Structura temelor

Unit 8: Vocabulary: Marketing on the Internet

Internet Sites Sell, Service and Inform
Online Customer Profile versus Traditional Buyer Profile
Grammar: Analytic Subjunctive
Unit 9: Vocabulary Information Technology
Digitalization and Connectivity
Grammar: Conditional Clause Type 1
Unit 10: Vocabulary International Trade
International Trading Agreements
Grammar- Conditional Clause Type 2
Unit 11: Vocabulary: International Banking
Grammar: Conditional Clause Type 3
Unit 12: Vocabulary: Intrapersonal variables that influence consumer behaviour
Grammar: Reported Speech (Part 1)
Unit 13: Vocabulary: Gender Discrimination Can women get top executive positions?
Grammar: Reported Speech (Part 2)
Unit 14: Vocabulary: Mobile Communications
Case-Study: Vodafone
Grammar: Phrasal Verbs

Lesson 6

Advertising What Is Creative?

Trying to answer the question, David Ogilvy comes up with a strong riposte:
I have to invent a Big Idea for an advertising campaign before Tuesday. Creativity
strikes me as a highfalutin word for the work I have to do between now and Tuesday.
The Benton and Bowles agency holds that if it doesn't sell, it isn't creative. Amen.
Direct marketers tend to pay a lot of attention to the art of creativity. There are a lot of
books dedicated to this subject. One reason for this fascination is the sexiness of the
subject even hard-bitten business managers can be seduced by the glamour of
thinking about their product in the bright lights of a Californian blockbuster advert.
Advertising has been described (Martin, 1989) as the poetry or the artistry of
marketing, even if, as Ogilvy (1983) strongly argued, the only job of advertising is to
sell.
Different Types of Creative People
According to American commentators on advertising (Bovee et al., 1995; Martin,
1989; Rapp and Collins, 1987), people can be divided into two camps.
If you are interested in a career as a creative in an advertising agency, the chances
are you are a rightbrain thinker.
If, however, you see yourself in business, perhaps managing a marketing
department, you will be a leftbrain dominated person. Leftbrain people are
logical, persuaded by words and argument, and take a stepbystep approach to
solving problems.
Rightbrain people are different. If you are rightbrain dominated, you use intuition
rather than logic, use emotion not reason, and are more interested in romance than
rationality.
This split of thinking lies at the heart of the creative debate, and to understand direct
marketing creativity, we need to understand how it fits into the wider context of this
fascinating creative debate that has been rumbling on now for about 100 years.
This argument can be summed up as left brain logical advertising versus right brain
emotional advertising (Rapp and Collins, 1987).
In 1904, John E. Kennedy said that the best advertising contained a logical approach,
leading prospects through reasons why they should buy the product.
The opposing camp was epitomized by Cyrus Curtis, who, in 1911, talked about the
atmosphere in adverts as the key ingredient. He was backed up by Dunn, in 1918, who
said, The psychoanalysts have found that nearly all important decisions are made in
the subconscious.
This argument has essentially carried on the same way to the present day. Major
figures such as Rosser Reeves, the inventor of the USP concept, and advertising giant
David Ogilvy have passionately, sometimes provocatively, advocated the logical
approach, appealing to reason:

1 have never admired the belles lettres school of advertising. I have always thought
them absurd. They did not give the reader a single fact.
(David Ogilvy, Confessions of an Advertising Man, 1964)
Whereas other, equally eminent practitioners have advocated the opposite approach:
It is not what is said but how it is said that influences us the most.
(Pierre Martineau, Chicago Tribune, 1957)
We are in the age of the eye. We have less time to read ... only the lightning strike of
a picture can hit home.
(Margot Sherman, President, McCann Erickson, 1959)
In summary, the leftbrain enthusiasts would argue that advertising focuses on selling
by leading the prospect through a series of reasoned, logical arguments. Words tend to
be more powerful than visual images. Functional brands, such as Intel, are built up in
these ways. The rightbrain advocates will claim that people make purchase decisions
on emotional grounds. Although they will justify their purchases on logical grounds
in research, in fact people are ruled by their emotional subconscious, and it is this
which advertising needs to play to. In this case, visual imagery is more important
than words. Symbolic brands, for example CocaCola, are based on this premise.
Direct marketing creative practice has traditionally been dominated by the left-brain
approach. Rapp and Collins (1987) showed why direct marketing has historically been
left-brain dominated: mailorder products had to have an element of uniqueness
about them to overcome the inertia of people at home; this led to a USPdriven
approach. Also, the items were often intangibles, or services, which were traditionally
sold in a logical way. Direct marketing products and services are usually relatively
high-priced items, and it is felt that items of such value cannot be sold through
emotion. Reasoned arguments are required if you want a consumer to buy a pension
off you.
In contrast, brandbuilding creative has predominantly been rightbrain led. If we
consider products such as Marlboro cigarettes, CocaCola, or Levi Jeans, their
advertising is pure emotional symbolism. One reason for this is that when you
advertise a product that is similar to others you need brandbuilding through imagery
and association with attractive symbols. Also, brandbuilding is similarly important
for low involvement, low price-ticket products, such as FMCGs where consumers
make impulsive, subconscious decisions brand building has traditionally been used
to sell tangible items such as food and clothes.
Direct marketings stance on entertainment has been even more clear: there is no
room for it in direct communications. The argument has been that even if it were
required, there is simply no room for deflecting the prospect from the crux of the
advert to get a response.
(after Allan Tapp Principles of Direct and Database Marketing, third edition, Pearson
Education Limited, England, 2005)
Grammar

Remember: The form of the present subjunctive is identical with the form of the past
tense indicative
Use present subjunctive in order to express actions that are
contrary to present facts.
Exception!: the present subjunctive form of the verb to be is were for all
persons, (especially in the written style)
- Remember!: Use the present subjunctive after the following words and phrases:
Its high time/ its about time
To wish
If only
If
Unless
To suppose
Even if/even though
As if/ as though
Concepte i termeni de reinut
leftbrain dominated person a logical person who focuses on reason
and usually takes a stepbystep approach to solving problems.
rightbrain dominated person one who uses intuition rather than logic,
focuses on feelings rather than on reason
to be epitomized to be symbolized, best represented by, etc.
the debate has been rumbling on it has been being argued for and
against
belles lettres school creative writing valued for esthetic content
prospect a potential buyer
to overcome to prevail over, to be victorious
Probleme de reflecie i teme de dezbatere
1. In your opinion, what is the job of an advertising agency?
2. How would you define a leftbrain dominated person? What is
the leftbrain advertising?
3. What is a rightbrain person? Which are the characteristics of
the rightbrain advertising?
4. Personally, for which of the two approaches would you opt?

Lesson 7

Introduction

Besides the ever changing approaches of traditional marketing, during the recent years
e-marketing has got a paramount importance as the main promoter of online selling.
Starting from the basic principles and strategies of traditional marketing and making
use of the latest generation internet technologies, digital marketing represents a
complex process that combines multiple factors such as information, entartainment,
brand-building, management strategies, selling, aso.

Course Content
In marketing, strategy starts on the outside, considering the needs and expectations of
the consumer and moving inwards to the crux of the brands identity, to see where the
business can gain advantage and add value.
What is digital marketing strategy?
Digital marketing strategy builds on and adapts the principles of traditional marketing,
using the opportunities and challenges offered by technology and the digital
medium.
User-centric thinking, which involves
placing the user at the core of all decisions, is vital when looking at building a
successful digital marketing strategy. The advent of new technologies means the
digital marketing strategist of today is offered not only a plethora of new tactical
possibilities, but also unprecedented ways of measuring the effectiveness of chosen
strategies and tactics. The fact that digital marketing is highly empirical is one of its
key strengths.
Everything can be
measured: from behaviours, to actions and action paths, to results. This means that the
digital marketing strategist should start thinking with return on investment (ROI) in
mind. Built into any strategy should be a testing framework and the ability to remain
flexible and dynamic in a medium that shifts and changes as user behaviours
do.
If we define strategy as a plan of action
designed to achieve a particular outcome, then the desired outcome from a digital
marketing strategy point of view would be aligned with your organisations overall
business objectives. For example, if one of the overall business objectives is
acquisition of new clients, possible digital marketing objectives might be building
brand awareness online.
The 4 Ps on the E-Market
Products and services are what a company sells. From fast moving consumer goods to
digital products such as software, to services such as consultancy, the Internet has
allowed for a huge range of new
products.
With customers able to access pricing information from a number of suppliers with
relative ease, the Internet is growing a market of near perfect competition (Porter,
2001). The prevalence of search engines and of shopping comparison websites, make
it easy for customers to compare product prices across a number of retailers. The
opportunity for companies to differentiate themselves on price has led to decreased
prices for many commodities, from the regularly reduced pricing of books on
Amazon.com to ticket prices on low cost airlines such as EasyJet (www.easyjet.com)
in Europe.
Particularly

for digital products and services, the Internet gives companies access to a global
marketplace. Product distribution and markets no longer have to be dictated by
location.
Place- with efficient delivery and
shipping channels, products that are not digital can also benefit from a far wider
market place. The Internet allows the basic foundations of mail order businesses to
flourish online with a catalogue that is cheaper to produce and update and cheaper to
distribute - a
website.
The Internet, as an information and entertainment medium, naturally lends itself to
being used to promote products. The online promotional mix is an extension of the
offline, but with some significant differences. Online promotion can be tracked,
measured and targeted in a far more sophisticated way. Advertising, personal sales,
promotions based marketing and public relations can all be conducted through the
online medium.
A well-designed web site
Like any well-designed promotional campaign, a well-designed Web site should have
the prospective customer in mind. This means that the site should attract the prospect
to it and do a persuasive job of interacting with the prospect once he or she arrives
there.
Creating a desire to visit a particular site can be
aided by marketing the site through other media-print advertising, TV commercials,
newsletters, and the like and by giving the site a brand name and image that creates
its own promotion (for example, the Won.com site that offers a lottery prize of up to
$1 million for visiting it).
Good site
design avoids the tendency to copycat other sites, or to give the site an obscure,
irrelevant name. The site name should be registered with more than one browser (or
portal) and should be promoted
thereon.
Once attracted to the site,
the prospect should be encouraged to interact in a mutually productive manner. This
means the site should pique the cus-tomer's interest by providing information of
interest for different visitors such as traders, mystery lovers, sports enthusiasts, and
word game players all over the world. This interesting information should be updated
regularly, to prevent staleness and encourage return
visits.
Most Internet activity
relating to strategic marketing planning objectives and activities is implemented on
company/ brand, information, selling and service sites.
(Richard L. Sandhusen Marketing, third edition, Barrons Educational Series, New
York, 2000)
The World Wide Web penetration speed
With the creation of the World Wide Web and Web browsers in the 1990s, the Internet
was transformed from a mere communication tool into a certifiably revolutionary
technology.
By 2003, Internet penetration in
the United States had exceeded 66 per cent. Although the dot-com crash in 2000 led to
cutbacks in technology spending, research suggests that the growth of Internet access
among the world's population will continue to explode.
Internet use in the old IS-nation EU has grown 97.2 per cent between 2000 and 2004,
while the new EU members report a whopping increase of 155.1 per cent over the

same period. There are now over 184 million Internet users in the expanded EU,
representing an overall growth of 102.3 per cent between 2000 and 2004.
The Internet Users Profile
This explosive worldwide growth in Internet usage forms the heart of the so-called
New Economy. The Internet enables consumers and companies to access and share
huge amounts of information with just a few mouse
clicks.
Recent
studies have shown that consumers are accessing information on the Internet before
making major life decisions. One in three consumers relies heavily on the Internet to
gather information about choosing a school, buying a car, finding a job, dealing with a
major illness or making investment decisions. As a result, to be competitive in today's
new marketplace, companies must adopt Internet technology or risk being left
behind.
When people think of the typical Internet user, some still mistakenly envisage a pastyfaced computer nerd or cyberhead, others a young, techy, up-market male
professional. Such stereotypes are sadly outdated. As more and more people find their
way onto the Internet, the cyberspace population is becoming more mainstream and
diverse.
The Internet
was, at first, an elitist country club reserved only for individuals with select financial
abilities and technical skills', says an e-commerce analyst. 'Now, nearly every
socioeconomic group is aggressively adopting the
Web.
The Internet provides emarketers with access to a broad range of demographic segments. In recent research
conducted among 3,600 individuals who play online games, the US Digital Marketing
Services found that American females over 40 years old spend about 9.1 hours per
week playing online games (e.g., word and puzzle, casino, trivia and arcade
games).
By,
contrast, female teenagers spend 7.4 hours per week playing games, while females
under 40 years log 6.2
hours.
America
Online offers a Kids Only area featuring homework help and online magazines along
with the usual games, software and chatrooms. The Microsoft Network site carries
Disney's Daily Blast, which offers kids games, stories, comic strips with old and new
Disney
characters.
BeingGirl.com is a site for teens, offering information on relationships, boys,
periods and much more. Leading girls' entertainment software publishers also joined
forces to offer a special website (just4girls.com) that promotes stories, games, dolls
and accessories targeted at 8-12-year-old
girls.
Although Internet users are still younger on average than the population as a
whole, consumers aged 50 and older make up almost 20 per cent of the online
population.
Whereas younger groups are more likely to use the Internet for entertainment and
socialising, older Internet surfers go online for more serious
matters.
Internet consumers differ from traditional offline consumers in their approaches to
buying and in their responses to marketing. People who use the Internet place greater
value on information and tend to respond negatively to messages aimed only at

selling. Internet directories, such as Yahoo! NodeWorks and Lycos, and search
engines, such as Google, AltaVista, Excite, AlltheWeb and many others, give
consumers access to vast and varied information sources, making them better
informed and more discerning
shoppers.
Traditional marketing
targets a somewhat passive audience. In contrast, e-marketing targets people who
actively select which websites they will visit and what marketing information they
will receive about which products and under what
conditions.
Thus, the new world of
e-commerce will require new marketing approaches.
(Philip Kotler, Veronica Wong, John Saunders, Gary Armstrong Principles of
Marketing fourth edition, Pearson Education Limited, London, 2005)
A Very Ingenious E-Marketing Strategy
Case Study
The Best Job in the World
Tourist destinations have been marketed in a variety of interesting ways. In 2009
Tourism Queensland, an Australian state government agency responsible for
marketing the north-eastern part of the continent, promoted the idea of the Best Job
in the World.
This unusual campaign pushed an
idea that seemed too good to be true: an opportunity to housesit the famously
beautiful islands of the Great Barrier Reef for half a year, with a home base on
Hamilton
Island.
The campaign, developed by the Brisbane-based agency SapientNitro, began with
worldwide classified advertising, seeking applicants for an island caretaker position
with a salary of 73,000. In return, the winner would need to blog about his or her
experience, record videos and commit to various PR activities. Anyone could apply by
simply submitting a video application for public
consideration.
From
a strategic perspective, SapientNitro and Tourism Queensland needed to launch the
campaign to experience seekers across eight international markets. Traffic was
initially driven to the website through recruitment via online job sites and small
display ads, and supported with scores of mainstream press and blog articles, directing
further traffic to
islandreefjob.com.
There, the
website showcased the various beautiful attractions found on the island, as well as
information on sustainability. This platform allowed the brand to push Australia as a
tourist destination, both for international travellers and locals. The interest was
overwhelming, with the submission website crashing only two days after the launch
of the campaign due to excessive visits and video uploading.
Tourism Queensland and SapientNitro also had a strong presence across social media
spaces, including Facebook, YouTube, Twitter and MySpace. Through these platforms
they engaged with interested parties around the world, while applicants and general
browsers were able to use these spaces to interact further. After months of searching,
the prize went to ostrich-riding, bungee-jumping charity worker Ben Southall from
Hampshire, who beat out 35 000 other entries. He had a whale of a time until his last
month, when he was stung by an Irukandji jellyfish (OLoughlin, Pidd 2009). Dont

worry, he made a full recovery!

Besides being lauded as the greatest PR stunt of all time, the campaign also
returned some impressive figures (Tourism Queensland): Estimated media coverage
of over AUD$400 million. This included global news coverage from CNN stories,
BBC documentaries, Time magazine articles and everything in between. The
campaign reached an audience of approximately three billion people through media
coverage. 34,684, one minute video job applications we submitted from 197
countries. Its safe to say that at least one person from every country in the world
applied. Over 475,000 votes for Wild Card applicants were received. Web stats
showed 8,465,280 unique visits, 55,002,415 page views with an average of 8.25
minutes spent per visit. Overall, its safe to say that the campaign was a success
(except for that one little sting) and it even went on to win numerous awards at the
Cannes Lions International Advertising Festival.
Reference: Rob Stokes, 2011, eMarketing, The essential guide to digital marketing,
4th Edition
Grammar
- Remember: The analytic subjunctive is formed of :
modal auxiliaries plus infinitives
shall/should + infinitive
may/might + infinitive
would + Infinitive
- it also expresses unreality
- Remember!: Use the analytic subjunctive after the following words and phrases:
it is/was necessary, advisable, essential, important, right, strange, odd, surprising,
annoying, ridiculous, absurd, etc.
after the following verbs:
suggest, propose, insist, recommend, command, demand, etc.
ndrumar pentru autoverificare
Concepte i termeni de reinut
advent - the coming or arrival especially of something extremely important.
to copycat unauthorized duplicate of a certain fashion design; they are usually made
of lesser quality imitations of the original mainstream - the prevailing current of
thought, influence, or activity.
crash 1.a sudden, usually drastic failure; 2. a sudden large decline of business or the
prices of stocks (especially one that causes additional failures)
a whopping increase an increase above average in size or number or quantity or
magnitude or extent
to envisage to imagine, to form a mental image of something that is not present or
that is not the case
pasty-faced pale and dull of complexion
up-market appealing to or designed for high-income consumers;
online medium - an agency by which something is accomplished conveyed or

transferred.
to have a whale of a time - fig. to have an exciting or fun time; to have a big time.
(whale is a way of saying big.)
wild card - an unpredictable or unforeseeable factor.
Probleme de reflecie i teme de dezbatere
1. How does the internet affect the traditional marketing strategies?
2. What companies do you know that use the internet to sell products or services?
3. What are the main differences between the traditional and the online customers?
4. Why do you think that the best job advertising campaign gained such an
impressive media coverage (see the case
study)?
5.
What role did flexibility play in this campaign (see the case study)?

Lesson 8
INTERNATIONAL BANKING
How International Banking Works
An international bank is a financial entity that offers financial services, such as
payment accounts and lending opportunities, to foreign clients. These foreign clients
can be individuals and companies, though every international bank has its own
policies outlining with whom they do
business.
According to OCRA Worldwide - an organization that matches people and companies
to international banking - international banks tend to offer their services to companies
and to fairly wealthy individuals, i.e., people with $100,000 and counting. But plenty
of international banks, particularly Swiss banks, open their doors to customers of any
income bracket.
Companies do business with international banks to help facilitate international
business, the complexities of which can be quite
costly.
Individuals work with international banks for a number of reasons, including tax
avoidance, probably the term you've heard the most in relation to offshore banking.
Tax avoidance isn't necessarily illegal, as you will learn on the pages that follow. But
there are plenty of other hazards in international
banking.

Reasons to Bank
Internationally
Theres a wealth of reasons for individuals and companies to bank internationally.
Many people around the world use international banks to shelter their money from
their home country's income and estate taxes. Hosts of banks are based in countries
with low or no income and estate taxes, such as the Cayman Islands, Belize, Panama
and the Isle of Man. But you can't just put your income in Belize and not pay taxes.
Customers must report their income and work with their bank to make sure tax
avoidance doesn't turn into tax
evasion.
Some individuals use international banks to invest in the economies of booming
countries and in developing countries, the same way they might invest in a domestic
corporation or real estate venture.

A number of wealthy individuals keep their wealth in offshore banks and other
entities to keep it safe from lawsuits. That doesn't mean these people are criminals;
they simply want to avoid losing every penny to a sudden, unexpected or predatory
lawsuit.
Since international banks lend and borrow on international markets, theyre less
affected by domestic interest rate fluctuations. For example, when Mr. and Mrs.
Platinum want to avoid sinking interest rates in their own country, one thing they
might do is move their money into an international
bank.
Also, some foreign banks might offer better interest rates than domestic banks,
providing a money-making opportunity for
customers.
International banks also make it easier for a company with an international presence
to do business around the world.
In addition, international banks offer many financial services to facilitate international
trade. Besides offering payroll services for companies with employees and contractors
in other countries, they offer letters of credit to ensure that companies in different
countries pay one another for goods and services. They also offer financing services
to support businesses facing the large costs of importing and exporting
products.
The process of establishing an account at a reputable international bank will probably
include the
following:

The bank will confirm your identity and the identities of anyone who has an
ownership interest in your money.
Like a good father, the bank will ask you about your intentions. Why do you need an
international bank account? What does your business do?
The bank will inquire about the origin of your deposits, especially very large ones.
Where'd you get that $756 million, son? Hopefully not from that big heist in
downtown Rome.
The bank will ask for references. Are you a reputable individual or company?
The bank will analyze how risky a customer you would be. Can you or your
company pay back loans?
Hazards of International
Banking
There are some hazards in international
banking:
- Is the bank in a country on the verge of civil war or economic collapse? Is the bank
in a country notorious for its corruption? Keep your money away from
fire.
- Is the bank known for efficiency and smart investments or for poor customer
service and federal bailouts? Again, do your
homework.
Just as domestic currency can change value, so can foreign currency. If you invest
your money in a foreign bank, and then the value of the foreign currency plummets,
you lose money. Furthermore, if you make a bunch of money through an international
investment, your profit may be greatly reduced when you convert the money to your
less-than-booming home
currency.
To address this issue, many international banks encourage account-holders to keep
their money in interest-bearing accounts and other investments. Customers can use the
money they earn on such accounts to conduct business abroad. When the currency
exchange rate improves, the customer can bring some money home to the Missus or
Mister.
The Federal Deposit Insurance Corporation (FDIC) does not insure foreign banks,
though it can insure U.S. divisions of foreign-based banks. If you're planning on
banking internationally, inquire about depositor insurance provided by the bank's
home government or other
entity.
Because of rising international concern about money laundering, terrorism and tax
evasion, many international banks will keep an eye on your account activity. If you're
moving massive amounts of money around quickly, you will raise a red flag.

Criminals and terrorists love to launder money through international banks, passing
their questionable funds through foreign accounts, many of them anonymously held,
until the legal trail is lost.
Tax evaders often use international banks to set up companies and trusts whose sole
purpose is to hide money and erase its relationship to the owner. If a tax collector,
such as the Internal Revenue Service, can't prove you own the money, it can't collect
taxes on it. If these companies and trusts arent legitimate money-making entities,
youre participating in an abusive tax shelter (by U.S. law, at least). The IRS charges
very stiff penalties for participating in abusive shelters. In the settlement offered by
the IRS in the Son of Boss abusive tax shelter, participants paid penalties of as much
as 20 percent of their unpaid tax on top of their outstanding tax liability.
Reference: Barrymore, J., 2008. How International Banking Works. [online] Available
at: http://money.howstuffworks.com/personal-finance/banking/internationalbanking.htm [Accessed 31 March 2013].
Case Study: UBS in a few
words
UBS
draws on its 150-year heritage to serve private, institutional and corporate clients
worldwide, as well as retail clients in Switzerland. We combine our wealth
management, investment banking and asset management businesses with our Swiss
operations to deliver superior financial solutions.
Headquartered in Zurich and Basel, Switzerland, UBS has offices in more than 50
countries, including all major financial centers, and employs approximately 62,280
people.
UBS is the largest and strongest universal bank in Switzerland. Switzerland is the
only country where we operate in retail, corporate and institutional banking, wealth
and asset management as well as investment banking. Our strong position in the Swiss
home market is crucial to sustain our global brand and further grow our global core
business. We are fully committed to our home market, and by building on our 150
years of banking heritage, UBS Switzerland maintains a leading position in all five
business areas. With approximately 300 branches and 4,700 client-facing staff, we are
able to reach approximately 80% of Swiss wealth, one in three households, one in
every three wealthy individuals and almost half of all Swiss companies.
Reference: UBS, 2013. UBS in a few words. [online] Available at:
http://www.ubs.com/global/en/about_ubs/about_us/ourprofile.html [Accessed 31
March 2013].
What is reputation?
Reputation can be defined simply as what is generally said or believed about a
persons or things character. Reputation has a social element. Maintaining a good
reputation and being able to find someone to vouch for your good character remain an
important part of modern life. Reputation, although intangible and difficult to
quantify, plays a crucial role in social, professional and commercial interactions.

Reputation can be built through constant adherence to a mode of conduct or through

the advertisement of particular qualities. Reputation need not have any correlation to
actual past performance, although often it
does.
Reputation in contemporary
banking
It is axiomatic that reputation matters in banking. People need to trust those with
whom they deposit money. Research suggests banks are particularly sensitive to
reputation risk, and that decisions made by banks reflect reputational concerns.
Reputation also influences the types of relationships that banks will maintain with
their customers, and the cost the bank is willing to incur to maintain those
relationships
Reference: Buckley, R., Nixon, J., 2009. The Role of reputation in Banking. Journal
of Banking and Finance Law and Practice [e-journal]. Available through: bepress
Legal Repository
http://law.bepress.com/cgi/viewcontent.cgi?article=1160&context=unswwps-flrps09
[Accessed 31 March 2013].
Environmental and social risks assessment in the palm oil
industry
In October 2010, UBS had an opportunity to enter into a new client relationship
with a palm oil production company. The palm oil industry is often associated with
severe environmental degradation, such as deforestation and loss of biodiversity, as
well as with social issues, such as conflicts over land rights with local communities.
UBS's policies require that a client is a member in good standing of the Roundtable on
Sustainable Palm Oil (RSPO) and is actively seeking to enhance certification of its
production according to the RSPO Principles and Criteria for Sustainable Palm Oil
Production.
UBS was transparent with the client about the reasons for its palm oil production
policy and explained that this approach will lay the foundation for a long-term
partnership. Before entering the new client relationship, UBS performed a detailed
environmental and social risk assessment to evaluate the client's compliance with
UBS standards. By liaising directly with the company's own environmental team,
UBS was able to review and comment on the company's environmental report without
having to involve the company's executives each time. Also, it was crucial that the
client was informed about the steps in the approval process early on - UBS made it a
point to provide the client with regular updates throughout the
process.
Approval was obtained shortly before the end of December 2010, within the
timeframe requested by the client. The approval was granted based on the report
prepared by the client and made subject to certain conditions that will allow UBS to

monitor the company's commitment to sustainable palm oil production over time.
Reference: UBS, 2013. Case Study: Environmental and social risks assessment in the
palm oil industry. [online] Available at:
http://www.ubs.com/global/en/about_ubs/corporate_responsibility/cr_in_banking/cr_r
isk/palm_oil_industry.html [Accessed 31 March 2013].
13.3.2. Grammar
C) Time/Place Signifiers
Direct Speech

Reported Speech

here
this
these
now
today
tomorrow

there
that
those
then
that day
the next day/ the
following day
the day before
the week before/ the
previous week
the year before/ the
previous year
the next year/ the
following year

Yesterday
Last week
Last year
Next year
D) Pronouns
Direct Speech
I
you
he/ she
We
you
they

Reported Speech

singular
he/ she
he/ she
he/ she
plural
they
they
they

13.4. ndrumar pentru autoverificare

Sinteza unitii de nvare 13
international banking, offshore banks, to grant loans, letters of credit, interest rates,
deposits, reputation
Concepte i termeni de reinut
assets economic resources that are owned or controlled by an entity; what a firm or
individual owns

branch an administrative division of some larger or more complex organization; a

branch of Congress
asset management - the management of a client's investments by a financial services
company, usually an investment bank. the company will invest on behalf of its clients
and give them access to a wide range of traditional and alternative product offerings
that would not be to the average
investor.
bailout - a rescue from financial
difficulties.
contractor - one that agrees to furnish materials or perform services at a specified
price, especially for construction
work.
estate tax - a tax levied on an heir's inherited portion of an estate if the value of the
estate exceeds an exclusion limit set by law. the estate tax is mostly imposed on assets
left to heirs, but it does not apply to the transfer of assets to a surviving spouse. the
right of spouses to leave any amount to one another is known as the "unlimited
marital deduction."
fluctuation - to vary irregularly.
investment banking - a specific division of banking related to the creation of capital
for other companies. investment banks underwrite new debt and equity securities for
all types of corporations. investment banks also provide guidance to issuers regarding
the issue and placement of
stock.
money laundering - the process of creating the appearance that large amounts of
money obtained from serious crimes, such as drug trafficking or terrorist activity,
originated from a legitimate
source.
real estate - land plus anything permanently fixed to it, including buildings, sheds and
other items attached to the structure. although, media often refers to the "real estate
market" from the perspective of residential living, real estate can be grouped into
three broad categories based on its use: residential, commercial and industrial.
examples of real estate include undeveloped land, houses, condominiums,
townhomes, office buildings, retail store buildings and factories.
risk assessment - the process of determining the likelihood that a specified negative
event will occur. investors and business managers use risk assessments to determine
things like whether to undertake a particular venture, what rate of return they require
to make a particular investment and how to mitigate an activity's potential
losses.

tax evasion - an illegal practice where a person, organization or corporation

intentionally avoids paying his/her/its true tax liability. those caught evading taxes are
generally subject to criminal charges and substantial
penalties.
tax shelter - a legal method of minimizing or decreasing an investor's taxable income
and, therefore, his or her tax liability. tax shelters can range from investments or
investment accounts that provide favorable tax treatment, to activities or transactions
that lower taxable income
wealth management - a professional service which is the combination of
financial/investment advice, accounting/tax services, and legal/estate planning for one
fee.
stock the capital raised by a corporation through the issue of shares entitling
holders to an ownership interest (equity)
Probleme de reflecie i teme de dezbatere
What is International Banking?
What are preferred clients?
What are the bank's risks when banking internationally?
How do you define 'reputation'?
Why is it important that a global 'brand', like UBS, has a strong reputation?
Would you invest in UBS? Please reason