Tag: economy

B2 – Upper Intermediate

Oil prices have recently gone up after reports of an attack on Iran. The explosions were heard in the city of Isfahan, and some countries believe that Israel was responsible. Although there was no serious damage, the news caused fear that conflict in the Middle East might grow.

When there is tension in this region, it often affects energy prices around the world. This is because many important oil-producing countries are located there. After the news, the price of oil and gas increased quickly in different parts of the world, including Europe.

Read this article to learn why this attack matters, how it affected energy prices, and what could happen next.

https://www.bbc.com/news/articles/cg5vr2rvzg4o

Vocabulary Questions:

1. What does “price cap” mean? “The energy regulator, Ofgem, has already announced the energy price cap for July until September.” Make a sentence with this phrase. Give a synonym.
2. What is “household bill“? “Craig Lowrey, principal consultant at Cornwall Insights, says household bills are safe from any volatility for now. But if this conflict continues past September, household bills could rise.” Make a sentence with this. Give a similar expression.
3. What does “financial buffer” mean? “”Many rely heavily on Middle Eastern oil and gas imports and lack the financial buffers to absorb sudden price spikes.”” Use this in a sentence. Give a similar expression.

Discussion Questions:

1. Do you think it’s fair that people in peaceful countries pay more when this happens? Explain your thoughts.
2. How could rising oil prices affect your country or your personal life?
3. How does war or conflict in one place affect the whole world today?
4. Do you think oil prices should be controlled by the government? Why or why not?
5. Do you think news reports make people too afraid during international conflicts? Why or why not?

B2 – Upper Intermediate

President Donald Trump’s renewed “America First” agenda in 2025 is disrupting decades of globalization by targeting international tax and regulatory strategies. Proposals include imposing a 25% tariff on Apple if it doesn’t manufacture iPhones domestically and a 50% levy on imported steel and aluminum. These measures aim to dismantle complex international systems of tax, regulatory, and financial arbitrage that U.S. multinationals have long utilized to reduce domestic tax liabilities. For instance, pharmaceutical companies often report minimal profits in the U.S. while declaring substantial gains abroad, and insurers shift liabilities to jurisdictions like Bermuda for lighter regulations.

Read the article to know more about the proposed provision to tax foreign investors in U.S. assets could further affect global capital flows, potentially destabilizing international finance. While these policies seek to reinforce domestic equity, they risk undermining the foundational pillars of the global economic and financial system.

https://www.reuters.com/breakingviews/why-america-first-could-end-age-arbitrage-2025-06-06/?

Vocabulary Questions:

1. What does “ceding reserve” mean? ” The industrial-scale transfer of life insurance policies by U.S. insurers to offshore jurisdictions – a process known as “ceding reserves” – provides a timely example.” Use it in a sentence.
2. What does “golden goose” mean? “They can also short tax havens and lightly regulated jurisdictions in the anticipation that the golden geese will be flying home.” Use it in a sentence.
3. What does “shadow bank” mean? “This is the edifice of international finance underpinned by the U.S. dollar. In a recent lecture, Hyun Song Shin of the Bank for International Settlements explained how, before 2008, liquidity in international markets was supplied by so-called shadow banks issuing private credit instruments.” Use it in a sentence.

Discussion Questions:

1. Do you think prioritizing domestic production through tariffs is beneficial for a country’s economy in the long run or does it do more harm than good?
2. How do you feel about taxing foreign investors in U.S. assets? Could that strengthen or weaken the U.S. economy?
3. If you were running a global company, how would you respond to policies that limit tax and regulatory advantages abroad?
4. Do you think the rest of the world will follow suit with their own “first” policies, or will they push back against this kind of economic nationalism?
5. Is it fair for multinational corporations to shift profits and liabilities to lower-tax countries, or should they be taxed more strictly where they operate?

B2 – Upper Intermediate

The trade relationship between the United States and China has become a topic of considerable debate, especially with the tariff war that escalated around 2018. This conflict has raised questions about whether America is specifically targeting China or if it is pursuing broader economic strategies. 

The U. S. is motivated by a desire to protect its economic interests, promote fair trade practices, and limit China’s technological advancements. This trade conflict illustrates a broader geopolitical struggle that transcends mere economics, impacting global alliances and the future of international trade. Ultimately, the path forward will require careful negotiation and mutual understanding to avoid further escalation and foster a healthier trade relationship. 

Please read the article and let’s talk about it later.

https://www.cnbc.com/2025/04/12/trump-tariffs-on-china-mean-irreversible-damage-for-most-businesses.html

Vocabulary Questions:

1. What does  “to hit like a ton of bricks” mean? “Canceled freight orders and abandoned freight from China are quickly becoming the norm in the trade war between the U.S. and China, according to supply chain executives, as businesses across U.S. industries put a full stop on container exports, with the tariffs hitting like a ton of bricks.” Use it in a sentence.
2. What does “low margin good ” mean? “As it became clear over the last week that China would remain the main target of the Trump administration’s tariffs policy — after the 90-day reprieve was granted to all other countries expected to be hit with new tariffs — the message that came through is that lower-margin goods cannot sustainably be produced in China.” Use it in a sentence.
3. What does “liner service” mean? “Murphy warned that on the container liner side of the freight business, the drop in bookings coupled with the possibility of shipbuilding fees on “Chinese” vessels also going into effect next week, will result in a “massive restructuring of all liner services to North America.” Use it in a sentence.

Discussion Questions:

1. What can you say about the article?
2. “And it will take months to sort out the mess, with congestion and freight rate spikes for months to come.” When do you think this will end?
3. “The biggest concern here is a complete uncertainty of the actual end-game of the Trump administration.” What do you think are the administration’s motives?
4. “Many shippers are deploying a ‘wait and see’ approach.” How long do you think they can wait?

B2 – Upper Intermediate

The implementation of reciprocal tariffs by Donald Trump in 2025 marked a significant shift in U.S. trade policy, aimed at addressing perceived inequities in international trade relationships. In response to persistent goods trade deficits, Trump’s administration declared a national emergency, citing the lack of reciprocity and unfair economic practices by trading partners as primary concerns. The administration’s approach involved conducting extensive investigations to identify these disparities and proposed tariffs ranging from 10% to 50%, contingent upon bilateral trade deficits.

Critics argue that the methodology underpinning these tariffs is fundamentally flawed. The Tax Foundation contends that Trump’s calculations fail to account for actual tariff rates or non-tariff barriers imposed by other nations, leading to economically detrimental outcomes. Furthermore, FactCheck.org highlights discrepancies between the tariffs proposed by Trump and the World Trade Organization’s average rates, suggesting that this misrepresentation could exacerbate tensions with trading partners. Consequently, while intended as a corrective measure for trade imbalances, Trump’s reciprocal tariffs may have far-reaching negative implications for both domestic consumers and international relations.

Read this article to know more on how Trump defended sweeping tariffs on imports.

https://www.bbc.com/news/articles/c2093qgx14po

Vocabulary Questions:

1. What does “to play something down” mean? “Trump’s top officials stressed that the tariffs – announced last week – would be implemented as planned, playing down recession fears.” Use it in a sentence and give a synonym.
2. What does “S&P 500” stand for and what is it? “On Friday, all three major stock indexes in the US fell more than 5%, while the S&P 500 dropped almost 6% in the worst week for the US stock market since 2020.” Use it in a sentence.
3. What does “reciprocal tariff” mean? “Lutnick went on say the steeper reciprocal tariffs were still on track.” Use it in a sentence.

Discussion Questions:

1. What are your thoughts on Donald Trump’s approach to tariffs during his presidency? Do you think they helped or hurt the US economy?
2. Trump’s tariff policies were often criticized for starting trade wars. Do you think this strategy was sustainable in the long run?
3. Share your insights on this, “There was ‘no reason’ to expect a recession as a result. This is an adjustment process.”
4. What do you think about Trump’s statement, “I think your question is so stupid,” he told the reporter. “I don’t want anything to go down. But sometimes you have to take medicine to fix something.“?
5. What is your country’s official opinion on this situation?

B2- Upper Intermediate 

Spain is to impose a tax that is up to 100% of the value of the property on non-EU residents, UK citizens included. This measure is believed to be one of the ways to address the country’s increasing housing crisis.

Read the article about Spain’s plans to impose 100% property tax on foreigners from outside of EU.

Be ready to answer the questions that follow.

https://www.bbc.com/news/articles/cr7enzjrymxo

Vocabulary Questions:

1. What does “to lose sight of something” mean? “Here in the UK, we also have problems with landlords buying multiple properties and driving up the rest, but this policy is losing sight of those of us who want to spend money in the country.” Use this phrase in a sentence and give a synonym or similar expression.
2. What does “a drop in the ocean” mean? “But this will be a drop in the ocean in my opinion and there will be other alternatives that will have a higher impact on the housing market.” Use this idiom in a sentence and give a synonym or similar expression.
3. What is “retrospective tax”? “I definitely wouldn’t consider trying to get in before this tax, because who knows what else they could do, a retrospective tax.” Use this term in a sentence.

Discussion Questions:

1. Put your two cents in on this plan by the Spanish government. Are pro or against it? Do you think it could help solve the country’s housing problem? Explain.
2. How might this impact Spain?
3. How else can the purchase of homes by non-EU foreigners be limited?
4. Do you think foreigners buying homes in another country actually adds to the local economy? Share your opinion.
5. Do you agree with Spain’s “golden visa” scheme being abolished? Elaborate.
6. If you were a non-EU resident, would you still consider buying a property in Spain now? Why or why not?

B2 – Upper Intermediate

Canada, as a young and multicultural nation, often grapples with defining its identity. However, one common sentiment among Canadians is that being ‘Canadian’ means distinctly ‘not American.’ So, when US President Donald Trump suggested Canada should become the 51st US state and referred to former Prime Minister Justin Trudeau as Canada’s ‘governor’, a title typically reserved for US state leaders, it sparked widespread anger among Canadians.

Let’s read the article to learn more about the tensions between the USA and the Canadian people.

https://www.usatoday.com/story/news/nation/2025/03/15/trump-canada-tariffs-trade-war-vacations/82411737007

Vocabulary Questions:

1. What does the idiom “to get the cold shoulder” mean? “Americans are getting the cold shoulder from our neighbors to the north.” Use it in your own sentence and give two synonyms.
2. Define the verb “jeer“. “Canadians are learning to “Buy Beaver” instead of U.S.-made products. They’re jeering our national anthem at hockey games.” Use it in your own sentence and give two synonyms.
3. What is the meaning of the idiom “cannot in good conscience do something“? “They’re writing in, saying ‘I can no longer in good conscience do business with American businesses,'” said Lorenzo McGregor, 45, the co-owner of Tex’s Riverways boat shuttle service here.” Use it in your own sentence.

Discussion Questions:

1. What are your thoughts on the idea of Canada becoming the 51st state of the United States?
2. Do you think the relationship between the US and Canada will get better in the near future? Why or why not?
3. Has your country ever experienced trade disputes with other nations? If so, what were the circumstances?
4. Are there significant taxes placed on foreign goods or services in your country?
5. How would you describe your country’s current relationship with the US?
6. What is “Buy Beaver”? Would you use such an app if your country got into a dispute with another country?