Minister of Finance about the pricing policy in this country. What
Questions would you ask him?
Grammar Exercises
Ex:1. Make sentences interrogative and negative:
Model: They can change your credit terms at once. - Can they
change your credit terms at once? They can't change your
credit terms.
1. They must research supply and demand before they start to produce the
new item.
2. The company has to cover the costs by all means.
3. The middlemen may set the new price.
4. They can pursue unsound price policies.
5. They must choose another location for their shop.
Ex.2. Choose the necessary modal verb and put it in the sentence:
1. Off-even pricing... undoubtedly produce favorable psychological effect
on a consumer.
2. I spoke with the chief. Now you... change the credit terms.
3. They are very talented specialists. I think they... design the new line
very quickly.
4. The situation has changed, so we... start with especially low prices.
5. We... choose price emphasis policy for this item.
LESSON 14
INTERNATIONAL BUSINESS
Text
Any international corporation, or global company, has its origin.
Usually it is the outgrowth of the great trading companies of the 17th and
18th centuries. In 1811 a New York statute said corporations could be
created by filing documents. After that it became a matter of bureaucratic
operations to become a corporation. By 1850 it was a very common thing in
the United States and was under general statute in European countries as
well. Since that time the corporate movement began. As the jet plane,
satellite communications and computers appeared, it became possible for a
company to control business all over the world.
The growth of international corporate operations is faster than the
economic growth of the industrialized nations. There are some projects
which predict that within a generation almost a half of the free world
production will be internationalized.
This trend for internationalism presupposes some benefits such as new
jobs, higher living standards and bridging of the gaps between people -
economic, educational and technological. At the same time serious questions
can be asked. Is it the most efficient way to use world researches? Can
international corporation be the best force for a better world? Is it politically
stronger than government? Can it take care of the self interest and
competitiveness on behalf of the greatest good? And in what way can the
global company work toward easing the world’s crises - monetary, political,
energy and food?
Active Vocabulary
multinational corporation, syn.
global company
outgrowth
statute
satellite communication
to bridge the gap
jet plane
bureaucratic
международная корпорация,
международная компания
продукт, результат
законодательный акт
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спутниковая связь
уменьшить разрыв, сгладить различие
реактивный самолет
бюрократический
Comprehension Questions
1. What is the origin of the multinational company?
2. When did the corporate movement begin?
3. Why did it become possible for a company to control enterprises on the
other side of the globe?
4. How quickly is internationalism growing?
5. What can internationalism bring? What problems can arise with
internationalism?
6. What are your own answers and explanations to these problems?
Vocabulary Practice
Ex. 1. Choose the necessary word and put it in the sentence:
1. All countries must prepare for possible energy... in
the future and save fuel.
2. If you want to form a corporation today you must
fulfill... operations.
3. When one deals with the currency of another
country, it is necessary to know the current...
exchange rate.
4.... is one factor to influence the growth of
international business.
5. Some analysts state that most of the free worlds
production will be... internationalized within a
a. internationalized
b. statute
c. bureaucratic
d. monetary crisis
e. satellite
communication
f. outgrowth
generation.
6. In 1985 the... said that cooperatives could be
created.
7. International corporation is very often an... of old
trading companies.
Dialogue
Nick and Ann are having lunch. Nick is an executive in the
international computer company.
Nick: Do you like the idea of taking a month's trip to Europe and the Far
East?
Ann: What? You are kidding!
Nick: First of all I must say that it's a business trip. The company wants me
to visit some of our operations. I should have meetings about the new
computer I am developing. They think if we combine expertise we'll
advance more quickly.
Ann: Oh, Nick. It's great. Where are we going to?
Nick: To nine countries. We have nine development laboratories. In fact,
only now I realize how large the company is, a real global company.
Ann: But the company started here, in America.
Nick: Yes. In this sense, we're American. Each company has to be
incorporated somewhere, here, or in Japan, or in Canada, or in India.
But our corporation is a real multinational one.
Ann: What does it mean then?
Nick: Well, we are in 126 countries and we have there 125,000 employees.
We do our business in 28 languages and more than 32 currencies. Our
plants are situated in 13 countries and we have eight development labs.
Ann: Now I see. You are multinational. But such industries as shipbuilding,
aircraft, automobile can't survive without selling abroad.
Nick: Right. By the way, do you know that for the last seven years more
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than half of the corporation's net income has come from overseas
business? We are the part of the world community.
Ann: It's exciting, isn't it?
Nick: Yes, now we really can feel that nations are tied to each other through
business operations. This internationalism is our hope for a better
world.
Ann: Well it's time to pack.
Nick: Later.
Ann: Nick, can you explain me why you sell computers to a company in
Canada when the company has a plant in Canada?
Nick: Well, Ann. For example, it's not unusual for an automobile company
from Britain to manufacture automobiles in France for sale in Britain
with Canadian-made engine, Swiss transmission and German axles.
It's international business.
Ann: But it is so complicated to sell the goods to a foreign company with
different currencies and all that.
Nick: I can tell you how we do. It's very interesting. When we deliver the
machine to the shipping company, we receive a bill of lading. It's a
receipt from the shipping company and it's also the foreign company's
claim to the computer when it gets to England.
Ann: And what's then?
Nick: Then we write draft or check which directs the British company to pay
a sum in British pounds to a third party in, let's say, 90 days. We call it
a ‘bill of exchange’, which includes the rate of exchange at the time
and, in addition, the interest. It must be paid in the 90 day extension of
credit.
Ann: That is hard time getting the money, isn't it?
Nick: No. We take the draft, the bill of lading and other necessary papers to
our New York bank. The draft is sold at discount, it means without
interest change, for the face value and get dollars. That's the way.
Ann: Well, but you get your money from the bank. How does the British
company pay? Who do they pay?
Nick: It's quite simple. New York bank sends the documents and the draft to
its branch in London or to a British bank. The transaction is finished
usually by accepting British pounds into a checking account in a
London bank.
Ann: It seems rather complicated.
Nick: It only seems so. The US supplied a computer, exported the
merchandise and got back a checking account deposit in a London
bank, importing claim on British goods and services.
Ann: Could you have dollars instead?
Nick: Sure, but in this case we would have reduced the existing British
claim on American goods and services.
Ann: So what?
Nick: If some nations pile up continuing capital surpluses and other
continuing deficits the problem in international economics can arise.
Ann: I see that I must study the subject thoroughly before we can continue.
Nick: Yes, may be.
Active Vocabulary
expertise
to advance
to sell abroad
net income
transmission
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engine
axle
bill of lading
receipt
claim
draft
party
extension of credit
face value
branch
to pile up
capital surpluses
специальные знания, компетентность
продвигаться, двигаться вперед
продавать за границу
чистая прибыль
коробка передач, трансмиссия
двигатель, мотор
ось, вал
коносамент, транспортная накладная
квитанция
требование, заявка
тратта, чек
зд. юридическая сторона
предоставление, продление кредита
номинал, номинальная цена
филиал, отделение
накапливать, увеличивать
излишки капитала
Vocabulary Practice
Ex.1. Use the structure of the model to respond the following sentences:
Model: Is it basically a Japanese corporation? (Yes) It's basically a
Japanese corporation, isn't it?
Is the overseas branch open? (No) The overseas branch isn't open,
is it?
1. Do many businessmen pile up capital surpluses? (Yes)
2. Is Russia the part of the Common Market? (No)
3. Does the New York bank accept Russian rubles? (Yes)
4. Is Britain one of the Common Market countries? (No)
5. Is the company starting a branch in China? (Yes)
6. Is internationalism a modern trend? (Yes)
Ex.2. Change the sentences according to the model:
Model: Why would you sell automobiles to a company in Japan? (Tell
me, please) - Tell me, please, why you would sell automobiles to a
company in Japan.
1. How does this bank deal with different currencies? (Explain)
2. Where will you deliver the computer? (Let me know)
3. When did they order the merchandise? (I don't know)
4. How did they sell the draft at discount? (It's hard to say)
5. How did they get the extension of credit? (Explain)
Ex.3. Answer the questions:
1. Do you have plans for international cooperation for your business?
2. What obstacles are there on the way of development of international
cooperation in this country?
3. What branches of business will develop fast in the sphere of international
cooperation?
4. Do you think that internationalism will help to solve many social problems?
5. What place do you think this country will take in international economy?
Ex.4. Translate into English:
1. Многие международные корпорации возникли в результате
объединения известных компаний.
2. Спутниковая связь способствует развитию международных
корпораций.
3. Банк затребовал чеки.
4. Компания просит продления кредита.
5. Обратитесь за кредитом в наш британский филиал.
6. Чистая прибыль от продажи этого товара будет очень высокой.
7. Нам необходимо накопить капитал для реконструкции производства.
8. Британская сторона отвечает за пересылку.
SUPPLEMENTARY TEXTS
TEXT 1