？The bar chart below shows the sales figures of a college bookstore which was broken down

?Read the text below about the phases of innovation in market.

?In most of the lines 41--52 there is one extra word. It is either grammatically incorrect or does not fit in with the meaning of the text. Some lines, however, are correct.

?If a line is correct, write CORRECT on your Answer Sheet.

?If there is an extra word in the line, write the extra word in CAPITAL LETTERS on your Answer Sheet.

New Innovation Needs Three Phases

0 Almost every new innovation goes through three phases. When initially introduced

00 into the market, the process of adoption is slow. The early models are that expensive

41 and hard to use, and perhaps even unsafe. The economic impact is relatively very

42 small. The second phase is the explosive one, because where the innovation is rapidly

43 adopted by a large number of many people. It gets cheaper and easier to use and

44 becomes something familiar with. And then in the third stage, diffusion of the

45 Innovation slows down again, as if it permeates out across the economy. During the

46 explosive phase, the whole new industries spring up to produce the new product or

47 innovation, and up to service it. For example, during the 1920s, there is dramatic

48 acceleration in auto production, from 1.9 million in 1920 to 4.5 million in 1929. This

49 boom was accompanied by all sorts of other essential activities necessary for an the

50 auto-based nation: Roads had to be built for the cars to run on; refineries and oil

51 wells, to provide the gasoline; and garages, to repair them. Historically speaking, the

52 same pattern is repeated again and again and with innovations. The construction of the electrical system required an enormous early investment in generation and distribution capacity.

(41)

?Read this text taken from an article about logistics and corporate profit performance.

?Choose the best sentence to fill each of the gaps.

?For each gap 9—14, mark one letter (A—H) on your Answer Sheet.

?Do not use any letter more than once.

In an uncertain economic environment, top management will be interested in asset management and flow management. H . They can represent over 50 percent of manufactures’ total asset, and more than 80 percent of wholesalers and retailers’ total assets.

When top management mandates a reduction in accounts receivable and/or inventories, its objective is to improve cash flow and reduce the company's investment in assets. (9) . But reduction in the terms of sale, or even enforcement of the stated terms of sale, in effect changes tile price component of the firm's marketing mix. (10) .

The arbitrary reduction of accounts receivable and/or inventories in the absence of technological change or changes in the logistics system can have a devastating impact on corporate profit performance. (11) . First, the change alters the manufacturer's price and therefore the competitive position of its products, which may lead to decreased sales. Second, it further complicates the cash flow problems of the manufacturer's customers. Forcing faster payment of invoices causes channel members to improve their cash flow by reducing their inventories of the manufacturer's products. (12) . This situation may also result in stock-out of the manufacturer's products as the wholesale or retail level of the channel, further reducing sales volume.

Similarly, a manufacturer's policy of arbitrarily reducing inventory level to increase inventory sums, in the absence of a system change, may escalate transportation costs and/or production setup costs as the logistics system scrambles to achieve the specified customer service levels with lower inventories (assuming the company was efficiently and effectively distributing products prior to the policy change). (13) In this case, customer service levels would be eroded, and a decrease in market share might result. (14) .

A However, if management concentrates on system changes that improve logistics efficiency and/or effectiveness, it may be able to satisfy all of the firm's objectives.

B Usually, management assumes that revenues and other costs will remain the same.

C They do so by placing smaller, more frequent orders, which may increase total logistics cost for both the manufacturer and its customers.

D In either set of circumstances, the increased cost of transportation and/or production or the lost sales contribution could far exceed the savings in inventory carrying cost.

E If a manufacturer changes its terms of sale, for example, the effect on wholesalers and retailers will be twofold.

F In addition, simply reducing the level of inventory can significantly increase the cost of logistics if current inventories have been set at a level that allows the firm to achieve least total cost logistics for a desired level of customer service. G Alternatively, pressure to reduce expenses may preclude the use of premium transportation or increased production setups to achieve the desired customer service levels with smaller inventory.

H The two most common strategies used to improve cash flow and return on assets are= (1)reducing accounts receivable and(2)reducing the investment in inventory, as inventories and accounts receivable are a major portion of corporate assets.

(9)

(The candidate chooses one topic and speaks about it for one minute.)

A. Market Research: the importance of doing market research before launching new product

B. Finance: the importance of foreign investment for a company

C. Training: how to monitor internal staff training schemes effectively

e markets.

I Get Into Export". The book explains steps to successful exporting.

&8226;Which clip does each sentence refer to?

&8226;For each sentence, mark one letter A, B, C, D or E.

&8226;You will need to use some of these letters more than once.

A.

Commitment: Developing export markets can be costly in terms of time, money have the commitment required to make a success of export? Entering new markets and developing them usually takes considerable time and effort. You must take a long-term view. Consider how many resources and how long it takes to break into a new regional market in Australia. The time and cost can be multiplied several times when you are looking at an overseas market.

B.

Finance: Breaking into any new markets requites considerable funds (airfares, accommodation, advertising, sales promotion, new brochures, training of overseas sales agent, etc.). Does your company have the financial strength to commit say $ 30,000 or more for the year or two it may take to develop a new overseas market?

Discusses your plans with the international Department of your bank to ensure that all the financial aspects are covered and viable. Gain an understanding of international trade finance. Discuss costing-for-export with your accountant, and transport/packaging requirements with a customs agent or forwarding agent.

C.

Become familiar with common terms used in international trade. The Australian Trade Commission (AUSTRADE) and the major trading banks have reference booklets. The Australian Institute of Expert provides courses.

D.

Select one or two likely markets and undertake desk research to identify their characteristics. Most first-time exporters start with New Zeatand. Many are also interested in the USA, but that is an enormous and complex market.

In making a detailed market study the following should be considered:

?whether the country selected already imports the product (import statistics will show how much and from where)

?what import duties the product would attract

?other barriers to imports, such as import licensing

?frequency and cost of shipping or airfreight between Australia and the market

?regulations, such as quarantine and labeling standards, consumer protection rules, and product standards

?whether cultural differences need to be taken into account. 'Read economic and social literature on the target market to understand its fundamental characteristics.

E.

The desk research should have indicated the market with the most potential and you should now be in a good position to visit the target market. The main purpose of the visit will be to study its special characteristics, the opportunities/competition at first hand, seek a suitable agent or distributor, and jointly draw up an appropriate marketing plan to introduce and expand the sale of your product. These are all very important considerations, and more than one visit will probably be necessary. Choosing the right agent, for most Companies, is probably the single most important step. Do not rush this step.

A long-term approach has to be taken in projecting how to crack the world market.

"10 Tips for Online Investors" reads:

When You Invest Online, Be Sure To:

1. Receive full disclosure, which prior to opening your account, about 【S1】______

the alternatives for buying and selling securities and how to obtain

account information if you cannot access in the firm's Web site. 【S2】______

2. Understand that most likely when you are not linked directly to the 【S3】______

market, and that the click of your mouse does not instantly execute the trade.

3. Receive information from the firm to substantiate any advertised

claims of concerning the ease and speed of online trading. 【S4】______

4. Receive information from the firm about significant Web site

outages, delays and other interruptions to securities by trading and 【S5】______

account access.

5. Obtain information before trading about entering and canceling

orders (market, limit and stop loss), and the details and risks of

margin accounts (borrowing to buy stocks).

6. Determine whether you are receiving delayed or at real-time stock 【S6】______

quotes and when your account information was last updated.

7. Review the firms privacy and Web site of security policies and 【S7】______

whether your name may be used for mailing lists or other 【S8】______

promotional activities by the firm or any other party.

8. Receive clear information about sales commissions and fees

conditions that apply to any advertised discount on commissions. 【S9】______

9. Know how to, and if necessary, contact a customer

service representative with your concerns and request

prompt attention and with fair consideration. 【S10】______

10, Contact your state or provincial securities and agency to 【S11】______

(1) verify the registration/licensing for status and disciplinary history 【S12】______

of the online brokerage firm, or (2) file a complaint, if appropriate.

【S1】______

Eddie was a carpet fitter, and he hated it. 【C1】______ ten years he had spent his days sitting, squatting, kneeling 【C2】______ crawling on floors, in houses, offices, shops, factories and restaurants. Ten years of his life, cutting and fitting carpets 【C3】______ other people to walk on, 【C4】______ even seeing 【C5】______ . When his work was done, no one ever appreciated it. No one ever said "Oh, that's a beautiful job, the carpet fits so neatly". They just walked all over it. Eddie was sick of it.

He was especially sick of it 【C6】______ this hot, humid day in August, 【C7】______ he worked to put the finishing touches to today's job. He was just cutting and fixing the last edge on a huge red carpet which he had fitted in the living room of Mrs. Vanbrugh's house. Rich Mrs. Vanbrugh, who changed her carpets every year, and always bought the best. Rich Mrs. Vanbrugh, who had never even given him a cup of tea all day, and who made him go outside when he wanted to smoke. Ah well, it was four o'clock and he had nearly finished. At least he would be able to get home early today. He began to day-dream about the weekend, about the Saturday football game he always played for the local team, where he was known 【C8】______ "Ed the Head" 【C9】______ his skill 【C10】______ heading goals from corner kicks.

【C1】______

tores (A, B and C) of a big retailing company in different parts of the city from 1998 to 2003.

&8226;Using the information, write a short report to sum up the information below and try to give some reasons for the changes.

&8226;Write 120-140 words on the separate answer paper provided.