انكليزي- جعفر الدجيلي

7/17/2019 انكليزي- جعفر الدجيلي

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University of Baghdad

College of Administration and Economics

English language

Post graduate students

Dr . Jafar B . AL-Dujaili



Economic vocabulary

micro economic

macro economic

demands

suly

mar!et

rices

income

value

money

e"uilibrium

#ages

roduction

ro$t

resources

2



labor

trade

choice

free goods

economic goods

Elasticity

Economic resources

%he factor of roduction

Land

Labor

Caital

%he Entrereneur

&nvestment

Command Economy

'ar!et Economy

'i(ed Economy

3



Consumers

)roducers

*ending

*aving

)roductivity

Cost of roduction

)olicy

%a(

Large +irms

*mall +irms

Economic ,ro#th

evenue

ational &ncome

,ross ational )roduce

Emloyment

Distribution

4



Local

&nternational

*uly /f Labor

Demand +or Labor

'obility /f Labor

)oulation

Local Authority

*aving &nstitution

Ban!s

Ban! *ystem

&n0ation

'onetary )olicy

+inancial olicy

)roject

,lobali1ation

Economic Crises

5



2uman resources

Unemloyment

*tandard /f Living

'onooly

*alary

Central Ban!

Commercial Ban!

ecalcitrant

Credit

*toc! E(change

)ervasive

Cometition

Joint venture

Debentures

Curtailing

Costs /f )roduction

6



+i(ed 3 variable

Average 3 'arginal Cost

*eciali1ation

Economic )roblem

/ortunity cost

Economic La#

%he Economic *ystem

Economic %heory

Assumtion

la#

theory

2yotheses

Economic ,oals +or

*ociety

E4ciency

/timal Utili1ation

7



%echnical e4ciency

E4cient Use /f esources

Economic *tability

E"uality

Economic Activity

&ndividuals Demands Curve

'ar!et Demand Curve

Determinants Of Demand

umber /f buyers

Consumer5s %aste

Consumer5s &ncomes

Consumer5s E(ectation

)rice /f /ther ,oods

*uly Curve

'ar!et *uly Curve

Determinants /f *uly

umber /f *ellers

8



%echnology

&nut rices

%a( subsidies

De$nition /f 'ar!et

&nteraction /f Demand 3 *uly

*hortage

*urluses

)rice control

)rice selling

)rice Elasticity /f Demand

)ercentage Change in rice

)ercentage Change &n )rice

)ercentage Change &n 6uantity Demanded

)ercentage

Determinants /f Demand Elasticity

Consumer 5s budget

9



Lu(ury goods

ecessity goods

Long %erm

*hort %erm

&nelastic suly

Unitary Elastic *uly

)erfect Elastic *uly

%a( &ncident

,ross Elasticity

Consumer behavior

Desire

%aste

Utility theory

ational )olicy

Cardinal Utility

/riginal Utility

10



'arginal Utility

La# /f diminishing 'arginal Utility

Consumer5s surlus

&ndi7erence curves

*hort un 3 long un

)roduction function

)roduction curves

%otal $(ed cost

%otal variable

Average $(ed cost

Average variable cost

Average marginal cost

)erfect cometition

)ure monooly

)rice ta!er

'ar!et o#er

11



'onooly o#er

Barriers

atural monooly

Legal Barriers

'onoolistic cometition

on rice cometition

)rice cometition

)romotion

Advertising

2omogenous

Agriculture

Farming

Aspect

Bank loan

Commercial

Delegate (s)

12



8ocabulary

%endency 9 م

Concise 9 م تصر

Courteous 9 م #"!

&nsertion 9 $%&'%

Layout 9 ص*

&ntention 9 + ,

*eci$ed 9'-. م

Circular letters 9 /01& 2 ت3%

Bids 9 4%5067

%ender 9 5067

+orce major 9 :;0ر8 :89

Arbitration 9 <.*

)ublicity 9 +=07'

2ereinafter 9 =@<م 0 ?<

eliable 9 99 م

13



%rilicate 9 E,

Undersigned 9 G:9 مH0,'%

)romt 9 I07

Disatched 9 J@1&%

*ulementing 9 <3%

&n dulicate 9 K ت ,

Annulled 9 J L3%

Disutes 9 407%M,

&rrevocable 9 >/0#,

E(ecute 9 " NO*

)re-de$ned 9 ر23%0QR م

Chamber 9 Sر ?+

%ransactions 9 4 م02 م

&ntended 9 م Qص 9'

)rimarily 9 >? T0Q3%UVW%

)ractitioners 9 K 1&03%

14



Uncertainties 9 X9<Y3%

&nterretation 9 +I ر*

)rovision 9 ر ?9*

+right 9 K.Z

)rocure 9 Zر5%

)remises 9 [OR م

&nitial "uotation 9 \0R ت:W%>3VW%

E(licit #ording 9 ^ 8&0R23%صر =[

Custody 9 M_` >/0:

E"uivalent 9 U'02 م

Customs formalities 9 <3%ر IW%+ bر4%5%

'aritime 9 ر.^

Chartered 9 م Iر8

*ubse"uent delivery 9 @* `W

eutation 9 +21

)artnershi 9 +b%رZ

15



Alliances 9 40N30.*

egulatory reform 9 40`fW%+ ,9,0Q3%

%hriving 9 م ;'Mر

*ustainable 9 1%ت -%م +

&ntermediation 9 +0193%+ 303%

Accreditation 9 +='0 ت7Wh

2ubs 9 Mb%رم

Learning goals 9 %-;%+ @2*

)rovides "uality assurance 3 distinction 9 0,0

8'9_@3 V M ت3%

Criteria 9 ر م 02=

Ethical behavior 9 X9@3%>:jW%

Assessment 9 Q*

&ntellectual 9 <N3%ر =+

'entor 9 &0Y ت م

:idna 9 06 تj%

2ostages 9 K/0;&

16



Conviction 9 +,%'%

)rosecution 9 800Q م

Ac"uittal 9 *Rر /+

%rademar! 9 *_7+=&0م +

igorous 9 T&0f

Con0ict 9 %M,

*to!e mar!et 9 +f&9^

Aeal 9 +R306 م

/rdeal 9 +O. م

%angible 9 \9@ م

%rial 9 +b0. م

)ublic event 9 -` T07

Emhasis 9 - b9*

Critical 9 `ر$

Ban!rutcy 9 \?%

Dilemma 9 م

17



*olicitor 9 م .0م <

&dentical 9 ^06 تم

8igor 9 89:

)unctual 9 :' - 7%930^

18



8ocabulary

0<,%Contraction

&0;'%)roserity

_2* Acceleration

+R10. م

Accountancy

8-/0? +b%متر

V +2_ مت

Accumulated &nterest

&%ر

:%Ac!no#ledgment

40?V مصر

+=&%'%Administrative e(ense

8ر

0 م

+

30 م

Adventure

7%Advertisement

+30bV Agency

+^0: ر

3%V q ت

N ت

3%&nsection 3 Censorshi

0N*%Agreement

8V7Allo#ance

-

`9* Consolidation

19



G:9* Anticiation

'0 تص

:W%>Q

R6 ت

3%Alied Economics

+=9* Arrangement

+

,%M م

+ م

97Balance *heet

%M م

U'0R ت

3%&0_ ت

3%Balance of %rade

q ت

N م

&nsector

+ م

V0 Bargingم

+=0Q مBarter

+70^ UV%8- م

Beginning &nventory

+/0Q3%5%'93%Blac!list

%M ت

^%Blac!mail

40^9Q7+='0 تص

:%Economic sanctions

@_ م

8&%'W%Board of Directors

%ر

Z%/verseeing

+20Q م

Boycott

20



4WV%- م

Deliberations

'0.*%Uni$cation

8&V' +='0 تص

:%Business Cycle

'0 تص

:%U07W%Business Economic

+:0 Caacity

8'0#Z Certi$cate

8'0#Z

1* +b ر

Z Certi$cate of &ncororation

40?V رصم+ 301h& Caital E(enditure

/& @_ م

8&%'W%Chairman of the Board

407ر

R* Donations

ص

.* Collection

=92* Comensation

&0RI%Comulsory

-

=* Conformation

+@7Currency

21



'9b& '0 تص

:%Deression

8ر

_;Emigration

40b ر

Z 8'-2 مت

+

O_3%'ultinational Comanies

+

<@ م

+f0j )rivate roerty

0 مت

%)rivilege

8&%'%$0 ت

,W%)roduction 'anagement

تر

. )rofessionalم

89Q3%+ /%رY3%)urchasing )o#er

8?0< م

emuneration

= ر

* *abotage

0 ;arranty

+=Mb مر

Centrali1ation

G_Y م

>30 +inancial &ncentiveم

6 3%+ 79O3%6uality Controlر8

22



De$nitions

Account <!0.3% =>%he reort of money received and

sent.

Account Boo! < _1 !0.3% => %he boo! in #hich

accounts are !et.

23



Accumulate <b%ر* = > %o go on increasing .

Act of ,od < 50: V &-: => 8iolent or sudden accident

due to natural forces such as shi-#rec! ?earth"ua!e? etc.

Actualities < '%9.3%+=&0_3% => Current events.

Addition <+?0W% => %he rocess of adding .

Administration <8&%'W%

=> %he force #hich directs?suervises? controls and co-ordinates all the

activities of a business enterrise .

Advertise <K@2= => %o ma!e generally !no#n.

Agenda < UV-I U07% => %he rogram of business to be

erformed at a meeting .

Allo#ance <8V7=> A stated amount money to meet

certain e(enses.

Ban!rut <@N م=> /ne #ho cannot ay his debts.

Bartering <+=0Q م=> %he act of giving one thing in

e(change for another.

Ba1ar <93%=> A mar!et lace? articularly one #here

fancy goods are sold.

Bidding <8-=%M م=> 'a!ing an o7er of a rice .

24



Blac! List < +/0Q3%5%'93% => A list of eole #ho try to act

against the la#.

Boycott <G0Q= => %o shut out from all commercialtransactions .

Breach <+N30 م=> A brea!ing of la#.

Breach /f +aith /r %rust < +,0 j +,0 مW% => Brea!ing of

un#ritten agreement.

Bribe <89Z& => 'oney or something recious given to

in0uence judgment or corrut the conduct.

Budget <+ ,%M م => A statement made by the ministry of

$nance to arliament of the revenue and the

e(enditures of the government.

Censor <:%ر= => %o read #ith the urose of removinganything against the government olicy.

Commerce <8&0_ ت3%=> %he buying and selling of

commodities or services articularly on a large

scale nationally and internationally.

Con$rm <-b= => %o establish more $rmly.

Control <8ر6 3% => &n management it means to guide

something in the direction it is intended to go.

Corresondence <41%رم=> Communication by means

of letters.

25



Crisis <+ م%=> 'oment of danger in economics or

olitics? etc.

Crude /il < NO3%T03% => /il in its natural state.

Currency <+@7=> 'oney in circulation.

Economic +reedom < %:Wتص .3%+='0ر =+ => %he individual is

free to do as he li!es #ith his o#n roerty.

Economics <@7'0 صت:W%

=> %he subject #hich treatsroduction and distribution of goods and

services for the satisfaction of human #ants.

Emergency < -` 5v&0 <> A sudden une(ected event .

+amine <+70_ م=> *evere lac! of food.

,eneral *tri!e < %T07ر%! => *toage of every#here in

the country.

,enuine <>Q Q` => eal

,uarantee <0 => %hing given as security.

&ncome < j-3%=> %he amount of money one receives

each year.

Labor Union < 40^0Q, U023% => An organi1ation consisting of

emloyees .

/verseas < 5%&V &0.R3%م 0 => A broad beyond the seas.

26



emuneration <8?0< م=> )ayment or re#ard for #or!

done.

esignation <+30Q ت

1W%=> %he act of giving u.

esonsibility 3 Authority >

&n management it means that each individual !no#s

e(actly #hat #or! he has to do and #hat rights

and o#ers he may e(ercise in doing it.

*muggle < #= G/0R3%ر ! => %o imort or e(ort #ithout

aying the legal customs duty.

Economic *tability < %:تص 1%'0ت Qر%& => %he stability of a

country from the economic oint of vie#.

*torage <M3%=> %he holding of goods bet#een the

time of their roduction and their use.

*ubsidies <U9= => ,rant or regular allo#ance.

*ulementary <>?0%=> Additional

%rade Barriers < MI%9.3%+=&0_ ت3% => egulations #hich

interfere #ith the free e(change of goods andservices among di7erent countries.

Unanimously <0IW0^ => Done #ith the agreement of

all.

Unemloyment <+306R3%=>

27



%he condition of being unable to $nd emloyment?

#hen able and #illing to #or!.

Usury <0^ ر

3%=>

Any rate of interest #hich is considered to be

unfair and unjust.

Civil *ervices < م -, + -jم 40 => )ublic services such as

#ater suly? electricity? telehone? rail#ay? etc.

Bribery: a form of corruption, is an act implying money or gift giving that

alters the behavior of the recipient. Bribery constitutes a crime and

is defined by Black's Law Dictionary as the offering,

giving, receiving, or soliciting of any item of value to influence the

actions of an official or other person in charge of a public or legal

duty.

Poverty : is the state of one who lacks a certain amount of material

possessions or money.[1]

bsolute poverty or destitution refers tobeing unable to afford basic human needs, which commonly

includes clean and fresh water , nutrition, health care, education,

clothing and shelter.

!emocracy :

is a form of government in which all people have an e"ual right in the

decisions that affect their lives.

#rade : is the transfer of ownership of goods and services from one

person or entity to another.

28

http://en.wikipedia.org/wiki/Black's_Law_Dictionary

http://en.wikipedia.org/wiki/Offer_and_acceptance

http://en.wikipedia.org/wiki/Gift


http://en.wikipedia.org/wiki/Solicitation

http://en.wikipedia.org/wiki/Legal

http://en.wikipedia.org/wiki/Duty

http://en.wikipedia.org/wiki/Poverty#cite_note-britannica-0


http://en.wikipedia.org/wiki/Poverty_threshold

http://en.wikipedia.org/wiki/Basic_needs

http://en.wikipedia.org/wiki/Drinking_water

http://en.wikipedia.org/wiki/Nutrition

http://en.wikipedia.org/wiki/Health_care

http://en.wikipedia.org/wiki/Education

http://en.wikipedia.org/wiki/Ownership



http://en.wikipedia.org/wiki/Gift


http://en.wikipedia.org/wiki/Solicitation

http://en.wikipedia.org/wiki/Legal

http://en.wikipedia.org/wiki/Duty


http://en.wikipedia.org/wiki/Poverty_threshold

http://en.wikipedia.org/wiki/Basic_needs

http://en.wikipedia.org/wiki/Drinking_water

http://en.wikipedia.org/wiki/Nutrition

http://en.wikipedia.org/wiki/Health_care



http://en.wikipedia.org/wiki/Black's_Law_Dictionary



$ncoterms: $ncoterms or $nternational %ommercial #erms are a series of

pre&defined commercial terms published by the international

chamber of commerce '$%%( widely used in international commercial

transactions. series of three letter trade terms related to common

sales practices, $ncoterms are intended primarily to clearlycommunicate the tasks, costs and risks associated with the

transportation and delivery of goods.

#he )nited *ations ')*(: is an international organi+ation whose stated

aims are facilitating cooperation in international law, international

security, economic development, social progress, human rights, and

achievement of world peace.

*on&governmental organi+ation' *-( : is a legally constituted

organi+ation created by natural or legal persons that operates

independently from any government.

#he ood and griculture -rgani+ation of the )nited *ations '-( : is a

speciali+ed agency of the )nited *ations that leads international

efforts to defeat hunger.

#he /orld 0ealth -rgani+ation '/0-(:is a speciali+ed agency ofthe )nited *ations ')*( that acts as a coordinating authority on

international public health.

#he )nited *ations ducational, 2cientific and %ultural

-rgani+ation ')*2%-(: is a speciali+ed agency of the )nited

*ations. $ts stated purpose is to contribute to peace and security by

promoting international collaboration through education, science,

and culture .

29

http://en.wikipedia.org/wiki/International_organization

http://en.wikipedia.org/wiki/International_law

http://en.wikipedia.org/wiki/International_security


http://en.wikipedia.org/wiki/Economic_development

http://en.wikipedia.org/wiki/Social_change

http://en.wikipedia.org/wiki/World_peace

http://en.wikipedia.org/wiki/Natural_person

http://en.wikipedia.org/wiki/Legal_person

http://en.wikipedia.org/wiki/Government

http://en.wikipedia.org/wiki/United_Nations


http://en.wikipedia.org/wiki/Public_health



http://en.wikipedia.org/wiki/Peace

http://en.wikipedia.org/wiki/Security

http://en.wikipedia.org/wiki/Collaboration


http://en.wikipedia.org/wiki/Science

http://en.wikipedia.org/wiki/Culture

http://en.wikipedia.org/wiki/International_organization




http://en.wikipedia.org/wiki/Economic_development

http://en.wikipedia.org/wiki/Social_change

http://en.wikipedia.org/wiki/World_peace

http://en.wikipedia.org/wiki/Natural_person

http://en.wikipedia.org/wiki/Legal_person




http://en.wikipedia.org/wiki/Public_health



http://en.wikipedia.org/wiki/Peace

http://en.wikipedia.org/wiki/Security

http://en.wikipedia.org/wiki/Collaboration


http://en.wikipedia.org/wiki/Science

http://en.wikipedia.org/wiki/Culture



C2A)%E /E

Economics #hat it is about @

'any of the #ords used by economists are very

familiar to us . ;e !no# that they tal! 3 #rite

about such toics as money ? rices ? #ages ?

emloyment ? ta(es ? e(orts ? and imorts ?

earning ? and sending .

Every day some economic roblem or other is

mentioned in the ne#saers ? on the radio and

on the television .

Economics is art of everyday lives ? for > ;e live in

an economic system ? every day #e ta!e a art in

economic activities ? and #e are familiar #ith the

#ords used by economists .

30



31

Economi

cs

Is the

The

satisfactio

n of

#ants..…

Whichinvolves

the

consumt

ion of

Which are

produced

withscarce

Wants are

unlimited

Resources

are

limited insupply

Thisinvolves

choice.3

Which means that alleconomic goods have

in oortunity cost



Chater t#o

De$nitions

Demand >-the amount consumers are #illing and

able to urchase at a given rice er eriod oftime

*uly > %he amount roducers are #illing to o7er

for sale at any give rice as #ith demand ? rice

is a major in0uence on "uantity sulied . as

rice rises so does ro$t

therefore ? no# suliers are attracted into the

mar!et and e(isting $rms are temted to

increase roduction .

32



%yes /f Economic *ystem F

33

A

MARKET

ECOOM!

A

MI"E#

ECOOM!

A

COMMA

#

$eatures are:

%rivate property-

$reedom ofchoice-

&elf ' interest –

-Operation ofthe pricemechanism(competition )

$eatures are

:

%u*licownership-

-%lanned%roduction(resourcesallocated *ygovernmentdirectives )

-%lanned

Contain

features of

*oth mar+et

and

command

Represent di,erent ways of dealing

with the

Basic economic roblems

Which are:

-. ;hat to produce /0. 2o# to produce it /



Demands

Denition: Gthe amount consumers are #illing and

able to urchase at a given rice er eriod of

time.G

%he individual demands of eole are added

together to form the mar!et demand.

Change in the conditions of demand

&t is clear that demand deends uon many factors

H not merely rice. %hese are !no#n as the

underlying conditions of demand. %hey can be

remembered by the #ord 5CIST'.

34



Complements. 'any goods are in joint demand? e.g.

cars and etrol . it is clear that changes in the

rice of cars #ill a7ect not only the demand for

cars but also the demand for etrol ? as the t#o

go together . ,enerally? if the rice of

comlementary good increases then the demand

for the jointly demanded good is li!ely to fall.

%hus if the rice of etrol rises? demand for cars

is li!ely to fall .

Income. &t is clear that changes in the level of

income are li!ely to have a considerable imact

on demand. +urthermore changes in the

distribution of income #ill also a7ect mar!et? +or

e(amle? if income ta( becomes more

rogressive the demand for lu(uries may fall and

the demand for normal goods may increase.

Substitutes. 'any roducts have a number of close

substitutes or goods #hich may be consumed

instead. +or e(amle? many eole #ould be

largely indi7erent as to #hether they eat

cabbage or cauli0o#er for dinner. 2ence if therice of cauli0o#er suddenly rose? consumers

are very li!ely to buy cabbage instead. %hus

#hen the rice of a substitute good rises?

demand for the original good increases too.

35



Tastes and fashions. %his #ill be obviously be a

major factor a7ecting demand for certain

roducts.

*uly

Denition : %he amount roducers are #illing

to o7er for sale at any given rice.

As #ith demand? rice is a major in0uence on

"uantity sulied . As rice rises so does ro$t?

therefore? ne# sulies are attracted into the

mar!et and e(isting $rms are temted to

increase roduction .

Conditions of supply :

Basically anything that in0uences ro$t #ill a7ect

the conditions of suly . %here are a number of

conditions of suly #hich may change and

roduce a ne# suly curve . %hese can be

remembered by the #ord G C/)&, G .

36



Costs :

%his item refers to the cost to the $rm of aying the

factors of roduction . &f a $rm has to ay morefor its ra# materials? etc . ? it #ill re"uire a

higher selling rice in order to maintain its

normal ro$t at e(isting outut levels . An

increase in costs #ill lead to a decrease in ro$t

and therefore a reduction in suly.

Other prices :

%he imact of other rices deends on the

relationshi bet#een the good being sulied

and other goods .

Innovations :

;e live in an age #here raid technological change

is the norm. %hus $rms are often able to use

technological change to roduce goods much

more chealy? e.g. the use of robots and

comuters.

overnment policy :

37



2ere #e are articularly concerned #ith the e7ects

of &ndirect ta(ation and *ubsidies uon the

suly curve. +or instance? an increase in 8A%

means that suliers #ill #ish to sell the same

"uantity at higher rices and so the suly curve

#ill shift to the lift. ;hen a ta( is imosed the

roducer receives the selling rice less the ta( H

this reduces ro$t and therefore decreases

suly . 8ice versa for a subsidy .

38



Elasticity

De$nition > %he resonsiveness of

sulyIdemand to a given change in rice .

'easurement of rice elasticity of

demand

Elasticity is measured by the Coe4cient of

elasticity

+actors in0uencing <rice= elasticity

of demand %hese can be remembered by the

#ord G %2&*G

39



%ime > &n the short term consumers may not fully

areciate ossible alternatives and thus

continue to urchase certain goods follo#ing a

rice rise . 2o#ever? in the longer eriod they#ill become more a#are of other ossibilities.

2abit > 6uit often #e urchase goods

automatically #ithout? erhas? being fully

a#are of the rice #hich #e are aying ? e.g.

ne#saers? mil!. %hus goods #hich are

habitually bought are more li!ely to be in

inelastic demand. +urthermore some roducts

have an addictive e7ect? e.g. cigarettes. %he

nicotine addict #ill continue to burn a #ay

hisIher money almost regardless of rice .

&ncome > *ome goods constitute only a small

roortion of consumers income? e.g. matches.

&n this case even a KK er cent rise in the riceof matches can be "uite easily absorbed since

most consumers send only a tiny fraction of

their income uon matches. Demand is thus

li!ely to be inelastic . Comare this #ith ho#

you thin! consumers #ould react to a doubling of

car rices .

*ubstitutes > )ossibly the single most

imortant factor is the closeness and availability

of substitutes. +or e(amle? etrol has no

genuinely e7ective freely available substitutes.

'easurement of elasticity of suly

%he co-e4cient of elasticity of suly is de$ned as

40



+actors a7ecting elasticity of suly

%ime > &n most manufacturing industry

roduction lans can be altered relatively

"uic!ly? bearing in mind that contracts for

urchases of ra# materials? etc.? are oftenbinding for around si( months. 2o#ever? in

agriculture the eventual si1e of the harvest? once

the seeds are lanted? deends uon climatic

conditions. Current mar!et rices #ill have no

e7ect uon cro yields at all .

+actors of roduction > 'anufactures can

only resond to increased rices if the e(tra

factors of roduction are freely available. &f?

ho#ever? the factors of roduction are

unavailable or available only at an increased

cost? then $rms may be less inclined to resond

to rising rices by increasing outut. %hus suly

#ill tend to be more inelastic.

41



!actors of production

All roductive rocesses re"uire factors of

roduction in varying roortions. %he factors

are Land? Labor? caital and enterrise.

"and

A natural resource covering all 5 free gifts of nature

5? e.g. earth? trees? 0at land? sea? rivers? etc.

Land can be bought or rented? but it is necessary

before roduction can be started. %he o#ners of

land receive rent for its use.

"abor

42



A human resource H #or!ers of every tye in every

!ind of activity from surgeons to sho assistants.

Di7erent jobs re"uire di#erent $ualities of

strength? s!ill? education? and resonsibility. %he

bigger the organi1ation then usually the #ider is

the variety of human #or! re"uired. Labor is

'o%ned' by individuals #ho sell it to $rms? and

receive #agesIsalaries in return.

Capital

Caital is a man-made resource? e.g. machinery? a

lorry or a robot. &t is used to ma&e consumers

goods and services. ;ithout caital? there #ould

be no roduction. Usually caital and labor are

combined. Caital lasts a long time but

eventually needs relacing. ;hen its value

declines #ith age? it is said to be 5dereciating 5.

nterprise

Another human resource. %his factor refers to the

organi1ing? lanning and ris!-ta!ing by theo#ner of a business. 2i receives prot for his

#or!? and is called the entrepreneur . 2o#ever? in

modern economies large businesses are seldom

o#ned by one erson instead they are o#ned by

many shareholders and controlled by a Board of

Directors.

43



conomic goods are scarce goods

%here seems to be no limit to eole5s #ants and no

limit to vie# ideas for satisfying them. At anymoment in time? ho#ever? there is a limit to the

amount of goods and services #hich can be

roduced. %he economic recourses H land? labor?

materials? fuel? factories? machinery? etc. H #hich

are needed to roduce goods and services are

limited in suly.

&t is true that? as time goes by technical rogress

enables us to roduce more of the things eole

#ant. %he roblem is that our #ants seem to

gro# as fast as? or even faster than? our ability

to roduce goods and services.

%he basic roblem of economics? therefore? is that

economic resources are limited in suly buteole5s #ants seem to be unlimited.

44



;e cannot buy all the things #e #ould li!e to have.

;hen #e ma!e a choice? #e select from the

things #e can a7ord those #hich give us the

most satisfaction or leasure.

;hen #e ma!e a choice? something has to be given

u or forgone. %he thing #e decide to give u is

the sacri$ce #e have to ma!e in order to obtain

the thing #e have chosen.

;hat #e give u is described as the oortunity

cost of obtaining the thing #e have chosen.

The (ain points

2uman #ants aear to be unlimited. ising

standards of living seem to encourage demands

for even higher standards.

%he economic resources available at any time

cannot suly enough goods and services to fully

satisfy human #ants.

*carcity and choice are features of all societies? rich

and oor ali!e.

/ortunity cost refers to the fact that #hen H ever

a choice is made? something has to be given u.

%he thing #e have to give u is the true cost of

the thing #e have chosen.

+ree goods are those #hich can be obtained #ithout

sacri$cing something else. %he roduction of

these goods does not use u scarce resources.

45



)roduction includes the oututs of services as #ell

as hysical goods.

&n a modern economy? #e are? as individuals?incaable of roducing for ourselves all the

things #e need for survival. ;e are all

deendent uon a system of e(change.

The $uestion every society must ans%er

All societies? from the most remote &ndian village to

the large industriali1ed country? must $nd #ays

of ans#ering the follo#ing "uestions.

)hat goods and services should be

produces* and in %hat $uantities+

A country can only roduce some of the goods and

services its eole #ant. &t must? therefore? $nd

some method of choosing #hich articular goods

and services to roduce. &f the aim is to roducethose things #hich best satisfy the eole5s

#ants? then it has to $nd a #ay of discovering

#hat eole really #ant.

,o% should the goods and services be

produced+

46



'any commodities can be roduced by using

di7erent method of roduction. *ome

manufactured goods can be roduced either by

small $rms using a lot of s!illed labor or by

mass-roduction methods? in #hich a lot of

caital e"uiment is used.

!or %hom should the goods and

services be produces+

6uestion and M are roblems of roduction. But

even if the roblems of roduction are solved?

there is still the roblem of distribution H ho#

should the things #hich have been roduced be

shared out among the members of the

community@

;e can ose some "uestions to illustrate the

di4culties in $nding satisfactory solution to thisroblem>

*hould there be e"ual shares for all@

*hould those #ho roduce more have larger shares

than those #ho roduce less@

*hould s!illed #or!ers receive more than uns!illed

#or!ers@

*hould each erson5s share be based on his or her

needs@ <And ho# should decide #hat a erson

needs@=

47



48



;ealth and income

)ealth :

;ealth consists of a stoc! of goods #hich have a

money value. &t includes such assets as land?

houses? factories? shos? machines? and many

!inds of ersonal ossessions.

-rivate %ealth :

%his describes the ossessions of individuals. &t #ill

obviously include land? houses? #or!s of art?

je#ellery ? motor cars and so on. )rivate #ealth

also includes $nancial assets such as notes and

coin? ban! deosits? building society deosits

and comany shares .

Social %ealth :

%his consists of those assets o#ned by the

community as a #hole <i.e. by central and localgovernment=. &t includes such things as roads?

hositals? schools? ar!s and libraries.

ational %ealth :

49



%his is the sum of all the #ealth ossessed by the

citi1ens of a country? #hether it is rivately

o#ned or ublicly o#ned.

Income :

;hereas #ealth is a stoc! of assets #hich have a

money value? income is a 0o# of money.

&ncome refers to the amount of money earned or

received during a given eriod of time H usually

one year. An individual may receive income in

various forms? such as #ages? salaries? interest

on savings? rent from the o#nershi of roerty?

ro$ts on shares? or social security ayments.

%he basic di7erence bet#een income and #ealth isthat >

&ncome is a 0o# of money received during a given

eriod of time? #hile

;ealth is a stoc! of assets o#ned at some moment

in time.

50



-roduction* consumption and e/change

Every day #e can see eole carrying out economic

activities. %hey are ta!ing lace in houses?

shos? o4ces? factories and ban!s? on farms? on

building sites? and so on. %he study of this great

variety of activities is made much easier by

classifying them into three main tyes of activity

roduction? consumtion and e(change.

-roduction

%he #ord roduction is usually ta!en to mean thema!ing of some hysical object? such as a motor

car? a iece of furniture or a air of shoes? or the

gro#ing of some articular cro ? such as #heat

or otatoes.

&n economics? ho#ever? the #ord GroductionG has a

much #ider meaning. )roduction ta!es lace so

that eole5s #ants can be satis$ed. Any !ind

of #or! #hich hels to satisfy eole5s #ants?

and for #hich they are reared to ay a rice? is

roductive #or!.

51



)roduction ? therefore includes the outut of

services as #ell as goods. &f eole are reared

to ay a rice for a service? it must be satisfying

a #ant in the same #ay as a hysical object. %he

eole #ho #or! in service industries <such as

#holesaling? retailing? ban!ing? insurance?

accountancy? transort? the la#? education and

health= are roductive in the same #ay as car

#or!ers and farmers. &t is clear that? in a modern

economy? factories? mines? o#er stations?

farms? etc. ;ould $nd it imossible to oerate

#ithout such services.

Consumption

Consumtion describes the Gusing uG of goods and

services in order to satisfy our #ants.

Durable consumer goods

%hese are consumer goods #hich have a fairly long

life H many of them last for several years. %hey

include such items as household furniture?

domestic aliances and the family car. ;e

consume the services such things give us rather

than the goods themselves.

on0durable consumer goods

%hese are commodities #hich are used u

immediately <i.e. in a single use= or in a

relatively short eriod of time. +ood? drin!s? soa

and toothaste are obvious e(amles of non-

durable consumer goods.

52



Services

&n a modern economy? a large art of total

consumtion consists of services. &n &ra"? fore(amle? #e are all very deendent on the

transort? telehone? legal? education and health

services. Entertainment is another imortant

service industry.

/change

&n all but the most rimitive societies? some !ind ofe(change must ta!e lace before eole can

satisfy their #ants. 8ery fe#? if any? of us can

roduce for ourselves all the things #e need to

maintain our resent standard of living.

%he great majority of #or!ers seciali1e. *ome

send their day roducing some small art of aroduct <e.g. #or!ers on an assembly line=.

/thers seciali1e in sulying some articular

service <accountants? teachers and sho

assistants=. *ecialist #or!ers can survive and

enjoy a high standard of living because there is a

system #hich enables them to e(change #hat

they roduce for the goods and services

roduced by other secialists.

%his system of e(change deends uon the use of

money. ;hat haens is that #e sell our services

for money <#ages and salaries=? and then use

this money to buy the things #hich others have

roduced.

53



54



'A:E%*

Introduction

A mar!et is #here goods and services are bought

and sold. %his need not be an actual lace?

although most mar!ets can be located. %he main

re"uirement for a mar!et is that buyers and

sellers can communicate H this may be done by

tele(? email? letter or #ord of mouth.

%he term Gmar!etG is used in many #ays in

Economic >

- etail mar!et. )eole normally mean stalls from

#hich goods are sold to the $nal consumer. 'ost

to#ns have traditional mar!et days in #hichitinerant traders sell their roducts.

M-;holesale mar!ets. &n the chain of distribution

manufacturers sell to retailers through

#holesalers. %heir function is to buy themanufactured goods and ra# materials and

distribute them to sho!eeers . 'ost #holesale

mar!ets are in regional centers .

N-)roduct mar!ets. &n Economics? a mar!et refers to

the trade in a articular roduct #hen it is made.

55



O-+actor mar!ets. %he factors of roduction <land?

labor? caital? enterrise= are sold to buyers #ho#ish to ma!e goods and rovide services. %heir

demand is said to be derived from the demand

for the $nal roduct? e.g. oil comanies see!

more divers if demand for oil increases.

P-,eograhical mar!ets. %his refers to the si1e ofthe mar!et in terms of otential customers. +or

instance? the mar!et for Gself-ic!G stra#berries

is limited by the distance eole are reared to

travel and the rice di7erence bet#een self-

ic!ing and buying from a sho. As the sale of

many ra# materials? e.g. silver and rimary

roducts such as cocoa? is #orld-#ide? these

#ould be classi$ed as international. &n bet#eenlocal and international mar!ets? there #ill be

regional and national mar!ets.

Q- Commodity mar!ets. %he trade in basic ra#

materials and foods is centered in London? e.g.cotton? tea e(changes. %he goods can be bought

immediately at the revailing rice <sot=

determined by demand and suly or a future

date at an agreed rice. %he latter system #as

develoed to rotect traders from rice changes

over time.

56



57



'ar!et structures

'ain mar!et structures are )erfect Cometition?

'onooly and &merfect Cometition.

)erfect cometition

%his structure describes an imaginary situation in

#hich no one buyer and no one seller can

determine the mar!et rice and each has erfect

!no#ledge of mar!et conditions. &t is

characteri1ed by >

- A large number of sellers. Each seller rovides

just a small share of the total and this ma!es him

unable to in0uence mar!et rice.

M- )erfect information. Each buyer has comlete

!no#ledge of the mar!et. *uch informationmeans that no seller can raise his rice as he #ill

lose all his customers? assuming that they are

rational.

N- +reedom of entry into the mar!et. &f $rms in a

mar!et are ma!ing large ro$ts <abnormal=?

more entrereneurs #ill be attracted into the

industry. &t is assumed in erfect cometition

that entry is easy and that there are no

restrictions on entry.

O- 2omogeneous roducts. All goods are identical

and cannot be distinguished.

58



P- 'any buyers. Each consumer buys only a small

roortion of the total goods available and thus

cannot in0uence mar!et rice by their o#n

actions aart. Any di7erences bet#een roducts

#ould ma!e cometition less than erfect.

Q- o government interference

R- )erfect mobility of goodsIfactors throughout the

mar!et . %his assume no transort and no

training costs.

59



60



'oney

&ntroduction >

%oday? money can be obtained legally by >

-;or!ing for it? e.g. a #ee!5s #ages.

M-,aining an income for letting someone use your

assets? e.g. rent for a 0at.

N-Being aid by the state? e.g. *ulementary

Bene$t.

O-eceiving a gift? e.g. P S for birthday.

P-Borro#ing e.g. a ban! loan.

De$nition >

G'oney is anything that is accetable to its users

in an economic system.G

As most economic systems oerate through trade?

because eole are not self-su4cient? the money

has to facilitate the e(change of goodsIservices.

%hese goods and services need to be valued and

money is the measure #hich does that. Any

ro$ts made might #ish to be saved for future

use? thus money needs to !ee its value.

61



&t is often said that Gmoney is #hat money doesG.

%his means that anything can be used as money

as long as it erforms certain !ey functions.

+unctions >

%here are four main functions of money. %hey can

be remembered by the #ord G*U'*G.

*tore of value. ;hen eole receive money the

amount not sent is saved. )eole e(ect their

savings to maintain their value for #hen they

#ish to send them. %hus money should be

caable of holding its value through time? so that

the buying of goods in the future by savers

does not ut them at a disadvantage.

&n the ast? eole hoarded gold because it !et its

value. Clearly if in0ation is raid? the value of

savings falls and money does not function

e4ciently as a store of value.

Unit of account. %his is sometimes referred to as

a Gmeasure of valueG. &t means that all goods and

services are valued in common units <e.g. ound

and ence= #hich eole accet and understand.

62



'edium of e(change. %his function means that

the money is accetable to the seller #hen thebuyer ays for the good bought.

&n a modern society a #or!er is aid #ages in

money <rather than goods= and this enables him

to send #hen and #here he #ants.

*tandard of deferred ayments. Deferred

means GostonedG. 'oney allo#s for goods to

be obtained one day and aid for on another day?

or over a eriod of time? in an accetable #ay.

%hus it enables credit to be given to buyers and

reassures sellers that they #ill receive the

e(ected amount? valued in money? later. Creditthereby encourages trade.

6ualities >

&n order to erform the above functions? anything

used as money needs to ossess certain

desirable roerties. %hese characteristics can

be remembered by the hrase GADD* U)G.

63



Accetability. %his !ey "uality means that eole

are reared to accet something as money.

%hus the Ta &slanders in the *outh *eas used to

ma!e ayments in giant stone cart#heels #hich

#ere !et under #ater. %hey facilitated the *tore

of 8alue function better than the other functions

Durability. 'oney needs to be long-lasting?

articularly in order to remain as a store of value

and standard for deferred ayment. %hus

erishables are no good as money. &t is robably

because of this that eole !ee ne# cris notes

and send old tatty ones.

Divisibility. %he money used has to be caable ofbeing divided into units? so that small amounts

can be aid e(actly. %hus? #e have S #hich

divides into PK? MK? K? P? M and ieces.

%he develoment of chec!s is ma!ing this

"uality less imortant? but it #ill remain #hilst

most of the adult oulation do not have ban!

current accounts.

64



*tability. %he maintenance of value over time is

imortant for money to !ee its store of value

function? so that trust is maintained. &f a

currency loses its stable value then the economic

system goes hay#ire. +or instance? the

hyerin0ation of ,ermany in the VMKs led to

#ages being aid t#ice er day and money being

"uic!ly sent because its value #as raidly

declining. 8alue is maintained if money is

relatively scarce? e.g. sand or leaves #ould not

be chosen.

Uniformity. &f money is of variable "uality then

eole may be #ary of certain tyes of money.

+or instance in VWN? eole #ere reluctant to

hold S coins and referred S notes. &n the ast

coins #ith more recious metal in them #ereretained and others sent. %hus? today? all K

ieces are identical in shae? si1e? #eight and

content and this facilitates all functions of

money e(cet the *tore of 8alue idea. Uniformity

aids easy recognition of money.

)ortability. 'oney needs to be easily carried

around so that it can be e(changed for

goodsIservices as re"uired.

%oday chec!s give a consumer 0e(ibility and

increased choice?

65



because they are easy to transort and generally

accetable.

(onetary In1ation In Ira$

Introduction:

&t is commonly !no#n that the monetary in0ation

roblem or henomenon reresents a serious

economic illness #hich has been a7ecting most

economies of the countries around the #orld

including rich and advanced countries #hoselosses varied remar!ably.

66



&n0ation henomenon has become of interest to

economists throughout the #orld. %here is acontroversy on a #ide scale over the reasons for

such henomenon and its economic imacts on

the economic regime.

'onetary in0ation re0ects the ongoing increase in

rices as a #hole? and as such in0ationreresents continued decline in the urchase

o#er because of the large volume of money in

circulation. 'onetary in0ation re0ects lac! of

economic e"uilibrium in the mar!ets of goods

and services along #ith the roduction factors

comrising caital? land? machines and

mano#er.

Besides? monetary in0ation ta!es lace as a result

of the imbalance bet#een cash 0o#s and in0u(

of goods and services into the mar!et. &n fact?

increase in cash 0o#s is in this case higher than

the increase in in0u( of goods and services.

67



&f #e loo! into the monetary in0ation in &ra"? #e

#ill $nd that in0ation has a longstanding history

#ith the &ra"i economy. the real value of the &ra"i

currency has droed remar!ably and such dro

has al#ays been accomanied by a big rise in

the rices of goods and services. &ra" has the

highest in0ation rate among <MM= Arab countries?

and monetary in0ation rate reached QO.WX

according to the statistical bulletin of MKKQ

issued by the Economic and *ocial A7airs

Deartment of the United ations. %his rise

resulted from the rise in the inde( $gure of

commodities consumed by the citi1ens such as

food stu7s? garments and aarel? fuel?

transortation? rentals etc. %he consumer5s

general rice inde( $gure rose during the years

MKKN? MKKO? MKKP? and MKKQ according to the

follo#ing rates NN.QX? NN.VX? NQ.VX? and QO.WX

resectively.

2rief ,istory of the causes of in1ation

in Ira$:

eercussions of the monetary in0ation roblem

have been ongoing since the VWKs u to this

time. %he roblem #ill be addressed in this

research in t#o hases 'onetary in0ation in &ra"

before 3 after MKKN

68



3 conomic in1ation in Ira$ before 4556:

Although the economic activity #as dominated by

the *tate during that eriod? the *tate could not

restrain in0ation and contain its imacts. &ra"

#as then su7ering from recalcitrant in0ation

#hich reached an annual average of nearly MNRX

during the years VVK-VVP according to the

statistical $gures of the &ra"i 'inistry of

)lanning. %his in0ation #as caused by thefollo#ing factors>

. &ra"i economy #as transformed into an economy

totally deendent on revenues as a result of

selling oil for $nancing ublic e(enditure. &ra"too! the lead in terms of the countries #hich

deended on foreign trade to the ,ross Domestic

)roduct <,D)= by aro(imately QW.PX as an

average for the eriod VRK- VVO.

69



M. &ra" #as involved in several military and olitical

crises beginning #ith the &ra" - &ran ;ar and

ending #ith the *econd ,ulf ;ar. &n the eriod

from VWK-VWW? &ra" lost its foreign currency

deosits amounting to U*S<OK= billion along #ith

the interest rates #hich #ould have hoefully

been accrued and obtained on such reserves.

'oreover ?&ra"Ys debts reached around U*S<WK=

billion? and the total costs of the ,ulf ;ar are

estimated at U*S< OPK= billion. /n the other

hand? all the comonents of &ra"i economy

su7ered economic destruction? and the ublic

balance of the country sustained un arallel

de$cit? accomanied by an increasing foreign

debt along #ith comensations amounting to

more than U*S<MKK= billion.

&n the early VVKs? the former regime issued localcurrencies #ithout gold cover and at local rint

houses reconstruction of the country thereby

#orsening the situation. %his action led to large

increase in money suly? and intensi$ed

in0ationary ressure at horrifying rates. 'oney

suly rose from <MOQRK= million &.D in VV to

about <MVWWV= million &.D in MKKN.

N. )ervasive destruction of the infrastructures

esecially in terms of energy resources

<electricity and oil= roads? bridges? health and

educational institutions5. %hese facilities still

need enormous amounts of money to be restoredto service.

70



O. Economic bloc!ade imosed on &ra" led to an

overall aralysis of the economy of the &ra"ieconomy comrising all its sectors esecially

after the oil e(orts #ere halted.

conomic in1ation in Ira$ after the year

4556:

%he events in &ra" since do#nfall of the former

regime and the Allied +orces domination of &ra"

have altogether accelerated the aace of

deterioration? articularly as the roductive

$rms #ere subjected to looting? burning and

destruction throughout the country. Economic

recession ervaded the comonents of the &ra"ieconomy to the e(tent that the temorary

coalition authority has #orsened an already

ailing &ra". %he imacts of this situation on

monetary in0ation #hich a7ected the &ra"i

economy can be summed u in the follo#ing

oints>

. emoval of *tate from the economic $elds?

e(clusion of *tate from the mar!et mechanisms?

and lifting *tate subsidy for a #ide sectrum of

basis goods? esecially after the instructions

#hich the &nternational 'onetary +und <&'+=

issued to the &ra"i ,overnment to removesubsidy for the oil roducts.

71



*uch subsidy used to constitute a signi$cant

ortion of the family5s income? and this led to

rise in the rices of goods and other services

o#ing to the high costs of transortation.

M. %he country has been forced to adot a free

foreign trade olicy and to consolidate imort

trade #hich heled the goods from the

industriali1ed countries to invade the local

mar!et? articularly as those goods are originallyhighly cometitive and this led to destroying the

local industries.

N. ,ro#ing number of the unemloyed esecially

after the destruction of roductive sectors in&ra". &t is necessary to oint out here that before

MKKN there #ere nearly <VM= major rojects for

the &ra"i ,overnment hiring aro(imately half a

million emloyees #ho became unemloyed after

MKKN. 'oreover? large numbers of army? olice

and security forces became unemloyed after

the decision the temorary coalition authority

issued to dissolve the army? olice and securityforces. %herefore? overty ratios rose

considerably in the country #here? according to <

&'+= estimate? MMX of the &ra"i eole are living

under the overty line.

72



O. *ecurity situation has gone out of control and

resulted in obstructing the e7orts e(erted for

reair and reconstruction of the economic

infrastructures in &ra". Anarchy and lac! of

security in &ra" made the *tate budget heavily

burdened #ith e(enditure re"uired for

roviding the armed military forces #ith training

and #eaons. %he money sent in this regard is

estimated at more than U*S <QK= billion?

according to the statistical $gures issued by the

&ra"i 'inistry of )lanning.

P. %he reasons that led to continued and ro#ing

in0ation include the in0ationary ga on the basis

of money suly #hich e(ceeds demand.

According to the information on the &ra"i

economy? such ga consists of the large

monetary mass in the mar!et as re0ected by themoney suly #hich is the result of adding the

net currency in circulation to the current

deosits as oosed to the declining "uantity of

goods and service roducts. /ur local mar!ets

su7ered from the resence of &D<P.R= trillion in

MKKN #hich rose u to &D <K.= trillion in MKKO.

&n MKKP? this $gure rose u to &D <.N= trillion

and to &D <N.M= trillion in MKKQ therebyincreasing the rice level and a7ecting the

$nancial asset values on the art of both

establishments and individuals.

73



Q. +inancial and administrative corrution became

#idesread in &ra"? #here also millions of dollars

in cash disaeared from the &ra" Develoment

+und managed by the United *tates? and control

authorities inability to chase the corrut. +or

these reasons? ublic became suscetible to

looting and theft di7erent grous.

Aarently this led to failure of the ne#

develoment rojects.

R. *tructural disorder as a result of the slo# and

declining gro#th of ublic revenues along #ith

the rigid ta( structure. As a result of such

disrution? ta( revenues could not cover the

government e(enditures? and this led to de$cit

in the *tate ublic budget.

%he Economic eform e"uired &n Arab Countries

&n the last decade? a number of Arab countries have

embar!ed on a rocess of economic reform in

resonse to the economic challenges originating

from both ressures to integrate into the global

economic system and from domestic economic

needs.

74



At the global level? increased cometitiveness and

ne# trading atterns as #ell as internationalcommitments and multi-lateral trade and

cooeration agreements have re"uired the

reform of the e(isting economic system

characteri1ed by a high level of state

involvement into an e7ective and cometitive

mar!et economy.

eform have also imlied the creation of ne# and

amendment of e(isting legal and institutional

frame#or!s in suort of a cometitive economy

#ith reduced state intervention. %hese

amendments involve among others the

romulgation of la#s regulating rivati1ation?

cometition? investment? trade of goods andservices? $nancial and caital mar!ets as #ell as

the labor mar!et.

Economic reform consists of a choice from among a

range of economic olicy otions. &deally? the

choice among economic olicy otions should

reconcile bet#een the internal economic

develoment that suorts social develoment

and that #hich is re"uired by increased

integration into the global economic system.

75



%he resonse of Arab countries to the ressure to

integrate in the global economy has been

diverse. &n some countries? economic reform has

been uneven and selective and has involved

some economic sectors at the e(ense of

othersw

&n other countries governments have made

rogress to transform their economies into a

mar!et-oriented one. 2o#ever? even in those

successful cases? economic reform rograms

have often sidelined social develoment and

have even contributed to increasing socialine"ualitiesw

76



At the domestic level? the most ressing challenge

faced by a number of Arab countries remains the

raid oulation gro#th and the concurrent

increase in unemloyment rates as #ell as the

resulting rise in social demands. &n addition? in a

number of Arab countries? as a result of

economic reform rograms? the overty rate has

increased and constitutes an urgent riority to

be addressed? in order not to threaten social

stability. %hus? economic reforms that are

suortive of social develoment have become

one of the most ressing needs for Arab

governments and constitute a !ey recondition

for sustainable human develomentw

77



78



,uman 7ights

2uman rights are the rights ossessed by all

ersons? by virtue of their commonhumanity? to live a life of freedom and

dignity. 2uman rights are universal H they

are the same for everyone? every#here.

%hey are rotected by la#.

&nternational human rights la# has evolved #ith the

goal of safeguarding the safety and the dignityof the human erson by establishing legal

obligations on countries to rotect the rights of

all eole under their legal authority.

&t is based on the VOW Universal Declaration on

2uman ights? #hich contains thirty articles

ointing all the human rights that ought to be

rotected by governments and the international

system.

*ome of the articles belo# >

ight to life> every erson has the right to life and

has the right not to be arbitrarily derived of

life. A erson must not be subjected to torture

or treated or unished in a cruel? inhuman or

degrading #ay or subjected to medical or

scienti$c e(erimentation or treatment #ithouthis or her full? free and informed consent.

79



+reedom from forced #or! > a. A erson must not

be held in slavery? b. A erson must not be madeto erform forced or comulsory labor.

+reedom of movement > every erson la#fully has

the right to move freely and to enter and leave

his country and has the freedom to choose #here

to live.

)rivacy 3 eutation> A erson has the right not to

have his or her rivacy? family? home or

corresondence unla#fully or arbitrarily

interfered #ith? and not to have his or herreutation unla#fully attac!ed.

+reedom of thought? conscience? religion and

belief > every erson has the right to freedom of

thought? conscience? religion and belief?

including the freedom to have or to adot a

religion or relief of his or her choice. %he

freedom to demonstrate his or her religion or

belief in #orshi? ractice and teaching? either

individually or as art of a community? in ublic

or in rivate. A erson must not be restrained in

a #ay that limits his or her freedom to have or

adot a religion or belief in #orshi? ractice or

teaching.

80



+reedom of e(ression > every erson has the right

to hold an oinion #ithout interference? everyerson has the right to freedom of e(ression

#hich includes the freedom to see!? receive and

imart information and ideas of all !inds?

#hether orally or in #riting or in rint or by #ay

of art or in another medium chosen by him or

her.

)eaceful assembly and freedom of association >

every erson has the right of eaceful assembly?

every erson has the right to freedom of

association #ith others? including the right toform and join trade unions.

)rotection of families and children> families are the

fundamental grou unit of society and are

entitled to be rotected by society and the la#.?

every child has the right? #ithout discrimination?to such rotection as is in his or her best

interests and is needed by him or her by reason

of being a child.

81



%a!ing art in ublic life > every erson has the

right? and is to have the oortunity? #ithout

discrimination? to articiate in the conduct of

ublic a7airs? directly or through freely chosen

reresentatives? every eligible erson has the

right? and is to have the oortunity? #ithout

discrimination to vote and be elected in elections

that guarantee the free e(ression of the #ill of

the electors and to have access? on general

terms of e"uality? to the ublic service and ublic

o4ce.

Cultural rights > all ersons #ith a articular

cultural? religious? racial or linguistic bac!ground

must not be denied the right? in community #ith

other ersons of that bac!ground? to enjoy his or

her culture? to declare and ractice his or

religion and to use his or her language. /riginalersons hold distinct cultural rights and must

not be denied the right? #ith other members of

their community H to enjoy their identity and

culture and to maintain and use their language?

!inshi ties.

ight to liberty and security of erson >

Every erson has the right to liberty and security.

A erson must not be subjected to arbitrary arrest

or detention.

82



A erson must not be derived of his or her liberty

e(cet on grounds? and in accordance #ith

rocedures? established by la#.

A erson #ho is arrested must be informed at the

time of arrest or detention of the reason for the

arrest or detention of the reason for the arrest or

detention and must be informed about any

roceeding to be brought against him or her.

A erson #ho is arrested or detained on a criminal

charge- must be brought before a court and hasthe right to be brought to trial #ithout

unreasonable delay and must be released if

aragrah <a= or <b= is not comlied #ith.

A erson a#aiting trial must not be automatically

detained.

Corresondents

o#adays the business organi1ation re"uires fast

and e7ective means of information transfer and

communication. %he Email? telehone? tele( are

generally used? and there is a tendency for a

direct contacts rather than letter #riting. %he

o4ces try to have standardi1ed forms to cutdo#n the time sent on the elaborate #riting of

letters. But this does not mean that

corresondents have been removed from the

o4ce.

%he ability to #rite a clear? concise and courteous

business letter is still necessary.

83



%he commercial letter is designed for easy reading?

thus it has to be divided into short aragrahs?

each dealing #ith a ne# toic. %he subject

matter must be e(lained clearly #ithout

unnecessary #ords.

As the letter tends to be short conciseness is the

main characteristic features. Attention must also

be aid to the insertion of a number of olite

#ords and hrases that are in general use.

%he layout of the business letter is imortant? too.%here are certain rules as to correct lacing of

the date and address. A limited number of forms

is used for greeting and the closing of letter. &t is

customary to indicate the subject of the letter.

ules about unctuation must be strictly

observed .

As letter is sometimes the only means ofcommunication bet#een the buyer and the seller

it must be #ritten #ith great care.

Details for the letter design

%he number of the house and the name of the

street? e.g. >

QO Almotanabi *treet

%he to#n and the country.

%he to#n? e.g > BaghdadZ &ra"

84



+or the letters going abroadZ the country? e.g. >

&ra"? &ndia? China

&f u have not got a ermanent address and your

letters are send to someone else address CI/ is

used.

%hese are the acceted forms of #riting dates >

MNrd August MKK

August MNrd MKK

MN. W. MKK

%he abbreviations for days > st? Mnd ?Nrd?Oth ? etc.

+or months the follo#ing are sometimes used > Jan.?

+eb.? 'ar.? Ar.? <'ay? June? July=? Aug.? *et.?

/ct.? ov.? Dec.

%he eference for #hich ef. is the abbreviation

saves trouble.

Tou should al#ays refer to it in your relay.

Q?R?W. /ur corresondent[s ame and Address.

&t is articularly advisable to ut this on business

letters? e.g. >

85



'orris 'otors Ltd.?

/(ford?

E,LAD.

Buthley 3 *on Co. Ltd.?

)./. Bo( o. RVW?

Dry Doc! Building?

L&8E)//L.

Editor-in Chief?

)UC2?

K Bouverie *treet?

L/D/ E.C. O.

V. %he usual greeting to one erson in a business

letter is Dear *ir or Dear 'adam? to a $rm Dear

*irs or sometimes ,entlemen.

86



&f #e have had fre"uent business dealings #e may

begin >

Dear 'r. aught? or Dear 'iss %#enty man?.

&t might be useful to give the subject matter on a

secial subject line? e.g.

K.emember that )aragrahing is essential in the

body of the letter.

%he aragrah loo! best if they been after the

common follo#ing the salutation. &n the oening

aragrah if it is a relay these are some of the

more fre"uent initial hrases >

%han! you for your letter of \..

&n relay to your en"uiry of\\

;ith reference to your letter of\..

;e are in receit of\..

%he body of the letter deals in detail #ith the

subject matter and gives all the necessary

information. &t should be clear concise courteous.

%here are a fe# formal endings for the closing

aragrah of a letter >

;e trust that you #ill ma!e an e7ort to\..

87



;e are loo!ing for#ard to hearing from you\..

;e are #aiting an early relay? and remain\\

. for a business letter the follo#ing closing forms

are used >

Tours faithfully? Tours <very truly=

+or more ersonal letters > Tours *incerely

M. signatures should be #ritten through the letter

itself and the name under signature are tyed.

88



lobali+ation

lobali+ation refers to the increasing unification of the

world4s economic order through reduction of such barriers

to international trade as tariffs, e5port fees, and import

"uotas. #he goal is to increase material wealth, goods, and

services through an international division of labor by

efficiencies cataly+ed by international relations,

speciali+ation and competition.

,lobali1ation is an attemt to abolish barriers?

esecially in trade. &n fact? globali1ation has

been around longer than you might thin!.

De$nition

,lobali1ation is an elimination of barriers to trade?communication? and cultural e(change.

6easurement

conomic globali+ation can be measured in different ways.

#hese center around the four main economic flows that

characteri+e globali+ation:

oods and services, e.g., e5ports plus imports as a

proportion of national income or per capita of population

7abor 8people, e.g., net migration rates9 inward or outward

migration flows, weighted by population

89

http://en.wikipedia.org/wiki/Economic_globalization

http://en.wikipedia.org/wiki/Good_(economics)

http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Export

http://en.wikipedia.org/wiki/Import

http://en.wikipedia.org/wiki/Labour_economics

http://en.wikipedia.org/wiki/Human_migration

http://en.wikipedia.org/wiki/Economic_globalization

http://en.wikipedia.org/wiki/Good_(economics)

http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Export

http://en.wikipedia.org/wiki/Import

http://en.wikipedia.org/wiki/Labour_economics

http://en.wikipedia.org/wiki/Human_migration



%apital, e.g., inward or outward direct investment as a

proportion of national income or per head of population

#echnology, e.g., international research development flows9proportion of populations 'and rates of change thereof(

using particular inventions 'especially 4factor&neutral4

technological advances such as the telephone, motorcar,

broadband(

ffects

lobali+ation has various aspects which affect the world inseveral different ways

$ndustrial

mergence of worldwide production markets and broader

access to a range of foreign products for consumers and

companies, particularly movement of material and goodsbetween and within national boundaries.

conomic

;eali+ation of a global common market, based on the freedom

of e5change of goods and capital.

inancial

mergence of worldwide financial markets and better access

to e5ternal financing for borrowers.

Political

90

http://en.wikipedia.org/wiki/Capital_(economics)

http://en.wikipedia.org/wiki/Technology

http://en.wikipedia.org/wiki/Capital_(economics)

http://en.wikipedia.org/wiki/Technology



#he development of globalization has wide&ranging impacts

on political developments, which particularly go along with

the decrease of the importance of the 2tate.

#echnical

%entral aspect of globali+ation has been the development of a

lobal $nformation 2ystem, and greater transborder data

flow, using such technologies as

the $nternet, communication satellites.

91

http://en.wikipedia.org/wiki/Global_Information_System

http://en.wikipedia.org/wiki/Internet

http://en.wikipedia.org/wiki/Communication_satellites

http://en.wikipedia.org/wiki/Global_Information_System

http://en.wikipedia.org/wiki/Internet

http://en.wikipedia.org/wiki/Communication_satellites



*egotiation

*egotiation is a dialogue between two or more people or

parties, intended to reach an understanding, resolve pointof difference, or gain advantage in outcome of dialogue, to

produce an agreement upon courses of action, to bargain

for individual or collective advantage, to craft outcomes to

satisfy various interests of two people8parties involved in

negotiation process. *egotiation is a process where each

party involved in negotiating tries to gain an advantage for

themselves by the end of the process. *egotiation is

intended to aim at compromise.

*egotiation occurs in business, non&profit organi+ations,

government branches, legal proceedings, among nations

and in personal situations such as marriage, divorce,

parenting, and everyday life. #he study of the sub<ect is

called negotiation theory .

-ther negotiation styles

#here are five styles of negotiation[11 ]$ndividuals can often

have strong dispositions towards numerous styles9 the

style used during a negotiation depends on the conte5t

and the interests of the other party, among other factors. $n

addition, styles can change over time.

ccommodating: $ndividuals who en<oy solving the other

party=s problems and preserving personal relationships.

ccommodators are sensitive to the emotional states,

body language, and verbal signals of the other parties.

#hey can, however, feel taken advantage of in situations

when the other party places little emphasis on the

relationship.

92

http://en.wikipedia.org/wiki/Dialogue

http://en.wikipedia.org/wiki/Collective_bargaining

http://en.wikipedia.org/wiki/Compromise

http://en.wikipedia.org/wiki/Negotiation_theory

http://en.wikipedia.org/wiki/Dialogue

http://en.wikipedia.org/wiki/Collective_bargaining

http://en.wikipedia.org/wiki/Compromise

http://en.wikipedia.org/wiki/Negotiation_theory



voiding: $ndividuals who do not like to negotiate and don=t

do it unless warranted. /hen negotiating, avoiders tend todefer and dodge the confrontational aspects of

negotiating9 however, they may be perceived as tactful and

diplomatic.

%ollaborating: $ndividuals who en<oy negotiations that involve

solving tough problems in creative ways. %ollaborators are

good at using negotiations to understand the concerns

and interests of the other parties. #hey can, however,create problems by transforming simple situations into

more comple5 ones.

%ompeting: $ndividuals who en<oy negotiations because they

present an opportunity to win something. %ompetitive

negotiators have strong instincts for all aspects of

negotiating and are often strategic. Because their style can

dominate the bargaining process, competitive negotiatorsoften neglect the importance of relationships.

%ompromising: $ndividuals who are eager to close the deal by

doing what is fair and e"ual for all parties involved in the

negotiation. %ompromisers can be useful when there is

limited time to complete the deal9 however, compromisers

often unnecessarily rush the negotiation process and

make concessions too "uickly.

motion in negotiation

93



motions play an important part in the negotiation process,

although it is only in recent years that their effect is being

studied. motions have the potential to play either a

positive or negative role in negotiation. !uring

negotiations, the decision as to whether or not to settle,

rests in part on emotional factors. *egative emotions can

cause intense and even irrational behavior, and can cause

conflicts to escalate and negotiations to break down, but

may be instrumental in attaining concessions. -n the

other hand, positive emotions often facilitate reaching an

agreement and help to ma5imi+e <oint gains, but can also

be instrumental in attaining concessions. Positive and

negative discrete emotions can be strategically displayed

to influence task and relational outcomes and may play out

differently across cultural boundaries.

94

http://en.wikipedia.org/wiki/Emotion

http://en.wikipedia.org/wiki/Emotion



!inance

%here are various #ays in #hich #ord ]$nance^ is

used? li!e in economics it is considered as themanagement of money #hile generally it is

attributed as an activity for roviding funds.

+inance deals #ith the concets of money? time

and ris! and also their interrelationshi. +or

e(amle? for starting a ne# business? $nances

can be raised by t#o means debt or e"uity.

&n small and large comanies there are di7erentfunctional deartments and one common

deartment is the $nance deartment. %his

deartment manages the fund available to the

comany. &n this #ay $nance deals #ith the

$nancial assets and the money transactions.

+inance is the life blood of business. &f follo#s in

mostly from sale of goods and service. &t 0o#s

out for meeting various tyes of e(enditure.

95



96



'AA,E'E% LE8EL

#he term >7evels of 6anagement= refers to a line of

demarcation between various managerial positions in anorgani+ation. #he number of levels in management

increases when the si+e of the business and work force

increases and vice versa. #he level of management

determines a chain of command, the amount of authority

status en<oyed by any managerial position. #he levels of

management can be classified in three broad categories: &

#op level 8 dministrative level

6iddle level 8 5ecutor

7ow level 8 2upervisory 8 -perative 8 irst&line managers

6anagers at all these levels perform different functions. #he

role of managers at all the three levels is discussed below:

7?72 - 6*6*#

%o Level of 'anagement

$t consists of board of directors, chief e5ecutive or managing

director. #he top management is the ultimate source of

authority and it manages goals and policies for an

enterprise. $t devotes more time on planning and

coordinating functions.

#he role of the top management can be summari+ed as

follows &

97



#op management lays down the ob<ectives and broad policies

of the enterprise.

$t issues necessary instructions for preparation of departmentbudgets, procedures, schedules etc.

$t prepares strategic plans policies for the enterprise.

$t appoints the e5ecutive for middle level i.e. departmental

managers.

$t controls coordinates the activities of all the departments.

$t is also responsible for maintaining a contact with the

outside world.

$t provides guidance and direction.

#he top management is also responsible towards the

shareholders for the performance of the enterprise.

'iddle Level of 'anagement

#he branch managers and departmental managers constitute

middle level. #hey are responsible to the top management

for the functioning of their department. #hey devote moretime to organi+ational and directional functions. $n small

organi+ation, there is only one layer of middle level of

management but in big enterprises, there may be senior

and <unior middle level management. #heir role can be

emphasi+ed as &

#hey e5ecute the plans of the organi+ation in accordance with

the policies and directives of the top management.

98



#hey make plans for the sub&units of the organi+ation.

#hey participate in employment training of lower level

management.

#hey interpret and e5plain policies from top level

management to lower level.

#hey are responsible for coordinating the activities within the

division or department.

$t also sends important reports and other important data to

top level management.

#hey evaluate performance of <unior managers.

#hey are also responsible for inspiring lower level managers

towards better performance.

N.Lo#er Level of 'anagement 7ower level is also known

as supervisory 8 operative level of management. $t consists

of supervisors, foreman, section officers, superintendent

etc. ccording to R.C. Davis, >2upervisory management

refers to those e5ecutives whose work has to be largely

with personal oversight and direction of operative

employees@. $n other words, they are concerned with

direction and controlling function of management. #heir

activities include &

ssigning of <obs and tasks to various workers.

#hey guide and instruct workers for day to day activities.

99



#hey are responsible for the "uality as well as "uantity of

production.

#hey are also entrusted with the responsibility of maintaininggood relation in the organi+ation.

#hey communicate workers problems, suggestions, and

recommendatory appeals etc. to the higher level and

higher level goals and ob<ectives to the workers.

#hey help to solve the grievances of the workers.

#hey supervise guide the sub&ordinates.

#hey are responsible for providing training to the workers.

#hey arrange necessary materials, machines, tools etc for

getting the things done.

#hey prepare periodical reports about the performance of the

workers.

#hey ensure discipline in the enterprise.

#hey motivate workers.

#hey are the image builders of the enterprise because they

are in direct contact with the workers.

100



101



LA;

La# is a system of rules and guidelines #hich are

enforced through social institutions to governbehavior? #herever ossible. &t

shaes politics? economics and society in numerous

#ays and serves as a social mediator of relations

bet#een eole. %ontract law regulates everything

from buying a bus tic!et to trading on derivatives

markets. Property law de$nes rights and obligations

related to the transfer and title of personal and

real property. #rust law alies to assets held forinvestment and $nancial security? #hile tort la#

allo#s claims for comensation if a erson5s

rights or roerty are harmed. &f the harm is

criminali1ed in legislation? criminal law o7ers

means by #hich the state can rosecute the

eretrator. %onstitutional law rovides a

frame#or! for the creation of la#? the rotection

of human rights and the election of oliticalreresentatives. dministrative law is used to

revie# the decisions of government agencies?

#hile international law governs a7airs

bet#een sovereign states in activities ranging

from trade to environmental regulation or military

action. ;riting in NPK BC? the reek

hilosoher ristotle declared? G%he rule of law is

better than the rule of any individual.

102

http://en.wikipedia.org/wiki/System

http://en.wikipedia.org/wiki/Social

http://en.wikipedia.org/wiki/Institution

http://en.wikipedia.org/wiki/Politics

http://en.wikipedia.org/wiki/Economics

http://en.wikipedia.org/wiki/Society

http://en.wikipedia.org/wiki/Contract_law

http://en.wikipedia.org/wiki/Derivative_(finance)


http://en.wikipedia.org/wiki/Property_law

http://en.wikipedia.org/wiki/Personal_property

http://en.wikipedia.org/wiki/Real_property

http://en.wikipedia.org/wiki/Trust_law

http://en.wikipedia.org/wiki/Tort

http://en.wikipedia.org/wiki/Harm_principle

http://en.wikipedia.org/wiki/Criminal_law

http://en.wikipedia.org/wiki/Constitutional_law

http://en.wikipedia.org/wiki/Human_rights

http://en.wikipedia.org/wiki/Administrative_law


http://en.wikipedia.org/wiki/Sovereign_state

http://en.wikipedia.org/wiki/Trade

http://en.wikipedia.org/wiki/Ancient_Greece

http://en.wikipedia.org/wiki/Aristotle

http://en.wikipedia.org/wiki/Rule_of_law

http://en.wikipedia.org/wiki/System

http://en.wikipedia.org/wiki/Social

http://en.wikipedia.org/wiki/Institution

http://en.wikipedia.org/wiki/Politics

http://en.wikipedia.org/wiki/Economics

http://en.wikipedia.org/wiki/Society

http://en.wikipedia.org/wiki/Contract_law



http://en.wikipedia.org/wiki/Property_law

http://en.wikipedia.org/wiki/Personal_property

http://en.wikipedia.org/wiki/Real_property

http://en.wikipedia.org/wiki/Trust_law

http://en.wikipedia.org/wiki/Tort

http://en.wikipedia.org/wiki/Harm_principle

http://en.wikipedia.org/wiki/Criminal_law

http://en.wikipedia.org/wiki/Constitutional_law

http://en.wikipedia.org/wiki/Human_rights

http://en.wikipedia.org/wiki/Administrative_law


http://en.wikipedia.org/wiki/Sovereign_state

http://en.wikipedia.org/wiki/Trade

http://en.wikipedia.org/wiki/Ancient_Greece

http://en.wikipedia.org/wiki/Aristotle

http://en.wikipedia.org/wiki/Rule_of_law



Legal systems elaborate rights and resonsibilities in

a variety of #ays. A general distinction can be

made bet#een civil law <urisdictions? #hich codify

their la#s? and common law systems? #here judge-

made la# is not consolidated. &n some

countries? religion informs the la#. La# rovides a

rich source of scholarly in"uiry? into legal

history? philosophy? economic analysis or sociology.

La# also raises imortant and comle( issues

concerning e"uality? fairness and <ustice. G&n its

majestic e"ualityG? said the #riter natole rance in

WVO? Gthe la# forbids rich and oor ali!e to

slee under bridges? beg in the streets and steal

loaves of bread. &n a tyical democracy? the central

institutions for interreting and creating la# are

the three main branches of government? namely an

imartial <udiciary? a democratic legislature? and an

accountable e5ecutive. La# distinguish itself from

olicy as la#s are the standard rules and

regulations that are comulsory )olicies areobjectives that an organi1ation or a government

sets for itself. %o imlement and enforce the la#

and rovide services to the ublic? a

government5s bureaucracy? the military and

olice are vital. ;hile all these organs of the

state are creatures created and bound by la#? an

indeendent legal profession and a vibrant civil

http://en.wikipedia.org/wiki/Right

http://en.wikipedia.org/wiki/Civil_law_(legal_system)

http://en.wikipedia.org/wiki/Jurisdiction

http://en.wikipedia.org/wiki/Common_law

http://en.wikipedia.org/wiki/Religious_law

http://en.wikipedia.org/wiki/Legal_history


http://en.wikipedia.org/wiki/Jurisprudence

http://en.wikipedia.org/wiki/Economic_analysis_of_law

http://en.wikipedia.org/wiki/Sociology_of_law

http://en.wikipedia.org/wiki/Egalitarianism

http://en.wikipedia.org/wiki/Justice

http://en.wikipedia.org/wiki/Anatole_France

http://en.wikipedia.org/wiki/Democracy


http://en.wikipedia.org/wiki/Judiciary

http://en.wikipedia.org/wiki/Legislature

http://en.wikipedia.org/wiki/Executive_(government)

http://en.wikipedia.org/wiki/Lawyer

http://en.wikipedia.org/wiki/Civil_society

http://en.wikipedia.org/wiki/Right

http://en.wikipedia.org/wiki/Civil_law_(legal_system)

http://en.wikipedia.org/wiki/Jurisdiction

http://en.wikipedia.org/wiki/Common_law

http://en.wikipedia.org/wiki/Religious_law



http://en.wikipedia.org/wiki/Jurisprudence

http://en.wikipedia.org/wiki/Economic_analysis_of_law

http://en.wikipedia.org/wiki/Sociology_of_law

http://en.wikipedia.org/wiki/Egalitarianism

http://en.wikipedia.org/wiki/Justice

http://en.wikipedia.org/wiki/Anatole_France

http://en.wikipedia.org/wiki/Democracy


http://en.wikipedia.org/wiki/Judiciary

http://en.wikipedia.org/wiki/Legislature

http://en.wikipedia.org/wiki/Executive_(government)

http://en.wikipedia.org/wiki/Lawyer

http://en.wikipedia.org/wiki/Civil_society

Documents

انكليزي- جعفر الدجيلي