Economy

1 Read and discover.

Jobs can be grouped into three economic sectors.
The primary sector obtains products directly
from nature. The secondary sector processes raw
materials and manufactures new products, and
the tertiary sector provides services.
Most people in Europe worked in the past in the
primary sector. However, modernisation of farms
meant there were not enough jobs in agriculture
and people began to move to the city.
What are some examples of industries
in your area?

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2 What economic activity does each photo show? Which

sectors do they belong to?
3 Look at the large photo on page 74. Can you identify the
raw materials that were used to make the products you
can see?
4 Look at the photo above. What can you see? Which
country has the highest deforestation rate?
5 Name things that are made of wood.
6 Make a list of five countries in
your notebook. What are their
economies based on?
7 Think about the people in rich
and poor countries. What kinds
of jobs do they have? How are
their lives different?

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Analyse and organise

1 In your notebook, copy and complete the table below using the
words from the box.

construction industries
tourism

fishing
forestry

primary sector
(extraction of raw materials
from the ground)

education

base industries

media and communication

secondary sector
(products manufactured)

tertiary sector
(services)

arable farming

capital goods industries

retail

administration

livestock farming

.....

..

..

.....

energy industries

trade

transport

mining

consumer goods industries

healthcare

.....

..

..

2 Classify the photos below according to the economic sector they

belong to.

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Read the text about how milk chocolate is made. Choose the best word for each space.

Milk chocolate production (1) ..... with harvesting cocoa beans

which grow on cocoa trees. Cocoa trees grow in Central and
South America, Africa and some parts of Asia. Farmers use
hand tools called machetes to (2) ..... cocoa beans. They open
the pods and remove the (3) ..... . Then, they cover the seeds
with banana leaves and leave them to ferment. After
fermentation, the seeds are
dried in the sun or over a fire
and (4) ..... to a factory. In the factory the seeds are
cleaned and roasted. When their shells are removed, the
seeds are crushed and (5) ..... with sugar and milk. After a
few hours of stirring, the liquid chocolate is poured into
moulds. Then, the chocolate blocks are cooled and
wrapped in (6) ..... . They are now ready to be packed and
transported to markets around the world.
1

a. finishes

b. begins

c. continues

a. grow

b. eat

c. harvest

a. seeds

b. stems

c. trunks

a. sent

b. collected

c. harvested

a. cleaned

b. mixed

c. washed

a. wood

b. cotton

c. foil

4 Classify the activities involved in milk chocolate production

according to the economic sector they belong to.
5

Listen to the recording about how bread is produced. Order

the sentences in your notebook.
a. The bread dough is baked.
b. The bread is transported to the supermarket.
c. The farmer plants seeds in the soil.
d. The flour is transported to a bakery.
e. The flour is mixed with water, yeast and salt.
f. The farmer harvests the wheat plants.
g. The wheat grains are processed to make flour.

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The primary sector

What do you
understand
by active
population?

Primary sector activities involve obtaining raw materials directly

from nature.

Arable farming
This type of farming is the cultivation of land to produce crops.
Farmers can grow dry crops (for example, cereals, grapes and
olives), which need only rainwater, or irrigated crops, which
need extra water to grow (for example, fruit, vegetables and rice).

Livestock farming
Another type of farming involves animals. Farmers buy and sell
them, or keep them to produce food and other products. We can
distinguish two types of farming. In extensive farming, the
animals spend a lot of time outdoors, in open spaces. In
intensive farming, the animals are kept in enclosed spaces.

Fishing
Fishing includes catching both fish and other animals from
rivers, lakes and seas or oceans. Most fishing occurs at sea. We
can distinguish between deep-sea fishing, which is carried out
far away from the coast, and coastal fishing, which is carried
out near the coast.

Mining
Mining involves taking natural materials from the Earths crust in
two different ways. Underground mining is carried out in tunnels
below the Earths surface, and open-cast mining is carried out on
the surface.

Forestry
Forestry is the exploitation of forests and tree plantations. The
number of forests on Earth is decreasing due to human factors.
The process of cutting down forests is called deforestation.

1 Classify the following words into dry crops

and irrigated crops.

rice
pulses

wheat
grapes

olives
fruit

vegetables
oats

2 Which primary sector activities provide us

with these products?

salmon

apples

coal

milk

wood

marble

olives

cork

eggs

wool

shrimps silver

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Raw materials
If we observe all the things around us, we can notice they are all made
from different materials. We usually take raw materials and process
them to transform them into new products. These materials can either
be obtained from underground (for example, sand) or from living
things (for example, trees).

The primary sector in Spain

In 1900, about 60 per cent of the active population of Spain worked in the
primary sector. Today, only about five per cent work in this sector. Among
the crops grown in Spain, we can mention olives, mainly in Andaluca, and
oranges in the Comunidad Valenciana. Pig farming is very important in the
south of the country, mainly in Extremadura. Due to the fact that Spain has
many kilometres of coast, fishing is also a very important activity.
Nowadays, mining is not as important as it was in the past. The most
important forestry product in Spain is cork, which is used for bottling wine.
Arable Farming

Mining

Apples

Coal

Bananas

Iron

Cereals
Lemons and
oranges

Pas Vasco
Comunidad
Foral de Navarra

Principado
de Asturias Cantabria

Forestry

Galicia

Wood

Olive trees

Catalua

La Rioja
Castilla y Len

Aragn

Pastures

Comunidad
de Madrid

Potatoes
Rice
Vegetables

Islas Baleares

Wine Grapes

Extremadura

Livestock Farming

Castilla-La Mancha

Cattle

Comunidad
Valenciana

Pigs
Poultry

Regin
de Murcia

Canarias
Andaluca

Sheep
Fishing
Fishing ports

Ceuta

1 Which raw material is used to make the

following products?

pullover

shoes

mirror

jewellery

bread

wallet

Melilla

2 Investigate mining in Asturias and Len.

Make a list of the consequences.
3 How does landform or relief affect the
economic sectors of a country?

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The secondary sector

Workers in the secondary sector take the raw materials that are
produced in the primary sector and turn them into products that people
can use. This process is called manufacturing.
Energy industries are very important
because they supply homes and other
industries with the energy they need.
Most of our power comes from
non-renewable sources, such
as coal, oil and gas. We can
also get energy from
renewable sources, such
as sunlight, wind and
water.

Construction
industries use
raw materials
to make
buildings
and
public
works,
like
bridges
and roads.

Why are
products made
by craft
workers
unique?

Base industries transform

raw materials into
semi-finished products.
The metal and
chemical
industries are
examples of
base
industries.

Secondary
sector

Consumer goods
industries use the
products produced by the base
and capital goods industries. They
make items that are sold to the
public, such as cars, clothing and
cosmetics.

Capital
goods
industries
use base
industry products to
manufacture things like
machinery and equipment. The
automotive industry is an
example of a capital goods
industry. It uses machinery and
equipment to manufacture
parts of cars.

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Manufactured products
Manufactured products can be produced using traditional craft
methods or industrial processes. Craft workers use their hands or
tools to make their products, which take longer to make and are
usually more expensive. Industrial workers work in factories and use
complex machines to manufacture large quantities of products very
quickly.

A craft worker

The secondary sector in Spain

Spains secondary sector is growing in size. Today, about 30 per cent of the
active population work in this sector. Most industries are found in big cities,
such as Bilbao, Barcelona and Madrid. The shoe industries have become
more important over the last years.
Aeronautics

Industrial cities

Cars

Industrial regions

Gijn
Oviedo

Ferrol
La Corua

Santander
Bilbao

Chemical goods
Construction
materials

Burgos

Vigo

An industrial worker

Vitoria
Logroo

Valladolid

Electrical goods

Pamplona

Zaragoza

Terrassa

Food and
drinks

Reus

Leather
and shoes

Madrid

Machinery

Cceres

Paper

Puertollano

Badajoz

Huelva

Shipbuilding
Steel industry

Mlaga

Ceuta

1 Which secondary sector activities provide

us with these products?

furniture

clothes

processed food

bridges

roads

electricity

Cartagena

Sevilla

Cdiz

Textile

Alcoy
Alicante
Elche

Publishing
Rubber
and plastic

Castelln
de la Plana
Sagunto
Valencia

Metalworking

Petrochemical

Sabadell
Barcelona
Tarragona

Melilla

3 Explain why big industries are in big cities,

such as Madrid and Barcelona.

4 Give two examples of products produced

in the following industries.

2 Name some advantages and disadvantages
of being a craft worker.

Textile industry

Furniture industry

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The tertiary sector

Look at the
photos. Do you
use any of
these services?

The tertiary sector is also known as the service sector because it

provides services to customers.

Education

Healthcare

Retail

People who work in education

help us learn.

Healthcare workers look after

our health.

Retail workers sell us products in

shops, supermarkets and
department stores.

Administration

Media and
communication

Tourism

Administrative workers help

organise work in offices.

Media and communication

provide us with information.
Newspapers, television, the
radio and
the Internet
are a part
of our
everyday
lives.

Tourism supplies accommodation

and entertainment to tourists. In
Spain this industry provides work
for many people and generates
lots of money for the country.

Trade

Transport

There are two types of trade service:

Transport workers carry people and goods

from one place to another. There are three
transport groups:

Domestic trade is the buying and selling of goods

within one country.
Foreign trade is the buying and selling of goods
between different countries. The goods we buy
from other
countries are
called imports.
The goods we sell
to other countries
are called
exports.

land transport
road transport
rail transport
air transport
water transport

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The tertiary sector in Spain

The tertiary sector is the largest economic sector in Spain. Today about
65 per cent of Spains active population works in the tertiary sector. The
most important activities are tourism, transport and trade. We can
distinguish four types of tourism.
Beach tourism
Rural tourism
Cultural tourism
Adventure tourism

USA 1 890 053

In 2013 more than 60 million

tourists from Europe and the
rest of the world came to Spain
to enjoy the climate, the
culture and the landscape.

UK
13 653 864

Rest of Europe 2 781 683

Scandinavia 4 165 142
Ireland 1 189 523
Switzerland 1 448 941
Belgium 1 706 354

Spain imports, or buys,

machinery, food and textiles. It
exports, or sells, chemical
products, shoes, fruit and
vegetables.
Spain has an extensive network
of motorways, roads, railways,
ports and airports.

Rest of the world

2 131 824

Portugal 1 861 092

Germany
9 335 870

Netherlands
2 548 656

Italy 3 571 660

International tourists in Spain

1 Which forms of media or communication

do you use for these activities?

France
8 969 009

4 Classify the words according to the type

of transport.

do homework

chat with friends

helicopter

yacht

van

listen to music

find out about the news

bicycle
aeroplane

kayak
tram

train cruise ship

hot-air balloon

2 Write two professions for each of these

activities:

healthcare education transport

media and communication
3 Why are sea ports important for trade?

coach

5 Find out more about tourism in Spain.

What are the main tourist destinations?
6 Think of the transport you would choose
to go to the following places.

Mallorca

Gibraltar

New York

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Economic sectors in Europe

Look at the
map. What are
the main
agricultural
areas?

Primary sector in Europe

ICELAND

Land use

SW
EDE
N

Norwegian Sea

Arable farming
Livestock farming

NO
RW
AY

Forestry
Manufacturing
centers

Uranium

EA

U.K.

NT
LA

Amsterdam
GERMANY

Paris

AL
UG
RT

UKRAINE

Donetsk

CZECH REP. SLOVAKIA

MOLDOVA
Munich
SWITZERLAND AUSTRIA HUNGARYROMANIA
SLOVENIA
FRANCE
Black Sea
Milan CROATIA BOSNIA
ANDORRA
RBIA
E
HERZ.
S
Marseille I
BULGARIA
TA MONTENEGRO
Barcelona
LY
MACEDONIA
SPAIN
KOSOVO
TURKEY
ALBANIA
GREECE

Caspian
Sea
GEORGIA
ARMENIA

PO

Katowice

IJA

Oil

BELARIUS

BA
ER

Natural gas

POLAND

AZ

AT

Iron

UAN
IA

Birmingham
London

IC

Fishing ports

RUSSIA

ESTONIA
LATVIA

LITH

OC

Coal

Wood

Stockholm

Major resources

FINLAND

Mediterranean Sea

Secondary sector in Europe

Norwegian Sea

Cars
Chemical goods
Construction
materials
Electrical goods

EA

Food and
drinks

OC

Leather
and shoes

Shipbuilding

NT
LA

Paper

Caspian
Sea

AT

Metalworking

IC

Machinery

Steel industry

Black Sea

Textile

Mediterranean Sea

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Primary sector
The diversity of climate and landform in Europe means that the primary
sector can produce a variety of natural products. Only about4per cent
of the active population in Europe work in the primary sector.

An oil platform in Norway

A vineyard in France

Fishing boats in the UK

Secondary sector
People with jobs in the secondary sector transform natural products into
manufactured products. About 30 per cent of the European active
population work in the secondary sector.

Tertiary sector
About 66 per cent of the European population work in the tertiary sector.
Tourism is an important industry in countries such as Spain, France,
Greece and Italy.

An automotive
factory in Germany
A solar power
plant in Spain

Europe has a very dense road and railway network. It also has very
important ports, such as Rotterdam or Hamburg, and airports in cities
such as London, Paris, Amsterdam or Frankfurt.
Europe imports petroleum and other raw materials from other
continents. It exports metal products, cars and chemicals.

1 Which countries have more forests?

2 Which non-renewable energy sources can
you see on the map? Name their
disadvantages.
3 In which countries are ships built? Do
these places have anything in common?

The airport in Amsterdam

4 What factors affect the primary sector in

Europe? What differences in land use
can you identify on the map of Europe?
5 Choose three European countries and
name some of their tourist destinations.
6 Find out the names of the Spanish
airports. How many are there?

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SCIENCE PROJECT:

The impact of advertising

One way companies promote their products is through

advertising. They can use advertisements (or ads) on the radio,
television and billboards, or in magazines and newspapers.

Aims
Design an ad for a product.
Analyse what makes a good ad.

Method
1. Work in groups. Think of a product or service you would like to
advertise.
2. Present your ideas and, as a class, vote for one.
3. In groups think about how to advertise the product or service that
you have chosen.
4. Think of the materials you will need to create your ad.
5. Create your ad. Take into account the following:
a short catchy phrase (slogan)
who is going to buy the product or service (target audience)
type of ad and where it will be displayed (video, billboard, leaflet,
banner, etc.)
design

Test
When all the ads are complete, study each one carefully.
Which ad do you think is the best? Give reasons for your choice.

Chocolates

On a piece of paper, vote for the one you liked best.

Conclusions

Nice Chocolates

1 Which ad received the most votes?

2 Why did most students prefer this ad?
3 What makes a good ad?
4 Do we need advertising? Why or why not?

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FRAGILE WORLD:

Buying what you need

Selling techniques
Advertising works in very subtle ways; often we dont realise that it
influences us. Experts study how advertising can affect our
thoughts, beliefs and behaviour. Companies use this knowledge to
encourage us to buy their products or services.
Christmas ads, for instance, usually begin in November. On TV, the
number of ads for typical Christmas presents (toys, jewellery,
perfumes, gadgets, electronic devices) is higher than those for food,
or cleaning and hygiene products.
Department stores also use their own techniques to increase sales. They play soft music, which creates a
relaxed atmosphere and encourages people to take their time shopping. In supermarkets, the way products
are displayed makes us buy things that we dont necessarily need. This is known as impulse buying.

Analysing ads
Look at the two ads. Analyse them taking into account
the following aspects:
1. Where are they placed? Why are some places better for
displaying ads than others?
2. What is the target audience?
3. How do visual features catch our attention? Consider:
colours;

layout;

font;

images.

4. Do both ads have a slogan?

5. Why does the first ad use the image of a famous person?
6. What techniques are used to make people think that the products are
healthy? Which ad is more convincing? Why? Would you buy the products?

1 How are ads different on TV or radio?

3 Choose your favourite TV ad and analyse it.

2 Next time you go to a supermarket, pay

attention to the techniques mentioned in
the first text. Describe them to your
classmates. Do you think they are effective?

4 Are you an impulse buyer? What makes

people impulsively buy products?

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Revise
Lets remember
Study skills
1 In your notebook, complete the diagram using the words in
the box.

receptionist
sculptor

builder

carpenter

Economic sectors

fisherman

lumberjack

lawyer

cleaner

farmer
journalist

miner
factory worker

Primary sector

....., ....., ....., .....

Secondary sector

....., ....., ....., .....

Tertiary sector

....., ....., ....., .....

2 Read the text below (A) written by a primary sector worker. Then, read the text written
by a tertiary sector worker (B) on page 108. In your notebook, write down if the sentences
below refer to text A, B or both.
Australian open-cast mines operate all day and night. We work in shifts which last 12 hours,
so I live on site. All our meals are provided for us. Safety is really important at the mine:
I have to wear a hard hat and protective clothing. We use huge excavators and cranes to dig.
Some of the machines are as big as a house! We communicate by radio as its very noisy on
the site. We have to take great care loading the trucks to make sure they dont
tip over. The work is dangerous and dirty, but well paid.
a. I work in shifts.
b. The job is dangerous.
c. I dont have to cook.
d. I use a radio to communicate.
e. Theres a lot of noise at work.
f. I drive a normal vehicle.
g. Im badly paid.

3 Why is open-cast mining safer than underground mining? Justify

your answers.

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Review
1 Complete the table with the products.

TV programme car chocolate bar

coal guided tour steel painting
wood English class
primary
sector

secondary
sector

tertiary
sector

.....

.....

.....

2 Look at the pictures below.

Order the pictures to show the different

stages of producing and selling yoghurts.
Identify the different economic sectors in the
process.
a

4 Is advertising necessary? What would

happen if advertising didnt exist?
Write a short text explaining your ideas.
5 Look at these cities. Which economic sector
do you relate them to?

A Corua

Lanzarote

Toledo

Bilbao

Len

Valladolid

6 Talk about how marmalade is produced.

Complete the text with connectors.

First, we need to harvest the fruit and wash

it to remove any dirt. ....., we boil the fresh
fruit with sugar and add lemon juice to make
it taste better. ....., we wait till water is
evaporated. ....., we put the mixture into jars,
or glass bottles.
7 Write a short paragraph comparing
industrial products with those made by craft
workers. Explain the advantages and
disadvantages of both.

8 Complete the summary on page 108.

Checklist
3 Decide if the sentences below are true or
false. Correct the false ones in your
notebook.

a. The primary sector is the most important

sector in Spain.
b. Tourism is important in European
Mediterranean countries.
c. Most Europeans work in the tertiary sector.
d. Diverse climate and landform have helped
develop the secondary sector in Europe.

I can tell the difference between

raw materials and manufactured
goods, and how they are obtained.
I can describe the activities involved
in producing goods, and the sectors
they belong to.
I can describe the different economic
sectors of Spain and Europe.

89

I can understand the role of advertising

and the basic techniques used.

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Business and money

1 Read and discover.

Money has been a part of human history for
over 3000 years. Before money was
invented, people exchanged goods and
services through a system called bartering.
In 1100 bc, the Chinese began making small
metal replicas of objects which they
exchanged instead of the objects themselves.
Five hundred years later, they invented
paper money which had no actual value
itself but could be exchanged for gold or
silver coins at a bank. Which currency is
used in Spain? What was used before?

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2 Make a list of the things that you can buy with money.
3 If we used the bartering system today, what
products or services could you offer in
exchange for the things on your list?
4 What are the disadvantages of the bartering system?
5 Why do you think people save money in banks?
6 There are lots of different currencies in the world.
Which countries use the euro?
7 Which currency do these countries use?

Scotland

Japan

India

Russia

Italy

Morocco

8 Do you think there should be

just one currency for the whole
world? Why?

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Analyse and organise

1 Medium and large companies are organised in a hierarchy. Companies have different
departments depending on their business. In your notebook, complete the diagram
using the words from the box.

Operations money decision-maker supervisor Executive staff Financial Human

CEO
Chief ..... Officer
the main ..... and the person with the vision for where the company is going

Sales

CFO
Chief ..... Officer

COO
Chief ..... Officer (President)

responsible for everything to do with

the companys .....

responsible for the daily activities of

the company

Finance

..... Resources (HR)

Administration

Marketing

Other

Manager

.....
.....

2 Have small companies got the same structure as medium and

large companies? How are they different?
3 Identify the economic sector the businesses in the photos belong to.

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Read the text about starting a new business. Decide if the sentences below are
true or false.
A new business has to compete with existing companies for
customers. To be successful it has to offer a product that customers
prefer. Setting up a business involves risks and rewards. Profit is the
potential reward for risk-taking. With the right product the business
will make money. But is it that simple?
Many new businesses fail in the first year because they dont plan
their strategy carefully. Its essential to do market research, analyse
the competition, plan advertising and predict costs. In this way, the
risks are reduced but, of course, theres no guarantee of making a
profit!

a. Businesses should study their competition.

b. If you have a good product, your business will make a profit.
c. Most businesses fail in their first year.
d. The most important aspect for a new business is the planning stage.
e. Carrying out market research is one way to have fewer risks.

Listen to an entrepreneur talking about how she

started her own business. Complete the missing
information in your notebook.
Being the boss of your own business means making all the
..... but also taking all the .....
She started her business by buying ice-cream from
the ..... and selling it in the .....
But she realised she was giving money to her .....
so she started making her own ice-cream.
She only had ..... hours sleep for ..... years but
people loved her ice-cream.
She decided to open her shop after a wet
and ..... summer.
At first it was hard because she only had
enough money to pay the ..... for two months.
Three years later she ..... some money from the bank
and now she has ..... shops in Europe.

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The costs of running a business

Find out how
Facebook was
created.

Startup costs are what every entrepreneur has to think about before
opening a business. For example, a new restaurant needs furniture,
kitchen equipment, tableware. It might also be necessary to pay a fee for
registering the company or for making a sign for the business. You may
need to ask a bank for an investment loan to meet some of the costs.
Sometimes its possible to get government loans.

Ongoing cost
They are fixed costs that continue. They can be daily, weekly, monthly
or yearly, but the bill always comes again at some point.

Another expense is
insurance, which
isnecessary in case
somebody has an
accident or the
building is
damaged.

Rent is the money

a business pays
to use a
building, such as
an office, shop
or storage unit.

Utilities like water, gas,

electricity, Internet and
atelephone line
have to be
paid for.

Ongoing
costs
If a business
employs staff,
they must pay
employees a
salary.

1 Look at the photos. What businesses do these signs

represent?

2 Is renting an office better than buying it? Justify your

answers.

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Variable costs
They vary according to how many sales the business makes.
Promotional costs change
depending on how much advertising
is used. There may be
peak seasons (for
example, holiday
periods) when its
a good idea to
run bigger ad
campaigns.

If the business
makes a product,
it will need
materials to
manufacture
and package it.

Variable
costs

There might be
shipping costs if
products are
delivered to
customers
(for
example,
from an
online
shop).

Commissions are
sometimes paid to
employees for the
sales they make,
and if they meet
sales targets
(objectives), they
receive a bonus.

1 Why are variable costs difficult to estimate?

2 Why do some businesses pay their sales staff commissions
or bonuses?
3 What variable costs are there for these businesses?

a newspaper or magazine publisher

a restaurant

an airline

4 What are the advantages and disadvantages of running

your own business compared with working for someone
else?

Did you know?

Amazon.com, the leading
e-commerce company, in USA,
made more than 75 billion US
dollars in 2013.
It is said to have more than
237 million custom accounts.

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Saving and spending money

Cashflow is money coming in and money going out. Money is always in

motion because youre either spending it, earning it or saving it. If you
save your money in a savings account with a bank, it isnt actually in
your account. The bank uses it to make a profit for itself. It gives you a
small percentage of that profit as interest, and you can ask for your
capital back whenever you want.

Why is it
important to
save money?

Saving money
Children can have a piggy bank.
They can save small coins and break it open
when the bank is full.
Pros

Children can open a bank account if their parents

sign the papers.
Pros
money is safe

quick

it might earn interest

easy

Cons

Cons

interest is usually low

money doesnt earn interest

it could get lost or stolen

many banks charge a fee for

having an account with them

Spending less
Shops have lots of special offers to get you to spend money with them.
If you shop around, you can find bargains (products at a very low price).
But you should think carefully before you buy. Use your maths! Ask
yourself, Is it really a good deal? Do I need that item?.

1 Which one of these offers is the best deal?

2 Which of these is smart spending?

a. A 15 book with 50% off

a. 75% off something you want

b. A 9 book with a buy one get one free offer

b. 30% off something you need

c. A 20% discount on a 10 book

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Personal budgeting
Not only companies need to plan their finances; its an important skill
for individuals to learn too. Making a budget for yourself is an easy way
to minimise expenses and maximise savings. You must distinguish
between fixed expenses (which cost the same amount of money each
month) and variable expenses (which vary from month to month).
While planning your budget you should also distinguish between
necessary expenses and optional expenses.

Planning a budget
Link it up

1. Keep a record of your income (for example, pocket money, birthday

money, car washing money).
2. List the things you want to buy.
3. Check the prices of what you want to buy.
4. Revise your list and delete the things you cant afford.
5. Repeat Step 4 until you are within your budget.

1 Look at your monthly budget and answer

the following questions.

a. What is your total income?

b. Why cant you buy the video game?
c. How many months will it take you to have
enough money to buy it?

People should need to plan a

budget before going on holidays
if they dont want to be surprised
when they get back.
What types of tourism are there?
Look at Unit 5.

2 Give examples of fixed expenses and

variable expenses. Are they optional or
necessities?
3 If you spend 2 on sweets every day for a
year, how much money will you spend?

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SCIENCE PROJECT:

Be your own boss

Aim
Create a small business and learn to manage time and money.

Method
1. Work in a small group to create your own business. Decide which
type of business you want to start. Brainstorm ideas.
2. Create a simple business plan. Consider the following questions:
What services or goods will you offer?
What functions will each of you have within the company?
Where will you run your business?
How much money will you need to start your business?
Where will this money come from?
How much money will you charge for your product or service?
How will you advertise?
this is really diffficult. Maybe just ask about how many people
they need.
3. Be creative. Think of a name and logo for your business.
4. When designing advertising material, consider various types of
advertising:
flyers, posters, emails
Internet viral campaigns like Gifs, videos and celebrity
endorsements
songs
word-of-mouth (If you want to tell your neighbours about
your business, make sure you are accompanied by an adult.)
Be prepared to make mistakes. Dont give up!
5. Present your business to your classmates. Reflect on what they like
or dont like about your idea.
6. Make changes to your business plan based on your classmates ideas.

Conclusions
1 What did you find easy about starting a
business? What was the hardest part?

2 What personal qualities do you need to run a

business?

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FRAGILE WORLD:

Socially responsible companies

More than money

The main objective of every company is to earn money and make a
profit. However, nowadays the number of companies that support
social programmes is rising. One of the reasons
for this is that supporting a good cause can give
you tax benefits. The other most important reason
is the moral value. Some companies go
environmentally friendly by reducing waste
products or gas emissions. Others collaborate
with NGOs (non-governmental organisations),
foundations or charities.

Doing good
Danone helps people in developing countries run their own businesses.
PepsiCo uses electric lorries to reduce fossil fuel consumption.
Ferrovial collaborates on drinking water programmes in South
America.
IBM donates computers for reading programmes.
Atresmedia organises the Ponle Freno race to collect money for traffic
accident victims.
Mercadona collaborates with soup kitchens.
Banks, such as BBVA, give scholarships and grants to encourage
education and research.

1 What do NGOs do? Name some examples.

2 Explain the expression environmentally friendly.
3

Work with a friend. What could you do to collect money?

How could you use this money?

4 Look at the photo and answer the questions.

a. What natural disaster does the photo show?

b. As part of a community, how could you help this person?

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Revise
Lets remember
Study skills
1 Complete the graphic organiser about business finance in your
notebook. Use the words from the box.

insurance

ongoing costs

shipping costs

commissions

utilities

running a business

.....

rent

.....

variable costs

.....

salary

materials

.....

promotional
costs

..... and
bonuses

2 Read the text below (A) about failed businesses. Then read
the text on page 108 (text B). In your notebook, write
whether the sentences below refer to text A, B or both.
Eighty per cent of new businesses fail in the first 18 months. This happens for many reasons, but
one is that companies lose touch with their customers. They dont know what
people want or when theyre unhappy. Often unhappy customers give
negative reviews online or tell their friends about a bad product or service.
Another reason is that new businesses fail to look at the competition. If a
new business does the same thing as another company, it needs to find
a way to stand out and be better than its competitors. Sometimes
businesses fail because their leaders make bad decisions or dont
recognise their own limitations. Its better to hire an accountant, for
example, if maths isnt your strong point.
a. There are a lot of factors affecting the chances that a company
will last.
b. Most companies go out of business in the first year and a half.
c. Businesses should think about their customers opinions.
d. Who a company employs is vitally important.
e. Staff with flexible working conditions are happier, better workers.

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Review
1 Decide if the sentences below are true or
false. In your notebook, correct the false
sentences.

4 Match the words to their definitions in your

notebook.

a. variable costs

1. costs that repeat

a. The COO is the head of a company.

b. utilities

b. Its normal to have an element of risk when

starting a business.

2. bills such as water and

electricity

c. fixed costs

c. Fixed costs depend on how many sales a

company makes.

3. expenses that change

every time

d. rent

4. money paid to use a

building

d. Making a personal budget helps stop

people from getting into debt.
e. A salary is what an employee earns.

5 Talk about different ways of saving money.

Use the diagram to help you.

2 Look at these offers on jeans. For each offer,

piggy bank

calculate the actual cost of one pair of jeans.

price

special offer

45

buy one, get one free

40

3 for 2

55

25% off

50

buy one, get one half price

3 Look at the photos and say which economic

sector each one belongs to.

advantages
&
disadvantages

bank account
special offers
personal budgeting

6 Complete the summary on page 108.

Checklist
I can describe the organisation of
a company and the costs it may have.
I can identify the economic sector that
different companies belong to.
I can understand why businesses succeed.
I can make a personal finance budget.

I can name different ways of saving money.

I can describe the advantages and
disadvantages of running my own
business compared with working
for someone else.

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