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4. Some people believe that luxury fashion products should always be made in Europe. What's

your opinion? Give examples.

Although outsourcing is a widespread practice nowadays consumers have dual attitude to it. There is a strong public opinion regarding outsourcing (especially when combined with offshoring- the practice of moving a company's operating base to a foreign country where labour costs are cheaper) that outsourcing damages a product quality dramatically. To be honest, I support this point of view.For example, about ten years ago all products of British cosmetics company Avon were made in Europe. But now about 70% of its production is outsourced in Russia and near abroad. Of cource the price of Avon cosmetics became much cheaper but it’s not a secret that the quality changed dramatically too.

Unit 2. Travel

1. What types of airlines do you know?

2. How do you understand the term “code-sharing”?

3. What forms of cooperation between companies are there?

4. Why do people sometimes behave badly on planes? What causes such behaviour?

1. What types of airlines do you know?

Formerly airlines were classified into local, regional, national and international. Today they are classified according to their annual turnover. The biggest companies have the turnover from $100 million to $1 billion, the big regional - $10-$100 million, the average – less than $10 million. It’s very important to remember that there are two kinds of airline operations-scheduled and nonscheduled. A scheduled airline operates on fixed routs at fixed times according to a timetable that is available to public. A nonscheduled airline operates on routs at a time when there is a demand for the service. The nonscheduled airline is in other words a charter operation that rents an aircraft.

2. How do you understand the term “code-sharing”?

Code sharing is a business term which was first originated in the airline industry in 1990 when the Australian airline, Qantas Airways and the US's American Airlines combined services between an array of US domestic cities and Australian cities. The code share was part of a "cooperative services" agreement between the two carriers before the various airline alliances were formed. Code sharing is a commercial agreement between two airlines that allows passengers to use a ticket from one airline to travel on another. Most major airlines today have code sharing partnerships with other airlines, and code sharing is a key feature of the major airline alliances. Lots of airlines, including all the big legacy lines, are involved with codesharing arrangements. Those arrangements permit you to buy through tickets on routs that no single airline can serve. They may also provide opportunities to cut the cost of your airfare.

3. What forms of cooperation between companies are there?

There are different types of cooperation between airlines: associations (like International Association of Air Transport (IATA) which deals with the air navigation, the security of air transport and the coordination of flight services), particular global airline alliances and code share agreements that have multiplied over the past years.