Text4
Bankershavebeenblamingthemselvesfortheirtroublesinpublic.Behindthescenes,theyhavebeentakingaimatsomeoneelse:theaccountingstandard-setters.Theirrules,moanthebanks,haveforcedthemtoreportenormouslosses,andit’sjustnotfair.Theserulessaytheymustvaluesomeassetsatthepriceathirdpartywouldpay,notthepricemanagersandregulatorswouldlikethemtofetch.
Unfortunately,banks’lobbyingnowseemstobeworking.Thedetailsmaybeunknowable,buttheindependenceofstandard-setters,essentialtotheproperfunctioningofcapitalmarkets,isbeingcompromised.And,unlessbankscarrytoxicassetsatpricesthatattractbuyers,revivingthebankingsystemwillbedifficult.
AfterabruisingencounterwithCongress,America’sFinancialAccountingStandardsBoard(FASB)rushedthroughrulechanges.Thesegavebanksmorefreedomtousemodelstovalueilliquidassetsandmoreflexibilityinrecognizinglossesonlong-termassetsintheirincomestatement.BobHerz,theFASB’schairman,criedoutagainstthosewho“questionourmotives.”Yetbanksharesroseandthechangesenhancewhatonelobbygrouppolitelycalls“theuseofjudgmentbymanagement.”
EuropeanministersinstantlydemandedthattheInternationalAccountingStandardsBoard(IASB)dolikewise.TheIASBsaysitdoesnotwanttoactwithoutoverallplanning,butthepressuretofoldwhenitcompletesitreconstructionofruleslaterthisyearisstrong.CharlieMcCreevy,aEuropeancommissioner,warnedtheIASBthatitdid“notliveinapoliticalvacuum”but“intherealword”andthatEuropecouldyetdevelopdifferentrules.
Itwasbanksthatwereonthewrongplanet,withaccountsthatvastlyovervaluedassets.Todaytheyarguethatmarketpricesoverstatelosses,becausetheylargelyreflectthetemporaryilliquidityofmarkets,notthelikelyextentofbaddebts.Thetruthwillnotbeknownforyears.Butbank’ssharestradebelowtheirbookvalue,suggestingthatinvestorsareskeptical.Anddeadmarketspartlyreflecttheparalysisofbankswhichwillnotsellassetsforfearofbookinglosses,yetarereluctanttobuyallthosesupposedbargains.
Togetthesystemworkingagain,lossesmustberecognizedanddealtwith.America’snewplantobuyuptoxicassetswillnotworkunlessbanksmarkassetstolevelswhichbuyersfindattractive.Successfulmarketsrequireindependentandevencombativestandard-setters.TheFASBandIASBhavebeenexactlythat,cleaninguprulesonstockoptionsandpensions,forexample,againsthostilityformspecialinterests.Butbygivingintocriticsnowtheyareinvitingpressuretomakemoreconcessions.
36.Bankerscomplainedthattheywereforcedto
[A]followunfavorableassetevaluationrules
[B]collectpaymentsfromthirdparties
[C]cooperatewiththepricemanagers
[D]reevaluatesomeoftheirassets.
37.Accordingtotheauthor,therulechangesoftheFASBmayresultin
[A]thediminishingroleofmanagement
[B]therevivalofthebankingsystem
[C]thebanks’long-termassetlosses
[D]theweakeningofitsindependence
38.AccordingtoParagraph4,McCreevyobjectstotheIASB’sattemptto
[A]keepawayfrompoliticalinfluences.
[B]evadethepressurefromtheirpeers.
[C]actontheirowninrule-setting.
[D]takegradualmeasuresinreform.
39.Theauthorthinksthebankswere“onthewrongplanet”inthatthey
[A]misinterpretedmarketpriceindicators
[B]exaggeratedtherealvalueoftheirassets
[C]neglectedthelikelyexistenceofbaddebts.
[D]deniedbookinglossesintheirsaleofassets.
40.Theauthor’sattitudetowardsstandard-settersisoneof
[A]satisfaction.
[B]skepticism.
[C]objectiveness
[D]sympathy
PartB
Directions:
ForQuestions41-45,choosethemostsuitableparagraphsfromthelistA-Gandfillthemintothenumberedboxestoformacoherenttext.ParagraphEhasbeencorrectlyplaced.Thereisoneparagraphwhichdosenotfitinwiththetext.MarkyouranswersonANSWERSHEET1.(10points)
[A]Thefirstandmoreimportantistheconsumer’sgrowingpreferenceforeatingouttheconsumptionoffoodanddrinkinplacesotherthanhomeshasrisenfromabout32percentoftotalconsumptionin1995to35percentin2000andisexpectedtoapproach38percentby2005.Thisdevelopmentisboostingwholesaledemandfromthefoodservicesegmentby4to5percentayearacrossEurope,comparedwithgrowthinretaildemandof1to2percent.Meanwhile,astherecessionisloominglarge,peoplearegettinganxious.Theytendtokeepatighterholdontheirpurseandconsidereatingathomearealisticalternative.
[B]RetailsalesoffoodanddrinkinEurope’slargestmarketsareatastandstill,leavingEuropeangroceryretailershungryforopportunitiestogrow.Mostleadingretailershavealreadytriede-commerce,withlimitedsuccess,andexpansionabroad.Butalmostallhaveignoredthebig,profitableopportunityintheirownbackyard:thewholesalefoodanddrinktrade,whichappearstobejustthekindofmarketretailersneed.
[C]Willsuchvariationsbringaboutachangeintheoverallstructureofthefoodanddrinkmarket?Definitelynot.Thefunctioningofthemarketisbasedonflexibletrendsdominatedbypotentialbuyers.Inotherwords,itisuptothebuyer,ratherthantheseller,todecidewhattobuy.Atanyrate,thischangewillultimatelybeacclaimedbyanever-growingnumberofbothdomesticandinternationalconsumers,regardlessofhowlongthecurrentconsumerpatternwilltakehold.
[D]Allinall,thisclearlyseemstobeamarketinwhichbigretailerscouldprofitablyapplytheirscale,existinginfrastructureandprovenskillsinthemanagementofproductranges,logistics,andmarketingintelligence.RetailersthatmastertheintricaciesofwholesalinginEuropemaywellexpecttorakeinsubstantialprofitsthereby.Atleast,thatishowitlooksasawhole.Closerinspectionrevealsimportantdifferencesamongthebiggestnationalmarkets,especiallyintheircustomersegmentsandwholesalestructures,aswellasthecompetitivedynamicsofindividualfoodanddrinkcategories.BigretailersmustunderstandthesedifferencesbeforetheycanidentifythesegmentsofEuropeanwholesalinginwhichtheirparticularabilitiesmightunseatsmallerbutentrenchedcompetitors.Newskillsandunfamiliarbusinessmodelsareneededtoo.
[E]Despitevariationsindetail,wholesalemarketsinthecountriesthathavebeencloselyexamined-France,Germany,Italy,andSpain-aremadeoutofthesamebuildingblocks.Demandcomesmainlyfromtwosources:independentmom-and-popgrocerystoreswhich,unlikelargeretailchains,aretwosmalltobuystraightfromproducers,andfoodserviceoperatorsthatcatertoconsumerswhentheydon’teatathome.Suchfoodserviceoperatorsrangefromsnackmachinestolargeinstitutionalcateringventures,butmostofthesebusinessesareknowninthetradeas“horeca”:hotels,restaurants,andcafes.Overall,Europe’swholesalemarketforfoodanddrinkisgrowingatthesamesluggishpaceastheretailmarket,butthefigures,whenaddedtogether,masktwoopposingtrends.
[F]Forexample,wholesalefoodanddrinksalescometo$268billioninFrance,Germany,Italy,Spain,andtheUnitedKingdomin2000-morethan40percentofretailsales.Moreover,averageoverallmarginsarehigherinwholesalethaninretailwholesaledemandfromthefoodservicesectorisgrowingquicklyasmoreEuropeanseatoutmoreoftenandchangesinthecompetitivedynamicsofthisfragmentedindustryareatlastmakingitfeasibleforwholesalerstoconsolidate.
[G]However,noneoftheserequirementsshoulddeterlargeretailers(andevensomelargegoodproducersandexistingwholesalers)fromtryingtheirhand,forthosethatmastertheintricaciesofwholesalinginEuropestandtoreapconsiderablegains.
41&rarr42&rarr43&rarr44&rarrE&rarr45
PartC
Directions:
ReadthefollowingtextcarefullyandthentranslatetheunderlinedsegmentsintoChinese.YourtranslationshouldbewrittencarefullyonANSWERSHEET2.(10points)
Onebasicweaknessinaconservationsystembasedwhollyoneconomicmotivesisthatmostmembersofthelandcommunityhavenoeconomicvalue.Yetthesecreaturesaremembersofthebioticcommunityand,ifitsstabilitydependsonitsintegrity,theyareentitledtocontinuance.
Whenoneofthesenoneconomiccategoriesisthreatenedand,ifwehappentoloveit.Weinvertexcusestogiveiteconomicimportance.Atthebeginningofcenturysongbirdsweresupposedtobedisappearing.(46)Scientistsjumpedtotherescuewithsomedistinctlyshakyevidencetotheeffectthatinsectswouldeatusupifbirdsfailedtocontrolthem,theevidencehadtobeeconomicinordertobevalid.
Itispainfultoreadtheseroundaboutaccountstoday.Wehavenolandethicyet,(47)butwehaveatleastdrawnnearthepointofadmittingthatbirdsshouldcontinueasamatterofintrinsicright,regardlessofthepresenceorabsenceofeconomicadvantagetous.
Aparallelsituationexistsinrespectofpredatorymammalsandfish-eatingbirds.(48)Timewaswhenbiologistssomewhatoverwordedtheevidencethatthesecreaturespreservethehealthofgamebykillingthephysicallyweak,orthattheypreyonlyon“worthless”species.
Somespeciesoftreehavebeenreadoutofthepartybyeconomics-mindedforestersbecausetheygrowtooslowly,orhavetoolowasalevaletopayasimebercrops(49)InEurope,whereforestryisecologicallymoreadvanced,thenon-commercialtreespeciesarerecognizedasmembersofnativeforestcommunity,tobepreservedassuch,withinreason.
Tosumup:asystemofconservationbasedsolelyoneconomicself-interestishopelesslylopsided.(50)Ittendstoignore,andthuseventuallytoeliminate,manyelementsinthelandcommunitythatlackcommercialvalue,butthatareessentialtoitshealthyfunctioning.Withouttheuneconomicpats.