpillar regain its full market share by 1988?
Why did Komatsu recently have to raise its prices?
Read the above text and put the sentences in the right order.
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
competitor enters market
profits drastically reduced
market leader charges premium prices
smaller competitors drop out of market
market leader regains market share
market leader loses market share
market leader holds dominant position
competitor undercuts prices dramatically
market leader responds by raising prices
competitor raises prices
market leader responds by cutting costs and prices
profit margins restored
Subordinate clauses
Look at the following sentences taken from the text.
Komatsu, even with its cost advantages, saw its profits decline by 30%.
By 1988, thanks to a falling dollar and its cost-cutting programmes, Caterpillar had managed to regain a
quarter of Komatsu's US market share.
Now make sentences which combine the following information.
 Komatsu / a low price strategy / entered the market

Caterpillar / reduced prices dramatically / regained market share

Prices fell / heavy discounting in this sector / profit margins narrowed

Price / a major factor in some markets / ignored in this market

Construction equipment market / dominated by Caterpillar for many years / now fragmented
Words
Match the price term with the organisation or person that charges it.
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Price term
a)
Salary
b)
Rate
c)
Premium
d)
Commission
e)
Fare
f)
Fee
g)
Rent
h)
Dues
i)
Retainer
j)
Tuition
k)
Wage
l)
Toll
m)
Honorarium
n)
Interest
person/organization
1)
visiting lecturer
2)
insurance company
3)
white-collar worker
4)
local council
5)
social club
6)
blue-collar worker
7)
taxi driver
8)
sales agent
9)
private school
10) lawyer
11) bridge owner
12) bank
13) architect
14) property owner
Word building
Hellen had always dreamt of becoming a ………………..
woman, and imagined living in a ………………mansion
and how her friends would praise her ………………….
when she gave them expensive presents. In reality she
was usually hard up. She had some ……………and a
small life ………………., but her antique shop was not really
very ……………….. Every time she took money out of the bank
the ……………….checked her account, and told her how little
there was in it. Hellen had taken out a ……………….a month
before. How could she repay it? Then one day she noticed an
old painting in her shop. She had thought it was …………..
but as she brushed away the dust, she saw the ……………..
at the bottom. It said "Renoir". She was rich at last.
WEALTH
LUXURY
GENEROUS
SAVE
INSURE
PROFIT
CASH
LEND
WORTH
SIGN
VOCABULARY









Regain
Dominate
Premium
Justify
Dependable
Ruthlessly
Slash
Initiate
Coexistence
επανακτώ
κυριαρχώ
υπερτιμολόγηση
δικαιολογώ
αξιόπιστος
ανελέητα
περικόπτω
εγκαινιάζω.αρχίζω(σχέδιο κτλ.)
συνύπαρξη
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AN INVOICE
CRAWFORD ELECTRONICS
Crawford house, brentford Rd, Hays, Middlesex HA7 4BJ
Tel. 093 484 1729
Fax 091 615 8942
Invoice No. 89925
Account No. 4/7482
Date 21.4.19__
Invoice to: Mr Torres Mondano
Autorecambios Torrejon, S.A.
c/ Cervantes, s/n
28850 Torrejon de Ardoz
Madrid SPAIN
Qty Ref.No.
Description
Unit cost
Total cost
……………………………………………………………………………………….
300
R/296
Rexibond insulated
terminals
1.46
438.00
………………………………………………………………………………………..
800
G/978
Rapidex plugs
6.35mm
1.67
1336.00
………………………………………………………………………………………
500
P/341
Posilock Pins
0.54
270.00
………………………………………………………………………………………..
3000 P/541
Posilock Connectors
4.75mm
0.67
2010.00
……………………………………………………………………………………….
Total goods
Less Discount 8%
Total
4054.00
324.32
3729.68
Terms: Net cash within 30 days
Read the following telephone conversation and circle the items the Spanish manager queries. Make
a note of any necessary changes.
A
B
A
B
A
B
A
B
A
B
A
I've got a few queries about the invoice that you sent
Right. Fire away.
Before we start, did you say it covers two shipments?
Yes, that's right.
Well, I've only received one so far. Could you tell me when you dispatched the second one?
On the twenty first.
And do you know whether it includes the Rapidex plugs?
Yes, 800, reference number G978.
Ah, there is a problem there.
Yes?
I'm afraid we order the wrong size. We need the 7.92mm. That's J978.
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B
Not to worry. We will dispatch them today. Just send the others back.
A
Thanks. Now the next thing is the Posilock Connectors.
B
They were in the first shipment, which was dispatched on the 17th.
A
Yes they've arrived, but we ordered 3,500, not 3,000.
B
Oh dear, I don't know how that happened. We'll send the rest immediately. Was there anything
else?
A
Yes. I also wanted a word about discount. The person I talked to when I placed the order said we
might be able to have 10%, not 8%.
B
I'm afraid I am not authorized to change it. Mrs Cusimano is the person who deals with that, and
I'm afraid she is not here at the moment.
A
Have you any idea when she will be back?
B
I'm not sure but I'll get her to phone you as soon as she comes in.
A
OK. My name is Montano by the way, not Mondano. That's M-O-N-T-A-N-O.
B
Right, Mr Montano. Sorry about that.
A
OK, so could we run over that again to check? You are going to dispatch 800 Rapidex plugs
reference number J978, not the G978, which we are going to send back when they arrive.
MONEY MOVEMENTS

Which of the words show a movement upwards and which downwards?
Jump - drop - decrease - surge - collapse - rocket - fall - slip back
- plummet - soar - boost - rise - rally - plunge - ease up/down slump - edge up/down - creep up

Which of the above words express a dramatic movement?
Complete the words
1.
2.
3.
4.
5.
6.
The plu…………dollar has bo……..the American exports.
There has been a su…….in the number of complaints.
Home sales have sl……………..
The glut in the market has caused sales to sl…………..
The price of gold ea…. b……by the end of the day to $423 an ounce.
Coffee futures ea…….. up yesterday.

If there has been little or no movement we could say:
morose
slack
The market has been sluggish
gloomy
stagnant
steady
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