True or False: RTGS means each payment order is settled immediately upon its entry into the system in its entire （gross) amount.

The word ( ) means "a conveyance of title to property that is given to secure an obligation and that is defeated upon payment or performance according to stipulated terms".

A、infringement

B、conveyance

C、mortgage

D、enforce

Nike, a company headquartered in Beaverton, Oregon, is a major force in the sports footwear and fashion industry, with annual sales exceeding $ 12 billion, more than half of which now come from outside the United States. Nike has no production facilities in the United States. Rather, the company manufactures athletic shoes and garments in such Asian countries as China, Indonesia, and Vietnam using subcontractors, and sells the products in the U.S. and international markets. In each of those Asian countries where Nike has production facilities, the rates of unemployment and under-employment are quite high. The wage rate is very low in those countries by U.S. In addition, workers in those countries often operate in poor and unhealthy environments and their rights are not particularly well protected. Recently, however, Nike came under worldwide criticism for its practice of hiring workers for such a low rate of pay—“next to nothing” in the words of critics—and condoning poor working conditions in host countries. Discussion points a. What do you think Nike’s executives might have done differently to prevent the sensitive charges of sweatshop labor in overseas factories? (10 marks) b. What’re the advantages and disadvantages to those cheap-labor countries like China that MNC set their factory in their countries? (10 marks)

Every day millions of letters go from one country to another. Letters mailed in Italy are received in Japan. Letters mailed in Canada are received in Africa. On the letters are many different kinds of stamps, brought in different countries.

The Universal Postal Union(万国邮政联盟) helps each letter get to the fight place as quickly as possible. It sets up rules about the size and weight of letters, postcards, and small packages. It has rules that all countries must follow about international postal rates.

One hundred years ago, international mail did not move so smoothly. One country did not always accept another country's letters. Letters from some countries were too large to fit into the mailboxes of other countries. Letters traveled by many different routes. Some were lost along the way.

Sometimes the person who sent the letter could pay only part of the postage. The person receiving the letter had to pay the rest. The United States was the first to suggest that all countries work together to settle the questions of international mail. In 1847, men from twenty-four countries met in Switzer

land to form. the Universal Postal Union. Today, more than 120 nations belong to this union. From its office in Switzerland, the union helps the mail to move safely and quickly around the world.

This passage is mainly about _______.

A．different kinds of stamps in different countries

B．an organization that makes rules

C．international mail

D．the size and weight of letters

So firmly entrenched in the political economy has the minimum wage become that its latest increase to ￡5.35 ($10.08) an hour, caused little stir. Yet the introduction of a national pay floor in 1999 was one of New Labour's most radical economic policies. Although minimum wage rates had previously covered a few industries, this was the first time that a general rate had been set.

During the 1997 election campaign the Conservatives said that the policy would destroy jobs. Some economists calculated that hundreds of thousands of people might be put out of work. These dire warnings proved way off the mark after the national minimum wage came into force seven years ago. The feared job losses did not materialise.

However, that benign acquisition had much to do with the cautious approach the government, advised by the Low Pay Commission, at first adopted. In April 1999 the main rate—for workers aged 22 or over— was set quite low, at ￡3.60 an hour. Eighteen months later, the rate edged up to ￡3.70. At this level it was worth only 36% of average hourly earnings for all employees. Furthermore, workers aged 18 to 21 had a separate, lower rate, which began at ￡3 in 1999 and was raised to ￡3.20 in October 2000.

The modest starting point for the minimum wage meant that it affected relatively few workers. The commission initially thought that it would raise the pay of around 2m workers but in practice only about a million gained. This limited any possible loss of jobs.

After the initial period of caution, however, the government got bolder. This month's increase pushed the main rate up by 6% , comfortably ahead of average earnings which went up by 4.4% in the past year. Since 1999 the minimum wage has risen by 49% , outstripping average earnings which increased by 32% in the past seven years. As a result, it is now worth 41% of average hourly earnings.

This trajectory contrasts sharply with what has happened in America. The federal minimum wage has stayed at $5.15 since September 1997. At this level, it is worth 27% of average hourly wages for all employees other than those working in agriculture or for the federal government—far stingier than Britain's rate.

The commission accepts that the period when the minimum wage rose faster than average earnings is over. The worry, however, is that it has already risen to a level that will hurt employment. The Confederation of British Industry said on September 24th that businesses in several parts of the economy, such as retailing, were struggling to cope with the minimum wage. A few days later the British Chambers of Commerce (BCC) added that the latest increase would have "serious implications" for firms. David Kern, who advises the BCC, says: "There is now a distinct risk that the minimum wage will have an adverse effect on jobs. "

Whether employment will necessarily take a big knock is uncertain. Mainstream economic theory suggests that a minimum wage set too high will cost jobs. However, the evidence from other countries has been quite mixed. Some studies find no impact on employment whereas others find the jobs do indeed disappear, especially among young people.

In a recent appraisal of employment policies in the world's developed economies, the OECD said that "a moderate minimum wage generally is not a problem". Britain's experience in the first few years of the policy bears out that judgment. But more recent increases have pushed the rate up to a level where it may inflict damage.

It can be inferred from Paragraph 1 that

A．people do not care about the minimum wage any more.

B．in the past, there were different minimum wage rates.

C．new Labor will introduce new economic policies.

D．a national pay floor is challenged by a few industries.

“Go( )” means each person will pay for his own meal.

A、England

B、France

C、Germany

D、Dutch

KQK Co wants to raise $20 million in order to expand its business and wishes to evaluate one possibility, which is an issue of 8% loan notes. Extracts from the financial statements of KQK Co are as follows.

It is expected that investing $20 million in the business will increase income by 5% over the first year. Approximately 40% of cost of sales and other expenses are fixed, the remainder of these costs are variable. Fixed costs will not be affected by the business expansion, while variable costs will increase in line with income.

KQK Co pays corporation tax at a rate of 30%. The company has a policy of paying out 40% of profit after tax as dividends to shareholders.

Current liabilities are expected to increase by 3% by the end of the first year following the business expansion.

Average values of other companies similar to KQK Co:

Required:

(a) Assess the impact of financing the business expansion by the loan note issue on financial position, financial risk and shareholder wealth after one year, using appropriate measures. (10 marks)

(b) Discuss the circumstances under which the current weighted average cost of capital of a company could be used in investment appraisal and indicate briefly how its limitations as a discount rate could be overcome. (5 marks)