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 fishing education base industries

tourism forestry media and communication

primary sector secondary sector tertiary sector

(extraction of raw materials (products manufactured) (services)
from the ground)

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.

a b c

d e f

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 3 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

2 a. grow b. eat c. harvest

3 a. seeds b. stems c. trunks

4 a. sent b. collected c. harvested

5 a. cleaned b. mixed c. washed

6 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
Primary sector activities involve obtaining raw materials directly
population?
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 2 Which primary sector activities provide us
and irrigated crops. with these products?
rice wheat olives vegetables salmon apples coal milk
pulses grapes fruit oats 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 Pas Vasco

Apples Coal Comunidad
Iron Principado Foral de Navarra
Bananas
de Asturias Cantabria
Cereals Forestry
Lemons and Galicia Catalua
oranges Wood La Rioja
Olive trees
Castilla y Len
Pastures Aragn

Potatoes Comunidad
de Madrid
Rice
Vegetables
Wine Grapes Islas Baleares
Livestock Farming Extremadura Castilla-La Mancha Comunidad
Valenciana
Cattle
Pigs
Poultry Regin
Canarias
de Murcia
Sheep Andaluca
Fishing
Fishing ports Melilla
Ceuta

1 Which raw material is used to make the 2 Investigate mining in Asturias and Len.
following products? Make a list of the consequences.
pullover shoes mirror
jewellery bread wallet 3 How does landform or relief affect the
economic sectors of a country?

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 The secondary sector
Why are
products made
by craft
Workers in the secondary sector take the raw materials that are workers
produced in the primary sector and turn them into products that people unique?
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 Base industries transform
as coal, oil and gas. We can raw materials into
also get energy from semi-finished products.
renewable sources, such The metal and
as sunlight, wind and chemical
water. industries are
examples of
base
industries.

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

Capital
goods
industries
use base
industry products to
manufacture things like
machinery and equipment. The
automotive industry is an
Consumer goods example of a capital goods
industries use the industry. It uses machinery and
products produced by the base equipment to manufacture
and capital goods industries. They parts of cars.
make items that are sold to the
public, such as cars, clothing and
cosmetics.

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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
A craft worker
complex machines to manufacture large quantities of products very
quickly.

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 An industrial worker
more important over the last years.

Gijn
Aeronautics Industrial cities Ferrol Santander
Oviedo Bilbao
Cars La Corua
Industrial regions
Pamplona
Chemical goods Vitoria
Logroo
Construction Burgos
materials Vigo

Electrical goods Valladolid

Zaragoza Terrassa Sabadell
Food and Reus Barcelona
drinks Tarragona

Leather Madrid
and shoes Castelln
Machinery de la Plana
Cceres
Sagunto
Metalworking Valencia
Paper
Puertollano Alcoy
Petrochemical Badajoz
Alicante
Publishing Elche
Rubber
and plastic Cartagena
Sevilla
Shipbuilding Huelva

Steel industry Mlaga

Cdiz
Textile Melilla
Ceuta

1 Which secondary sector activities provide 3 Explain why big industries are in big cities,
us with these products? such as Madrid and Barcelona.
furniture clothes processed food
bridges roads electricity 4 Give two examples of products produced
in the following industries.
2 Name some advantages and disadvantages Textile industry Furniture industry
of being a craft worker.

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 The tertiary sector
Look at the
photos. Do you
use any of
The tertiary sector is also known as the service sector because it
these services?
provides services to customers.

Education Healthcare Retail

People who work in education Healthcare workers look after Retail workers sell us products in
help us learn. our health. shops, supermarkets and
department stores.

Administration Media and Tourism

Administrative workers help
organise work in offices.
communication Tourism supplies accommodation
Media and communication and entertainment to tourists. In
provide us with information. Spain this industry provides work
Newspapers, television, the for many people and generates
radio and lots of money for the country.
the Internet
are a part
of our
everyday
lives.

Trade Transport
There are two types of trade service: Transport workers carry people and goods
from one place to another. There are three
Domestic trade is the buying and selling of goods transport groups:
within one country.
land transport
Foreign trade is the buying and selling of goods
between different countries. The goods we buy road transport
from other rail transport
countries are
air transport
called imports.
The goods we sell water transport
to other countries
are called
exports.

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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

Rest of the world

2 131 824
USA 1 890 053 UK
13 653 864
In 2013 more than 60 million Rest of Europe 2 781 683
tourists from Europe and the
rest of the world came to Spain Scandinavia 4 165 142

to enjoy the climate, the Ireland 1 189 523

culture and the landscape. Switzerland 1 448 941

Spain imports, or buys, Belgium 1 706 354

machinery, food and textiles. It Portugal 1 861 092

Germany
exports, or sells, chemical Netherlands 9 335 870
products, shoes, fruit and 2 548 656

vegetables.
Italy 3 571 660
Spain has an extensive network
of motorways, roads, railways, France
ports and airports. International tourists in Spain 8 969 009

1 Which forms of media or communication 4 Classify the words according to the type
do you use for these activities? of transport.
do homework chat with friends helicopter yacht van coach
listen to music find out about the news bicycle kayak train cruise ship
aeroplane tram hot-air balloon
2 Write two professions for each of these
activities: 5 Find out more about tourism in Spain.
What are the main tourist destinations?
healthcare education transport
media and communication
6 Think of the transport you would choose
3 Why are sea ports important for trade? 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
Primary sector in Europe agricultural
areas?

ICELAND
Land use Norwegian Sea

N
Arable farming

EDE
Livestock farming

SW
FINLAND
Forestry

AY
RW
Manufacturing Stockholm

NO
centers RUSSIA
ESTONIA
Major resources LATVIA
N
EA

LITH
Coal UAN
IA
OC

U.K.
Fishing ports BELARIUS
Birmingham POLAND
Amsterdam
IC

Wood London GERMANY

NT

Katowice
Iron UKRAINE Donetsk
Caspian
LA

CZECH REP. SLOVAKIA

Uranium Paris Sea
AT

Munich MOLDOVA

AZ
Natural gas SWITZERLAND AUSTRIA HUNGARYROMANIA

ER
GEORGIA
SLOVENIA

BA
FRANCE Black Sea ARMENIA

IJA
Oil Milan CROATIA BOSNIA
ANDORRA

N
HERZ. S E RBIA
Marseille I BULGARIA
AL

Barcelona TA MONTENEGRO
UG

LY
MACEDONIA
RT

SPAIN KOSOVO TURKEY

PO

ALBANIA
GREECE
Mediterranean Sea

Secondary sector in Europe

Norwegian Sea
Cars
Chemical goods
Construction
materials
Electrical goods
Food and
drinks
N
EA

Leather
and shoes
OC

Machinery
IC

Metalworking
NT

Paper
LA

Caspian
Sea
AT

Shipbuilding
Steel industry
Textile Black Sea

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 An automotive

factory in Germany
About 66 per cent of the European population work in the tertiary sector. A solar power
plant in Spain
Tourism is an important industry in countries such as Spain, France,
Greece and Italy.

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. The airport in Amsterdam

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?
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 4 Are you an impulse buyer? What makes
attention to the techniques mentioned in people impulsively buy products?
the first text. Describe them to your
classmates. Do you think they are effective?

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 Revise
Lets remember

Study skills

1 In your notebook, complete the diagram using the words in

the box.

receptionist builder fisherman lawyer farmer miner

sculptor carpenter lumberjack cleaner journalist factory worker

Primary sector ....., ....., ....., .....

Economic sectors 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 secondary tertiary
sector sector 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 b
c d
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.
074_089_U5_3T_107321.indd 89
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
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.
89
10/12/14 11:21
 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

CFO COO
Chief ..... Officer Chief ..... Officer (President)

responsible for everything to do with responsible for the daily activities of

the companys ..... the company

Sales 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.

a b c

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 4 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.

5 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
Startup costs are what every entrepreneur has to think about before created.
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
Rent is the money
insurance, which
a business pays
isnecessary in case
to use a
somebody has an
building, such as
accident or the
an office, shop
building is
or storage unit.
damaged.

Utilities like water, gas, Ongoing

electricity, Internet and
atelephone line costs
have to be
paid for.
If a business
employs staff,
they must pay
employees a
salary.

1 Look at the photos. What businesses do these signs a c

represent?

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

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
If the business is used. There may be
makes a product, peak seasons (for
it will need example, holiday
materials to periods) when its
manufacture a good idea to
and package it. run bigger ad
campaigns.

There might be Variable

shipping costs if
products are
costs
delivered to
customers Commissions are
(for sometimes paid to
example, employees for the
from an sales they make,
online and if they meet
shop). 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? Did you know?

a newspaper or magazine publisher Amazon.com, the leading

a restaurant an airline e-commerce company, in USA,
made more than 75 billion US
4 What are the advantages and disadvantages of running dollars in 2013.
your own business compared with working for someone It is said to have more than
else? 237 million custom accounts.

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 Saving and spending money
Why is it
important to
Cashflow is money coming in and money going out. Money is always in save money?
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.

Saving money
Children can have a piggy bank. Children can open a bank account if their parents
They can save small coins and break it open sign the papers.
when the bank is full.
Pros
Pros
money is safe
quick
it might earn interest
easy
Cons
Cons
interest is usually low
money doesnt earn interest
many banks charge a fee for
it could get lost or stolen 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). People should need to plan a
budget before going on holidays
2. List the things you want to buy. if they dont want to be surprised
when they get back.
3. Check the prices of what you want to buy.
What types of tourism are there?
4. Revise your list and delete the things you cant afford.
Look at Unit 5.
5. Repeat Step 4 until you are within your budget.

1 Look at your monthly budget and answer 2 Give examples of fixed expenses and
the following questions. variable expenses. Are they optional or
necessities?
a. What is your total income?
b. Why cant you buy the video game?
3 If you spend 2 on sweets every day for a
c. How many months will it take you to have
year, how much money will you spend?
enough money to buy it?

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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 2 What personal qualities do you need to run a
business? What was the hardest part? 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

..... variable costs

promotional ..... and

rent ..... ..... salary materials .....
costs 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 4 Match the words to their definitions in your
false. In your notebook, correct the false notebook.
sentences. a. variable costs 1. costs that repeat
a. The COO is the head of a company. b. utilities 2. bills such as water and
electricity
b. Its normal to have an element of risk when
starting a business. c. fixed costs 3. expenses that change
every time
c. Fixed costs depend on how many sales a
company makes. 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,

calculate the actual cost of one pair of jeans. piggy bank
advantages bank account
price special offer &
disadvantages special offers
45 buy one, get one free
personal budgeting
40 3 for 2
55 25% off
50 buy one, get one half price 6 Complete the summary on page 108.

3 Look at the photos and say which economic

sector each one belongs to. Checklist

a b 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.

c d 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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