西南林业大学
Tesco is preparing a legal battle to clear its name of involvement in the dairy price-fixing scandal that has cost consumers £270 million. Failure to prove that it had no part in collusion with other supermarkets and dairy processors may land it with a fine of at least £80 million. The Office of Fair Trading (OFT) said yesterday that Asda, Sainsbury’s and the former Safeway, plus the dairy companies Wiseman, Dairy Crest and Cheese Company, had admitted being in a cartel to fix prices for milk, butter and cheese. They were fined a total of just over £116 million as part of a leniency deal offered by the watchdog to companies that owned up quickly to anti-competitive behavior.Officials at the OFT admitted privately that they did not think they would ever discover which company or individual had initiated the pricing formulA.But the watchdog recognizes that at the time supermarkets were under pressure from politicians and farmers to raise the cost of milk to save dairy farming, though it is not certain that money found its way to farmers. The OFT claimed in September that it had found evidence that the retail chains had passed future milk prices to dairy companies, which then reached a fixed price among themselves.The average cost to each household is thought to be £11.25 over 2002 and 2003. Prices went up an extra 3p on a pint of milk, 15p on a quarter of a pound of butter and 15p on a half-pound of cheese. There is no direct recompense for consumers, however, and the money will go to the Treasury. The National Consumer Council gave warning that the admissions would dent consumer confidence in leading high street names and that people would become skeptical of their claims. Farmers for Action, the group of farmers that has led protests over low milk prices since 2000, is seeking legal advice on whether it can now bring a claim for compensation.The OFT investigation is continuing, however, in relation to Tesco, Morrison and the dairy group Lactalis McLelland, and any legal action is expected to be delayed until that is completed.Tesco was defiant and said that it was preparing a robust defense of its actions. Lucy Neville-Rolfe, its executive director, said: “As we have always said, we acted independently and we did not collude with anyone. Our position is different from our competitors and we are defending our own case vigorously. Our philosophy is to give a good deal to customers.”Morrison has supported the OFT in inquiries into the former Safeway business that it took over, but in a statement said that it was still making “strong representations” in its defense. A spokeswoman for Lactalis McLelland said that the company was “co-operating” with the OFT. Industry insiders suggested that the three companies were deliberately stalling the OFT investigation,Sainsbury’s admitted yesterday that it had agreed to pay £26 million in fines, but denied that it had sought to profiteer. Justin King, the chief executive, said he was disappointed that the company had been penalized for actions meant to help farmers but recognized the benefit of a speedy settlement. Asda declined to say how much it would pay in fines and also said that its intention had been to help farmers under severe financial pressure.1. From the first paragraph, we may infer that______ .2. Who is most probably the initiator of the pricing formula?3. The word “defiant” in Para.5 most probably means______.4. We may infer from Morrison’s statement that______ .5. The writer’s attitude to Tesco can be said to be______ .
In a sense, the new protectionism is not protectionism at all, at least not in the traditional sense of the term. The old protectionism referred only to trade restricting and trade expanding devices, such as the tariff or export subsidy. The new protectionism is much broader than this: it includes interventions into foreign trade but is not limited to them. The new protectionism, in fact, refers to how the whole of government intervention into the private economy affects international trade. The emphasis on trade is still there, thus came the term “protection.” But what is new is the realization that virtually all government activities can affect international economic relations.The emergence of the new protectionism in the Western world reflects the victory of the interventionist, or welfare economy over the market economy. Jab Tumiler writes, “The old protectionism...coexisted, without any apparent intellectual difficulty with the acceptance of the market as a national as well as an international economic distribution mechanism-indeed, protectionists as well as (if not more than) free traders stood for laissez faire. Now, as in the 1930s, protectionism is an expression of a profound skepticism as to the ability of the market to distribute resources and incomes to societies’ satisfaction.” It is precisely this profound skepticism of the market economy that is responsible for the protectionism. In a market economy, economic change of various colors implies redistribution of resources and incomes. The same opinion in many communities apparently is that such redistributions often are not proper. Therefore, the government intervenes to bring about a more desired result.The victory of the welfare state is almost complete in northern Europe. In Sweden, Norway, Finland, Denmark, and the Netherlands, government intervention in almost all aspects of economic and social life is considered normal. In Great Britain this is only somewhat less true. Government traditionally has played a very active role in economic life in France and continued to do so. Only West Germany dares to go against the tide towards excessive interventionism in Western Europe. It also happens to be the most successful Western European economy.The welfare state has made significant progress in the United States as well as in Western Europe. Social security, unemployment insurance, minimum wage laws, and rent control are by now traditional welfare state elements on the American scene.1. This passage is primarily concerned with discussing ______.2. The word “virtually” (ParA.1) is closest in meaning to ______.3. Which of the following statements is NOT a characteristic of a welfare state mentioned in this passage?4. Which of the following inferences is true, according to this passage?5. The passage supplies information for answering which of the following questions?
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